Investor Presentation
(Based upon First Quarter 2008 results)
May 6, 2008
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-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, particularly those contained in the slide “2008 Guidance.” These forward-
looking statements are based on management’s current expectations or beliefs as of May 6, 2008 and are subject to
numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described
in the forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision
to these forward-looking statements. Readers should carefully review the risk factors described in this presentation.
Such statements address the following subjects:
Safe Harbor for Forward-Looking Statements
All information in this presentation speaks as of May 6, 2008 and any distribution of
this presentation after that date is not intended and will not be construed as updating
or confirming such information.
2
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 terms in desired locations
Enactment of burdensome telecommunications or Internet regulations including increased taxes or fees
Reduced use of fax services due to increased use of email, scanning or widespread adoption of digital signatures
Inadequate intellectual property protection or violations of third party intellectual property rights
System failures or breach of system or network security and resulting harm to our reputation
Inability to adapt to technological change, or third party development of new technologies superior to ours
Economic downturns in industries which rely heavily on fax transmissions or general economic downturns
Loss of services of executive officers and other key employees
Inability to maintain existing or enter into new supplier and marketing relationships on acceptable terms
Other factors set forth in our Annual Report on Form 10-K filed on 02/25/2008 and the other reports filed by us from time to
time with the Securities and Exchange Commission
The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to
be materially adversely affected:
3
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
4
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 licensing programs designed to monetize the portfolio
Protection of brands and marks
Programs designed to effectively collect evidence to prosecute junk faxers
Expertise
Effective customer acquisition strategies and Web marketing
Breadth, depth and management of a complex network & architecture
Successful acquisition and integration of 16 businesses in 7 countries
Strong Financial Position
12 consecutive years of Revenue growth
6 consecutive years of positive and growing Operating Earnings
$27M of Free Cash Flow (Q1 2008)
$181M of cash & investments to fund growth/ no debt (as of 03/31/08)
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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 Businesses (SMBs)
Sold through: eFax Corporate and Onebox Receptionist and eVoice Receptionist websites
Supported by Chat and Telesales groups in U.S. and Europe (in multiple languages)
Self-service Web-based broadcast fax engine at jblast.com
Outsourced email, spam & virus protection and archiving
Use of proprietary Life Cycle Management (i.e. feature up-sell)
Enterprise (SMEs)/Large Enterprise/Government
Direct sales force in U.S. and Europe
Marketed through Web and traditional direct selling methods
Designed for > 150 DID accounts
Subscriber Acquisition
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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 Management
eFax Corporate SMB sales
Hybrid Website and human interaction (i.e. Telesales)
Direct SME/Enterprise/Government
Through the outside Corporate Sales team
Direct domestic marketing spend for paid subscribers
Targeted marketing program across various media
International marketing programs
Cross-sell
Offer additional services to existing customers
Paid Subscription Drivers
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Financial Highlights
8
(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/Margin(1)
$22.5M
38.4%
GAAP EPS(2)
$0.35 Per Share
Free Cash Flow(3)
$26.9M
Cash and Investments
$181.3M
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Operational Update
10
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 customers
~ 350 international customers
54 large active prospects in pipeline
International
44 countries covered including Slovakia & Slovenia
Robust growth in revenues year over year
Fax Services
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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
eReceptionistTM to launch in Western Europe in Q2
YAC redesigned website
Voice Services
12
Annual Guidance
13
2008 Guidance
$1.45 - $1.65
GAAP EPS
$240 - $270
2008
Revenues (M)
2008 EPS is based on GAAP which includes SFAS 123(R) non-cash compensation expense.
14
Supplemental Information
15
Metrics
16
(1) Net cash provided by operating activities, less purchases of property & equipment. Free Cash Flow amounts are not meant as a substitute
for GAAP, but are solely for informational purposes.
17
Computation of Free Cash Flow
($ in millions)
Q1 '06
Q2 '06
Q3 '06
Q4 '06
Q1 '07
Q2 '07
Q3 '07
Q4 '07
Q1 '08
Net cash from operating activities
$19.245
$14.250
$13.607
$25.903
$26.659
$23.113
$18.656
$25.779
$27.411
Purch. of property & equipment
(0.757)
(3.288)
(1.181)
(1.973)
(0.529)
(2.506)
(2.940)
(4.340)
(0.469)
Free Cash Flow
(1)
$18.488
$10.962
$12.426
$23.930
$26.130
$20.607
$15.716
$21.439
$26.942
Usage of Corporate and Web High Volume Users
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