Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — j2 Global — Q3 2017 Earnings Presentation
26 slides from Ziff Davis's earnings presentation, Nov 3, 2017
Slide 1: Investors Presentation Third Quarter 2017 Results
Investors Presentation ® Third Quarter 2017 Results November 2, 2017
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 2017 Financial Guidance. Such forward-looking statements are subject to numerous assumptions, risks and uncertainties
Slide 3: Safe Harbor for Forward-Looking Statements (continued)
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: OeFax’ (eVoice EiKeepitSafe’ <% cirvnumeers
OeFax’ (eVoice EiKeepitSafe’ <% cirvnumeers @eaxCorporate ZAZIFE <31GN PC} mzintel «7 campaigner’ ®&)FuseMail’ everydayHeEALTHINc askmen previa’ (Waneiex EXCEL (ceReceptionist (7) SPEEDTEST SugarSync% =0Send2Fax @myfax livedrive. Offers.com FIRSTVWAY metrofax: @Salesify TE&H Lault Y GEEK! EXTREMETEC
Slide 5: Record Q3 '17 Consolidated Results
5 Record Q3 ‘17 Consolidated ResultsQ3 Results: All-time quarterly record Revenue $274MEBITDA(1)(2) $111M, FCF(1)(2) $57M, and Adjusted EPS(1)(2) $1.34Q3 ‘17 Revenue up $63M or 30% vs. prior year, EBITDA(1)(2) up $16M or 17% vs. prior year$400M+ in cash and cash equivalents as of September Cloud Seg
Slide 6: j2 Global Consolidated
OeFax’ (eVoice EiKeepitSafe’ <% cirvnumeers @eFaxCorporate BAZIE <31GN PC} ®zintel «7 campaigner’ ®&)FuseMail’ everydayHeEALTHINc j2Global Consolidated («eReceptionist (7) SPEEDTEST SugarSync& =0S¢nd2Fax @myfax livedrive. Offers.com FIRSTVWAY mBtrofax: @alesify TEEM tour EER EXTREMETECH’ [E]Toolbox.
Slide 7: Q3 2017 Results vs. Prior Year
7 Q3 2017 Results vs. Prior Year See slides 21-25 for a GAAP reconciliation of revenue, adjusted non-GAAP gross profit, adjusted non-GAAP operating profit, adjusted EBITDA and adjusted earnings per diluted share for the Company as a whole and by segment.Includes Allocation from Cloud Connect to Clou
Slide 8: Business Cloud Services
OeFax’ (eVoice EiKeepitSafe’ <% cirvnumeers @eaxCorporate ZAZIFE <31GN PC} mzintel «7 campaigner’ ®&)FuseMail’ everydayHeEALTHINc Business Cloud Services _ (ceReceptionist (7) SPEEDTEST SugarSync% =0Send2Fax @myfax livedrive. Offers.com FIRSTVWAY metrofax: @Salesify TE&H Lault Y GEEK! EXTREMETECH’ [
Slide 9: Q3 2017 Cloud Connect (Fax/Voice) Highlights
Q3 ‘17 all-time high Cloud Connect Revenue of $97M, +5% vs. Q3 ’16Q3 ‘17 Fax Revenue of $80M, continues to grow versus Q3 ’16All-time high Fax Revenue in Q3 ’17, up 3.5% vs. prior yearVoice Revenue of $17M, grew 10% vs. Q3 ’16Corporate Fax Revenue continues to grow, up 7% vs Q3 ’16Successfully compl
Slide 10: Q3 2017 Cloud Backup Highlights
Q3 ‘17 Revenue of $28MInternational Revenue grew by 5%EBITDA(1)(2) continues to be ~ 50%Successfully launched endpoint data protection services in EUCancel rate favorable vs. prior year driven by KeepItSafe® and Livedrive® Acquired and integrated backupsonline in Europe Q3 2017 Cloud Backup Highligh
Slide 11: Q3 2017 Email Security & Email Marketing Highlights
Email Security – FuseMail® Strong organic growth, sequential quarterly growth of ~7.2% topline, driven by EuropeQ3 ‘17 Revenue of $11.4M, EBITDA(1)(2) of ~$4MStrong new business sales in Excel Micro™ after McAfee migrationsOngoing investment in the FuseMail® product roadmap – features and packagesNo
Slide 12: Digital Media
OeFax’ (eVoice EiKeepitSafe’ <% cirvnumeers @eaxCorporate ZAZIFE <31GN PC} )zintel «7 campaigner’ ®&)FuseMail’ everydayHeEALTHINc ===") Digital Media. <\S;- («eReceptionist (7) SPEEDTEST SugarSync& =0S¢nd2Fax @myfax livedrive. Offers.com FIRSTVWAY mBtrofax: @alesify TEEM tour EER EXTREMETECH’ [E]Too
Slide 13: Q3 2017 Digital Media Highlights
13 Digital media business demonstrating strong fundamentalsQ3 ‘17 Revenue of $128M, up 91% vs. Q3 ’16Q3 ‘17 EBITDA(1)(2) of $40M, up 67% vs. Q3 ’16Total multi-platform visits 1.4B(3)(4) Q3 2017 Digital Media Highlights Ookla passes 300MM app install(3) milestoneThe addition of 16M+ mobile app instal
Slide 14: Q3 2017 Digital Media Highlights
14 Q3 2017 Digital Media Highlights IGN’s continues to expand video programming and distribution partnershipsIGN and Disney premiered “The IGN Show” on Disney XD in July30 half-hour episodes of video game content and event coverage Google Analytics and Partner PlatformsTwitter IGN has extended its p
Slide 15: 2017 Financial Guidance
OeFax’ (eVoice EiKeepitSafe’ <% cirvnumeers @eFaxCorporate ZAZIFE IGN PC} ®)zintel «7 campaigner’ ®&)FuseMail’ everydayHeEALTHINc 2017 Financial Guidance (eReceptionist. () SPEEDTEST SugarSync% HO S@Nd2Fax @myfax livedrive. Offers.com FIRSTVWAY metrofax @Salesify TSS" Lievault Y GEEK, EXTREMETECH’ [
Slide 16: Reconfirming 2017 Guidance
16 Reconfirming 2017 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 of tax. It is anticipated that the effective tax rate for 2017 (
Slide 17: CEO career and tenure at j2
17 Hemi has served j2 in various roles during his tenureJoined j2 Global in 1996 and has dedicated over 21 years of service to the organizationIn 1999, served as CFO during j2’s IPO, then from 2001 as CMO until 2003Prior to being named CEO in 2008, served as Co-President and Chief Operating OfficerC
Slide 18: Supplemental Information
OeFax’ (eVoice EiKeepitSafe’ <% cirvnumeers @eFaxCorporate BAZIE <31GN PC} ®zintel «7 campaigner’ ®&)FuseMail’ everydayHeEALTHINc ~ Supplemental Information — («eReceptionist (7) SPEEDTEST SugarSync& =0S¢nd2Fax @myfax livedrive. Offers.com FIRSTVWAY mBtrofax: @alesify TEEM tour EER EXTREMETECH’ [E]T
Slide 19: Financial Metrics: Consolidated
19 See slide 21-25 for a reconciliation of Non-GAAP earnings and EPS to GAAP net income and diluted GAAP EPSSee slide 21 for a definition of Free Cash Flow and reconciliation to net cash provided by operating activitiesSee slide 21 for a definition of adjusted EBITDA and reconciliation to Net Income
Slide 20: Financial & Other Metrics Cloud & Media
20 Financial & Other Metrics Cloud & Media 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
Slide 21: GAAP Reconciliation Free Cash Flow & Adjusted EBITDA
21 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. Free Cash Flow amounts are not meant as a substitute for GAAP, but are solely for inform
Slide 22: GAAP Reconciliation Q3 Adjusted Non-GAAP Earnings & EPS
22 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 23: GAAP Reconciliation Q3 Adjusted Non-GAAP Earnings & EPS (continued)
23 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 24: GAAP Reconciliation Q3 2017 Adjusted EBITDA
24 GAAP Reconciliation Q3 2017 Adjusted EBITDA ($ in thousands)
Slide 25: GAAP Reconciliation Q3 2016 Adjusted EBITDA
25 GAAP Reconciliation Q3 2016 Adjusted EBITDA ($ in thousands)
Slide 26: j2 Global
j2) Global