Slide 1: Investor Presentation (Based upon Fourth Quarter 2007 results)
EXHIBIT 99.2 Investor Presentation (Based upon Fourth Quarter 2007 results) February 19, 2008
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those contained in the slides entitled “2008 Outlook – Fax Services”, “2008 Outlook – Vo
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 in our customer base, revenue or profitability Competition in price, quality, features and geo
Slide 4: Messaging/Communications as a Service
Messaging/Communications as a Service All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally. 4
Slide 5: Core j2 Global Assets
Core j2 Global Assets 11.9 million Subscribed Telephone Numbers (DIDs) 1,064K Paid DIDs Global Advanced Messaging Network Over 3,000 cities in 42 countries on 5 continents 17.2MM + unique DIDs worldwide in inventory Intellectual Property 56 issued patents and licensing programs designed to monetize
Slide 6: Subscriber Acquisition
Subscriber Acquisition Individuals Targeted marketing (search, online media and radio) Sold through: eFax.com, eVoice.com, Onebox.com, fax.com, j2.com, and other brand websites Use of proprietary Life Cycle Management Advertising, Up-selling, and Calling-Party-Pays revenue supports the Free base Sma
Slide 7: Paid Subscription Drivers
Paid Subscription Drivers Seven Drivers for Paid DID Additions Subscribers coming directly to the Company’s Websites/Cross Sell/Telesales Brand awareness driven by demand-generation programs and “word of mouth” Search engine discovery Accounts for 40% to 50% of monthly paid DID signups Free-to-Paid
Slide 8: Financial Highlights
Financial Highlights 8
Slide 9: 2007 Q4 and Annual Non-GAAP Results
2007 Q4 and Annual Non-GAAP Results Q4 2007 FY 2007 $ Margin $ Margin GAAP Revenue $56.8M $220.7M (1) Gross Profit/Margin $45.4M 79.9% $177.4M 80.4% (1) Operating Profit/Margin $23.3M 41.0% $93.8M 42.5% (2) Non-GAAP EPS $0.36 $1.45 (3) Free Cash Flow $21.4M $83.9M Cash & Investments $229.8M $229.8M
Slide 10: 2007 Margin Trends by Quarter
2007 Margin Trends by Quarter 2007 excludes SFAS 123(R) non-cash compensation, net of tax benefit. See slides 23 and 24 for reconciliations to the nearest GAAP financial measures. 10
Slide 11: Ending Paid DIDs (in 000s)
Ending Paid DIDs (in 000s) 2004 2005 2006 2007 '07 vs. '06 US Fax 496 666 794 870 75 9.5% Voice 10 15 31 77 46 147.0% Total US 506 681 826 947 121 14.7% International Fax 45 57 76 111 36 47.1% Voice 3 2 3 5 3 100.6% Total Int'l 47 59 78 116 38 48.9% Total Ending DIDs 553 741 904 1,064 160 17.7% 2007
Slide 12: Annual Revenue Summary (in $000s)
Annual Revenue Summary (in $000s) 2004 2005 2006 2007 ' 07 vs. '06 US Fax $87,723 $117,576 $145,936 $171,241 $25,305 17.3% Voice 1,394 2,418 3,266 6,618 3,352 102.6% Total US Fax & Voice 89,117 119,994 149,202 177,859 28,657 19.2% International Fax 7,808 11,847 17,071 24,392 7,320 42.9% Voice - 728
Slide 13: Accomplishments & Outlook
Accomplishments & Outlook 13
Slide 14: 2007 Accomplishments – Fax Services
2007 Accomplishments – Fax Services US Fax DIDs increased to 870,000 – mostly eFax @ $16.95 Successful price increase of ~ 30% for eFax individual customers Successfully launched fax.com/Fully integrated Send2Fax Completed RapidFAX acquisition in December 2007 Increased Telesales staff for SMB sales
Slide 15: 2008 Outlook – Fax Services
2008 Outlook – Fax Services Global Environment conducive to M&A Strong cash position and cash flows 5 year low multiples for public companies 100+ candidates in fax to email delivery space US Double digit DID growth – Corporate faster than Individual Stable price environment targeting multiple segme
Slide 16: 2007 Accomplishments – Voice Services
2007 Accomplishments – Voice Services US Voice DIDs grew 147% to 77,000 New features introduced in Q4 2007 include click-to-call and tested speech-to-text Increased Telesales staff and expanded CS support Successful cross-selling to Fax customer base International Began focus in late 2007 Added DIDs
Slide 17: 2008 Outlook – Voice Services
2008 Outlook – Voice Services Global Early stage and evolving space with multiple competitors worldwide Market readiness supports high growth Several acquisition opportunities US Expect organic revenue to more than double New websites and features for eVoice and Onebox Continue cross selling to SMB
Slide 18: Annual Guidance
Annual Guidance 18
Slide 19: 2008 Guidance
2008 Guidance 2008 Revenues (MM) $240 - $270 GAAP EPS $1.45 - $1.65 2008 EPS is based on GAAP which includes SFAS 123(R) non-cash compensation expense. 19
Slide 20: Supplemental Information
Supplemental Information 20
Slide 21: Metrics
2006 2007 Metrics Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Fixed Subscriber Revenues $28,537 $29,855 $32,179 $36,013 $126,586 $37,765 $39,653 $41,362 $43,347 $162,127 Variable Subscriber Revenues 12,025 12,816 12,312 11,433 48,585 12,528 12,961 12,667 12,046 50,201 Subscriber Revenues $40,562 $42,671 $44
Slide 22: Computation of Free Cash Flow
Computation of Free Cash Flow ($ in millions) Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Net cash from operating activities $19.245 $14.250 $13.607 $25.903 $26.659 $23.113 $18.656 $25.779 Purch. of property & equipment(0.757) (3.288) (1.181) (1.973) (0.529) (2.506) (2.940) (4.340) (1) F
Slide 23: GAAP Reconciliation
GAAP Reconciliation j2 GLOBAL COMMUNICATIONS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) THREE MONTHS ENDED DECEMBER 31, 2007 THREE MONTHS ENDED SEPTEMBER 30, 2007 THREE MONTHS ENDED JUNE 30, 2007 THREE MONTHS ENDED MARCH 31, 200
Slide 24: GAAP Reconciliation
GAAP Reconciliation j2 GLOBAL COMMUNICATIONS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) TWELVE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, 2007 DECEMBER 31, 2006 Non-GAAP Non-GAAP Reported Entries Modified Reported Entries Mod
Slide 25: Usage Pattern of Corporate and Web High Volume Users
Usage Pattern of Corporate and Web High Volume Users 100 39 38 32 27 37 80 60 100 100 93 40 75 70 71 71 68 63 63 20 0 Q4 Q1 Q2 Q3 Q4 '06 '07 '07 '07 '07 Web Heavy Users Non Credit Sensitive Credit Sensitive 25
Slide 26: Global Communications
j2). Global Communications
Slide 27: Slide 27