Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — j2 Global Communications — Sidoti & Company Emerging Growth Institutional Investor Forum (January 2004)
24 slides from Ziff Davis's conference presentation, Jan 8, 2004
Slide 1: Investor Presentation, Sidoti Emerging Growth Forum
www.j2global.com Investor Presentation Sidoti & Company, LLC Emerging Growth Institutional Investor Forum (Based upon Third Quarter 2003 results) January 8, 2004
Slide 2: Forward-Looking Statements
• the “2003 or could We of be meaning entitled expectations that forward-looking statements anynot statements. Such andwill the slide current uncertainties these 2004and Statements within the to in and presentation. 8, risks forward-looking revision this intendedinformation. statements” contained ma
Slide 3: Risk Factors
• ours us by results locations signatures traffic to filed Factors operating rights increased superior reports desirable digital other of in property Risk condition, terms technologies the adoption accommodate new and carry-forwards to financial intellectual of 3/31/03 acceptable loss party widespre
Slide 4: j2 Global delivers business critical communication and messaging services
j2 Global delivers business critical communication and messaging services to individuals and corporations throughout the world. 4
Slide 5: j2 Global brands and services
j2),Global @ijfax.com FAK. @ QeFax’ Consensus ; j2) jConnect Poperttctorrs al 5 JD) cir teint
Slide 6: Unique Assets
Unique Assets $7.2 MM and growing Corporate a Paid Q3 Earnings: a 6.7MM+ unique DIDs worldwide in inventory 7 issued U.S. Patents, with 8 Patents pending sales, transaction processing Customer migration from Free $18.9 MM 26 consecutive quarters of revenue growth 7 consecutive quarters of positive E
Slide 7: Sales Channels
Sales Channels www.eFax.com www.j2.com www.Consensus.com www.j2Corporate.com www.jBlast.com www.M4Internet.com www.PaperMasterPro.com Target individual users Targeted marketing over the Web Use of Web-based marketing tools Direct sales force to SMEs and large companies TeleSales to smaller businesse
Slide 8: Corporate Channel
Corporate Channel Vertical Markets Financial institutions Law firms & corporate legal departments Real estate Hospitality Government Medical Remote workers & “road warriors” Critical Features Digitization (paper reduction) Security Privacy Efficiency Cost 8
Slide 9: eFax Corporate
eFax Corporate www.eFaxCorporate.com 9
Slide 10: Active Telephone Numbers (DIDs)
9/30/2003 63,281 316,949 380,230 5.1 MM 5.5 MM Q3 6/30/2003 55,884 293,104 348,988 4.8 MM 5.2 MM Q2 3/31/2003 48,727 256,242 304,969 4.3 MM 4.6 MM Q1 12/31/2002 43,331 226,863 270,194 4.0 MM 4.3 MM Q4 Active Telephone Numbers (DIDs) 9/30/2002 34,480 212,001 246,482 4.3 MM 4.6 MM Q3 400,000 350,000 3
Slide 11: Key Revenue Drivers
Key Revenue Drivers 2004 62.0 64.0 64.0 62.0 2003 59.5 64.0 64.0 60.8 Greater than two-thirds of subscriber revenue comes from Q1 Q2 Q3 Q4 Net DID additions in the period Greater than 75% of subscriber revenue is recurring Revenue/DID/Month (ARPU) usage Effective Business Days in period Market condi
Slide 12: Subscriber Metrics
23,845 2.8% 63,281 7,397 2,157 180.5 to better Metrics Q3 ‘03 316,949 $13.54 Q2 ‘03 293,104 36,862 $13.79 2.9% 55,884 7,157 1,977 176.3 (1) 29,379 3.5% 48,727 5,396 1,454 157.1 Q1 ‘03 256,242 $14.04 (1) 14,862 3.7% 43,331 8,851 1,257 135.1 Q4 ‘02 226,863 $13.94 (1) 14,005 4.9% 34,480 6,000 1,219 124
Slide 13: jBlast and Corporate Mortgage Index
59 51 71 Q3 65 46 65 Q2 2003 jBlast 62 36 60 Q1 Corp: Mortgage 58 31 51 Q4 Corporate Page Index Detail 61 22 41 Q3 2002 Corp: Non-Mortgage 67 13 29 Q2 68 9 23 Q1 200 180 160 140 120 100 80 60 40 20 - 13 Page Index
Slide 14: Monthly Mortgage Traffic Index
Sept. Aug. July 2003 June Monthly Mortgage Traffic Index May April 70 60 50 40 30 20 10 0 Page Index 14
Slide 15: Product Roadmap: Unified Communications & Messaging
• services Email, fax • Roadmap Unified Comm. Services & Messaging” access • Messaging & Integrated voicemail “Instant integration Internet Product • Calling • Email Voice Services to management access Conference VM • Inbound Voicemail Telephone Web-based Collaboration • • • • • • voicemail me inter
Slide 16: Financial Highlights
j2),Global Financial Highlights 16 JD) cir teint
Slide 17: Historical Revenue Growth
Q3 ‘03 Q2 ‘03 Q1 ‘03 Q4 ‘02 Q3 ‘02 Q2 ‘02 Q1 ‘02 Q4 ‘01 Q3 ‘01 Q2 ‘01 Q1 ‘01 Q4 ‘00 Q3 ‘00 Q2 ‘00 Q1 ‘00 Q4 ‘99 Historical Revenue Growth Q3 ‘99 Q2 ‘99 Q1 ‘99 of revenue growth Q4 ‘98 26 consecutive quarters Q3 ‘98 Q2 ‘98 Q1 ‘98 Q4 ‘97 Q3 ‘97 Q2 ‘97 Q1 ‘97 $20.0 $18.0 $16.0 $14.0 $12.0 $10.0 $8.0 $6
Slide 18: Quarterly Revenue
9.2% 681 11.9% 416 11.0% Q3 $17,806 $18,903 12.8% 609 -0.6% 121 12.0% 2003 Q2 $16,307 $17,037 11.6% 612 142 8.4% Quarterly Revenue Q1 $14,454 -14.4% $15,208 12.2% 715 -8.7% 354 12.2% Q4 $12,956 $14,025 2002 10.8% 783 11.1% 169 10.6% Q3 $11,551 $12,503 Subscriber Quarter-to-Quarter Growth Advertising
Slide 19: Quarterly Revenue by Web and Corporate
• 9.2% 9.5% 416 • Q3 $13,074 5,413 $18,903 11.0% to • Web • Channel to • by 11.3% 4,943 14.8% 121 12.0% • 2003 Q2 $11,973 $17,037 Corporate • the from • (1) 9.3% 4,306 12.5% 141 8.4% • Revenue Q1 $10,761 $15,208 reclassified • (1) 9.0% 3,827 15.9% 354 12.2% were • Q4 $9,844 $14,025 accounts • 2002 m
Slide 20: Cost Trends
* n n A & g n g n i g i g r r i G i t Q3 ‘03 a a e r e M M k Cost Trends e n s g r a s n M i g o i n r t E G a & r e s e p Q2 ‘03 O l a S Q1 ‘03 Q4 ‘02 Q3 ‘02 *In Q4 2002, excludes a one-time recovery of a marketing payment of $694,000 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% )eunevRe latoT fo egatnec
Slide 21: Earnings & Free Cash Flow
Q2 ‘03 $8.623 (0.947) $7.676 Q2 ‘03 $8.542 (1.414) $7.128 Q3 ‘03 Q1 ‘03 $5.308 (0.300) $5.008 Q2 ‘03 Q4 ‘02 $6.327 (1.049) $5.278 Q1 ‘03 (2) Free Cash Flow amounts are not meant Q3 ‘02 $4.631 (0.483) $4.148 (1) Q4 ‘02 Free Cash Flow Q2 ‘02 $3.658 (0.751) $2.907 Earnings & Free Cash Flow Q3 ‘02 Net E
Slide 22: Tax Considerations
Tax Considerations GAAP tax accrual > Actual taxes paid for 2004 Net Operating Loss Carry-Forwards (NOLs) at 9/30/03 Company had approximately $41MM and $43MM of Federal and State available NOLs, respectively, for tax purposes Company had approximately $1MM of Federal tax credits available Reduction
Slide 23: 2003 Financial Guidance
(Reaffirmed 1/8/04) Fiscal 2003 $71.4MM $1.03 Q4 2003 $20.3MM $0.31 2003 Financial Guidance (1)(2) Assumes fully diluted shares of 25,814,951 as of October 15, 2003 reduction of the Company’s tax valuation allowance Assumes a 5% California tax rate and no (See Tax Considerations). Revenue Net Earnin
Slide 24: Global
j2). Global