Transcription
Analyst Day PresentationMarch 4, 20201
Safe harbor for forward-looking statementsCertain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly thoseregarding our 2020 Financial Guidance. Such forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual resultsto differ materially from those described in those statements. Readers should carefully review the Risk Factors slide of this presentation. These forward-lookingstatements are based on management’s expectations or beliefs as of March 4, 2020 as well as those set forth in our Annual Report on Form 10-K filed by us on March 2,2020 with the Securities and Exchange Commission (“SEC”) and the other reports we file from time to time with the SEC. We undertake no obligation to revise or publiclyrelease any updates to such statements based on future information or actual results. Such forward-looking statements address the following subjects, among others: Future operating results Ability to acquire businesses on acceptable terms and integrate and recognize synergies from acquired businesses Deployment of cash and investment balances to grow the company Subscriber growth, retention, usage levels and average revenue per account Cloud service and digital media growth and continued demand for fax services International growth New products, services, features and technologies Corporate spending including stock repurchases Intellectual property and related licensing revenues Liquidity and ability to repay or refinance indebtedness Systems capacity, coverage, reliability and security Regulatory developments and taxesAll information in this presentation speaks as of March 4, 2020 and any redistribution or rebroadcast of this presentation after that date is not intended and will not beconstrued as updating or confirming such information.2
Risk factorsThe following factors, among others, could cause our business, prospects, financial condition, operating resultsand cash flows to be materially adversely affected: Inability to sustain growth or profitability, and any related impact of U.S. or worldwide economic issues on customer acquisition, retention and usage levels, advertising spend and creditand debit card payment declines Inability to acquire businesses on acceptable terms or successfully integrate and realize anticipated synergies Reduced use of fax services due to increased use of email, scanning or widespread adoption of digital signatures or otherwise Failure to offer compelling digital media content causing reduced traffic and advertising levels; loss of advertisers or reduction in advertising spend; increased prevalence oreffectiveness of advertising blocking technologies; inability to monetize handheld devices and handheld traffic supplanting monetized traffic; and changes by our vendors or partners thatimpact our traffic or publisher audience acquisition and/or monetization New or unanticipated costs and/or fees or tax liabilities, including those relating to federal and state income tax and indirect taxes, such as sales, value-added and telecommunicationstaxes Unforeseen global crises, such as war, strife, global health pandemics, earthquakes, or major weather events or other uncontrollable events could negatively impact our revenue andoperating results Inability to manage certain risks inherent to our business, such as fraudulent activity, system failure or a security breach; inability to manage reputational risks associated with ourbusinesses Competition from others with regard to price, service, content and functionality Inadequate intellectual property (IP) protection, expiration, invalidity or loss of key patents, violations of 3rd party IP rights or inability or significant delay in monetizing IP Inability to continue to expand our business and operations internationally Inability to maintain required services on acceptable terms with financially stable telecom, co-location and other critical vendors; and inability to obtain telephone numbers in sufficientquantities on acceptable terms and in desired locations Level of debt limiting availability of cash flow to reinvest in the business; inability to repay or refinance debt when due; and restrictive covenants relating to debt imposing operating andfinancial restrictions on business activities or plans Inability to maintain and increase our customer base or average revenue per user Inability to achieve business or financial results in light of burdensome telecommunications, internet, advertising, health care, consumer, privacy or other regulations, or being subject toexisting regulations Inability to adapt to technological change and diversify services and related revenues at acceptable levels of financial return Loss of services of executive officers and other key employees Other factors set forth in our Annual Report on Form 10-K filed by us on March 2, 2020 with the SEC and the other reports we file from time to time with the SEC3
J2 GlobalScott Turicchi, President and CFO4
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemAgenda2:00pmWelcome & Financials Scott Turicchi, President and Chief Financial Officer2:15pmCloud Services Nate Simmons, President, Cloud Services3:00pmZiff Davis Steve Horowitz, President, Ziff Davis3:45pmEveryday Health Group Dan Stone, President, Everyday Health Group4:30pmJ2 Acquisition System Sean Alford, Senior Vice President, Corporate Development4:55pmFireside Chat Vivek Shah, Chief Executive Officer, J2 Global & Dan Ives, ManagingDirector, Equity Research, Wedbush Securities5:30pmQ&A J2 Global Team6:00pmCocktails5
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemInvestment highlightsDiversified portfolio of internet brands at the forefront of the shift from analog to digitalHighly recurring revenues across advertising and subscription businessesConsistent and sustained revenue and earnings growthProgrammatic M&A system with proven track recordVirtuous cycle of Free Cash Flow generation6
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemExceptional financial performance24% average annual ROIC1 FCF / (IEC Net Debt)21% Revenue CAGR( in MM USD)( in MM USD)CAGR 21% 1,117.8 1,372.0 1,207.331.0%25.5% 874.3 520.8 255.42010 599.020.9%18.7% 330.2 0152016 463.0 489.5 267.9 264.8 223.2 333.320122019 344.9 350.4 550.2 396.120112018( in MM USD)CAGR 17% 177.7 194.32017Annual FCF1 continues to grow with successful integrations( in MM USD)201022.6%24.1% 720.817% EBITDA1 CAGR 133.9Avg. 23.8%23.5% 220.42013 157.5 166.0 150.4 171.5 262.6 108.82014201520162017201820191. Figures are adjusted non-GAAP, see Supplemental Information section at back for a GAAP 20197
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemTwo strong segmentsDigital MediaCloud ServicesFinancial OverviewFinancial OverviewRevenue( in MM USD)Revenue( in MM USD)3%CAGR 3 539 1682014 216 307201520162017 609 710CAGR 9%52%of TotalRevenue201820142019Adjusted EBITDA1( in MM USD) 53 85 11420152016 1722017 203 24639%Select Brands 579 598 66248%of TotalRevenue2016201720182019 306 334CAGR 9%42%of Total EBITDAContribution20182019 2132014 258 295 3042015201620172018201951%53%51%51%58%of Total EBITDAContributionAdjusted EBITDA MarginAdjusted EBITDA Margin32%2015 567Adjusted EBITDA1( in MM USD)CAGR 36%2014 430 50337%32%33%35%50%51%Select Brands1. Figures are adjusted non-GAAP and adjusted EBITDA margins are before corporate allocation Refer to the Supplemental Section at the back for additional details on our GAAP Reconciliation8
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition System2020 FY guidanceRevenuesAdjustedEBITDAAdjusted nonGAAP EPS 1,465MM 1,505MM 575MM 595MM 7.36 - 7.661,21,21. Figures are adjusted non-GAAP2. 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 tax9
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemSignificant capacity for acquisitions in 2020 1B of ‘dry powder’ from three sourcesBalance sheet2020 FCFRevolving line of creditCash on hand at year endCash from ongoing 2020operationsDebt instrument leveraged foracquisitions as needed10
Cloud ServicesNate Simmons, President11
IntroductionsExperience: Symantec (NortonLifeLock)Time Inc.Warner MediaMcKinsey & CompanyExpertise:Nate SimmonsPresident, Cloud Services Digital security and privacySubscription revenue growtheCommerceM&A / Integration12
J2 Cloud Services providesmarket-leading software andservices that enable people andbusinesses to be productive andsafe in the digital world13
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemInvestment highlights Market-leading security, communications, and marketing solutions for businesses andconsumers Strong financial performance with 80% recurring revenue from subscription Successful acquisitions expand product offerings and drive profitable growth Multiple growth engines based on Security and Privacy value propositions– Secure document delivery for sensitive business/customer information– Security and data protection for small and medium-sized businesses– Privacy solutions that enable individuals to use the Internet safely 662MMRevenue in 2019 334MMEBITDA1 in 2019( 11% YoY)( 9% YoY)1. Adjusted EBITDA before corporate allocation 3MMConsumer andSOHO Customers 190KBusiness Accounts(majority are SMB)14
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemSuccessful expansion into multiple cloud-based marketsFrom Online Fax to Security and Privacy2013201020152014201720162019201815
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemStrong positions in attractive marketsMarketsSecurity & PrivacyExample brandsDescriptionProtecting businesses and consumers from disruption and loss dueto cyber threats Advanced email and endpoint security and threat intelligence Market-leading secure data backup and disaster recoveryservices Consumer VPN, malware protection, and secure file storage2019 Revenue1 215MMSOHOCloud FaxEnabling consumers and home offices to securely send and receivedocuments by email, web, or mobile app Eliminates the need for fax machines and dedicated phone lines 191MMCorporateCloud FaxEnterprise-grade secure document delivery services High levels of performance, reliability, and support Compliant with HIPAA and other info security requirements Platform and workflow integrations Eliminates need for machines, servers, and maintenance 130MMEnabling businesses to be more productive and efficient Email marketing and delivery solutions Unified voice and messaging systems Call center tools 125MMSMB Enablement1. Excludes 1.0M in IP licensing revenue; includes only 9-months of revenue from VPN brands16
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemMarket-leading products: Security and PrivacyHighly rated by customers, partners, and 3rd party reviews and testingMultiple Top Product andAdvanced awards fromindependent testing agenciessuch as AV-Test Institute andAV-comparatives“This product impresses withclear design, simpleoperational processes andstrong reporting features”- AV-comparatives (Nov. 2019)“Best VPN out there. No fineprint or strings attached likethe other big competitors. Fastspeeds, plethora of serverlocations and most of all theyrespect your privacy I alwaysfeel safe online under theshield of IPVanish.”- Jacek 5/30/2019J2 is the largest Veeam Cloud Service Provider and aVeeam Global PlatinumPartnerOffsiteDataSync was recentlynamed 2020 Veeam CloudService Provider of the YearFirst major cloud fax providerto obtain certification fromHITRUST , an independentcouncil of healthcare andtechnology organizations –the gold standard for HIPAAand ISO security compliance17
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemStrong financial performance with 80% recurringsubscription revenue9% Revenue CAGRCloud Services revenue composition( in MM USD)(2019)Fixed-recurring subscription 662CAGR 9% 567 579 598 503Usage-based 43083%2014201520162017201817%201918
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemSuccessful acquisitions expand product offerings anddrive profitable growthInvestment thesis: SMB EnablementAcquisitionBusiness descriptionUnified communicationplatform and VoIP servicewith strong ‘softphone’ appfor mobile devicesDate ofacquisitionTotalpurchaseprice6/181/19Integration andgrowth strategies Leverage existing eVoiceinfrastructure and team toexpand margin 64.2MMEmail marketing solutionwith strong brand and largefootprint in small businesssegment, easy to usefeatures and platform2019 EBITDAContribution 12.2MM5.3x Total spend /2019 EBITDAContribution multiple Enhance eVoice platformwith Line2 mobile app andVoIP capabilities Apply proven monetizationstrategies to increaseaverage revenue peraccount (ARPA) Integrate high-valueiContact features intoother email platforms19
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemBuilding leadership positions and growth engines basedon Security and Privacy value propositionsSecure documenttransmissionCybersecurity and dataprotectionFor healthcare and otherindustries handling sensitivecustomer informationProtecting small and mediumsized businesses from disruptionand lossPrivacy solutionsEnabling consumers andprofessionals to use the Internetsafely to keep their informationprivate20
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemSecure document transmission: Growing in healthcareand other compliance verticalsGlobal Online Fax market1Cloud- and server-basedMarket leaderin SOHOsegmentStrategy: Win share from server-based providers withcloud-based secure document delivery solutions forhealthcare and other verticalsSOHO ( 350MM)J2 GlobalServer-based faxaccounts for largeshare Healthcare is 1/3of market 75% of healthcaredocuments aretransmitted via Fax1. Arizton Advisory & Intelligence55%45% OthersCorporate ( 1.5B)Others91%9%Infrastructure High-speed, 100% virtual reliability HIPAA compliant, HITRUST certified Regional data sovereigntyProduct API and Router for direct integration,message delivery into EHR, ERP, etc. Consensus by eFax, interoperablemessaging for healthcare (2020 launch)Go-tomarketJ2 Global Direct sales Channel eCommerce20% growth in new business sales to SMBs in 2019 with 65% comingfrom healthcare customers in Q421
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemCybersecurity and data protection: Aligning our portfolioto deliver against SMB customer needs‘Essential / very important’ security services plannedfor purchase in next 24 monthsJ2 offerings are aligned to SMB security priorities,creating growth opportunity fueled by upsellDec. 2019 survey of 1,000 U.S. businesses with 1-500 employees30%Malware protection27%Email security25%Backup and disaster recoveryThreat intelligence24%Password protection/management24%Website security24%Security awareness training23%Web security23%Advanced endpoint security, emailsecurity, real-time threat intelligencePremium backup and disaster recoveryservices, including Office 365 BackupDNS filtering (web security) and Phishingattack simulation (training) launch in 202022%Data loss preventionIncident management20%Intrusion detection and prevention20%VPN and secure gateways20%Identity access management18%Mobile device management18%VPN for teams in market (hosted VPNs in development)22
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemPrivacy solutions: New business unit76% of consumers are “more alarmed than ever” about their privacy and 87% want to do more to protect it12019 ACQUISITIONPortfolio of VPN services thatprotect consumers by encryptingpersonal information and activitywhile using the InternetBusinesses have attractiverecurring revenue growth, highmargins, and strong FCF1. NortonLifeLock Cyber Safety Insights ReportREVENUEACCELERATIONFIRST 9 MONTHS . . .1. CorporateDevelopmentAcquired SaferVPN and Buffered VPN togrow customer base leveraging existingVPN infrastructure2. DistributionLaunched VIPRE premium malware protection VPN bundle; embedded VPN OoklaSpeedtest app3. BundlingAdded SugarSync secure file sync andstorage to IPVanish subscriptions – driveonline conversion and customer retention23
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition System3Privacysolutions: Developing the future product suiteSolutionPrivateconnections (VPN)Secure devicesSecure file sharing& StoragePrivate phone #sUnder evaluation(examples)DescriptionDefends againsthackers andsurveillance whenconnecting to theinternetSecures devices byscanning filesystems forinfection andransomwareEnsures files,photos, and videosare securelytransferred fromendpoint to cloudAdd second lines tomobile phones fortransactional andbusiness useOnline trackingblockerPrivate emailaddressesPasswordmanagementJ2 Cloud Servicesbrand coverage24
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemExperienced senior management teamArjen BerendsenGM, SecurityEasynet Global Services(Interoute), KPNRon BurrGM, VoicePADI, CallFire, LRN, NetZeroPaula CroutchCFO, Cloud ServiceseHarmony, AndersenLynn JohnsonHR DirectorCast & Crew, InterMediaJohn NebergallGM, FaxInternet Brands, Orion Health,AllScriptsNick Nelson,GM, PrivacyStackPath, Amazon,Demand MediaMichael PepeGM, MartechSV Investment Partners,Dun & Bradstreet, Time WarnerTim SmithGM, BackupWestern Digital, Dell EMC,Credit Suisse25
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Ziff DavisSteve Horowitz, President27
IntroductionsExperience: Bankrate AOL Yahoo GeoCities Bertelsmann Turner BroadcastingSteve HorowitzPresident, Ziff DavisExpertise: eCommerce (affiliate and direct) Marketplaces (online classifieds andpersonal finance) Consumer and business subscriptionservices M&A28
Ziff Davis is a tech company intentlyfocused on helping people research,decide, and act on importantdecisions in their personal andprofessional lives29
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemFundamental change in foundationFrom impression-based, CPM/RFP-dependent to customer-centric, performance-based, “always on” budgets20142013201820152017201930
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemScale positions in attractive marketsMarketsExample brandsDescription2019 Revenue Brand and editorial authority across consumer, SMB and B2B techverticalTech Decision-based content, delivering consumers vs. impressions 232MM Well-balanced portfolio: Primarily performance-based, licensing,media Industry leading brands and audiences across full gaminglandscape: AAA to indie gamesGaming The gamer audience is the bullseye for entertainment industry 164MM Well-balanced portfolio: Subscriptions, publishing, media, commerce Industry-leading brands and product sets that span the broadbandlandscapeBroadband At the center of end-customer satisfaction 104MM Well-balanced portfolio: Subscriptions and licensing, data andsoftware31
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemFinancial overview: Strong revenue growth24% Revenue CAGRIn 2019, 73% of Ziff Davis revenues were from nonCPM-based sources( in MM USD)20192014 499 434CAGR 24%27%31% 3415%64% 28431% 216 168201442%20152016201720182019Display/Video AdsPerformanceSubscription32
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemZiff Davis: The most financially diversified at-scale techorganizationAudienceAssetsEngagementYield500MM 500K 23B 29MM Monthly visitsPieces of contentpublished / yearViews / yearLeads generated / year90MM 1MM 200MM 600K Social followersDeals & couponscurated / yearCommerce clicks / yearPaying subscribers840MM 400MM 4B 1B Platform interactions /yearApp downloadsReports generated /yearGMV facilitated / year33
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemLeader in tech: Brands that deliver customers, not justimpressionsAuthoritative editorial content that instilsconfidence for important decisionsExample content:Prestigious brands with decades of user andalgorithm trustPlay in the most valuable categories where intentvolume and yield are highestMultiple “rents” drive both revenue growth andmargin expansion (ads, commerce, licensing, etc.)Actionable content (“comtent”) reviews,recommendations, how to’s page design,elementsDirect merchant relationships that drive the bestprice, deal, and offer for the user, while optimizingZD yield34
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemCase study: Monetizing intent with supply chain ownershipand performance-based demand deliveryOrganic Intent: SEO “iOS tips”“Bestlaptops”Supply chain ownership Email Social“Best BlackFriday deals”“Fastest VPNfor my home”“Best VOIPSystem forSMBs”“How to clean upmy PC”“Best dealon a 4K TV”Offers.com:Coupon/Promo code harvestingComprehensive database and QA provides the“crude oil” which is then processed/refined andbrought to market: “comtent,” emails, deals30K merchants monitored 1.7MM offerscollected 1.2MM after proprietary auto-filtering 1.0MM after staff editorial reviewSample of owned & operated blishedannually)35K DealsBest ofEngagementDirect relationships (000’s)Data, surveys,ratingsLicensingDisplay, VideoAdvertisingSubscriptionsAffiliatecommerce Merchants: Retail, DTC (AOS, AOV) Software: e.g., VPN, Anti-virus (LTV, Annuity) Services: e.g., home security (LTV, Annuity)35
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemCase study: Event-based commerce strategy is a successZiff Davis combined Offers.com infrastructure with three holiday deals sites via micro-transactionsTargetTransaction date12/1511/177/186/19DescriptionTotalpurchase price2019 EBITDAContributionGrowth strategy 27.2MMExisting O&O and BFsites grow ZD’s shareof online sales duringthe most importantshopping time of theyear (e.g., Layer inZD’s direct merchantrelationships andbetter monetizing adunits to drive revenuegrowth during holidaytime-period)Provided scale tocoupons and promocodes, plus directrelationships withmerchantsFour holiday-shoppingdeal-aggregation sitesacross 3 transactions,that added to our scalein Ziff Davis’s corecoupons and dealsvertical 66.2MM2.4xTotal spend / 2019EBITDA Contributionmultiple36
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemThe leader in gaming: Brands that drive awareness andtransactions—from indie to AAA, from console to PC 12MM lifetime paid customers acrosssubscriptions, store, and digital bundles57 indie games funded, 21 published to date 163MM donated to charityIndie games1. 2019 Q4 IGN Data 257MM users / month1#1 in gaming industry coverage, IGN ownsthe valuable gaming audience entertainmentmarketers covet mostAAA titles37
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemCase study: Humble Bundle publishing propels the longterm business flywheelHumble PublishingSubscriptionsPublishingStore Structure Indie focus Finishing funds investment Paid a % of sales, no cost tosubscription business Licensing to other platforms Retail Sales value HB published games soldin HB store, Steam, etc. Progress 57 games invested 21 games published todate 20 titles to be publishedin 2020 2020 Success story Subscription value Lower annual content costs Unique, exclusive content Published January, 2020 Indie hit, 500K units sold infirst month38
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemCase study: IGN owns the valuable gaming audienceGlobal content powerhouse: Published on 25 owned & distributed platforms 148MM users view IGN social content / month1 Content published in 115 countries worldwide#1 source for the Gamer Audience: The gaming audience is the most-covetedaudience in entertainment (IP and Platforms):IPPlatformsIGN has best-in-class social reach: yFandangoPolygon IGN is the online entertainment “battleground”for awareness and subscriptions1. As of December 2019 via ShareableeFandom10MM20MM30MM40MM39
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemAt the center of the broadband economy: Cellular to WiFi,residential to business, planning to measurementCellular Mobile datatraffic up 8-foldin past fiveyears1 To increase 7xby 20211Design/PlanningDAS5GWiFiFixed DistributedAntenna systemdemand isgrowing, withneed for highercapacity andeven coveragemaps2 Global 5G infrastructure marketis poised togrow at a CAGRof 54% during aforecast periodof 2019-20253 WiFi expected togrow 7.5x with51% CAGR from2016-2022 Mobile WiFioffload exceedscellular traffic1 Fixed wirelessinternetbecoming viablealternative tolegacy DSL andcableMeasurementTroubleshootingBroadband services value chain1. Cisco Visual Networking Index / VNI Complete Forecast 2. Grand View Research Dist. Antenna Systems Technology Outlook 2019 3. Researchandmarkets.com 201940
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemAt the center of the broadband economy: ZD’s brandsspan the broadband services value ubleshootingüüü Downdetector is the industry leader inup-time measurement 50MM outage reports in 2019üü Global standard in consumer internetperformance measurement 500MM unique users each year 10MM active tests each dayüüüü Global leader in solutions forenterprise wireless network design andtroubleshooting 15K customers, 30% of Fortune 500 Enterprise operator analytics andnetwork intelligence platforms built ontop of Speedtest data Clients in over 100 countriesü41
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemGrowth opportunities: Five core investment tenetsReviews, Rewards,RatingsCrowdsourcedAttribution Double-down on abig source of data &content Privacy compliance MVC alignment Already a provenmodel (PCMagReader’s Choice) Existing and newverticals Alignment to multiplerents mindset Existing brands thatleverage: Authoritativebrands and contentSurveys / Research Benefits all parties Efficient contentsource Speedtest Spiceworks Downdetector Future of the cookie Registration: usersto members &subscribersM&A Aperture for M&Ahas never beenlarger, constantlyevolving ourapproach andresources Experienced in allshapes & sizes:micro, large,restructure,enhance, businessmodel agnostic42
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemExperienced senior management teamMike FinnertyGM, Ziff Media GroupThe Weather Company,Comcast, PWCShannon HoganHR DirectorBay Area News Group,MediaNews GroupGeoff InnsEVP, Global Revenue OpsCBS, CNET, Questico UK,Guardian News & MediaRichard JalichandraGM, Global B2B101 Commerce, ClickBank,TechnoratiJeff O’MaraGM, EkahauKite Hill Advisors,Healthentic, MicrosoftAlan PatmoreGM, Humble BundleKIXEYE, Zynga, Double Fine,Surreal Studios/MidwayYael ProughGM, IGN EntertainmentFox Interactive Media,Heavy.com, Ignited MindsJason SinnarajahSVP, Strategy & GrowthThe Weather Company,UBS, GoogleDoug SuttlesGM, OoklaOokla Founder, Speakeasy,InFocusBrian StewartCFO, Ziff DavisEncompass Digital Media,Crown Media Family43
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemInvestment highlights Growth-minded, diversified operating model across the Ziff Davis Division AND withineach Business Unit More than 2x revenue and EBITDA dollar growth over the past five years Deliver customers and actionable intelligence, not just impressions and surface data Proprietorship position of brands/audience, supply sources, demand relationships acrossmeaningful and growth-oriented verticals: broadband, gaming, affiliate commerce M&A experience and executional rigor compounds to increase our potential addressableassets Highly experienced and deep management team44
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Everyday Health GroupDan Stone, President46
IntroductionsExperience: AccentHealthScient; ImaginovaCNN.com; IABTurner Broadcasting; TBS Int’l.Amsterdam Pacific; Kidder, PeabodyBooz, Allen & HamiltonExpertise:Dan StonePresident, Everyday Health Group Healthcare mediaDigital media/eCommerceCable TV NetworksStrategic Planning/Corporate Finance47
Everyday Health GroupMissionTo drive better clinical and health outcomes through decisionmaking informed by highly relevant information, data andanalyticsApproachTo empower healthcare professionals and consumers withtrusted content and services delivered through EverydayHealth Group’s world-class brands48
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemSuccessful transformation from Everyday Health, Inc.(EVDY) to the Everyday Health Group (EHG) Division of J2AcquisitionsPublicly traded(EVDY)Everyday Health Group (EHG) Division of J2Acquired by J2 20Divestitures2016Q3Shrink to grow periodGrowth49
J2 GlobalCloud ServicesZiff DavisEveryday HealthJ2 Acquisition SystemFinancial snapshot: EHG is growing with diversifiedrevenue streamsRevenue growing 11% CAGRDiversified revenue streams( in MM USD)(2019)CAGR 11% 171.0 211.3 tising35%41%10%Services / other12017201820191. Includes CME, Affiliate commerce, Licensing 2. Includes Pharma display advertising subject to client and/or third-party ROI metrics14%Subscriptions50
J2 GlobalCloud ServicesZif
Advanced email and endpoint security and threat intelligence Market-leading secure data backup and disaster recovery services Consumer VPN, malware protection, and secure file storage 215MM SOHO CloudFax Enabling consumers and home offices to securely send and receive documents by email, web, or mobile app
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