Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global — Q1 2020 Earnings Presentation
16 slides from Ziff Davis's earnings presentation, May 12, 2020
Slide 1: First Quarter 2020 Results
F I R S T Q U A R T E R 2 0 2 0 R E S U LT S M AY 1 2 , 2 0 2 0
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those regarding our 2020 Financial Guidance. Such forward-looking statements are subject to num
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 or profitability, and any related impact of U.S. or worldwide economic issues on customer ac
Slide 4: Q1 2020 Consolidated Financial Snapshot
Q1 2020 Consolidated Financial Snapshot Revenue Adjusted Gross Profit (1)(2) (in millions) (in millions) 10.8% 9.8% Q2 2018 $233,192,653 $332.4 $273.9 $299.9 $249.5 Q2 2018 $102,668,939 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q2 2018 $1.22 Adjusted EBITDA (1)(2) Adjusted EPS (1)(2) (in millions) 2.6% 0.0% $
Slide 5: Adjusted EBITDA and Free Cash Flow
Adjusted EBITDA and Free Cash Flow (1) Q1 vs Q1 '20 (1)(2) 2013 Adjusted EBITDA (1)(2) Y/Y'19 FCF (in millions) 233,018,000 (in millions) $553.1 $550.2 2.6% $489.5 $463.0 $396.1 $116.8 $333.3 $113.9 $262.6 $233.0 2013 $177,393,000 2013 2014 2015 2016 2017 2018 2019 LTM Q1 2019 Q1 2020 Q1 2018 $90,74
Slide 6: Q1 2020 Financial Snapshot By Business
Q1 2020 Financial Snapshot By Business CLOUD SERVICES ``` DIGITAL MEDIA Revenue Revenue (in millions) (in millions) 11.5% 10.1% $169.8 $162.6 $152.2 $147.6 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Adjusted EBITDA (1)(2) Adjusted EBITDA (1)(2) (in millions) (in millions) 4.3% $78.4 $40.8 $75.1 $39.9 Q1 2019 Q
Slide 7: Business Outlook
Business Outlook • Due to the global impact of COVID-19, the Company is withdrawing its previously issued financial guidance for fiscal 2020. • The Company believes that business projections should be evaluated on a near-term basis. • Based on our current performance and expectations, we anticipate
Slide 8: Supplemental Information
"SUPPLEMENTAL INFORMATION
Slide 9: Consolidated Metrics
Consolidated Metrics 2018 2019 2020 J2 Consolidated Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Revenue by Business |---(in '000s)---| Cloud Services Revenues $149,485 $150,297 $150,094 $148,099 $152,245 $169,132 $171,163 $169,296 $169,784 Digital Media Revenues $131,137 $137,591 $142,628 $197,958 $147,647 $153,298
Slide 10: Cloud Services & Digital Media Metrics
Cloud Services & Digital Media Metrics 2018 2019 2020 Cloud Services Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Revenue by Type |----------------------(in '000s)----------------------| Fixed Subscriber Revenues $120,840 $123,648 $123,111 $121,350 $124,309 $140,352 $141,832 $142,420 $144,033 Variable Subscri
Slide 11: Q1 2020 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS
Q1 2020 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS(1) Figures in Thousands Three Months Ended March 31, 2019 2020 Cost of revenues $ 51,013 $ 59,131 Plus: (1) Share based compensation (132) (134) (2) Acquisition related integration costs - (55) (4) Amortization (523) (450) Adjusted n
Slide 12: GAAP Reconciliation - Free Cash Flow
GAAP Reconciliation - Free Cash Flow(1)(2) Figures in Thousands 2013 2014 2015 2016 2017 2018 2019 LTM (3) (3) Q1 2019 Q1 2020 Net cash provided by operating activities $ 193,324 $ 177,231 $ 229,061 $ 282,387 $ 264,420 $ 401,325 $ 412,539 397,721 $ 116,854 $ 102,036 Less: Purchases of property and e
Slide 13: GAAP Reconciliation - Adjusted EBITDA
GAAP Reconciliation - Adjusted EBITDA (1)(2) (Figures in Millions) J2 Consolidated 2013 2014 2015 2016 2017 2018 2019 LTM Q1 2019 Q1 2020 Revenue $ 520.8 $ 599.0 $ 720.8 $ 874.3 $ 1,117.8 $ 1,207.3 $ 1,372.1 $ 1,404.6 $ 299.9 $ 332.4 GAAP Net Income (Loss) $ 107.5 $ 125.3 $ 133.6 $ 152.4 $ 139.4 $ 1
Slide 14: Q1 2020 Reconciliation of GAAP to Adjusted EBITDA
(1) Q1 2020 Reconciliation of GAAP to Adjusted EBITDA Figures in Thousands Cloud Services Digital Media Corporate Total Revenues GAAP revenues $ 169,784 $ 162,608 $ 1 $ 332,393 Gross profit GAAP gross profit $ 131,424 $ 141,837 $ 1 $ 273,262 Non-GAAP adjustments: Share-based compensation 132 2 - 134
Slide 15: Q1 2019 Reconciliation of GAAP to Adjusted EBITDA
(1) Q1 2019 Reconciliation of GAAP to Adjusted EBITDA Figures in Thousands Cloud Services Digital Media Corporate Total Revenues GAAP revenues $ 152,245 $ 147,647 $ 1 $ 299,893 Gross profit GAAP gross profit $ 119,762 $ 129,117 $ 1 $ 248,880 Non-GAAP adjustments: Share-based compensation 130 2 - 132
Slide 16: J2 Global
J2 GLOBAL