Slide 1: Fourth Quarter and Full Year 2019 Results
F O U R T H Q U A R T E R A N D F U L L Y E A R 2 0 1 9 R E S U L T S F E B R U A R Y 1 1 , 2 0 2 0
Slide 2: Safe Harbor for Forward-Looking Statements
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 2020 Financial Guidance. Such forward-looking statements are subject to num
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 or profitability, and any related impact of U.S. or worldwide economic issues on customer ac
Slide 4: Q4 2019 Consolidated Financial Snapshot
Q4 2019 Consolidated Financial Snapshot Revenue Adjusted Gross Profit (1) (2) (in millions) (in millions) 17.2% 17.6% $405.6 $341.9 Q2 2018 $233,192,653 $346.1 $290.7 Q2 2018 $102,668,939 Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q2 2018 $1.22 Adjusted EBITDA (1)(2) Adjusted EPS (1)( 2) (in millions) 14.3% 12
Slide 5: FY 2019 Consolidated Financial Snapshot
FY 2019 Consolidated Financial Snapshot Revenue Adjusted Gross Profit (1)(2) FY 2017 (in millions) (in millions) 1,117,837,852 13.6% 12.7% $1,372.0 $1,137.5 FY 2017 $1,207.3 $1,009.3 $949,136,299 FY 2017 $462,951,882 FY 2018 FY 2019 FY 2018 FY 2019 FY 2017 $5.64 Adjusted EBITDA (1)(2) Adjusted EPS (
Slide 6: Adjusted EBITDA and Free Cash Flow
Adjusted EBITDA and Free Cash Flow (1) Adjusted EBITDA (2) Y/Y'18 Q4 FCFvs Q4 '19 (2) 2013 (in millions) 220,446,000 (in millions) $550.2 14.3% $489.5 $463.0 $396.1 $176.3 $333.3 $262.6 $154.3 $220.4 2013 $150,393,000 2013 2014 2015 2016 2017 2018 2019 Q4 2018 Q4 2019 Q1 2018 $90,745,490 Free Cash F
Slide 7: Q4 2019 Financial Snapshot By Business
Q4 2019 Financial Snapshot By Business ```CLOUD SERVICES DIGITAL MEDIA Revenue Revenue (in millions) (in millions) 14.3% $169.3 19.3% $236.3 $148.1 $198.0 Q4 2018 Q4 2019 Q4 2018 Q4 2019 Adjusted EBITDA (1)(2) Adjusted EBITDA (1)(2) (in millions) (in millions) 6.5% $80.7 23.1% $98.2 $75.8 $79.8 Q4 2
Slide 8: FY 2019 Financial Snapshot By Business
FY 2019 Financial Snapshot By Business ```CLOUD SERVICES DIGITAL MEDIA Revenue Revenue (in millions) (in millions) 10.7% $661.8 16.6% $710.2 $598.0 $609.3 FY 2018 FY 2019 FY 2018 FY 2019 Adjusted EBITDA (1)(2) Adjusted EBITDA (1)(2) (in millions) (in millions) 8.2% $324.9 19.3% $235.0 $300.2 $197.1
Slide 9: Financial Guidance
2020 FINANCIAL GUIDANCE
Slide 10: 2020 Outlook (Forward-Looking Statements)
2020 Outlook (Forward-Looking Statements) Cloud Services • Revenue growth expected to be ~5% • Adjusted EBITDA(1)(2) margin in line with prior year’s levels of ~50% • Additional depreciation due to capital expenditures throughout the Cloud businesses, as well as the full-year impact of M&A completed
Slide 11: 2020 Guidance (Forward-Looking Statements)
2020 Guidance (Forward-Looking Statements) Our annual guidance of Revenues, Adjusted EBITDA and Adjusted non-GAAP EPS Revenues $1,465MM - $1,505MM Adjusted EBITDA(1)(2) $575MM - $595MM Adjusted non- GAAP EPS(1)(2) $7.36 - $7.66 (1) Figures are adjusted non-GAAP 11 (2) Adjusted earnings per diluted s
Slide 12: Supplemental Information
"SUPPLEMENTAL INFORMATION
Slide 13: Consolidated Metrics
Consolidated Metrics 2017 2018 2019 J2 Consolidated Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue by Business |---(in '000s)---| Cloud Services Revenues $141,544 $144,709 $145,787 $146,916 $149,485 $150,297 $150,094 $148,099 $152,245 $169,132 $171,163 $169,296 Digital Media Revenues $113,125 $128,465
Slide 14: Cloud Services & Digital Media Metrics
Cloud Services & Digital Media Metrics 2017 2018 2019 Cloud Services Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue by Type |----------------------(in '000s)----------------------| Fixed Subscriber Revenues $115,726 $117,556 $118,755 $119,232 $120,840 $123,648 $123,111 $121,350 $124,309 $140,35
Slide 15: Return on Invested Capital (ROIC) Calculation
Return on Invested Capital (ROIC) Calculation Cumulative Cumulative Invested ROIC FCF (3) / Cumulative Adjusted Spend / Free Cash (3) ROIC FCF (3) / IEC (4) & Net (1) (2)(3) FCF since Equity Capital (IEC (4) & Net Spend EBITDA Adjusted Flow (FCF) (3) IEC (4) Debt (5) 2008 (IEC) (4) Debt (5)) (in Mil
Slide 16: Q4 and FY 2019 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS
Q4 and FY 2019 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS (1) Non-GAAP net income is GAAP net income with the following modifications: (1) elimination of share-based compensation and the associated payroll tax expense; (2) elimination of certain acquisition- related integration costs
Slide 17: GAAP Reconciliation - Free Cash Flow
GAAP Reconciliation - Free Cash Flow(1) (2) Figures in Thousands 2013 2014 2015 2016 2017 2018 2019 Q4 2018 (3) Q4 2019 (3) Net cash provided by operating activities $ 193,324 $ 177,231 $ 229,061 $ 282,387 $ 264,420 $ 401,325 $ 412,539 $ 107,209 $ 103,232 Less: Purchases of property and equipment (1
Slide 18: GAAP Reconciliation - Adjusted EBITDA
GAAP Reconciliation - Adjusted EBITDA(1) (2) (1) Adjusted EBITDA is defined as net income plus interest and other expense, net; income tax expense; depreciation and amortization and the items used to reconcile GAAP to Adjusted Non-GAAP EPS. Adjusted EBITDA amounts are not meant as a substitute for G
Slide 19: Q4 2019 Reconciliation of GAAP to Adjusted EBITDA
(1) Q4 2019 Reconciliation of GAAP to Adjusted EBITDA NOTE 1: Table above excludes certain intercompany allocations NOTE 2: The table above is impacted by certain expenses associated with the Corporate entity that were allocated to the Cloud Services business and the Digital Media business as these
Slide 20: Q4 2018 Reconciliation of GAAP to Adjusted EBITDA
(1) Q4 2018 Reconciliation of GAAP to Adjusted EBITDA NOTE 1: Table above excludes certain intercompany allocations NOTE 2: The table above is impacted by certain expenses associated with the Corporate entity that were allocated to the Cloud Services business and the Digital Media business as these
Slide 21: FY 2019 Reconciliation of GAAP to Adjusted EBITDA
(1) FY 2019 Reconciliation of GAAP to Adjusted EBITDA NOTE 1: Table above excludes certain intercompany allocations NOTE 2: The table above is impacted by certain expenses associated with the Corporate entity that were allocated to the Cloud Services business and the Digital Media business as these
Slide 22: FY 2018 Reconciliation of GAAP to Adjusted EBITDA
(1) FY 2018 Reconciliation of GAAP to Adjusted EBITDA NOTE 1: Table above excludes certain intercompany allocations NOTE 2: The table above is impacted by certain expenses associated with the Corporate entity that were allocated to the Cloud Services business and Digital Media business as these cost
Slide 23: Global J2
J2 GLOBAL