Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — j2 Global — Q2 2017 Earnings Presentation
25 slides from Ziff Davis's earnings presentation, Aug 4, 2017
Slide 1: Investors Presentation Second Quarter 2017 Results
Investors Presentation ® Second Quarter 2017 Results August 3, 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: 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: OeFax’ (eVoice EiKeepitSafe’ <% cirvnumeers
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Slide 5: Record Q2 '17 Consolidated Results
5 Record Q2 ‘17 Consolidated ResultsQ2 Results: All-time quarterly record Revenue $273MEBITDA(1)(2) $110M, FCF(1)(2) $71M, and Adjusted EPS(1)(2) $1.33Q2 ‘17 Revenue up $61M or 29% vs. prior year (largest QoQ increase), EBITDA(1)(2) up $13M or 13% vs. prior yearExecuting M&A investment to further im
Slide 6: j2 Global Consolidated
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Slide 7: Q2 2017 Results vs. Prior Year
7 Q2 2017 Results vs. Prior Year See slides 20-24 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
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Slide 9: Q2 2017 Cloud Connect (Fax/Voice) Highlights
Q2 ‘17 all-time high Cloud Connect Revenue of $96M, +3% vs. Q2 ’16Q2 ‘17 Fax Revenue of $79M, continues to grow versus Q2 ’16, driven by strength in our premium eFax brand and Sfax acquisitionAll-time high Fax Revenue represents 29% of consolidated Q2 ‘17 Revenue vs 36% prior yearSubscriber base of
Slide 10: Q2 2017 Cloud Backup Highlights
Q2 ‘17 Revenue of $28M, , flat vs prior year in constant currenciesQ2 ‘ 17 Revenue, -4% vs Q2 ’16, affected by FXInternational Revenue is ~40% EBITDA(1)(2) continues to be > 50%Acquired CloudRecover an Australian-based Backup provider to SMBExpanded service into Australia, we now have operations in
Slide 11: Q2 2017 Email Security & Email Marketing Highlights
Email SecurityQ2 ‘17 Revenue of $10.6M and EBITDA(1)(2) of $3.7M (35% margin)Sequential quarterly growth of ~6.5% topline and 17% in EBITDAOrganic growth, increasing margin, M&AAcquired Nordic-based WeCloud & Simitu in Q2 2017, 40% revenue increase in NordicsEmail MarketingQ2 ‘17 Revenue of $7.7M, +
Slide 12: Digital Media
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Slide 13: Digital media business demonstrating strong fundamentals
13 Figures are Adjusted Non-GAAPSee slides 20-24 for a GAAP reconciliation of revenue and EBITDAGoogle Analytics (GA), Omniture and /or Partner Platforms Digital media business demonstrating strong fundamentalsQ2 ‘17 Revenue of $128M, up 85% vs. Q2 ’16Q2 ‘17 EBITDA(1)(2) of $37M, up 43% vs. Q2 ’16To
Slide 14: Q2 2017 Digital Media Highlights
14 Q2 2017 Digital Media Highlights IGN’s continues to expand video programming and distribution partnershipsLaunched The IGN Show, a daily, half-hour gaming and pop culture variety show, on cable TV’s Disney XDServed as Twitter’s exclusive E3 Expo partner, broadcasting live for 30 hoursReach over 8
Slide 15: 2017 Financial Guidance
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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: Supplemental Information
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Slide 18: Financial Metrics: Consolidated
18 See slide 20-24 for a reconciliation of Non-GAAP earnings and EPS to GAAP net income and diluted GAAP EPSSee slide 20 for a definition of Free Cash Flow and reconciliation to net cash provided by operating activitiesSee slide 20 for a definition of adjusted EBITDA and reconciliation to Net Income
Slide 19: Financial & Other Metrics Cloud & Media
19 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 20: GAAP Reconciliation Free Cash Flow & Adjusted EBITDA
20 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 21: GAAP Reconciliation Q2 Adjusted Non-GAAP Earnings & EPS
21 GAAP Reconciliation Q2 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 22: GAAP Reconciliation Q2 Adjusted Non-GAAP Earnings & EPS (continued)
22 GAAP Reconciliation Q2 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 23: GAAP Reconciliation Q2 2017 Adjusted EBITDA
23 GAAP Reconciliation Q2 2017 Adjusted EBITDA ($ in thousands)
Slide 24: GAAP Reconciliation Q2 2016 Adjusted EBITDA
24 GAAP Reconciliation Q2 2016 Adjusted EBITDA ($ in thousands)
Slide 25: Global
j2) Global