Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Jefferies & Co. Internet Conference 2005
19 slides from Ziff Davis's conference presentation, Mar 3, 2005
Slide 1: Jefferies & Co. Internet Conference
Jefferies & Co. Internet Conference (Based upon Fourth Quarter and Year-End 2004 results) March 3, 2005 www.j2global.com
Slide 2: Safe Harbor for Forward-Looking Statements
Future operating results Subscriber growth and retention Earnings growth and expectations New products, services and features Corporate spending Liquidity Network capacity and coverage Regulatory developments Taxes Certain statements in this presentation constitute forward-looking statements within
Slide 3: Risk Factors
Risk Factors Inability to sustain growth in our customer base, revenue or profitability Competition in price, quality, features and geographic coverage Inability to obtain telephone numbers in sufficient quantities on acceptable terms in desirable locations Enactment of burdensome telecommunications
Slide 4: j2 Global
j2 Global deploys the power of the Internet to deliver business critical communication and messaging services to individuals and corporations throughout the world.
Slide 5: Trademark notice
All brands names and logos are trademarks of j2 Global Communications, Inc. in the U.S. and/or internationally.
Slide 6: Unique Assets
Unique Assets 8.7 million subscribed telephone numbers (DIDs) Global advanced messaging network 1,500+ cities in 22 countries on 5 continents 11.9MM+ unique DIDs worldwide in inventory Patented technology A portfolio of 23 issued U.S. patents, and numerous pending U.S. patent applications, issued fo
Slide 7: Subscriber Profile
Subscriber Profile Vertical Markets Financial institutions Real estate Law firms & corporate legal departments Medical Government Hospitality Remote workers & road warriors Value Proposition Digitization (paper reduction) Security Privacy Efficiency Cost Infrastructure replacement
Slide 8: Subscriber Acquisition
Subscriber Acquisition Individuals Targeted Web marketing (e.g. AOL, Hotmail, Yahoo!, Google, AT&T, United Online, etc.) Sold through: www.eFax.com and www.j2.com Use of proprietary Life Cycle Management ( i.e. Free Paid conversions) Advertising & Calling-Party-Pays revenue supports the Free base Sm
Slide 9: Paid Subscription Drivers
Paid Subscription Drivers Five drivers for Paid subscription additions: Subscribers coming directly to the Company s Websites Brand awareness Search engine discovery Free-to-Paid subscriber upgrades Life Cycle Management eFax Corporate SME sales Hybrid Website and human interaction (i.e. Telesales)
Slide 10: Current population of j2 Global-served countries
Current population of j2 Global-served countries: 717 million Representing 226+ million Internet users j2 Global has 554,000 international subscribers 137 million total US employees j2 Global has 8.2 million U.S. subscribers Everyone has a fax number on their business cards... but the smart ones get
Slide 11: Product Roadmap
Product Roadmap Inbound Fax to Email Outbound Fax via Email Fax broadcasting Secure fax OCR PDF delivery Fax storage/archive Smart Caller ID New notification methods Voice Services Inbound VM to Email Voicemail management Telephone access Conference Calling Enhanced voicemail Call screening Call for
Slide 12: j2 Global
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Slide 13: Historical Revenue & Operating Income Growth
31 consecutive quarters of Revenue growth 12 consecutive quarter of Operating Earnings growth Historical Revenue & Operating Income Growth
Slide 14: Operating Margin
j2),Global 80% Gross Margin 70% 60% 50% ° 41.4% 43.5% 42.6% 43.0% AA,0%e— 40% — : Operating Margin (Percentage of Total Revenue) 30% G&A 20% ol a ii, ales & Marketing or Engingring 4038 Qu‘o4 Q2'04 Qe'04 2) wan canminsanncine
Slide 15: Earnings & Free Cash Flow
(1) (2) Earnings & Free Cash Flow (1) Excludes benefit of $9.5 million to record the reversal of certain valuation allowances of our deferred tax assets. (2) Prior to Q4 2003, the Company accrued tax expense at the rate of 5% or less. (3) Net cash provided by operating activities, less purchases of
Slide 16: 2005 Financial Guidance
2005 Financial Guidance (1) Assumes an annual tax rate of between 25-28% and diluted shares of 25.8 million as of January 31, $0.39 $32.2 Q1 $1.70 - 1.75 Net Earnings per Share (1) $145 - Revenues (millions) Year-End (Reaffirmed 3/03/05)
Slide 17: j2 Global
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Slide 18: Quarterly Revenue Breakdown
Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Fixed Subscriber Revenues $9,916 $11,177 $12,121 $13,976 $47,190 $16,021 $17,750 $19,122 $20,823 $73,716 Variable Subscriber Revenues $4,538 $5,130 $5,685 $5,542 $20,895 $6,041 $7,314 $7,863 $8,226 $29,444 Subscriber Revenues $14,454 $16,307 $17,806 $19,517 $68,08
Slide 19: j2 Global
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