Slide 1: Investors Presentation Third Quarter 2016 Results
Investors Presentation ® Third Quarter 2016 Results November 1, 2016
Slide 2: 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 2016 Financial Guidance. Such forward-looking statements are subject to numerous assumptions, risks and uncertainties
Slide 3: Risk Factors
Inability to sustain growth or profitability, particularly in light of an uncertain U.S. and worldwide economy and the related impact on customer acquisition, retention and usage levels, advertising spend and credit and debit card payment declinesReduced use of fax services due to increased use of e
Slide 4: Everyday Health Tender Offer Notice
The tender offer described in this communication (the “Offer”) has not yet commenced, and this communication is neither an offer to purchase nor a solicitation of an offer to sell any shares of the common stock of Everyday Health, Inc. (“Everyday Health”) or any other securities. This communication
Slide 5: Q3 2016 Results
Q3 2016 Results
Slide 6: Q3 '16 Consolidated Results
6 Q3 ‘16 Consolidated ResultsRecord Third Quarter Revenue $210.1M, +17.6% vs Q3 2015Q3 ‘16 Adjusted EBITDA(1)(2) $95.4M, +13.2% vs Q3 2015Executing M&A investment to further improve market position4 Cloud acquisitions completed in Q3 2016Cloud SegmentQ3 ‘16 Revenue of $143.3M, +$17M or +13% vs. prio
Slide 7: j2 Global Consolidated
j2 Global Consolidated
Slide 8: Q3 2016 Results vs. Prior Year
8 Q3 2016 Results vs. Prior Year See slides 22-26 for a GAAP reconciliation of revenue, earnings per diluted share and adjusted EBITDA for the Company as a whole and by segment.Includes Allocation from Cloud Connect to Cloud Services of $1.7M in Q2 ‘16 and $1.5M in Q2 ’15The Consolidated j2 Global d
Slide 9: Business Cloud Services
Business Cloud Services
Slide 10: Q3 2016 Cloud Connect (Fax/Voice) Highlights
Q3 ‘16 Revenue of $92.6M, +3.5% vs. Q3 ’15, annual run rate ~$380M, +6% YoYFax Revenue of $77.3M, +1% vs. Q3 ‘15, led by premium brands and corporate faxFax Revenue represents 37% of consolidated Q3 ‘16 Revenue and ~44% of consolidated Adjusted EBITDA; prior year Fax Revenue was 43% of consolidated
Slide 11: Q3 2016 Cloud Backup Highlights
Revenue of $29.5M, +69% vs Q3 ’15Adjusted EBITDA(1)(2) of $15.2M, +124% vs. Q3 ’15Adjusted EBITDA margin(1)(2) +50% vs. ~39% in Q3 ‘15Completed 3 acquisitions in Q3 ’16 / 10 acquisitions to date in 2016Plan additional investment partially offset by savings from datacenter consolidation, positioning
Slide 12: Q3 2016 Email Highlights
Email SecurityQ3 ‘16 Revenue of $11.2M2016 YTD Revenue $35.2M, +4% vs. prior year2016 YTD Adjusted EBITDA(1)(2) $12.0M, +17% vs. prior yearUSA - Excel Micro - McAfee EOL January 2017Completed migrating Nordic customers to FuseMail® branded platform Double-digit revenue growth in Nordics +17% vs. Q3
Slide 13: Digital Media
Digital Media
Slide 14: Q3 2016 Digital Media Highlights
14 Figures are Adjusted Non-GAAPSee slides 22-26 for a GAAP reconciliation of revenue, earnings per diluted share and EBITDA. Digital media business demonstrating strong fundamentalsQ3 ‘16 Revenue of $67M, +28% vs. Q3 ’15Q3 ‘16 EBITDA(1)(2) of $24M, up, +18% vs. Q3 ’15Total multi-platform visits wer
Slide 15: Q3 2016 Digital Media Highlights (IGN)
15 Q3 2016 Digital Media Highlights IGN’s distributed video strategy continues its acceleration(1) Total video views across all IGN platforms were up 88% YoY to 895M.Subscriber and follower growth grew substantially in Q3 ‘16YouTube subscribers across channels increased by 26% YoY to 9.2MSocial foll
Slide 16: 2016 Financial Guidance
2016 Financial Guidance
Slide 17: Everyday Health Update
RationaleOur focus has always been to help our audiences make informed decisions; EVDY plays the same role in the health verticalSignificant learning to be shared and applied between EVDY and Ziff Davis – from data to performance marketing to platform publishingTransactionTender offer of $10.50 per
Slide 18: Reconfirming 2016 Guidance
Revenues $830M - $860M Adjusted Non-GAAP EPS(1)(2) $4.70 - $5.00 18 Reconfirming 2016 Guidance Figures are adjusted Non-GAAP.Adjusted earnings per diluted share excludes share-based compensation, amortization of acquired intangibles and the impact of any currently anticipated items, in each case net
Slide 19: Supplemental Information
Supplemental Information
Slide 20: Financial Metrics: Consolidated
20 See slide 23 & 24 for a definition of adjusted Non-GAAP net income and a reconciliation of Non-GAAP earnings and EPS to GAAP net income and diluted GAAP EPSSee slide 22 for a definition of Free Cash Flow and reconciliation to net cash provided by operating activitiesSee slide 22 for a definition
Slide 21: Financial & Other Metrics Cloud & Media
21 Cloud Services revenue includes IP Licensing revenueCloud Services Customers are defined as paying DIDs for Fax & Voice services and direct and resellers’ accounts for other servicesQuarterly ARPU is calculated using our standard convention of applying the average of the quarter’s beginning and e
Slide 22: GAAP Reconciliation Free Cash Flow & Adjusted EBITDA
22 Free Cash Flow (1) Free Cash Flow is defined as net cash provided by operating activities, less purchases of property, plant and equipment, plus excess tax benefits (deficiency) from share based compensation. In addition, the amount shown for Q2 and Q3 2015 excludes the effect of payments associa
Slide 23: GAAP Reconciliation Q3 Adjusted Non-GAAP Earnings & EPS
23 GAAP Reconciliation Q3 Adjusted Non-GAAP Earnings & EPS Adjusted Non-GAAP net income is not meant as a substitute for GAAP, and is defined as GAAP net income with the following modifications: 1) Elimination of shared-based compensation expense and associated payroll taxes 2) Elimination of certai
Slide 24: GAAP Reconciliation Q3 Adjusted Non-GAAP Earnings & EPS (continued)
24 GAAP Reconciliation Q3 Adjusted Non-GAAP Earnings & EPS (continued) Adjusted Non-GAAP net income is not meant as a substitute for GAAP, and is defined as GAAP net income with the following modifications: 1) Elimination of shared-based compensation expense and associated payroll taxes 2) Eliminati
Slide 25: GAAP Reconciliation Q3 2016 Adjusted EBITDA
25 GAAP Reconciliation Q3 2016 Adjusted EBITDA ($ in thousands)
Slide 26: GAAP Reconciliation Q3 2015 Adjusted EBITDA
26 GAAP Reconciliation Q3 2015 Adjusted EBITDA ($ in thousands)
Slide 27: j2 Global
j2) Global