Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — j2 Global — Q2 2016 Earnings Presentation
25 slides from Ziff Davis's earnings presentation, Aug 3, 2016
Slide 1: Investors Presentation Second Quarter 2016 Results
Investors Presentation ® Second Quarter 2016 Results August 3, 2016
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 2016 Financial Guidance. Such forward- looking statements are subject to nu
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, particularly in light of an uncertain U.S. and worldwide economy and the r
Slide 4: Q2 2016 Results
Q2 2016 Results
Slide 5: 2016 Q2 Accomplishments
2016 Q2 Accomplishments Q2 ‘16 Consolidated Results • Record Second Quarter Revenue $212M, +20.3% vs Q2 2015 • Q2 adjusted EBITDA(1)(2) $97.5M, +22.5% vs Q2 2015 • Executing M&A investment to further improve market position • 6 acquisitions completed in Q2 2016, 5 Cloud and 1 Media Cloud Segment • Q
Slide 6: j2 Global Consolidated
j2 Global Consolidated
Slide 7: Q2 2016 Results vs. Prior Year
Q2 2016 Results vs. Prior Year ($ in thousands) Total Cloud by Unit Cloud Connect (Fax/Voice) Cloud Services IP Licensing Total Cloud Q2 2015 Q2 2016 Q2 2015 Q2 2016 Q2 2015 Q2 2016 Q2 2015 Q2 2016 Revenues $ 89,273 $ 92,858 $ 34,632 $ 48,509 $ 1,283 $ 1,093 $ 125,188 $ 142,460 Adj. Non-GAAP Gross P
Slide 8: Business Cloud Services
Business Cloud Services
Slide 9: Q2 2016 Cloud Connect (Fax/Voice) Highlights
Q2 2016 Cloud Connect (Fax/Voice) Highlights • Q2 ‘16 Revenue of $93M, +4% vs. Q2 ’15, annual run rate ~$375M • Fax Revenue of $77M, +1% vs. Q2 ‘15, led by premium brands and corporate fax • Fax Revenue represents 36% of consolidated Q2 ‘16 Revenue and ~44% of consolidated adjusted EBITDA(1)(2)(3) •
Slide 10: Q2 2016 Cloud Backup Highlights
Q2 2016 Cloud Backup Highlights • Revenue of $29M, +77% vs Q2 ’15, +6% vs. prior quarter • Adjusted EBITDA(1)(2) of $15.5M, +125% vs. Q2 ’15 • Adjusted EBITDA margin 53% vs. +42% in Q2 ‘15 • Acquired Frontsafe in July, expanded our KeepItSafe brand into Denmark • Nordic revenue increased by 67% • Co
Slide 11: Q2 2016 Email Highlights
Q2 2016 Email Highlights Email Security • Q2 ‘16 Revenue of $12M, +2% vs. Q2 ’15 • Q2 ‘16 adjusted EBITDA(1)(2) of $4M, +9% vs. Q2 ’15 • Nordic Update • Double-digit revenue growth in Nordics • Cost savings resulting from Datacenter and office consolidation Email Marketing • Q2 ‘16 Revenue of $6.3M,
Slide 12: Digital Media
Digital Media
Slide 13: Q2 2016 Digital Media Highlights
Q2 2016 Digital Media Highlights • Digital media business demonstrating strong fundamentals • Q2 ‘16 Revenue of $69M, +36% vs. Q2 ’15 • Q2 ‘16 adjusted EBITDA(1)(2) of $26M, +37% vs. Q2 ’15 • Total multi-platform visits +25% YoY at 1.2B (3) • Performance Marketing (CPC, CPA, CPL, CPI) grew 101% vs.
Slide 14: Q2 2016 Digital Media Highlights
Q2 2016 Digital Media Highlights • IGN’s distributed video strategy demonstrating strong growth (1) • Total video views across all IGN platforms were up 84% YoY to 843M • IGN grew subscribers to its YouTube channels by 28% YoY to 8.9M total subscribers • IGN’s Snapchat channel experienced 93% growth
Slide 15: 2016 Financial Guidance
2016 Financial Guidance
Slide 16: Reconfirming 2016 Guidance
Reconfirming 2016 Guidance Revenues $830M - $860M Adjusted Non-GAAP EPS(1)(2) $4.70 - $5.00 (1) Figures are adjusted Non-GAAP. (2) Adjusted earnings per diluted share excludes share-based compensation, amortization of acquired intangibles and the impact of any currently anticipated items, in each ca
Slide 17: Supplemental Information
Supplemental Information
Slide 18: Financial Metrics: Consolidated
Financial Metrics: Consolidated j2 Global Consolidated 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 |----(in Thousands)--------I Total Revenues $161,253 $176,038 $178,701 $204,823 $200,502 $211,800 Revenue By Segm ent Cloud Revenues $118,061 $125,188 $126,436 $134,953 $138,139 $142,460 Digital Media Revenues $43,192
Slide 19: Financial & Other Metrics Cloud & Media
Financial & Other Metrics Cloud & Media Total Cloud 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 |----------------(in Thousands)---------------------I Revenue By Type Fixed Subscriber Revenues $96,097 $102,437 $103,957 $112,428 $115,496 $117,199 Variable Subscriber Revenues $19,687 $21,368 $21,364 $21,384 $21,453 $2
Slide 20: GAAP Reconciliation Free Cash Flow & Adjusted EBITDA
GAAP Reconciliation Free Cash Flow & Adjusted EBITDA ($ in millions) Free Cash Flow (1) Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Net cash provided by operating activities $45.716 $51.894 $50.963 $80.488 $64.524 $67.528 Less: Purchases of property and equipment ($2.401) ($4.554) ($4.972) ($5.370) ($4.321)
Slide 21: GAAP Reconciliation Q2 2016 Adjusted Non-GAAP Earnings & EPS
GAAP Reconciliation Q2 2016 Adjusted Non-GAAP Earnings & EPS ($ in thousands) THREE MONTHS ENDED JUNE 30, 2016 (2) (6) Acquisition- (4) Additional (1) related (3) IRS Tax Expense Share-based Integration Interest Consulting (5) (Benefit) from Adjusted GAAP Compensation Costs Costs Fee Amortization Pr
Slide 22: GAAP Reconciliation Q2 2015 Adjusted Non-GAAP Earnings & EPS
GAAP Reconciliation Q2 2015 Adjusted Non-GAAP Earnings & EPS ($ in thousands) THREE MONTHS ENDED JUNE 30, 2015 (2) (6) Acquisition- (4) Additional (1) related (3) IRS Tax Expense Share-based Integration Interest Consulting (5) (Benefit) from Adjusted GAAP Compensation Costs Costs Fee Amortization Pr
Slide 23: GAAP Reconciliation Q2 2016 Adjusted EBITDA
GAAP Reconciliation Q2 2016 Adjusted EBITDA ($ in thousands) THREE MONTHS ENDED JUNE 30, 2016 Cloud Cloud IP Digital Connect Services Licensing Media j2 Global, Inc. Total Revenues GAAP Revenues $92,858 $48,509 $1,093 $69,340 $ - $211,800 Gross Profit GAAP Gross Profit $76,851 $34,485 $1,093 $63,780
Slide 24: GAAP Reconciliation Q2 2015 Adjusted EBITDA
GAAP Reconciliation Q2 2015 Adjusted EBITDA ($ in thousands) THREE MONTHS ENDED JUNE 30, 2015 Cloud Cloud IP Digital Connect Services Licensing Media j2 Global, Inc. Total Revenues GAAP Revenues $89,273 $34,632 $1,283 $50,850 $ - $176,038 Gross Profit GAAP Gross Profit $75,139 $24,290 $1,283 $45,832
Slide 25: j2 Global
j2) Global