j2 Global

Communications Technology cloud platforms cloud services

j2 Global is a leading provider of Internet services. Through its business cloud services division, the company provide cloud services to businesses of different sizes, from individuals to enterprises, and license intellectual property to third parties. In addition, the business cloud services division includes j2 Cloud Connect business, which is primarily focused on voice and fax products. Digital media division of the company specializes in the technology, gaming, lifestyle and healthcare markets, reaching in-market buyers and influencers in both the consumer and business-to-business space.

Type

Public

Los Angeles, US

Size (employees)

2,426 (est)+51%

Website

j2global.com

j2 Global is headquartered in Los Angeles, US

j2 Global Office Locations

j2 Global has offices in Los Angeles, Saint Leonards, Dublin, Auckland and in 2 other locations

Los Angeles, US (HQ)

6922 Hollywood Blvd

Ottawa, CA

2 Gurdwara Rd

Chiyoda, JP

Kanda Park Plaza, 5 F 2 2 2, Kaji Cho

Auckland, NZ

Level 2, 9 Wilkins St. Freemans Bay, Auckland Po Box 90373 Victoria St West

Dublin, IE

Woodford Business Park, Unit 3 Santry

Saint Leonards, AU

2 39 41 Chandos St

j2 Global Data and Metrics

j2 Global Financial Metrics

j2 Global's revenue was reported to be $254.7 m in Q1, 2017

Summary

USD

j2 Global's current market capitalization is $4.1 b.

Source: SEC Filings

Income Statement

Annual

USD	FY, 2013	FY, 2014	FY, 2015	FY, 2016
Revenue	520.8 m	599 m	720.8 m	874.3 m
Revenue growth, %	40%	15%	20%	21%
Cost of goods sold	86.9 m	106 m	123 m	147.1 m
Gross profit	433.9 m	493 m	597.9 m	727.2 m
Gross profit Margin, %	83%	82%	83%	83%
Sales and marketing expense	131.3 m	142 m	159 m	206.9 m
R&D expense	25.5 m	30.7 m	34.3 m	38 m
General and administrative expense	101.7 m	134.2 m	205.1 m	239.7 m
Operating expense total	258.5 m	306.8 m	398.5 m	484.6 m
EBIT	175.4 m	186.2 m	199.4 m	242.6 m
EBIT margin, %	34%	31%	28%	28%
Interest expense	21.3 m	31.2 m	42.5 m	41.4 m
Pre tax profit	142.7 m	155.2 m	156.9 m	211.4 m
Income tax expense	35.2 m	29.8 m	23.3 m	59 m
Net Income	107.5 m	124.3 m	133.6 m	152.4 m

Quarterly

USD	Q2, 2014	Q3, 2014	Q1, 2015	Q2, 2015	Q3, 2015	Q1, 2016	Q2, 2016	Q3, 2016	Q1, 2017
Revenue	144.7 m	153 m	161.3 m	176 m	178.7 m	200.5 m	211.8 m	210.1 m	254.7 m
Cost of goods sold	25.6 m	28 m	28.2 m	29.5 m	30.7 m	34.3 m	35.6 m	37 m	40.8 m
Gross profit	119.2 m	125 m	133.1 m	146.5 m	148 m	166.2 m	176.2 m	173.1 m	213.9 m
Gross profit Margin, %	82%	82%	83%	83%	83%	83%	83%	82%	84%
Sales and marketing expense	35.3 m	37 m	37.6 m	40.4 m	38.8 m	48.1 m	48.6 m	46.4 m	77.5 m
General and administrative expense	31.4 m	33.8 m	46.5 m	47.1 m	45.2 m	55.8 m	59.4 m	55.6 m	76.7 m
Operating expense total	66.7 m	70.9 m	84.1 m	87.5 m	84 m	103.9 m	108.1 m	102 m	154.1 m
EBIT	44.8 m	46.5 m	40.5 m	50.1 m	55.7 m	53.3 m	58.9 m	62.1 m	48 m
EBIT margin, %	31%	30%	25%	28%	31%	27%	28%	30%	19%
Interest expense	5.7 m	10.1 m	10.3 m	10.9 m	10.3 m	10.2 m	10.3 m	10.4 m	12.4 m
Pre tax profit	39.3 m	36.1 m	31 m	39.1 m	44.4 m	43 m	48.9 m	61.4 m	35.2 m
Income tax expense	4.3 m	7.3 m	9.1 m	181 k	7 m	13 m	15.1 m	15.8 m	9.4 m
Net Income									25.8 m

Source: SEC Filings

Balance Sheet

Annual

USD	FY, 2013	FY, 2014	FY, 2015	FY, 2016
Cash	207.8 m	433.7 m	255.5 m	124 m
Inventories	20.1 m	22.6 m	25.7 m	24.1 m
Current Assets	389 m	646.2 m	482.8 m	348 m
PP&E	31.2 m	38.2 m	57.4 m	68.1 m
Goodwill	457.4 m	635.7 m	807.7 m	1.1 b
Total Assets	1.2 b	1.7 b	1.8 b	2.1 b
Accounts Payable	69.6 m	95.3 m	114.4 m	178.1 m
Total Debt				601.7 m
Current Liabilities	114.9 m	159.4 m	196.7 m	454.1 m
Total Liabilities				1.1 b
Additional Paid-in Capital	216.9 m	273.3 m	292.1 m	308.3 m
Retained Earnings	484.9 m	553.6 m	626.8 m	660.4 m
Total Equity				914.5 m
Debt to Equity Ratio				0.7 x
Debt to Assets Ratio				0.3 x
Financial Leverage				2.3 x

Quarterly

USD	Q2, 2014	Q3, 2014	Q1, 2015	Q2, 2015	Q3, 2015	Q1, 2016	Q2, 2016	Q3, 2016	Q1, 2017
Cash	591.9 m	515 m	392 m	415.9 m	272.4 m	242.8 m	313.8 m	285.6 m	187.4 m
Current Assets	761.5 m	729.7 m	587.1 m	632.1 m	499.7 m	430.6 m	493.5 m	466.6 m	383.7 m
PP&E	40.7 m	38.8 m	36.6 m	36.8 m	59.8 m	56.4 m	60.1 m	61.4 m	69.7 m
Goodwill	514.5 m	533.4 m	669.4 m	674.1 m	772.9 m	829 m	840.9 m	853.8 m	1.1 b
Total Assets	1.6 b	1.6 b	1.7 b	1.7 b	1.8 b	1.8 b	1.8 b	1.8 b	2.1 b
Accounts Payable	65.6 m	70.8 m	81 m	87.1 m	89.6 m	82.8 m	106.5 m	101.8 m	145.9 m
Current Liabilities	130.2 m	130.5 m	157.9 m	164.3 m	165.4 m	167.7 m	185.2 m	180.5 m	477.1 m
Additional Paid-in Capital	266.1 m	270.9 m	275.4 m	282.7 m	289.2 m	295.6 m	299.3 m	304.4 m	312.5 m
Retained Earnings	520.4 m	535.6 m	561 m	584.8 m	606.8 m	640 m	657 m	634.4 m	668.6 m
Total Equity	793.6 m	803.6 m					918.4 m	898.2 m	930.4 m
Financial Leverage	2.1 x	2 x					2 x	2 x	2.3 x

Cash Flow

Annual

USD	FY, 2013	FY, 2014	FY, 2015	FY, 2016
Net Income	107.5 m	124.3 m	133.6 m	152.4 m
Depreciation and Amortization	39.8 m	63 m	93.2 m	122.1 m
Accounts Receivable	9.6 m	11.1 m	(19 m)	(30.7 m)
Inventories	(149 k)	3.2 m	1.5 m	(957 k)
Accounts Payable	9.1 m	(5.4 m)	8.8 m	6.4 m
Cash From Operating Activities	193.3 m	177.2 m	229.1 m	282.4 m
Purchases of PP&E	(18.6 m)	(11.8 m)	(17.3 m)	(24.7 m)
Cash From Investing Activities	(167.4 m)	(275.5 m)	(335.7 m)	(448.9 m)
Dividends Paid	(45.1 m)	(52.3 m)	(58.8 m)	(65.8 m)
Cash From Financing Activities	(35.7 m)	327.5 m	(67.4 m)	41.2 m

Quarterly

USD	Q2, 2014	Q3, 2014	Q1, 2015	Q2, 2015	Q3, 2015	Q1, 2016	Q2, 2016	Q3, 2016	Q1, 2017
Net Income									25.8 m
Accounts Payable	65.6 m	70.8 m	81 m	87.1 m	89.6 m	82.8 m	106.5 m	101.8 m	145.9 m

Ratios

USD	Y, 2017
Revenue/Employee	105 k
Financial Leverage	2.3 x

j2 Global Operating Metrics

j2 Global's Views (Digital Media) was reported to be 5.4 m in Q1, 2017

	Q1, 2014	Q2, 2014	Q3, 2014	Q4, 2014	Q1, 2015	Q2, 2015	Q3, 2015	Q4, 2015	Q1, 2016	Q2, 2016	Q3, 2016	Q4, 2016	Q1, 2017
ARPU (Cloud Services)	$14.23	$13.9	$13.84	$13.78	$14.79	$14.06	$14.15	$13.91	$15	$15.31	$15.32	$15.21	$15.03
Views (Digital Media)	2.13 m	1.89 m	1.96 m	2.02 m	3.09 m	2.57 m	2.23 m	2.39 m	3.64 m	4.22 m	5.41 m	4.81 m	5.39 m
Cloud Services Customers	2.52 m	2.59 m	2.62 m	2.66 m	2.9 m	2.94 m	3 m	3.02 m	3.07 m	3.08 m	3.11 m	3.11 m	3.12 m
Visits (Digital Media)	759.59 k	601.6 k	607.37 k	594.14 k	1.09 m	1.02 m	931.77 k	955.69 k	1.1 m	1.16 m	1.45 m	1.29 m	1.4 m

Source: Company Filings

j2 Global Market Value History

j2 Global Revenue Breakdown

Market Position of j2 Global

Competitors

Revenue (Q1, 2017)	254.7 m
Gross profit (Q1, 2017)	213.9 m
Gross profit margin (Q1, 2017), %	84%
Net income (Q1, 2017)	25.8 m
EBIT (Q1, 2017)	48 m
Market capitalization (21-Jul-2017)	4.1 b
Cash (31-Mar-2017)	187.4 m

j2 Global

j2 Global Office Locations

j2 Global Data and Metrics

j2 Global Financial Metrics

Summary

Revenue (Q1, 2017)

Gross profit (Q1, 2017)

Gross profit margin (Q1, 2017), %

Net income (Q1, 2017)

EBIT (Q1, 2017)

Market capitalization (21-Jul-2017)

Cash (31-Mar-2017)

Income Statement

Revenue

Revenue growth, %

Cost of goods sold

Gross profit

Gross profit Margin, %

Sales and marketing expense

R&D expense

General and administrative expense

Operating expense total

EBIT

EBIT margin, %

Interest expense

Pre tax profit

Income tax expense

Net Income

Revenue

Cost of goods sold

Gross profit

Gross profit Margin, %

Sales and marketing expense

General and administrative expense

Operating expense total

EBIT

EBIT margin, %

Interest expense

Pre tax profit

Income tax expense

Net Income

Balance Sheet

Cash

Inventories

Current Assets

PP&E

Goodwill

Total Assets

Accounts Payable

Total Debt

Current Liabilities

Total Liabilities

Additional Paid-in Capital

Retained Earnings

Total Equity

Debt to Equity Ratio

Debt to Assets Ratio

Financial Leverage

Cash

Current Assets

PP&E

Goodwill

Total Assets

Accounts Payable

Current Liabilities

Additional Paid-in Capital

Retained Earnings

Total Equity

Financial Leverage

Cash Flow

Net Income

Depreciation and Amortization

Accounts Receivable

Inventories

Accounts Payable

Cash From Operating Activities

Purchases of PP&E

Cash From Investing Activities

Dividends Paid

Cash From Financing Activities