Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — j2 Global — Q2 2018 Earnings Presentation
20 slides from Ziff Davis's earnings presentation, Aug 10, 2018
Slide 1: Investors Presentation
INV ESTORS PR SECOND j2|Global SENTATION
Slide 2: Safe Harbor for Forward-Looking Statements
i 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 2018 Financial Guidance. Such forward-looking statements are subject to n
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 US. Or worldwide economic issues on customer a
Slide 4: Q2 Consolidated Financial Snapshot
| Q2 Consolidated Financial Snapshot” Revenue———_—_—___——_ Adjusted Gross Profit ———————— (inilions) (inmiions) ano enzo Adjusted EBITDA Adjusted EPS —————— {inmillions) rl rT ozeis arr 4) seestides 14-19 fore Gas? reaiation of adjusted non-GAAP gross pref, adjusted ESTTOA and adjusted eamins perdiu
Slide 5: Deeper Dive into FCF
| Deeper Dive into FCF” Free Cash Flow FCF 2Q18 (in millions) (in millions) 22% $87.0 2013 2014 2015 2016 2017 .™ 217 02'18 5a) See slide 16 for a GAAP reconciliation of Free Cash flow j2 Global
Slide 6: Steady Subscription Revenue Build — Notable Growth in Digital Media
Steady Subscription Revenue Build — Notable Growth in Digital Media Subscription Breakdown (in millions) ™ Digital Media ™ Cloud Services $181.5 $148.9 $158.7 Q2-16 Q2-17 Q2-18 j2 Global
Slide 7: Q2 Financial Snapshot By Business Segments
| Q2 Financial Snapshot By Business Segments” Revenue ———_ (in milions) y q e207 ras Adjusted EBITDA (inmillons) DIGITAL MEDIA ineludas (1.2mm) etreclass | trom 2 ne. 22017 ca 2ai8 7 (a) See slides 14-19 fora GAAP reconciliation of adjusted EBITDA for the Company as a whole and by segment. Revenue —
Slide 8: Financial Summary 2Q18
i Financial Summary 2Q18" (in Millions) Cloud Services Digital Media Revenue Gross Margin Adjusted EBITDA Adjusted EBITDA % Adjusted EPS Free Cash Flow Subscription % of Revenue 8 2Q 18 2Q 17 MLY. $150.3 $144.7 4% $137.6 $128.5 T% $287.9 $273.2 5% 83.7% 84.5% -82 bps $113.5 $110.2 3% 39.4% 40.3% -92
Slide 9: 2018 Financial Guidance
2018 FINANCIAL GUIDANCE
Slide 10: 2018 Guidance (Forward-Looking Statements)
| 2018 Guidance (Forward-Looking Statements) Reaffirm our annual guidance of Revenues, EBITDA and raise our Adjusted Non-GAAP EPS* Revenues $1,200MM - $1,250MM Adjusted EBITDA™() S480MM - SSOSMM Adjusted Non-GAAP EPS()2) $6.16 - $6.46 + Increase in adjusted non-GAAP EPS due to the continued review o
Slide 11: Supplemental Information
— SUPPLEMENTAL INFORMATION
Slide 12: Consolidated Metrics
Consolidated Metrics Revenue by Segment Cloud Services Revenues 4 $141,544 $144,709 $145,787 $146,916 $149,485 $150,297 Digital Media Revenues 8 $113,125 $128,465 $127,829 $169,464 $131,137 $137,591 Corporate c $0 $0 $0 $0 $0 $1 ai $254,669 $273,174 $273,616 $316,380 $280,623 $287,889 Total Revenues
Slide 13: Cloud Services & Digital Media Metrics
Cloud Services & Digital Media Metrics es es Revenue by Type Total Adjusted Non-GAAP Cloud Services Revenues $141,544 $144,709 $145,787 $146,916 $149,485 $150,297 Fixed Subscriber Revenues | sits726 © S117.586 «$118,755 $119,282 $120,840 $123,648, Variable Subscriber Revenues | $24606 $25863 825808
Slide 14: Q2 2018 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS
Q2 2018 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS Figures in Thousands ‘Three Months Ende june 30, 2 E Cost of revenues $ A119 § 43,159 Pus Share based compensation “? (129) (124) Acquistion related integration costs (43) - Amortization ® (546) (639) Adjusted non-GAAP cost of revenu
Slide 15: Q2 2018 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS Continued
Q2 2018 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS Continued Figures in Thousands ‘Three Months Ended June 20 7 Interest expense, net $ 15,502 $ 13,670, Ps Acquisition related intezration costs (23) - interest oss (2,148) (2,859) Adjusted non-GAAP interest expense, net $ 13,331 | $ 1
Slide 16: GAAP Reconciliation Free Cash Flow
| GAAP Reconciliation Free Cash Flow” Figures in Thousands Net cash provided by operating activities, $193,324 $177,231 $. 229.061 $ 282.387 = $ 264,420 $ 359,058 $ 60,464 $102,383 Less: Purchases of property and equipment (18,626) (14,221) (17,297) (24,748) (39,595) (49,208) (9.285) (15,393) Less:
Slide 17: GAAP Reconciliation Adjusted EBITDA
i GAAP Reconciliation Adjusted EBITDA” Figures in Thousands Net income $ 28,479 $ 31,376 Plus: Interest expense, net 15,502 13,670 Other expense, net 394 1,592 Income tax expense 7,037 9,287 Depreciation and amortization 43,857 39,902 Reconciliation of GAAP to Adjusted non-GAAP financial measures Sh
Slide 18: Q2 2018 Reconciliation of GAAP to Adjusted EBITDA
i Q2 2018 Reconciliation of GAAP to Adjusted EBITDA 18 Figures in Thousands Revenues GAAP revenues s 150.207 S 137,50 S$ 1 $ 287,889 Gross profit GAAP gross profit s 119.617 S 120,522 1 $ 240,140 Non-GAAP adjustments Share-based compensation 128 1 - 129 Acquisition related integration costs - 43 - 4
Slide 19: Q2 2017 Reconciliation of GAAP to Adjusted EBITDA
i Q2 2017 Reconciliation of GAAP to Adjusted EBITDA 19 Figures in Thousands Revenues GAAP revenues $ 144,709 S$ 128,485 S$ - $ 273,174 Gross profit GAAP gross profi $ 114,774 $ 116,241 $ - $ 230,015 Non-GAAP adjustments Share-based compensation 121 - - 121 Amortization 639 - - 639 Adjusted non-GAAP
Slide 20: j2 Global
j2 Global