8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report  (Date of earliest event reported)   November 5, 2013

j2 Global, Inc.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization) 0-25965 (Commission File Number) 51-0371142 (IRS Employer Identification No.)

6922 Hollywood Blvd.

Suite 500

Los Angeles, California  90028

(Address of principal executive offices)

(323) 860-9200

(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 AND 7.01.   RESULTS OF OPERATIONS AND FINANCIAL CONDITION AND REGULATION FD DISCLOSURE

On November 5, 2013, j2 Global, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter of fiscal 2013.  In the press release, the Company also reaffirmed its previously issued financial estimates for fiscal 2013 of revenues between $510 and $535 million and non-GAAP net earnings per diluted share between $2.78 and $2.98.

In addition, the Company announced that it has declared a quarterly cash dividend of $0.255 per common share. The dividend will be paid on December 4, 2013, to all shareholders of record as of the close of business on November 18, 2013. Future dividends will be subject to approval by the Company’s Board of Directors.  A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.

Also on November 5, 2013, at 5:00 p.m. Eastern Time, the Company hosted its third quarter 2013 earnings conference call and Webcast. Via the Webcast, the Company presented portions of its November 2013 Investor Presentation, which contains a summary of the Company’s financial results for the fiscal quarter ended September 30, 2013, the Company’s reaffirmed financial estimates for fiscal 2013 and certain other financial and operating information regarding the Company. A copy of this presentation is furnished as Exhibit 99.2 to this Form 8-K.

NOTE: This information is being furnished under both Item 2.02 (Results of Operations and Financial Condition) and Item 7.01 (Regulation FD Disclosure) of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ITEM 9.01.                      FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

Exhibit Number	Description
99.1	Press Release dated November 5, 2013.
99.2	November 2013 Investor Presentation.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	j2 Global, Inc. (Registrant)
Date:     November 5, 2013	By:	/s/ Jeffrey D. Adelman
		Jeffrey D. Adelman Vice President, General Counsel and Secretary

INDEX TO EXHIBITS

Exhibit Number	Description
99.1	Press Release dated November 5, 2013.
99.2	November 2013 Investor Presentation.

EX-99.1

EXHIBIT 99.1

j2 Reports Q3 2013 Results

Reports 37% Revenue Growth versus Q3 2012

Announces Ninth Consecutive Quarterly Dividend Increase to $0.255 per share

LOS ANGELES --- j2 Global, Inc. (NASDAQGS:JCOM) today reported financial results for the third quarter ended September 30, 2013 and announced that its Board of Directors has declared a quarterly cash dividend of $0.255 per share, j2’s ninth consecutive quarterly dividend increase.

THIRD QUARTER 2013 RESULTS

Quarterly revenues increased 37.0% to $127.8 million compared to $93.2 million for Q3 2012 driven primarily by Digital Media revenues of $33.5 million compared to nil for Q3 2012 and 4.2% growth in Business Cloud Services subscription revenues to $93.4 million compared to $89.6 million for Q3 2012, partially offset by a decrease in intellectual property (IP) licensing revenues to $1.0 million from $3.0 million for Q3 2012.

GAAP earnings per diluted share (EPS) was impacted by $0.13 in the quarter due to $0.07 of “additional income tax benefit from prior years” recognized in Q3 2012 but not in Q3 2013, $0.03 from the shortfall in IP licensing revenues and $0.02 in additional interest expense recognized in Q3 2013 from a full-quarter of interest on j2’s Senior Notes versus approximately nine weeks of such interest in Q3 2012, resulting in Q3 2013 GAAP EPS of $0.59 compared to $0.69 for Q3 2012.  Non-GAAP EPS (1)(2) was impacted by $0.06 in the quarter due to $0.03 from the shortfall in IP licensing revenues and $0.02 from the incremental interest expense on j2’s Senior Notes, resulting in Q3 2013 Non-GAAP EPS of $0.64 compared to $0.65 for Q3 2012.

Quarterly EBITDA (3) increased 5.6% to $52.8 million compared to $50.0 million for Q3 2012, despite a reduction of $2.0 million in EBITDA from IP licensing.

Free cash flow (4) for the quarter decreased to $22.3 million compared to $37.1 million for Q3 2012, primarily due to increases in accounts receivable related to the Digital Media division and the timing of payments of accounts payable and accrued expenses versus Q3 2012 resulting in a change in the Company’s working capital accounts of $11.5 million and an increase in capital additions of $4.2 million versus Q3 2012.

Cancel rate (5) for the quarter improved to 2.27% versus 2.28% for Q3 2012, remaining at near historic lows.

Net paid DIDs grew by approximately 29,000 during the quarter and total net paid DIDs deployed at quarter-end reached an all-time high of 2.22 million.

j2 ended the quarter with approximately $375 million in cash and investments.

Key financial results for Q3 2013 versus Q3 2012 are set forth in the following table (in millions, except earnings per share). Reconciliations of non-GAAP earnings per diluted share, EBITDA and free cash flow to their nearest comparable GAAP financial measures are attached to this Press Release.

	Q3 2013	Q3 2012	% Change
Revenues	$127.8 million	$93.2 million		37.0 %
Earnings per Diluted Share (1)	$0.59	$0.69		(14.5)%
Non-GAAP Earnings per Diluted Share (1) (2)	$0.64	$0.65		(1.5)%
EBITDA (3)	$52.8 million	$50.0 million		5.6 %
Free Cash Flow (4)	$22.3 million	$37.1 million		(39.9)%

“We are extremely pleased that we have achieved our targeted diversification and growth in revenues in our digital media and business cloud subscription operations while maintaining our focus on profitability and cash flow,” said Hemi Zucker, CEO of j2.  “I am very pleased with the results of our IP licensing operations for the first nine months of the year, which have produced $16.8 million in revenues versus $3.8 million for the comparable year ago period; however, this quarter produced $1.0 million in IP licensing revenues, which is at the low end of our quarterly expectations.”

“In the past six fiscal quarters, we have generated $0.5 million, $3.0 million, $1.8 million, $0.9 million, $14.9 million and $1.0 million in IP licensing revenues,” said Scott Turicchi, president of j2.  “These results clearly demonstrate the value of our IP portfolio and also demonstrate the volatility of this activity, as virtually all of this revenue drops to the bottom line.  The timing of IP licensing revenues is hard to predict as it often involves litigation.”

BUSINESS OUTLOOK

j2 is reaffirming its previously increased fiscal 2013 revenues estimate of between $510 and $535 million and its previously increased fiscal 2013 non-GAAP earnings per diluted share estimate of between $2.78 and $2.98.

Non-GAAP earnings per diluted share for 2013 excludes, prior to tax, acquisition-related integration costs of approximately $7.9 million and share-based compensation of between $9 and $10 million.

It is anticipated that the normalized tax rate for 2013 will be less than 25%.

DIVIDEND

j2’s Board of Directors has approved its tenth consecutive quarterly cash dividend, in this case in the amount of $0.255 per common share, which is a 3.0% increase versus last quarter’s dividend and a 13.3% increase versus the dividend paid in Q4 2012.  This is j2’s ninth consecutive quarterly dividend increase and represents a 27.5% increase versus its first quarterly dividend in September 2011.  The dividend will be paid on December 4, 2013 to all shareholders of record as of the close of business on November 18, 2013.  Future dividends will be subject to Board approval.

Notes:

(1)	The estimated GAAP effective tax rates were approximately 20.5% for Q3 2013 and 19.9% for Q3 2012.  The estimated Non-GAAP effective tax rates were approximately 21.9% for Q3 2013 and 28.1% for Q3 2012.
(2)	For Q3 2013, Non-GAAP earnings per diluted share excludes share-based compensation and certain acquisition-related integration costs, in each case net of tax, totaling $0.05. For Q3 2012, Non-GAAP earnings per diluted share excludes share-based compensation and related payroll taxes, and “additional income tax benefit from prior years”, in each case net of tax, totaling ($0.04).
(3)	EBITDA is defined as earnings before interest and other expense, net; income tax expense; depreciation and amortization; and the items used to reconcile GAAP to Non-GAAP financial measures referred to in Note (2) above.  EBITDA amounts are not meant as a substitute for GAAP, but are solely for informational purposes.
(4)	Free cash flow is defined as net cash provided by operating activities, less purchases of property, plant and equipment, plus excess tax benefit from share-based compensation. Free cash flow amounts are not meant as a substitute for GAAP, but are solely for informational purposes.
(5)	Cancel rate is defined as cancels related to individual customer DIDs with greater than four months of continuous service (continuous service includes customer DIDs administratively cancelled and reactivated within the same calendar month), and DIDs related to enterprise customers beginning with their first day of service. For the quarter, calculated monthly and expressed here as an average over the three months of the quarter. For the year, expressed as an average over the four quarters of the year.

About j2

j2 Global, Inc. (NASDAQGS:JCOM) provides Internet services through its two divisions: Business Cloud Services and Digital Media. The Business Cloud Services Division offers Internet fax, virtual phone, hosted email, email marketing, online backup, unified communications and CRM solutions. It markets its services principally under the brand names eFax®, eVoice®, FuseMail®, Campaigner®, KeepItSafe® and Onebox® and operates a messaging network spanning 49 countries on six continents. The Digital Media Division consists of Ziff Davis Inc., which offers technology, gaming and lifestyle content through its digital properties which include PCMag.com, IGN.com, AskMen.com, Toolbox.com and others. Ziff Davis also operates NetShelter Powered by BuyerBase, an advanced digital ad targeting platform, and Ziff Davis B2B, a leading provider of research to enterprise buyers and leads to IT vendors. As of December 31, 2012, j2 had achieved 17 consecutive fiscal years of revenue growth.  For more information about j2, please visit www.j2global.com.

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this Press Release are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995, particularly those contained in the “Business Outlook” portion regarding the Company’s expected fiscal 2013 financial performance.  These forward-looking statements are based on management’s current expectations or beliefs 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.  These factors and uncertainties include, among other items: ability to successfully diversify and grow our business, including both the Business Cloud Services and Digital Media Divisions; ability to identify, close and successfully integrate acquisitions; risks of geographic expansion; risks that markets we choose to enter fail to achieve desired levels of growth and profitability prospects; subscriber growth and retention; variability of revenue based on changing conditions in particular industries and the economy generally; protection of the Company’s proprietary technology or infringement by the Company of intellectual property of others; the risk of adverse changes in the U.S. or international regulatory environments surrounding messaging and communications, including but not limited to the imposition or increase of taxes or regulatory-related fees; and the numerous other factors set forth in j2’s filings with the Securities and Exchange Commission (“SEC”). For a more detailed description of the risk factors and uncertainties affecting j2, refer to the 2012 Annual Report on Form 10-K filed by j2 on March 1, 2013, and the other reports filed by j2 from time-to-time with the SEC, each of which is available at www.sec.gov. The forward-looking statements provided in this press release and particularly those contained in the “Business Outlook” portion regarding the Company’s expected fiscal 2013 financial performance are based on limited information available to the Company at this time, which is subject to change. Although management’s expectations may change after the date of this press release, the Company undertakes no obligation to revise or update these statements.

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED, IN THOUSANDS)

	SEPTEMBER 30,			DECEMBER 31,
	2013			2012
ASSETS
Cash and cash equivalents	$	199,181		$	218,680
Short-term investments		108,043			105,054
Accounts receivable,
net of allowances of $3,735 and $3,213, respectively		64,279			37,285
Prepaid expenses and other current assets		22,779			15,388
Deferred income taxes		2,729			1,092
Total current assets		397,011			377,499
Long-term investments		66,899			19,841
Property and equipment, net		30,143			19,599
Goodwill		441,687			407,825
Other purchased intangibles, net		196,811			165,316
Deferred income taxes		2,130			1,852
Other assets		3,409			3,238
TOTAL ASSETS	$	1,138,090		$	995,170
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	68,430		$	39,874
Income taxes payable		1,736			3,004
Deferred revenue		35,675			30,493
Liability for uncertain tax positions		5,535			5,523
Deferred income taxes		5,098			33
Total current liabilities		116,474			78,927
Long-term debt		245,548			245,194
Liability for uncertain tax positions		36,010			32,155
Deferred income taxes		41,635			32,393
Deferred revenue		12,041			1,609
Other long-term liabilities		1,787			1,557
Mandatorily redeemable financial instrument		9,760			8,740
Total liabilities		463,255			400,575
Commitments and contingencies		—			—
Stockholders' Equity:
Preferred stock		—			—
Common stock		459			451
Additional paid-in capital		191,287			169,542
Retained earnings		475,979			424,790
Accumulated other comprehensive income (loss)		8,646			(88	)
Total j2 Global, Inc. stockholder's equity		676,371			594,695
Noncontrolling interest		(1,536	)		(100	)
Total stockholders' equity		674,835			594,595
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,138,090		$	995,170

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

	THREE MONTHS ENDED SEPTEMBER 30,						NINE MONTHS ENDED SEPTEMBER 30,
	2013			2012			2013			2012
Revenues	$	127,788		$	93,246		$	382,766		$	269,363
Cost of revenues (including share-based compensation of $162 and $581 for the three and nine months of 2013, respectively, and $199 and $633 for the three and nine months of 2012, respectively)		21,801			16,303			64,715			48,354
Gross profit		105,987			76,943			318,051			221,009
Operating expenses:
Sales and marketing (including share-based compensation of $465 and $1,315 for the three and nine months of 2013, respectively, and $390 and $1,117 for the three and nine months of 2012, respectively)		34,787			15,190			99,638			43,910
Research, development and engineering (including share-based compensation of $103 and $311 for the three and nine months of 2013, respectively, and $111 and $344 for the three and nine months of 2012, respectively)		6,000			4,692			19,134			13,798
General and administrative (including share-based compensation of $1,695 and $4,901 for the three and nine months of 2013, respectively, and $1,703 and $4,757 for the three and nine months of 2012, respectively)		25,892			14,784			74,377			43,387
Total operating expenses		66,679			34,666			193,149			101,095
Income from operations		39,308			42,277			124,902			119,914
Interest and other (expense) income, net		(4,576	)		(2,747	)		(14,109	)		(2,657	)
Income before income taxes		34,732			39,530			110,793			117,257
Income tax expense		7,105			7,880			24,428			25,880
Net income		27,627			31,650			86,365			91,377
Less net loss attributable to noncontrolling interest		(179	)		—			(403	)		—
Net income attributable to j2 Global, Inc. common stockholders	$	27,806		$	31,650		$	86,768		$	91,377
Basic net income per common share:
Net income attributable to j2 Global, Inc. common stockholders	$	0.60		$	0.69		$	1.88		$	1.97
Diluted net income per common share:
Net income attributable to j2 Global, Inc. common stockholders	$	0.59		$	0.69		$	1.85		$	1.96
Basic weighted average shares outstanding		45,729,171			45,002,565			45,441,265			45,590,160
Diluted weighted average shares outstanding		46,291,631			45,340,111			46,066,604			45,897,389

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED, IN THOUSANDS)

	NINE MONTHS ENDED SEPTEMBER 30,
	2013			2012
Cash flows from operating activities:
Net income	$	86,365		$	91,377
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization		28,424			15,555
Accretion and amortization of discount and premium of investments		1,323			1,090
Amortization of financing costs and discounts		456			104
Share-based compensation		7,108			6,816
Excess tax benefit from share-based compensation		(3,171	)		(1,016	)
Provision for doubtful accounts		2,565			3,520
Deferred income taxes		472			(1,012	)
Decrease (increase) in:
Accounts receivable		(7,495	)		(7,032	)
Prepaid expenses and other current assets		945			(951	)
Other assets		285			(362	)
(Decrease) increase in:
Accounts payable and accrued expenses		4,035			168
Income taxes payable		(3,286	)		7,112
Deferred revenue		13,049			1,611
Liability for uncertain tax positions		3,867			6,538
Other liabilities		(62	)		(1	)
Net cash provided by operating activities		134,880			123,517
Cash flows from investing activities:
Maturity of certificate of deposit		42,615			8,000
Purchase of certificates of deposit		(22,071	)		(34,674	)
Sales of available-for-sale investments		82,889			64,581
Purchases of available-for-sale investments		(139,955	)		(140,785	)
Purchases of property and equipment		(11,115	)		(3,746	)
Purchases of intangible assets		(2,784	)		(3,668	)
Acquisition of businesses, net of cash received		(81,566	)		(25,108	)
Net cash used in investing activities		(131,987	)		(135,400	)
Cash flows from financing activities:
Issuance of long-term debt		—			245,000
Debt issuance costs		(47	)		(1,342	)
Repurchases of common stock and restricted stock		(4,513	)		(60,261	)
Issuance of common stock under employee stock purchase plan		161			109
Exercise of stock options		13,515			4,865
Excess tax benefit from share-based compensation		3,171			1,016
Dividends paid		(33,267	)		(29,940	)
Other		(171	)		—
Net cash (used in) provided by financing activities		(21,151	)		159,447
Effect of exchange rate changes on cash and cash equivalents		(1,241	)		591
Net (decrease) increase in cash and cash equivalents		(19,499	)		148,155
Cash and cash equivalents at beginning of period		218,680			139,359
Cash and cash equivalents at end of period	$	199,181		$	287,514

j2 GLOBAL, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

THREE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Non-GAAP net income is GAAP net income with the following modifications: (1) elimination of share-based compensation; (2) elimination of certain acquisition-related integration costs; (3) elimination of additional income tax benefit from prior years and (4) elimination of income tax provision associated with share-based compensation and certain acquisition-related integration costs.

	THREE MONTHS ENDED SEPTEMBER 30, 2013													THREE MONTHS ENDED SEPTEMBER 30, 2012
							(2)													(3)
							Acquisition-													Additional
				(1)			related										(1)			Income Tax
				Share-based			Integration			Non-							Share-based			Benefit from			Non-
	GAAP			Compensation			Costs				GAAP			GAAP			Compensation			Prior Years				GAAP
Revenues	$	127,788			—			(814	)		$	126,974		$	93,246			—			—			$	93,246
Cost of revenues		21,801			(162	)		—				21,639			16,303			(199	)		—				16,104
Operating expenses:
Sales and marketing		34,787			(465	)		(1,379	)			32,943			15,190			(390	)		—				14,800
Research, development and engineering		6,000			(103	)		—				5,897			4,692			(111	)		—				4,581
General and administrative		25,892			(1,695	)		(373	)			23,824			14,784			(1,717	)		—				13,067
Interest and other (expense) income, net		(4,576	)		—			—				(4,576	)		(2,747	)		—			—				(2,747	)
Income tax provision(4)		7,105			831			403				8,339			7,880			832			3,066				11,778
Net income attributable to j2 Global, Inc.
common stockholders	$	27,806			1,594			535			$	29,935		$	31,650			1,585			(3,066	)		$	30,169
Net income per share attributable to   j2 Global, Inc. common stockholders*:
Basic	$	0.60			0.04			0.01			$	0.64		$	0.69			0.04			(0.07	)		$	0.66
Diluted	$	0.59			0.03			0.01			$	0.64		$	0.69			0.04			(0.07	)		$	0.65

* The reconciliation of Net income per share from GAAP to non-GAAP may not foot since each is calculated independently.

The Company discloses non-GAAP Earnings Per Share (EPS) as supplemental non-GAAP financial performance measure, as it believes it is a useful metric by which to compare the performance of its business from period to period. The Company also understands that this non-GAAP measure is broadly used by analysts, rating agencies and investors in assessing the Company's performance. Accordingly, the Company believes that the presentation of this non-GAAP financial measure provides useful information to investors.

Non-GAAP EPS is not in accordance with, or an alternative to, Net income per share and may be different from non-GAAP measures with similar or even identical names used by other companies. In addition, this non-GAAP measure is not based on any comprehensive set of accounting rules or principles. This non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.

j2 GLOBAL, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Non-GAAP net income is GAAP net income with the following modifications: (1) elimination of share-based compensation; (2) elimination of certain acquisition-related integration costs; (3) elimination of gain on sale of certain investment; (4) elimination of additional income tax benefit from prior years and (5) elimination of income tax provision associated with share-based compensation, certain acquisition-related integration costs and gain on sale of certain investment.

	NINE MONTHS ENDED SEPTEMBER 30, 2013													NINE MONTHS ENDED SEPTEMBER 30, 2012
							(2)													(2)						(4)
							Acquisition-													Acquisition-			(3)			Additional
				(1)			related										(1)			related			Gain on			Income Tax
				Share-based			Integration			Non-							Share-based			Integration			Sale of			Benefit from			Non-
	GAAP			Compensation			Costs				GAAP			GAAP			Compensation			Costs			Investment			Prior Years				GAAP
Revenues	$	382,766			—			(2,206	)		$	380,560		$	269,363			—			—			—			—			$	269,363
Cost of revenues		64,715			(581	)		(88	)			64,046			48,354			(633	)		(6	)		—			—				47,715
Operating expenses:
Sales and marketing		99,638			(1,315	)		(4,432	)			93,891			43,910			(1,117	)		(90	)		—			—				42,703
Research, development and engineering		19,134			(311	)		(579	)			18,244			13,798			(344	)		(5	)		—			—				13,449
General and administrative		74,377			(4,901	)		(4,122	)			65,354			43,387			(4,847	)		(48	)		—			—				38,492
Interest and other (expense) income, net		(14,109	)		—			—				(14,109	)		(2,657	)		—			—			(180	)		—				(2,837	)
Income tax provision(5)		24,428			2,384			3,009				29,821			25,880			2,275			34			(43	)		3,066				31,212
Net income attributable to j2 Global, Inc.
common stockholders	$	86,768			4,724			4,006			$	95,498		$	91,377			4,666			115			(137	)		(3,066	)		$	92,955
Net income per share attributable to
j2 Global, Inc. common stockholders*:
Basic	$	1.88			0.11			0.09			$	2.07		$	1.97			0.10			0.00			0.00			(0.07	)		$	2.00
Diluted	$	1.85			0.10			0.09			$	2.04		$	1.96			0.10			0.00			0.00			(0.07	)		$	1.99

* The reconciliation of Net income per share from GAAP to non-GAAP may not foot since each is calculated independently.

The Company discloses non-GAAP Earnings Per Share (EPS) as supplemental non-GAAP financial performance measure, as it believes it is a useful metric by which to compare the performance of its business from period to period. The Company also understands that this non-GAAP measure is broadly used by analysts, rating agencies and investors in assessing the Company's performance. Accordingly, the Company believes that the presentation of this non-GAAP financial measure provides useful information to investors.

Non-GAAP EPS is not in accordance with, or an alternative to, Net income per share and may be different from non-GAAP measures with similar or even identical names used by other companies. In addition, this non-GAAP measure is not based on any comprehensive set of accounting rules or principles. This non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.

j2 GLOBAL, INC.

NET INCOME TO EBITDA RECONCILIATION

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(UNAUDITED, IN THOUSANDS)

The following table sets forth a reconciliation of EBITDA to net income, the most directly comparable GAAP financial measure.

	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2013		2012		2013		2012
Net income	$	27,627	$	31,650	$	86,365	$	91,377
Plus:
Interest and other expense, net		4,576		2,747		14,109		2,657
Income tax expense		7,105		7,880		24,428		25,880
Depreciation and amortization		10,178		5,351		28,426		15,531
Reconciliation of GAAP to Non-GAAP financial measures:
Share-based compensation		2,425		2,417		7,108		6,941
Acquisition-related integration costs		938		—		7,015		149
EBITDA	$	52,849	$	50,045	$	167,451	$	142,535

EBITDA as calculated above represents earnings before interest and other expense, net, income tax expense, depreciation and amortization and the items used to reconcile GAAP to non-GAAP financial measures, including (1) share-based compensation and (2) certain acquisition-related integration costs.  We disclose EBITDA as a supplemental non-GAAP financial performance measure as we believe it is a useful metric by which to compare the performance of our business from period to period. We understand that measures similar to EBITDA are broadly used by analysts, rating agencies and investors in assessing our performance. Accordingly, we believe that the presentation of EBITDA provides useful information to investors.

EBITDA is not in accordance with, or an alternative to, Net income, and may be different from non-GAAP measures used by other companies. In addition, EBITDA is not based on any comprehensive set of accounting rules or principles. This non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the company’s results of operations determined in accordance with GAAP.

j2 GLOBAL, INC.

NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

	Q1			Q2			Q3			Q4			YTD
2013
Net cash provided by operating activities	$	40,048		$	68,973		$	25,859			—		$	134,880
Less: Purchases of property and equipment		(1,933	)		(4,056	)		(5,126	)		—			(11,115	)
Add: Excess tax benefit from share-based compensation		280			1,301			1,590			—			3,171
Free cash flows	$	38,395		$	66,218		$	22,323		$	—		$	126,936
2012
Net cash provided by operating activities	$	38,942		$	46,382		$	38,193		$	46,394		$	169,911
Less: Purchases of property and equipment		(1,159	)		(1,631	)		(956	)		(1,159	)		(4,905	)
Add: Excess tax benefit (deficit) from share-based compensation		286			821			(91	)		(55	)		961
Free cash flows	$	38,069		$	45,572		$	37,146		$	45,180		$	165,967

The Company discloses non-GAAP Free Cash Flows as supplemental non-GAAP financial performance measure, as it believes it is a useful metrics by which to compare the performance of its business from period to period. The Company also understands that this non-GAAP measure is broadly used by analysts, rating agencies and investors in assessing the Company's performance. Accordingly, the Company believes that the presentation of this non-GAAP financial measure provides useful  information to investors.

Free Cash Flows is not in accordance with, or an alternative to, Cash Flows from Operating Activities, and may be different from non-GAAP measures with similar or even identical names used by other companies. In addition, the non-GAAP measure is not based on any comprehensive set of accounting rules or principles. This non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.

EX-99.2

EXHIBIT 99.2