Slide 1: Investor Presentation (Based upon First Quarter 2008 results)
Investor Presentation (Based upon First Quarter 2008 results) May 6, 2008
Slide 2: Safe Harbor for Forward-Looking Statements
Future operating results Subscriber growth, retention and usage levels Fax and voice service growth New products, services and features Corporate spending Liquidity Network capacity, coverage and security Regulatory developments Taxes Certain statements in this presentation constitute “forward-looki
Slide 3: Risk Factors
Risk Factors Inability to sustain growth in our customer base, revenue or profitability Competition in price, quality, features and geographic coverage Higher than expected tax rates or exposure to additional tax liability Inability to obtain telephone numbers in sufficient quantities on acceptable
Slide 4: Messaging/Communications as a Service
All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally. Messaging/Communications as a Service
Slide 5: Core j2 Global Assets
Core j2 Global Assets 11.2 million Subscribed Telephone Numbers (DIDs) 1,099K Paid DIDs Global Advanced Messaging Network Over 3 ,000 cities in 44 countries on 5 continents 17.4M + unique DIDs worldwide in inventory Intellectual Property 56 issued patents and l icensing programs designed to monetize
Slide 6: Subscriber Acquisition
Individuals Targeted marketing (search, online media and radio) Sold through: eFax.com, eVoice.com, Onebox.com, Fax.com, j2.com , and other brand websites Use of proprietary Life Cycle Management Advertising, Up-selling, and Calling-Party-Pays revenue supports the Free base Small to Mid-Sized Busine
Slide 7: Paid Subscription Drivers: Seven Drivers for Paid DID Additions
Seven Drivers for Paid DID Additions Subscribers coming directly to the Company’s Websites/Telesales Brand awareness driven by demand-generation programs and “word of mouth” Search engine discovery Accounts for over 40% of monthly paid DID signups Free-to-Paid subscriber upgrades Life Cycle Manageme
Slide 8: Global
Global j2 ), Communications {2 Global Communications 2008
Slide 9: GAAP Results
(1) Includes SFAS 123(R) non-cash compensation expense. (2) Includes SFAS 123(R) non-cash compensation expense, net of tax benefit. (3) See slide 17 for a reconciliation to the nearest GAAP financial measure. GAAP Results GAAP Revenues $58.6M Gross Profit/Margin (1) $47.0M 80.2% Operating Profit/Mar
Slide 10: Global
Global j2 ), Communications {2 Global Communications 2008
Slide 11: Fax Services
Individual Web Channel Stable cancel rate after price increase eFax continues to grow with secondary brands growing faster Won three Telly awards for marketing www.efax.com/awards B2B advertising Internet advertising Copywriting/Humor Corporate Channel Signed 7 new large contracts/47 total large cus
Slide 12: Voice Services
eVoice Receptionist/OneBox Receptionist Approaching 100,000 paid DIDs – critical mass Live Receptionist launched Expanded US telecom coverage to 50 markets Began roll out of voice to text International eReceptionist TM to launch in Western Europe in Q2 YAC redesigned website Voice Services
Slide 13: Global
Global j2 ), Communications {2 Global Communications 2008
Slide 14: 2008 Guidance
2008 Guidance $1.45 - $1.65 GAAP EPS $240 - $270 Revenues (M) 2008 EPS is based on GAAP which includes SFAS 123(R) non-cash compensation expense.
Slide 15: Global
Global j2 ), Communications {2 Global Communications 2008
Slide 16: Financials: Revenues and DIDs
Revenues DIDs Financials 2 Global ), Communications
Slide 17: Computation of Free Cash Flow
(1) Net cash provided by operating activities, less purchases of property & equipment. Free Cash Flow amounts are not meant as a substitute for GAAP, but are solely for informational purposes. Computation of Free Cash Flow ($ in millions) Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '0
Slide 18: Usage of Corporate and Web High Volume Users
Usage of Corporate and Web High Volume Users
Slide 19: Global Communications
j2) Global Communications