Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Q2 2009 Earnings Presentation
20 slides from Ziff Davis's earnings presentation, Aug 6, 2009
Slide 1: Investor Presentation (Based upon Second Quarter 2009 Results)
Investor Presentation (Based upon Second Quarter 2009 Results) August 5, 2009 1
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 slide “2009 Guidance.” These forward- looking statements are base
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, particularly in light of the uncertain U.S. or
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 1.275 M Paid DIDs Global Advanced Messaging Network 3,300+ cities in 46 countries on 6 continents 19.5M unique DIDs worldwide in inventory Intellectual Property 50+ issued patents and licensing programs designed to monetize the portfolio Protection of brands and marks Programs
Slide 6: Subscriber Acquisition
Subscriber Acquisition Individuals Targeted marketing (search, online media and radio) Sold through: eFax.com, Onebox.com, PhonePeople.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
Slide 7: Paid Subscription Drivers
Paid Subscription Drivers Eight Drivers for Paid DID Additions Subscribers coming directly to the Company’s Websites/Telesales Brand awareness driven by demand-generation programs and “word of mouth” Search engine discovery Accounts for 40%+ of monthly paid DID signups Free-to-Paid subscriber upgrad
Slide 8: Financial Highlights
j2 A Comannlcatt Financial Highlights © )2 Global Communications 2009
Slide 9: Non-GAAP Results
Non-GAAP Results Q2 2009 $ Margin Revenues $62.5M Gross Profit/Margin (1) $51.2M 82.0% Operating Profit/Margin (1) $30.5M 48.8% Non-GAAP EPS (2) $0.48/Share Free Cash Flow (3) $22.9M Cash and Investments (4) $195M (1) Excludes SFAS 123(R) non-cash compensation expense. (2) Excludes SFAS 123(R) non-c
Slide 10: Operational & Strategic Overview
Operational & Strategic Overview 10
Slide 11: Operations Update
Operations Update Fax Continued to see success of lower priced brands for individuals & SMB Fully deployed searchable fax Corporate success continues in selling big deals – 4 in Q2 + 2 Usage stable for several months/cancel rate declined from March peak Voice Went to market 11 quarters ago ~200,000
Slide 12: Current Outlook
Fax Current Outlook Continue ROI-based marketing spend Take advantage of the economy to promote Corporate value proposition Selective M&A to acquire customers/brands focus on international New geographic markets Voice Emphasis on ROI-based marketing + spend for educational awareness Continue to incr
Slide 13: Strengths/Expertise to Exploit
Strengths/Expertise to Exploit Leverage Our Core Strengths Messaging and communications space Business services to business people Purchase driven by productivity, mobility and lower TCO High value add/stickiness/create brand leadership Functionality delivered as virtual services Subscription based
Slide 14: 2009 Guidance
2009 Guidance Maintains Modest Increase in Revenues and Non-GAAP EPS 14
Slide 15: Supplemental Information
Supplemental Information 15
Slide 16: Revenues
Revenues DIDs Financials 2007 Global Communications Metrics 2009 CH a a co a oz Fined Subscribes Revenuse Subscriber Revenues Total Revenues DID - Based Revenues 7 Moa-DID Revenues | Total Revenves + Subscriber Revenues) Totst Revenues DID - Based/Tatsl Revenuce se Fixed Subscriber Revenues se varsb
Slide 17: Computation of Free Cash Flow
Computation of Free Cash Flow ($ in millions) Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Net cash from operating activities $18.656 $25.779 $27.411 $23.840 $15.676 $23.789 $31.152 $20.362 Purch. of property & equipment ($2.940) ($4.340) ($0.469) ($0.796) ($0.937) ($0.305) ($0.721) ($0.2
Slide 18: GAAP Reconciliation
GAAP Reconciliation j2 GLOBAL COMMUNICATIONS, INC. UNAUDITED RECONCILIATION OF MODIFIED NET EARNINGS THREE AND SIX MONTHS ENDED JUNE 30, 2009 (UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) THREE MONTHS ENDED JUNE 30, 2009 SIX MONTHS ENDED JUNE 30, 2009 Reported Non-GAAP Entries Non-GA
Slide 19: Usage of Corporate and Web High Volume Users
Usage of Corporate and Web High Volume Users 19
Slide 20: Global Communications
j2). Global Communications ns 2009
J2 Global Communications — Q2 2009 Earnings Presentation on 6ix