Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Kaufman Bros. Conference (September 2004)
20 slides from Ziff Davis's conference presentation, Sep 8, 2004
Slide 1: Kaufman Bros. Conference
www.j2global.com Kaufman Bros. Conference (Based upon Second Quarter 2004 results) September 8, 2004
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 entitled “2004 Financial Guidance”. These forward-looking s
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 Competition in price, quality, features and geo
Slide 4: j2 Global deploys the power of the Internet
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: Brand names and logos trademarks
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 7.3 million subscribed telephone numbers (DIDs) Global advanced messaging network 1,350+ cities in 20 countries on 5 continents 9.5MM+ unique DIDs worldwide in inventory Patented technology 12 issued U.S. Patents and numerous patents pending Expertise Telecom, messaging, e-mail, Intern
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, Yahoo!, Google, Lycos, 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 Small to Mid-Sized Busines
Slide 9: Active Telephone Numbers (DIDs) & ARPU
Active Telephone Numbers (DIDs) & ARPU 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 $17.22 $16.68 $15.52 $15.36 $15.73 $0.04 $0.05 $0.05 $0.05 $0.04 Q2 ‘03 Q3 ‘03 Q4 ‘03 Q1 ‘04 Q2 ‘04 PAID DIDs 348,988 380,230 400,245 434,616 469,328 Cancel Rate * 3.0% 2.8% 3.3%
Slide 10: Total Revenues
Total Revenues 2003 2004 Q2 Q3 Q4 Q1 Q2 DID based ($M) 15,835 17,478 19,216 21,664 24,057 % of Total Revenues 92.9% 92.5% 93.9% 94.4% 93.1% % Growth 12.6% 10.4% 9.9% 12.7% 11.0% TTM Growth 53.5% 53.6% 52.5% Non-DID based ($M) 1,202 1,424 1,257 1,278 1,774 % of Total Revenues 7.1% 7.5% 6.1% 5.6% 6.9%
Slide 11: Product Roadmap
Product Roadmap IP Fax Document Management Voice Services Email Services Unified Messaging & Comm. Services Inbound Fax to Email Outbound Fax via Email Fax broadcasting Secure fax OCR PDF delivery ProtoFax® Messenger 3.0 HotSend® PaperMaster ProTM Inbound VM to Email Voicemail management Telephone a
Slide 12: Financial Highlights
j2),Global Financial Highlights 2 42), cota communication.
Slide 13: Historical Revenue Growth
Historical Revenue Growth $26.0 $24.0 $22.0 $20.0 $18.0 $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 (Millions) 29 consecutive quarters of revenue growth Q1 ‘97 Q2 ‘97 Q3 ‘97 Q4 ‘97 Q1 ‘98 Q2 ‘98 Q3 ‘98 Q4 ‘98 Q1 ‘99 Q2 ‘99 Q3 ‘99 Q4 ‘99 Q1 ‘00 Q2 ‘00 Q3 ‘00 Q4 ‘00 Q1 ‘01 Q2 ‘01 Q3 ‘01 Q4 ‘01 Q1
Slide 14: Operating Income Growth
Operating Income Growth $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 (Millions) $1.423 $3.086 $3.852 $4.751 $5.194 $6.158 $7.421 $8.477 $9.991 $11.003 Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004
Slide 15: Quarterly Revenues
Quarterly Revenues 2003 2004 Q2 Q3 Q4 Q1 Q2 Subscriber $16,307 $17,806 $19,517 $22,062 $25,063 Quarter-to-Quarter Growth 12.8% 9.2% 9.6% 13.0% 13.6% Advertising 609 681 806 761 647 Quarter-to-Quarter Growth -0.6% 11.9% 18.4% - -5.6% -15.0% Licensing and Other 121 416 151 119 121 Total Revenues $17,0
Slide 16: Subscriber Revenues
Subscriber Revenues 2003 2004 Q2 Q3 Q4 Q1 Q2 Fixed ($M) 11,177 12,121 13,976 16,021 17,750 % of Subs. Revenues 68.5% 68.1% 71.6% 72.6% 70.8% % Growth 12.7% 8.4% 15.3% 14.6% 10.8% TTM Growth 54.4% 56.3% 57.2% Variable ($M) 5,130 5,685 5,542 6,041 7,314 % of Subs. Revenues 31.5% 31.9% 28.4% 27.4% 29.2
Slide 17: Cost Trends
Cost Trends 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% (Percentage of Total Revenue) 84.3% 82.6% 84.1% 80.9% 81.5% Gross Margin 36.1% 39.2% 41.4% 43.5% 42.6% Operating Margin Sales & Marketing Engineering G&A 18.3% 18.5% 4.9% Q2 ‘03 Q3 ‘03 Q4 ‘03 Q1 ‘04 Q2 ‘04
Slide 18: Earnings & Free Cash Flow
Earnings & Free Cash Flow $12.0 $11.0 $10.0 $9.0 $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 (Millions) (1) Q1 ‘03 Q2 ‘03 Q3 ‘03 Q4 ‘03 Q1 ‘04 Q2 ‘04 Net Earnings Free Cash Flow(2) (1) Excludes benefit of $9.5 million to record the reversal of certain valuation allowances of our deferred tax assets
Slide 19: 2004 Financial Guidance
2004 Financial Guidance (Reaffirmed 9/08/04) Q3 2004 Year-End 2004 Revenues (millions) $27.4 – $27.8 $100 – $106 Earnings Before Taxes per $0.48 $1.65 – $1.83 Fully-Diluted Share Net Earnings per Fully-Diluted $0.31 $1.00 – $1.18 Share (1) (1) Assumes an effective 35% annual tax rate and diluted sha
Slide 20: j2 Global
j2) Global
J2 Global Communications — Kaufman Bros. Conference (September 2004) on 6ix