Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Q1 2010 Earnings Presentation
15 slides from Ziff Davis's earnings presentation, May 5, 2010
Slide 1: Investor Presentation (Based upon First Quarter 2010 Results)
Exhibit 99.2 Investor Presentation (Based upon First Quarter 2010 Results) May 4, 2010
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 “2010 Guidance” slides. These forward- looking statements are bas
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 sustaingrowth or profitability, particularly in light of an uncertain U.S. or worldwide economy and the rel
Slide 4: Q1 '10 GAAP & Non-GAAP Results
Q1 ’10 GAAP & Non-GAAP Results Q1 2010 GAAP Q1 2010 Non-GAAP $ Margin $ Margin Revenues $60.3M $60.3M Gross Profit/Margin (1) $50.0M 83.0% $50.3M 83.5% Operating Profit/Margin (1) $24.5M 40.6% $27.5M 45.7% EPS (2) $0.39/Share $0.44/Share Free Cash Flow (3) $34.2M Cash and Investments $264.4M (1) Non
Slide 5: Q1 Highlights
2010 Q1 Highlights 5
Slide 6: Q1 Highlights: Operations
2010 Q1 Highlights Operations Q1 net adds are 39,000+ with 11,000 from organic growth - gross sign ups are the highest since Q1 2009 Retention is improving – Q1 cancel rate of 2.8% is our lowest rate in the last 2 years (Q4 2007 was 2.7%) Successful marketing efforts to drive annual commitments resu
Slide 7: Q1 Highlights: Marketing Investment and Initiatives
2010 Q1 Highlights Marketing Investment and Initiatives April net adds ~ 6K DIDs, largest monthly organic growth since November 2008 Investing in display advertising for both fax and voice to strengthen brand positioning, boost straight to site sign ups and enhance market share Re-investment in Free
Slide 8: Q1 Highlights: 2010 M&A Review
2010 Q1 Highlights 2010 M&A Review Trustfax - US fax business acquired in late January - Customer base is mostly SOHO and SMB, integration to be completed in May mBox - Australian fax business acquired at the end of March, integration underway - Customers are primarily in the Asia-Pacific region: Au
Slide 9: Guidance
2010 GUIDANCE 9
Slide 10: 2010 Guidance
2010 Guidance 2010 Plan Revenues 3% - 7% increase vs. 2009 Non-GAAP EPS similar to 2009 2010 EPS is based on Non-GAAP which excludes SFAS 123(R) non-cash compensation expense, net of tax benefit. 10
Slide 11: Supplemental Information
Supplemental Information 11
Slide 12: Metrics
Metrics 2008 2009 2010 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Fixed Subscriber Revenues $46,593 $47,481 $48,125 $48,799 $49,726 $49,782 $49,612 $48,869 Variable Subscriber Revenues 12,943 12,985 11,503 10,842 11,322 11,264 10,576 10,678 Subscriber Revenues $59,536 $60,466 $59,628 $59,640 $61,049 $61,046 $60,188 $5
Slide 13: Computation of Free Cash Flow
Computation of Free Cash Flow ($ in millions) Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Net cash provided by operating activities $23.840 $15.676 $23.789 $31.152 $20.362 $26.469 $23.850 $34.688 Purch. of property & equipment ($0.796) ($0.937) ($0.305) ($0.721) ($0.217) ($0.767) ($1.546
Slide 14: Non-GAAP Results & Reconciliation to GAAP
Non-GAAP Results & Reconciliation to GAAP j2 GLOBAL COMMUNICATIONS, INC. UNAUDITED RECONCILIATION OF MODIFIED NET EARNINGS THREE MONTHS ENDED MARCH 31, 2010 (UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) THREE MONTHS ENDED MARCH 31, 2010 Reported Non-GAAP Entries Non-GAAP Revenues Sub
Slide 15: j2 Global Communications
j2) Comnunications * j2 Global Communications 2010
J2 Global Communications — Q1 2010 Earnings Presentation on 6ix