Slide 1: Investors Presentation: Fourth Quarter 2015 Results
° 2 Investors Presentation J Fourth Quarter 2015 Results Global February 10, 2016
Slide 2: Safe Harbor for Forward-Looking Statements
j2 ) 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
Slide 3: Risk Factors
j2) | 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
Slide 4: Q4 & FY 2015 Results
Q4 & FY 2015 Results
Slide 5: 2015 Accomplishments
j2) | 2015 Accomplishments Record Results - full year and Q4 results * All Q4 Records("2): Revenue $205M, EBITDA $100M, FCF $75M, and Adjusted EPS $1.29 * All FY Records("); Revenue $721M, EBITDA $333M, FCF $223M, and Adjusted EPS $4.17 * 2015 FY Revenue'2) up $120M or 20% vs. prior year * M&A strat
Slide 6: Q4 2015 Results vs. Prior Year
j2 ) | Q4 2015 Results vs. Prior Year IP Licensing 042014 4 2015 042014 042015, ‘Adj. Non-GAAP Revenues $ 113,353 § 133,836 $ 1,250 $ 1117 Adj. Non-GAAP Gross Profit 90,536 107,425 1,250 4117 ‘Adj. Non-GAAP Operating Profit $53,525 S$ 64,972 $204 $655 epiTpa “ $ 55,803 $67,343 $ 204 $ 655 % of Reven
Slide 7: j2 Global Consolidated
j2 Global Consolidated
Slide 8: Total Quarterly Revenue Mix by Service
j2 ) | Total Quarterly Revenue") Mix by Service * Q4 ‘11 - Q4 ‘15 Revenue ‘1) 25% CAGR, revenue increased across all three categories 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Q4 2011 $102.0M 8% 04 2012 § Fax/Voice Revenue Mix $138.0M Q4 2013 Other Cloud $167.5M 16% $204.8M 22% Q4 2014 m Digital M
Slide 9: Business Cloud Services
Business Cloud Services
Slide 10: User cancel rate improved to record 4th quarter low of 2.06%
j2)| User cancel _rate improved to record 4th quarter low of 2.06% Record Low 4th Quarter User Cancel Rate for Cloud Business Cloud Backup and Voice driving YoY improvement 2.6% 2.5% 2.4% 2.3% 2.2% 2.1% 2.0% 1.9% 1.8% Cancel Rate) m2011 = 2012 = 2013 = 2014 m 2015 at a2 a3 aa “ User cancel rate, als
Slide 11: Cloud Connect
j2) | Cloud Connect Q4 2045 Highlights * Q4 15 Revenue (2)up 2% vs. Q4 44 (despite $2M in foreign currency headwinds) 2015 Full Year Highlights * Fax/Voice Revenue (1)(2) grew +$4.3M in 2015 vs. 2014 (+$13M or 3% in constant currencies) * Fax represented 42% of total revenue in 2015 * Fax is expecte
Slide 12: Cloud Backup
j2) | Cloud Backup Q4 2015 Highlights * Q4 ‘15 Revenuel up 52% vs Q3 15 and up 102% vs Q4 14 2015 Full Year Highlights * Revenuel2) $74M, up 60% vs. prior year * EBITDA'2) at 49%, up 85% vs. prior year * Acquisition of two new brands SugarSyne & LiveVault * Successful launch of Cloud2Cloud, Enterpri
Slide 13: Email Security
j2 2)| Email Security Q4 2015 Highlights * Q4 15 Revenue'?) up 46% vs. Q4 14 * Acquired MxToolbox email security business * Implemented extensive product enhancements including localized FuseMail in Norway & Sweden 2015 Full Year Highlights * 2015 Revenue''?) of $45M up 162% vs. prior year * Solidif
Slide 14: Email Marketing
j2) | Email Marketing 4Q 2015 Highlights * Q4 15 Revenuelt2) up 44% vs. Q4 14 2015 Full Year Highlights * 2015 Revenue'X2) of ~$21M up 58% vs. prior year * Reseller and White Label channel successfully launched and growing * Proven ability to efficiently integrate new acquisitions * ARPU of $219, vs
Slide 15: Digital Media
Digital Media
Slide 16: Q4 2015 Digital Media Highlights
j2 ) | Q4 2015 Digital Media Highlights * Digital media business demonstrating strong fundamentals * Revenuelh2) of $70M, up 32% vs. Q4 2014 * EBITDA'2) of $32M, up, 54% vs. Q4 2014 * EBITDA'2) margin growth to 46% vs. 40% for Q4 2014 * Total multi-platform visits were 44% YoY at 1,092M ® * Performa
Slide 17: Q4 2015 Digital Media Highlights
j2 ) | Q4 2015 Digital Media Highlights * Several key product launches hit in Q4 * IGN launched their Apple TV app, bri ment devices: Play St room entert * Launched fully mobile responsive versions of PCMag.com and ComputerShopper.com * AskMen launched guyQ, their o1 question and answer platform. *
Slide 18: 2015 Results & 2016 Outlook
j2 ) | 2015 Results & 2016 Outlook 2015 Results * 2015 FY Revenue()) of $216M, up $49M or 29% vs. prior year * Two acquisitions completed in 2015 * EBITDA'2) margin greater than 39% vs. 32% in prior year 2016 Outlook * Revenuel’) growth expected to be 25%+ * Does not include any acquisitions * Perfo
Slide 19: 2016 Financial Guidance
2016 Financial Guidance
Slide 20: 2016 Outlook (Non-GAAP)
j2) | 2016 Outlook (Non-GAAP) Cloud-Services * Revenuel’) growth across all lines of businesses, higher growth from non-Cloud Connect * EBITDA" margin ~53% * Higher growth from Non-Cloud Connect - EBITDA margins at 48%+ + IP Licensing * Revenuel’) expected between $3.0 - $4.0M * Revenuel’) growth ex
Slide 21: 2016 Guidance
j2) | 2016 Guidance Revenues") $830M - $860M Adjusted Non-GAAP EPS?) — $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 case net
Slide 22: Supplemental Information
Supplemental Information
Slide 23: Financial Metrics: Consolidated
j2) | Financial Metrics: Consolidated Global Consolidated 20s at a2 3 as at a2 3 a4 Total GAAP Revenues J $134,124 $144,744 $153,018 $167,145 $161,253 $176,038 $178,701 $204,823 Adjustments Sou1 $985 $213,836 so so 80 so Total Adjusted Non-GAAP Revenues @ __$134,605 $145,729 $153,201 _ $167,481 $161
Slide 24: Financial & Other Metrics Cloud Services & Media
j2 ) | Financial & Other Metrics Cloud Services & Media at a2 a3 aa at az a3 as Fixed Subscriber Revenues $81,020 $69,535 $93,367 $102,437 $103,957 $112,428 \Variable Subscriber Revenues $13,373 $1913 $21,368 $21,264 $21,364 Subscriber Revenues $99,303 $106,125 $108,648 $112,644 Sig7e $1,384 S4.419_
Slide 25: GAAP Reconciliation Free Cash Flow & EBITDA
j2 ) | GAAP Reconciliation Free Cash Flow & EBITDA (S in millions) Free Cash Flow (1) ara ota asta as arts aris ot5 oats Net cash provided by operating sctites so7.204 ses sw0.215 e110 serte 61.898 sess se0.aa8 Less: Puchases ofpropary and equipment s29%) (81.087) 32.124) sear | (s2eor) (88554) 8497
Slide 26: Margin Contribution Adjusted Non-GAAP
j2 ) | Margin Contribution Adjusted Non-GAAP In Milions ats. a214 314 aaa arts. 215 Q3'45 Q415 Cloud - Services Revenues saad $106.3 $108.9 $1134 $115.8 $123.9 $125.3 $1338 Gross Profit $805 $86.1 $868 $905 $927 $100.2 $1014 S107. Gross Profit % 81% 81% 80% 80%) 80% 81% 81% 80%) EBITDA 128) 70 $624
Slide 27: Full Year 2015 Results vs. Prior Year
j2 ) | Full Year 2015 Results vs. Prior Year Total Cloud by Unit Cloud Services IP Licensing @ FY 2014 FY 2035 FY 2014 Fy 2015 ‘Adj. Non-GAAP Revenues ” $ 428,011 $ 498,873 $ 5,539 $ 5,765 gj. Non-GAAP Gross Profit 343,913 401,740 5,539 5,765 ‘Adj. Non-GAAP Operating Profit ©! $ 197864 $ 235,724 S 3
Slide 28: GAAP Reconciliation Q4 Adjusted Non-GAAP
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Slide 29: GAAP Reconciliation FY Adjusted Non-GAAP
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Slide 30: GAAP Reconciliation EBITDA Q4 2015
j2) | GAAP Reconciliation EBITDA Q4 2015 ($ in thousands) EBITDA CONSOLIDATED CLOUD & DIGI Corporate and MEDIA Q4 2015 (1) Cloud Cloud Total Digital Inter-segment iP Consolidated Subseription | 'Mrsrarert | Sewices icensing’® Cul Mea let income (loss) 33.928 G38) 20545 G07) 30,238 «5,230 35467 Pus:
Slide 31: GAAP Reconciliation EBITDA Full Year 2015
j2) | GAAP Reconciliation EBITDA Full Year 2015 ($ in thousands) EBITDA CONSOLIDATED CLOUD & DIGITA Corporate and MEDIA FY 2015 (1) ‘Cloud suneciion erseoent | ceons || TE gd | elm Comcleed ‘divination Licensing tet incor (oss) 132,195 (18,298) | 123902 (2334) «fate 12068 Er Pus: otter expense (inco
Slide 32: j2 Global
Global