Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — j2 Global Communications — Q2 2010 Earnings Presentation
18 slides from Ziff Davis's earnings presentation, Aug 4, 2010
Slide 1: Investor Presentation (Based upon Second Quarter 2010 Results)
e 2 Global J J, Communications Investor Presentation (Based upon Second Quarter 2010 Results) August 3, 2010 + j2Global Communications 2010
Slide 2: Safe Harbor for Forward-Looking Statements
<3) Siabal J2), Communications 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 "2010 Guidance” sides. These forwa
Slide 3: Risk Factors
<3) Siabal J2), Communications Risk Factors ‘The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: Inabilty to sustain grovith or proftabilty, particulary in light of an uncertain U.S. or w
Slide 4: Q2 '10 GAAP & Non-GAAP Results
<3) Siabal J2), Communications Q2 '10 GAAP & Non-GAAP Results Q2 2010 Non-GAAP Q2 2010 GAAP $ Margin Revenues $61.3M Gross Profit/Margin () $50.9M 83.1% Operating Profit/Margin “ $25.9M 42.2% EPS (2) $0.41/Share Free Cash Flow () $26.4M Cash and Investments $264.9M $ Margin $61.3M $51.3M $29.2M 47.6
Slide 5: 2010 Q2 Highlights
2010 Q2 Highlights
Slide 6: Messaging/Communications as a Service
. Global J2), Communications Messaging/Communications as a Service @ Unified Email Communications electricm@il. » pete &yaiwise
Slide 7: 2010 Q2 Highlights: Customers
<3) Siabal J2), Communications 2010 Q2 Highlights Operations Customers - Our net adds grew by ~20,000 from Q1, while there were no DID based acquisitions in Q2 - Year-over-year growth of over 60,000 DIDs or 4.7% - Steady improvement in cancel rate since Q2 2009: best performance since Q2 2006 - 2.6%
Slide 8: 2010 Q2 Highlights: Marketing Programs
<3) Siabal J2_), Communications 2010 Q2 Highlights Operations ¢ — Marketing Programs: Awarded two Tellys for online eVoice® commercials: Silver Telly for Internet Service Advertising Bronze Telly for Communication Marketing - Lower marketing spend in Q2 i - Increased spend in Q3 and Q4 - Started mar
Slide 9: 2010 Q2 Highlights: Corporate Sales and Japan
. Global J2_), Communications 2010 Q2 Highlights Operations ° Corporate Sales - Revenues grew 7.8% annually, DIDs grew 10.4% - Added 25 new contract customers in Q2; 4 large deals - Over 70 Accounts with 1,000+ DIDs - Successfully targeting specific industries and markets focusing on value added pro
Slide 10: 2010 Q2 Highlights: Geographic Coverage Expansion
<3) Siabal J2_), Communications 2010 Q2 Highlights Operations Geographic Coverage Expansion - Added 493 cities (4,158 total in 48 countries) during Q2 - Expansion focused on Asia and Europe - German coverage increased by 96 cities - Added new country: Gibraltar - Added 17 cities in Japan Coming Soon
Slide 11: 2010 Q2 Highlights: 2010 M&A Review
. Global J2), Communications 2010 Q2 Highlights 2010 M&A Review ® Alban Telecom Ltd - UK voice services company acquired in early July - Customer base in UK ® As of July, total of five completed acquisitions in 2010 across fax, voice, and email hosting services - 3 international companies: UK voice
Slide 12: 2010 Guidance
2010 GUIDANCE
Slide 13: 2010 Guidance
<3) Siabal J2), Communications 2010 Guidance 2010 Plan Revenues 3% - 7% increase vs. 2009 Non-GAAP EPS similar to 2009 2010 EPS is based on Non-GAAP which excludes SFAS 123(R) non-cash compensation expense, net of tax benefit. * 2.Global Communications 2010
Slide 14: Supplemental Information
12), Eonar Supplemental Information
Slide 15: Revenues
Revenues Dips Financials <3) Siabal J2), Communications = ae Se a * 2 Global Communications 2010
Slide 16: Computation of Free Cash Flow
<3) Siabal J2), Communications Computation of Free Cash Flow ($ in millions) 308 _94'08 O1'09 9209 _93'09 _94'09_1'10 9210 Net cash provided by operating activities $15,676 $23,789 $31,152 20.362. $26.459 423.850 Durch, of property & equipment ‘ces tax benef (deficency) from share based compensation
Slide 17: Non-GAAP Results & Reconciliation to GAAP
<3) Siabal J2), Communications Non-GAAP Results & Reconciliation to GAAP J2GLOBAL COMMUNICATIONS. INC. UNAUDITED RECONCILIATION OF MODIFIED NET EARNINGS "THREE MONTHS AND SIX MONTHS ENDED JUNE 20,2010 (UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) THREE MONTHS ENDED JUNE 20,2010 ‘SX M
Slide 18: ° Global
° Global j2 | Communications *)2.Global Communications 2010
j2 Global Communications — Q2 2010 Earnings Presentation on 6ix