Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Jefferies 4th Annual Communications Conference (September 2006)
20 slides from Ziff Davis's conference presentation, Sep 12, 2006
Slide 1: Jefferies 4th Annual Communications Conference
Jefferies 4th Annual Communications Conference (Based upon Announced Second Quarter 2006 results) September 11, 2006
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 entitled “Financial Guidance”. These forward-looking statem
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: Compensation expense resulting from differences in recorded and actual option grant dates, if any Delisting from Nasdaq ba
Slide 4: Messaging as a Service
Messaging 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 11.4 million subscribed telephone numbers (DIDs) Global advanced messaging network 2000+ cities in 31 countries on 5 continents 15.4 MM+ unique DIDs worldwide in inventory Patented technology A portfolio of 29 issued U.S. patents, and numerous pending U.S. patent applications,
Slide 6: Subscriber Acquisition
Individuals Subscriber Acquisition Targeted Web marketing (e.g. AOL, MSN, Yahoo!, Google, CareerBuilder, Earthlink) Sold primarily through: www.eFax.com , www.j2.com, www.onebox.com and www.evoice.com Use of proprietary Life Cycle Management Advertising & Calling-Party-Pays revenue supports the Free
Slide 7: Paid Subscription Drivers
Paid Subscription Drivers Seven Drivers for Paid DID Additions Subscribers coming directly to the Company’s Websites/Telesales Brand awareness Search engine discovery Accounts for approximately 50% of monthly paid DID signups Free-to-Paid subscriber upgrades Life Cycle Management Less than 10% of mo
Slide 8: Service Roadmap
Service Roadmap All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally. 8
Slide 9: Corporate Sales Channel
j2 , et Corporate Sales Channel @eFax Corporate
Slide 10: Recent Corporate Channel Achievements
Recent Corporate Channel Achievements Largest Corporate Contract Signed Minimum commitment of 10,000 DIDs Largest Existing Customer Extending Deployment 7,000 DIDs 10,000+ DIDs ~ 20,000 DIDs Deployed DIDs 54% Greater than Contracted Minimum Pipeline includes 59 1,000+ DID Engagements (17 in Europe)
Slide 11: 3 Years of Growth and Efficiency (Mid-Year 2003-2006)
3 Years of Growth and Efficiency (Mid-Year 2003-2006) Corporate Staff Grew Only 33% Deployed DIDs Grew More than 300% 2 Customers with More than 10,000 DIDs 24 Customers with 1,000+ DIDs 61 Customers with 500+ DIDs 31 Fortune 100 Customers All brand names and logos are trademarks of j2 Global Commun
Slide 12: Corporate Channel Drivers
Corporate Channel Drivers Continued Consolidation of Multi Data Center Infrastructure Lower cost consolidated sites push out fax-servers Prefer scalable and geographically diverse solutions Desire for global solutions Comfort with Outsourcing Infrastructure (SME & Enterprise) Access to Solutions as
Slide 13: Financial Highlights
j2). comnavaiia Financial Highlights
Slide 14: Historical Revenue & Operating Earnings Growth
Historical Revenue & Operating Earnings Growth 37 consecutive quarters of Revenue growth 18 consecutive quarters of Operating Earnings growth Operating earnings for Q1 and Q2 2006 is based on Non-GAAP earnings. See Slide 19 for a reconciliation to GAAP. In addition in Q4 2002, operating income is re
Slide 15: 4 Quarter Rolling Average Cost Trends
4 Quarter Rolling Average Cost Trends Sales & Marketing Engineering All margin data for Q1 and Q2 2006 are based on Non-GAAP earnings. See Slide 19 for a reconciliation to GAAP. 15
Slide 16: Supplemental Information
Supplemental Information 16
Slide 17: Metrics
Metrics 2004 2005 2006 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Fixed Subscriber Revenues $16,021 $17,750 $19,122 $20,823 $73,716 $22,773 $23,756 $25,229 $26,963 $98,721 $28,537 $29,687 Variable Subscriber Revenues 6,041 7,314 7,863 8,226 29,444 8,502 10,323 11,258 10,901 40,984 12,025 12,817 Subsc
Slide 18: Computation of Free Cash Flow
Computation of Free Cash Flow ($ in millions) Q1 '04 Q2 '04 Q3 '04 Q4 '04 Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Net cash provided by operating activities $10.252 $13.044 $13.240 $14.785 $13.762 $15.227 $15.951 $19.723 $19.245 $14.248 Purchases of property & equipment (0.319) (1.442) (1.337) (3.8
Slide 19: GAAP Reconciliation
GAAP Reconciliation j2 GLOBAL COMMUNICATIONS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) THREE MONTHS ENDED MARCH 31, 2006 THREE MONTHS ENDED JUNE 30, 2006 Reported Non-GAAP Entries Non-GAAP Reported Non-GAAP Entries Non-GAAP Rev
Slide 20: Global
Global
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