Slide 1: Second Quarter 2019 Results
S E C O N D Q U A R T E R 2 0 1 9 R E S U LT S A U G U S T 7 , 2 0 1 9
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 2019 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: Celebrating 20 Years on Nasdaq
Celebrating 20 Years on Nasdaq 4
Slide 5: Q2 Consolidated Financial Snapshot
Q2 Consolidated Financial Snapshot (1) (1) See slides 13 and 15-17 for a GAAP reconciliation of adjusted non-GAAP gross profit, adjusted EBITDA and adjusted earnings per diluted share for the Company as a whole and by Business (2) Figures are adjusted non-GAAP 5
Slide 6: Adjusted EBITDA and Free Cash Flow
Adjusted EBITDA and Free Cash Flow (1) Adjusted EBITDA (2) Q2 Y/Y'18 FCFvs Q2 '19 (2) (in millions) (in millions) $512.4 $489.5 10.3% $125.2 $463.0 $396.1 $113.5 $333.3 $262.6 $220.4 2013 2014 2015 2016 2017 2018 LTM Q2 2018 Q2 2019 Free Cash Flow (2) Q2 '18 vs Q2 '19 (2) (in millions) (in millions)
Slide 7: Q2 2019 Financial Snapshot By Business
Q2 2019 Financial Snapshot By Business (1) `` CLOUD SERVICES DIGITAL MEDIA Revenue Revenue (in millions) (in millions) 12.5% $169.1 11.4% $153.3 $150.3 $137.6 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Adjusted EBITDA (2) Adjusted EBITDA (2) (in millions) (in millions) $85.2 12.6% 6.9% $42.6 $39.8 $75.6 Q2 201
Slide 8: 2019 Financial Guidance
2019 FINANCIAL GUIDANCE
Slide 9: 2019 Guidance
2019 Guidance (Forward-Looking Statements) Reaffirm our annual revised guidance(3) of Revenues, EBITDA and EPS REVISED GUIDANCE Revenues $1,330MM - $1,370MM Adjusted EBITDA(1)(2) $540MM - $556MM Adjusted non- GAAP EPS(1)(2) $6.95 - $7.15 (1) Figures are adjusted non-GAAP (2) Adjusted earnings per di
Slide 10: Supplemental Information
"SUPPLEMENTAL INFORMATION
Slide 11: Consolidated Metrics
Consolidated Metrics 2017 2018 2019 J2 Consolidated Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Revenue by Business |---(in '000s)---| Cloud Services Revenues $141,544 $144,709 $145,787 $146,916 $149,485 $150,297 $150,094 $148,099 $152,245 $169,132 Digital Media Revenues $113,125 $128,465 $127,829 $169,464 $131,1
Slide 12: Cloud Services & Digital Media Metrics
Cloud Services & Digital Media Metrics 2017 2018 2019 Cloud Services Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Revenue by Type Fixed Subscriber Revenues $115,726 $117,556 $118,755 $119,232 $120,840 $123,648 $123,111 $121,350 $124,309 $140,352 |----------------------(in '000s)----------------------| Vari
Slide 13: Q2 2019 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS
Q2 2019 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS (1) Figures in Thousands Three Months Ended June 30, 2018 2019 Cost of revenues $ 47,749 $ 60,266 Plus: Share based compensation (1 ) (129) (131) Acquisition related integration costs (2) (43) (55) Amortization (4) (546) (461) Adjust
Slide 14: GAAP Reconciliation - Free Cash Flow
GAAP Reconciliation - Free Cash Flow(1) (2) Figures in Thousands 2013 2014 2015 2016 2017 2018 LTM Q2 2018 Q2 2019 Net cash provided by operating activities $ 193,324 $ 177,231 $ 229,061 $ 282,387 $ 264,420 $ 401,325 $ 407,243 $ 102,383 $ 95,357 Less: Purchases of property and equipment (18,626) (11
Slide 15: GAAP Reconciliation - Adjusted EBITDA
GAAP Reconciliation - Adjusted EBITDA(1) (2) J2 Consolidated 2013 2014 2015 2016 2017 2018 LTM Q2 2018 Q2 2019 Revenue $ 520.8 $ 599.0 $ 720.8 $ 874.3 $ 1,117.8 $ 1,207.3 $ 1,261.1 $ 287.9 $ 322.4 GAAP Net Income $ 107.5 $ 125.3 $ 133.6 $ 152.4 $ 139.4 $ 128.7 $ 146.4 $ 28.5 $ 32.6 Plus: Income tax
Slide 16: Q2 2019 Reconciliation of GAAP to Adjusted EBITDA
(1) Q2 2019 Reconciliation of GAAP to Adjusted EBITDA Figures in Thousands Cloud Services Digital Media Corporate Total Revenues GAAP revenues $ 169,132 $ 153,298 $ 2 $ 322,432 Gross profit GAAP gross profit $ 132,534 $ 129,630 $ 2 $ 262,166 Non-GAAP adjustments: Share-based compensation 128 3 - 131
Slide 17: Q2 2018 Reconciliation of GAAP to Adjusted EBITDA
(1) Q2 2018 Reconciliation of GAAP to Adjusted EBITDA Figures in Thousands Cloud Services Digital Media Corporate Total Revenues GAAP revenues $ 150,297 $ 137,591 $ 1 $ 287,889 Gross profit GAAP gross profit $ 119,617 $ 120,522 $ 1 $ 240,140 Non-GAAP adjustments: Share-based compensation 128 1 - 129
Slide 18: Global J2
J2 GLOBAL