Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — j2 Global — Needham & Company Annual Growth Conference (January 2015)
25 slides from Ziff Davis's conference presentation, Jan 15, 2015
Slide 1: Needham & Company Annual Growth Conference
> Needham & Company 17 Annual Growth Conference (Based on Third Quarter 2014 Results) January 15, 2015 j2 | eFax’ eVoice: &X\FuseMail’ campaigner’ MKeepltSafe’ @onebox BIZEE
Slide 2: Safe Harbor for Forward-Looking Statements
(i2)) Safe Harbor for Forward-Looking Statements ~ 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 2014 Financial Guidance. Such forward- looking statements are subje
Slide 3: Risk Factors
(j2)) Risk Factors The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: to sustain growth or profitability, particularly in light of an uncertain U.S. and worldwide economy and the related
Slide 4: Legal Structure & Financing Overview
(j2)) Legal Structure & Financing Overview * Legal reorganization effectuated in conjunction with June 2014 convertible note offering * Aligns j2 legal and management structures j2 Global, Inc. = Issuer: New $402.5mm Senior Unsecured (Hold Co) Convertible Notes due 2029 = Borrower: $40mm Revolving C
Slide 5: Demonstrated Track Record of Successful Acquisitions
‘j2)) Demonstrated Track Record of Successful < Acquisitions j2 Acq n Strategy * j2 evaluates potential acqui * Rollup Acquisition * Geographic Expansion * Services Expansion * IP Purchase * j2 has hundreds of targets that it evaluates regularly (acrossall categories) * Regular dialogue occurs with
Slide 6: Business Cloud Services Overview
(j2)) Business Cloud Services ~ Overview j2).| @eFax’ (eVoice Rirusemai’ campaigner’ WKeepliSafe’ Wonebox' BIZEE
Slide 7: Business Cloud Services Overview
eVoice ve metrofax Wonebox Osmartiax” @faxcom-{fey) Zintel BWeb24 Australia’s Cloud Experts 2 ) Business Cloud Services Overview Subscription-based model aimed at small businesses from individual/SoHo to enterprise) Diverse customer base with over 2.6 million customers Highly visible revenue with st
Slide 8: Business Cloud Financial Results
(1) See side 23 for EBITDA reconcitation. Business Cloud Financial Results Non-GAAP Revenue“) (Sin mitions) $415 $378 20108, 20114, 20124, 20124, um™ Adj. EBITDA“ (Sin mitions) 100 20104 20018 20124 20134 Adjusted EBITDA Margin a a) i) eFax’ Voice’ ®)FuseMail’ campaigner’ WKeepitSafe’ Wonebox BISKE
Slide 9: Digital Media Overview
( i2)) Digital Media Overview j2).| @eFax’ (eVoice Rirusemai’ campaigner’ WKeepliSafe’ Wonebox' BIZEE
Slide 10: Digital Media Overview
i2)) Digital Media Overview ~ Technology Games & Entertainment | ZIFF bavis| ech ; we * Leading comScore positions in all PC Te IGN three verticals with 95M monthly eaeco T GEEL unique visitors (") * 100% organic traffic with strong search and social media positions Established brands with strong co
Slide 11: High-quality Content Mapped to Buying Experience
(2) High-quality Content Mapped to Buying Experience News Articles Site Search Buying Guides 4 1)/ 7° IAT ity a Comparison Guides Roundups PRODUCTS Reviews Wikis SERVICES Deals How-to Guides Click to Buy Troubleshooting Coupons j2).| @efax’ eVoice Rrusemait’ campaigner’ KeepiiSafe’ Wonebox BREE “1
Slide 12: Digital Media Business Model
2) Digital Media Business Model In Market Audiences Multiple Content with Intent Rents * Display & video advertising across 0&0 sites; extended network of sites; and exchanged-based inventory ° Performance marketing (CPC, CPA, CPL) revenue streams leveraging site traffic and customer databases * Lic
Slide 13: Digital Media Financial Results
‘i2)) Digital Media Financial Results (Sin mitions) 7 Adj. EBITDA“) r 4 oe Adjusted EBITDA Margin (Ces tex (1) 2 Davis was acquired in Novenber 2012. 2040 Actual epresents period rom June 4, 2010 to December 31,2010, 2011 & 2042 actual {2 fl year figures inching pends pror to scquistion. Seo she 24
Slide 14: 2014 Year-To-Date Results
(j2)) 2014 Year-To-Date Results j2).| @eFax’ (eVoice Rirusemai’ campaigner’ WKeepliSafe’ Wonebox' BIZEE 14
Slide 15: Q3 YTD 2014 Financial Achievements
f 2) Q3 YTD 2014 Financial Achievements ~ Total j2 Global * YTDrevenue up +$66M, ~+18%, vs. YTD 2013 * Seta quarterly revenue record of $153M in Q3 2014 * Completedacquisitions in both Cloud & Media segments * Broadenedcloud services into Denmark, Sweden, The Netherlands * Acquired Web Hosting compa
Slide 16: Q3 YTD 2014 Results vs. Prior Year
(i2)) Q3 YTD 2014 Results vs. Prior Year ~~ otal Goud by Unit |__cloud services O3yTD 2013 _a3YTD 2014 Q3YTD2013_O3YTD 2014 Revenues $ 277574 $ 314,658 $ 3752 ‘Adj, Non-GAAP Gross Profit 226,121 255,378 3,752 ‘Adj. Non-GAAP Operating Profit © _§ 130701 _§ 148,338 $3,621 espa” $ 137,885 $150,263 $ 3,
Slide 17: Supplemental Information
(i2)) Supplemental Information j2).| @eFax’ (eVoice Rirusemai’ campaigner’ WKeepliSafe’ Wonebox' BIZEE We
Slide 18: Financial Metrics: Consolidated
(j2 Financial Metrics: Consolidated j2 Global® Consolidated at a2 os a at a2 3 Total GAAP Revenues S113617 $144,361 $427,788 $138,035 s134124St44i7aq $183,018 Adjustments" fe (913.920) (se14 (3) seat S985 $213 Total Adjusted Non-GAAP Revenue SH13.573 $127.44 $126,974 __ $138,027 $134,665 $145,729 $1
Slide 19: Financial & Other Metrics Cloud Services & Media
j2)) Financial & Other Metrics Cloud Services & Media ~~ Total Cloud ai @ @ as a a2 a ‘dusted Hon-GAAP Revenue By T ri Fuad Sutecribr Revenue srizmssrasse sve. Toga se10%0 see02 99,608 Variate Sussorber size stesse 18.752 sta sig273 19623 $19,113 Subscrber Revenues segs —-sm7a2~—~—~—«Se0.200 ~~ T se
Slide 20: GAAP Reconciliation Free Cash Flow & EBITDA
(j2 )) GAAP Reconciliation Free Cash Flow & EBITDA ($ in millions) Free Cash Flow (1) aris ovis ois ovis arta ear asta Net essh provided by opersing actives sa0s seasrs sae sae $7206 ssasi2 $40.15 Less: Purchas s of property end equipment (3133) (34.088) (5.129 (s7stt) (s2see) $1087) 2124 Less: Pate
Slide 21: In Mitions a'13, 243343 413, ais gtd
In Mitions a'13, 243343 413, ais gtd 314 Cloud - Services Revenues a9 $939 $934 = $046] S994 «$1063 stag Gross Proft, S734 $761 $761 S769] $805 S884 sees Gross Prott % 82% 31% 82% 31% 31% 81% 80% EBITDA $442 $470 $464 8.4.0] 5.47.0 =. 524, ss12 EBITDA% 49% 50% 50% 5124 47% 49% AT% Media Revenues s31
Slide 22: YTD GAAP Reconciliation Adjusted Non-GAAP Earnings & EPS
® YTD GAAP Reconciliation Adjusted Non-GAAP Earnings & EPS ($ in thousands) NE TNNE MONTHS ENDED SEPTEMBER. re Stesseses agate Agusta Past Adhsed GAAP Gonsareste Ee Wongaae | gaar zt Non SAAP Reenes ferred “ = = = $ ines | s sae zy emp a) $ Manges costctrmanes Tee e - nC cunts eo ee F - 08 Seas sve
Slide 23: Business Cloud - GAAP / Non-GAAP Revenue and EBITDA Reconciliation
J Business Cloud - GAAP / Non-GAAP Revenue ~~ and EBITDA Reconciliation {Sin milion) ano me __awna_| ssac GAAPRevenue $264 $3002 sa617 sot | sad Adustrrent ~ 103 = (26) 7 Non-GAAP Revenue $255.4 $340.5 $3647 $3775 | $415.2 GAAPNet Income (Loss) $80 S148 s1200 si1s6 | s1138 Income Taxes 76 DBs 21 BO
Slide 24: Media - GAAP / Non-GAAP Revenue and EBITDA Reconciliation
2019 excludes revenues associates win ava of IONE® 2012 excuses tne tetfactas Ziff Dav was acqured in Novert 2D Media - GAAP / Non-GAAP Revenue and EBITDA Reconciliation LT™ {$ in millions) 2010 = 2011 2012 2013 | 9/30/2014 GAAP Revenue $11.0 $314 $485 $1307 $156.8 Adjustment ~ - ~ (22) (0.0) Non-GA
Slide 25: Slide 25
j2 Global — Needham & Company Annual Growth Conference (January 2015) on 6ix