Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Q3 2009 Earnings Presentation
20 slides from Ziff Davis's earnings presentation, Nov 5, 2009
Slide 1: Investor Presentation (Based upon Third Quarter 2009 Results)
EXHIBIT 99.2 Investor Presentation (Based upon Third Quarter 2009 Results) November 4, 2009 1
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those contained in the slide “2009 Guidance.” These forward- looking statements are base
Slide 3: Risk Factors
Risk Factors The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: Inability to sustain growth in our customer base, revenue or profitability, particularly in light of the uncertain U.S. or
Slide 4: Messaging/Communications as a Service
Messaging/Communications as a Service All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally. 4
Slide 5: Core j2 Global Assets
Core j2 Global Assets 1.274 M Paid DIDs Global Advanced Messaging Network 3,500 cities in 46 countries on 6 continents Intellectual Property Many issued patents and licensing programs designed to monetize the portfolio Protection of brands and marks Programs designed to effectively collect evidence
Slide 6: Subscriber Acquisition
Subscriber Acquisition Individuals Targeted marketing (search, online media and radio) Sold through: eFax.com, Onebox.com, eVoice.com, Fax.com, Rapidfax.com and other brand Websites Use of proprietary Life Cycle Management Advertising, Up-selling, and Calling-Party-Pays revenue supports the Free bas
Slide 7: Paid Subscription Drivers
Paid Subscription Drivers Eight Drivers for Paid DID Additions Subscribers coming directly to the Company’s Websites/Telesales Brand awareness driven by demand-generation programs and “word of mouth” Search engine discovery Accounts for 40%+ of monthly paid DID signups Free-to-Paid subscriber upgrad
Slide 8: Financial Highlights
j2 A Comanalesta Financial Highlights © J2 Global Communications 2009
Slide 9: GAAP Results
GAAP Results Q3 2009 $ Margin Revenues $61.8M Gross Profit/Margin (1) $50.5M 81.8% Operating Profit/Margin (1) $26.7M 43.1% GAAP EPS (2) $0.43/Share Free Cash Flow (3) $26.1M Cash and Investments $222.5M (1) Includes non-cash compensation expense. (2) Includes non-cash compensation expense and relat
Slide 10: Operational & Strategic Overview
Operational & Strategic Overview 10
Slide 11: Current Highlights
Fax Current Highlights Corporate continued winning big deals – 3 + 3 already in October Record month on secondary fax brands New performance-based marketing campaigns underway Added 170 cities totaling 3,500 in 46 countries Voice iPhone and Blackberry apps launching – extend Onebox ® experience to s
Slide 12: Analyst/Investor Outreach
Analyst/Investor Outreach In-depth Survey Program Analyst/Investor Insight and Needs Ongoing Commitment Launched in 2003/seven annual studies Follow-up feedback to key events/calls Track change, respond, and improve over time Tangible Response Enhanced disclosure More robust metrics provided Guidanc
Slide 13: Analyst/Investor Outreach
Analyst/Investor Outreach Making Progress in Communications (6 point scale) IR effectiveness score Comparative Company and Strategy Scores Overall impression of JCOM Strategy effectiveness rating 13
Slide 14: 2009 Guidance
2009 Guidance Maintain Modest Increase in Revenues and Non-GAAP(1) EPS (1) Net of expenses related to share-based compensation and one time charges. See Reconciliation between GAAP and non-GAAP EPS on slide 18. 14
Slide 15: Supplemental Information
Supplemental Information 15
Slide 16: Metrics
2007 2008 2009 Metrics Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Fixed Subscriber Revenues $43,336 $44,260 $46,593 $47,481 $48,125 $48,799 $49,726 $49,782 Variable Subscriber Revenues 12,057 12,956 12,943 12,985 11,503 10,842 11,322 11,264 Subscriber Revenues $55,393 $57,216 $59,536 $60,466 $59,628 $59,640 $61,049 $6
Slide 17: Computation of Free Cash Flow
Computation of Free Cash Flow ($ in millions) Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Net cash provided by operating activities $25.779 $27.411 $23.840 $15.676 $23.789 $31.152 $20.362 $26.469 Purch. of property & equipment ($4.340) ($0.469) ($0.796) ($0.937) ($0.305) ($0.721) ($0.217
Slide 18: Non-GAAP Results & Reconciliation to GAAP
Non-GAAP Results & Reconciliation to GAAP j2 GLOBAL COMMUNICATIONS, INC. UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL RESULTS THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2009 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) THREE MONTHS ENDED SEPTEMBER 30, 2009 NINE MONTHS ENDED SEPTEMBER 3
Slide 19: Usage of Corporate and Web High Volume Users
Usage of Corporate and Web High Volume Users 19
Slide 20: Global Communications
j2 Global Communications ® © J2 Global Communications 2009
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