Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — j2 Global — Q4 2017 Earnings Presentation
33 slides from Ziff Davis's earnings presentation, Feb 7, 2018
Slide 1: Fourth Quarter 2017 Results
FOURTH QUARTER 2017 RESULTSFebruary 6, 2018
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements 2 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, particularly in light of an uncertain U.S. and worldwide economy and the
Slide 4: Strategic Overview
- STRATEGIC OVERVIEW |
Slide 5: Monetizing Shift from Analog to Digital
Monetizing Shift from Analog to Digital 5
Slide 6: Diversified Internet Portfolio
Diversified Internet Portfolio 6
Slide 7: Robust Financials and Balanced Business Model
Robust Financials and Balanced Business Model 7 Revenue Growth TotalRevenue(1)>$1.1B GrossMargin(1)~85% EBITDA(1)(2)(3)>40% 19% CAGR Revenue bySegments Figures are based on 2017 figures.Figures are Adjusted Non-GAAP. See slides 24-32 for a GAAP reconciliation of revenue, earnings per diluted share,
Slide 8: M&A: Where We Focus
M&A: Where We Focus 8 Customers Traffic Platform Acquire and migrate competitor’s customersMinimal infrastructural costs of migrated services Strong traffic profiles, but under-monetizedGenerate commerce, lead-gen, data and subscription revenues New service or content verticalsFuture acquisitions wi
Slide 9: Growth Opportunities
9 Capitalize on growth of cloud fax in compliance-driven verticals such as healthcare, financials services and legalExpand our CSMB security offerings beyond email to include endpoint, web and VPNBuild on the growing importance of email to reach customers not just in their inboxes but across all pla
Slide 10: 2017 Results
(04 &FY 2017 RESULTS
Slide 11: 2017 Q4 & FY Accomplishments
2017 Q4 & FY Accomplishments 11 Record Q4 & FY 2017 Consolidated ResultsQ4 ‘17 Results: All quarterly records: Revenue $316MM, EBITDA(1)(2) $142MM, and Adjusted EPS(1)(2) $1.79Q4 ‘17 Revenue up $65MM or 26% vs. prior year, EBITDA(1)(2) up $25MM or 22% vs. prior yearFY 2017 Results: All annual record
Slide 12: Q4 & FY 2017 Results vs. Prior Year
Q4 & FY 2017 Results vs. Prior Year 12 See slides 24-32 for a GAAP reconciliation of revenue, adjusted non-GAAP gross profit, adjusted non-GAAP operating profit, adjusted EBITDA and adjusted earnings per diluted share for the Company as a whole and by segment.The Consolidated j2 Global data may not
Slide 13: Highlights
— HIGHLIGHTS
Slide 14: Digital Media Highlights
Digital media business continues demonstrating strong fundamentalsTotal multi-platform visits were up 22% YoY at 1.6B(1)Commerce revenue grew 46% vs. Q4 2016Shopping clicks to our merchant partners reached a record high 69M, a YOY increase of 72%(1)Significant YOY merchant partner click growth at PC
Slide 15: Q4 2017 Cloud Services Highlights
15 Q4 2017 Cloud Services Highlights Corporate Fax leads the growth in compliance verticals, particularly in HealthcareFax revenue had largest Q4 sequential growth since 2010The number of compliance customers increased 60% YoY through organic and M&AHealthcare represented 44% of all new U.S. Corpora
Slide 16: 2018 Financial Guidance
2018FINANCIAL GUIDANCE
Slide 17: 2018 Outlook
17 2018 Outlook (Forward-Looking Statements) Figures are adjusted Non-GAAP.See slides 24-32 for a GAAP reconciliation of revenue, earnings per diluted share, free cash flow, and EBITDA. Cloud ServicesRevenue growth expected to be ~5% EBITDA(1)(2) margin inline with prior year (ASC 606 impact of ~ 1%
Slide 18: 2018 Guidance
| 2018 Guidance Revenues $1,200MM - $1,250MM Adjusted EBITDA) $480MM - $505MM Adjusted Non-GAAP EPS(1)(2) $5.95 - $6.25 18 (B fauee gre adhsted nop cage j2 Global’ d eamings per diluted share excludes share-based compensation, amortization of acquired intangibles and the impact of any currently anti
Slide 19: Supplemental Information
— SUPPLEMENTAL INFORMATION
Slide 20: Consolidated Metrics
Consolidated Metrics 20 See slide 24-32 for a reconciliation of Non-GAAP earnings and EPS to GAAP net income and diluted GAAP EPSSee slide 24 for a definition of Free Cash Flow and reconciliation to net cash provided by operating activitiesSee slide 24 for a definition of adjusted EBITDA and reconci
Slide 21: Cloud Services & Digital Media Metrics
Cloud Services & Digital Media Metrics 21 Cloud Services revenue includes IP Licensing revenueCloud Services Customers are defined as paying DIDs for Fax & Voice services and direct and resellers’ accounts for other servicesQuarterly ARPU is calculated using our standard convention of applying the a
Slide 22: EBITDA to Cumulative Investment
EBITDA to Cumulative Investment 22 Figures are Adjusted Non-GAAP. See slide 31 for a GAAP reconciliation of Operating Profit
Slide 23: EBITDA to Cumulative Investment Continued
23 EBITDA to Cumulative Investment Continued Figures are Adjusted Non-GAAP. See slide 32 for a GAAP reconciliation of Operating Profit
Slide 24: GAAP Reconciliation Free Cash Flow & Adjusted EBITDA
GAAP Reconciliation Free Cash Flow & Adjusted EBITDA 24 Free Cash Flow is defined as net cash provided by operating activities, less purchases of property, plant and equipment, plus excess tax benefits (deficits) from share based compensation. Free Cash Flow amounts are not meant as a substitute for
Slide 25: GAAP Reconciliation Q4 & FY 2017 Adjusted Non-GAAP Earnings & EPS
GAAP Reconciliation Q4 & FY 2017 Adjusted Non-GAAP Earnings & EPS 25 Adjusted Non-GAAP net income is not meant as a substitute for GAAP, and is defined as GAAP net income with the following modifications: 1) Elimination of shared-based compensation expense and associated payroll taxes 2) Elimination
Slide 26: GAAP Reconciliation Q4 & FY 2017 Adjusted Non-GAAP Earnings & EPS
26 Adjusted Non-GAAP net income is not meant as a substitute for GAAP, and is defined as GAAP net income with the following modifications: 1) Elimination of shared-based compensation expense and associated payroll taxes 2) Elimination of certain acquisition-related integration costs 3) Elimination o
Slide 27: GAAP Reconciliation Q4 2017 Adjusted EBITDA
GAAP Reconciliation Q4 2017 Adjusted EBITDA 27 ($ in thousands) Adjusted Non-GAAP net income is not meant as a substitute for GAAP, and is defined as GAAP net income with the following modifications: 1) Elimination of shared-based compensation expense and associated payroll taxes 2) Elimination of a
Slide 28: GAAP Reconciliation Q4 2016 Adjusted EBITDA
GAAP Reconciliation Q4 2016 Adjusted EBITDA 28 ($ in thousands) Adjusted Non-GAAP net income is not meant as a substitute for GAAP, and is defined as GAAP net income with the following modifications: 1) Elimination of shared-based compensation expense and associated payroll taxes 2) Elimination of a
Slide 29: GAAP Reconciliation FY 2017 Adjusted EBITDA
GAAP Reconciliation FY 2017 Adjusted EBITDA 29 ($ in thousands) Adjusted Non-GAAP net income is not meant as a substitute for GAAP, and is defined as GAAP net income with the following modifications: 1) Elimination of shared-based compensation expense and associated payroll taxes 2) Elimination of a
Slide 30: GAAP Reconciliation FY 2016 Adjusted EBITDA
GAAP Reconciliation FY 2016 Adjusted EBITDA 30 ($ in thousands) Adjusted Non-GAAP net income is not meant as a substitute for GAAP, and is defined as GAAP net income with the following modifications: 1) Elimination of shared-based compensation expense and associated payroll taxes 2) Elimination of a
Slide 31: GAAP Reconciliation Operating Profit
GAAP Reconciliation Operating Profit 31 Adjusted Non-GAAP net income is not meant as a substitute for GAAP, and is defined as GAAP net income with the following modifications: 1) Elimination of shared-based compensation expense and associated payroll taxes 2) Elimination of certain acquisition-relat
Slide 32: GAAP Reconciliation Operating Profit
GAAP Reconciliation Operating Profit 32 Adjusted Non-GAAP net income is not meant as a substitute for GAAP, and is defined as GAAP net income with the following modifications: 1) Elimination of shared-based compensation expense and associated payroll taxes 2) Elimination of certain acquisition-relat
Slide 33: j2 Global
j2 Global