Slide 1: First Quarter 2019 Results
F I R S T Q U A R T E R 2 0 1 9 R E S U LT S M AY 8 , 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: Q1 Consolidated Financial Snapshot
Q1 Consolidated Financial Snapshot (1) (1) See slides 12 and 14-16 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 4 (2) Figures are adjusted non-GAAP
Slide 5: Adjusted EBITDA and Free Cash Flow
Adjusted EBITDA and Free Cash Flow (1) Adjusted EBITDA (2) Q1 Y/Y'18 FCFvs Q1 '19 (2) 2013 (in millions) (in millions) 220,446,000 Q1 2018 $500.7 102,668,939 $489.5 10.9% $113.9 $463.0 $396.1 $102.7 $333.3 $262.6 $220.4 2013 $150,393,000 2013 2014 2015 2016 2017 2018 LTM Q1 2018 Q1 2019 Q1 2018 $90,
Slide 6: Q1 2019 Financial Snapshot By Business
Q1 2019 Financial Snapshot By Business (1) CLOUD SERVICES ``` DIGITAL MEDIA Revenue Revenue (in millions) (in millions) 1.8% $149.5 $152.2 12.6% $147.6 $131.1 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Adjusted EBITDA (2) Adjusted EBITDA (2) (in millions) (in millions) 1.8% 30.0% $40.8 $73.8 $75.1 $31.4 Q1 201
Slide 7: 2019 Financial Guidance
2019 FINANCIAL GUIDANCE
Slide 8: 2019 Guidance Increase
2019 Guidance Increase (Forward-Looking Statements) ORIGINAL GUIDANCE REVISED GUIDANCE Revenues $1,290MM - $1,330MM $1,330MM - $1,370MM Adjusted EBITDA(1)(2) $520MM - $540MM $540MM - $556MM Adjusted Non-GAAP $6.65 - $6.95 $6.95 - $7.15 EPS(1)(2) (1) Figures are adjusted non-GAAP 8 (2) Adjusted earni
Slide 9: Supplemental Information
"SUPPLEMENTAL INFORMATION
Slide 10: Consolidated Metrics
Consolidated Metrics 2017 2018 2019 j2 Consolidated Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Revenue by Business I--(in '000s)--I Cloud Services Revenues $141,544 $144,709 $145,787 $146,916 $149,485 $150,297 $150,094 $148,099 $152,245 Digital Media Revenues $113,125 $128,465 $127,829 $169,464 $131,137 $137,591 $1
Slide 11: 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 Revenue by Type Fixed Subscriber Revenues $115,726 $117,556 $118,755 $119,232 $120,840 $123,648 $123,111 $121,350 $124,309 I------------------ (in '000s) ------------------I Variable Subscriber Re
Slide 12: Q1 2019 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS
Q1 2019 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS (1) Figures in Thousands Three Months Ended March 31, 2018 2019 Cost of revenues $ 48,145 $ 51,013 Plus: Share based compensation (1) (121) (132) Amortization (4) (594) (523) Adjusted non-GAAP cost of revenues $ 47,430 $ 50,358 Sales
Slide 13: GAAP Reconciliation - Free Cash Flow
GAAP Reconciliation - Free Cash Flow(1) (2) Figures in Thousands 2013 2014 2015 2016 2017 2018 LTM Q1 2018 Q1 2019 Net cash provided by operating activities $ 193,324 $ 177,231 $ 229,061 $ 282,387 $ 264,420 $ 401,325 $ 414,269 $ 103,910 $ 116,854 Less: Purchases of property and equipment (18,626) (1
Slide 14: GAAP Reconciliation - Adjusted EBITDA
GAAP Reconciliation - Adjusted EBITDA(1) (2) j2 Consolidated 2013 2014 2015 2016 2017 2018 LTM Q1 2018 Q1 2019 Revenue $ 520.8 $ 599.0 $ 720.8 $ 874.3 $ 1,117.8 $ 1,207.3 $ 1,226.6 $ 280.6 $ 299.9 GAAP Net Income $ 107.5 $ 125.3 $ 133.6 $ 152.4 $ 139.4 $ 128.7 $ 142.3 $ 18.9 $ 32.4 Plus: Income tax
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: Q1 2018 Reconciliation of GAAP to Adjusted EBITDA
(1) Q1 2018 Reconciliation of GAAP to Adjusted EBITDA Figures in Thousands Cloud Services Digital Media Corporate Total Revenues GAAP revenues $ 149,485 $ 131,137 $ 1 $ 280,623 Gross profit GAAP gross profit $ 118,484 $ 113,993 $ 1 $ 232,478 Non-GAAP adjustments: Share-based compensation 121 - - 121
Slide 17: j2 Global
j2 Global