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, 2014

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) 47-1053457 (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, 2014, j2 Global, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter of fiscal 2014.  In the press release, the Company also reaffirmed its previously issued financial estimates for fiscal 2014 of revenues between $580 and $600 million and Adjusted Non-GAAP earnings per diluted share of between $3.23 and $3.47.

The Company also announced that it has declared a quarterly cash dividend of $0.285 per common share.  The dividend will be paid on December 4, 2014 to all shareholders of record as of the close of business on November 17, 2014.  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, 2014, at 5:00 p.m. Eastern Time, the Company hosted its third quarter 2014 earnings conference call and Webcast. Via the Webcast, the Company presented portions of its November 2014 Investor Presentation, which contains a summary of the Company’s financial results for the fiscal quarter ended September 30, 2014, reaffirmed financial estimates for fiscal 2014, 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, 2014.
99.2	November 2014 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, 2014	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, 2014.
99.2	November 2014 Investor Presentation.

EX-99.1

EXHIBIT 99.1

j2 Global Reports Q3 2014 Results

Achieves Record Quarterly Revenues;

Revenues Grow 19.7% vs Q3 2013 to $153 Million, EBITDA Grows 22.5% vs Q3 2013 to $64.7 Million and Free Cash Flow Grows 75.3% vs Q3 2013 to $39.1 Million

Increases Dividend for 13th Consecutive Quarter to $0.285 per Share

Los Angeles—November 5, 2014—j2 Global, Inc. (NASDAQGS: JCOM) today reported financial results for the third quarter ended September 30, 2014 and announced that its Board of Directors has declared a quarterly cash dividend of $0.285 per share, j2’s 13th consecutive quarterly dividend increase.

THIRD QUARTER 2014 RESULTS

Revenues for the quarter increased 19.7% to a record $153.0 million compared to $127.8 million in Q3 2013. All three of the Company’s business divisions contributed to the increase.

Business Cloud Services revenues(1) increased 16.4% to a record $108.7 million compared to $93.4 million for Q3 2013.  Digital Media revenues increased 29.3% to a record $43.2 million compared to $33.4 million for Q3 2013.  Intellectual Property (IP) Licensing revenues increased to $1.2 million from $1.0 million for Q3 2013.

Earnings per diluted share(2) for the quarter increased 1.7% to $0.60 compared to $0.59 for Q3 2013.  Adjusted Non-GAAP earnings per diluted share(2)(3) for the quarter increased 12.2% to $0.83 compared to $0.74 for Q3 2013.

EBITDA(4) for the quarter increased 22.5% to $64.7 million compared to $52.8 million for Q3 2013.

Free cash flow(5) for the quarter increased 75.3% to $39.1 million compared to $22.3 million for Q3 2013.

j2 ended the quarter with $684 million in cash and investments after deploying $52.9 million for acquisitions during the quarter and j2’s regular quarterly dividend payment.

Key GAAP financial results for Q3 2014 versus Q3 2013 are set forth in the following table (in millions, except per share).  Amounts may not foot due to rounding.

	Q3 2014	Q3 2013	% Change
Revenues
Cloud Services	$108.7 million	$93.4 million	16.4%
Digital Media	$43.2 million	$33.4 million	29.3%
IP Licensing	$1.2 million	$1.0 million	20.0%
Total:	$153.0 million	$127.8 million	19.7%
Earnings per Diluted Share(2)	$0.60	$0.59	1.1%

Key Adjusted Non-GAAP financial results for Q3 2014 versus Q3 2013 are set forth in the following table (in millions, except per share). Reconciliations of earnings per diluted share, EBITDA and free cash flow to their nearest comparable GAAP financial measures are attached to this Press Release.

	Q3 2014	Q3 2013	% Change
Adjusted Non-GAAP Earnings per Diluted Share(2)(3)	$0.83	$0.74	12.2%
EBITDA(4)	$64.7 million	$52.8 million	22.5%
Free Cash Flow(5)	$39.1 million	$22.3 million	75.3%

“This was another strong quarter with record performance in both our cloud and media divisions,” said Hemi Zucker, j2’s CEO.  “Q3 revenues were strong and for the year are trending to the higher end of our guidance. We continued to broaden our array of cloud-based businesses by adding hosted web services through our acquisition of Web24 and significantly expanded our email security business with our acquisition of Excel Micro.”

BUSINESS OUTLOOK

j2 is reaffirming its previously announced fiscal 2014 revenues estimate of between $580 and $600 million.

In Q2 2014, j2 issued $402.5 million in convertible senior notes, which will adversely affect 2014 earnings per diluted share by approximately $0.10.  Notwithstanding this impact, j2 is reaffirming its estimated fiscal 2014 Adjusted Non-GAAP earnings per diluted share of between $3.23 and $3.47.

- 2 -

Adjusted Non-GAAP earnings per diluted share for 2014 excludes share-based compensation of between $8 and $10 million, amortization of acquired intangibles and the impact of any currently unanticipated items, and adds back $1.5 million to reflect the impact of the fair value adjustment to deferred revenues purchased in the Livedrive acquisition, in each case net of tax.

The Adjusted Non-GAAP earnings per diluted share estimate assumes a 2014 tax rate of between 27% and 29%.

DIVIDEND

j2’s Board of Directors has approved a cash dividend of $0.285 per common share, an 11.8% increase versus the dividend declared in November 2013.  This is j2’s 13th consecutive quarterly dividend increase since its first quarterly dividend in September 2011.  The dividend will be paid on December 4, 2014 to all shareholders of record as of the close of business on November 17, 2014.  Future dividends will be subject to Board approval.

Notes:

(1)	Defined as Business Cloud Services segment revenues less IP Licensing revenues.
(2)	The estimated GAAP effective tax rates were approximately 20.3% for Q3 2014 and 20.5% for Q3 2013. The estimated Adjusted Non-GAAP effective tax rates were approximately 23.6% for Q3 2014 and 24.0% for Q3 2013.
(3)	For Q3 2014, Adjusted Non-GAAP earnings per diluted share excludes share-based compensation, certain acquisition-related integration costs, amortization of acquired intangibles, certain tax consulting fees and additional tax expense (benefit) from prior years, and adds back the impact of the fair value adjustment to deferred revenues purchased in the Livedrive acquisition, in each case net of tax, totaling $0.24. For Q3 2013, Adjusted Non-GAAP earnings per diluted share excludes share-based compensation and certain acquisition-related integration costs and amortization of acquired intangibles, in each case net of tax, totaling $0.15. See the attached Exhibit for an itemized reconciliation of the earnings per diluted share impact of the adjustments described above to the GAAP earnings per diluted share. Adjusted Non-GAAP earnings per diluted share amounts are not meant as a substitute for GAAP, but are solely for informational purposes.
(4)	EBITDA is defined as earnings before interest and other expense, net; income tax expense; depreciation and amortization; and the items used to reconcile EPS to Adjusted Non-GAAP EPS referred to in Note (3) above. EBITDA amounts are not meant as a substitute for GAAP, but are solely for informational purposes.
(5)	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.

- 3 -

About j2 Global

j2 Global, Inc. provides Internet services through 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®, Livedrive® and Onebox®, and operates a messaging network spanning 49 countries on six continents. The Digital Media Division offers technology, gaming and lifestyle content through its digital properties, which include PCMag.com, IGN.com, AskMen.com, Toolbox.com and others. The Digital Media Division 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, 2013, j2 had achieved 18 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 2014 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 2013 Annual Report on Form 10-K filed by j2 on March 3, 2014, 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 2014 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.

Contact:

j2 Global, Inc.

Laura Hinson

800-577-1790

press@j2.com

- 4 -

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED, IN THOUSANDS)

	SEPTEMBER 30,			DECEMBER 31,
	2014			2013
ASSETS
Cash and cash equivalents	$	514,997		$	207,801
Short-term investments		107,418			90,789
Accounts receivable,
net of allowances of $3,582 and $4,105, respectively		75,016			67,245
Prepaid expenses and other current assets		24,817			20,064
Deferred income taxes		7,451			3,126
Total current assets		729,699			389,025
Long-term investments		61,415			47,351
Property and equipment, net		38,787			31,200
Goodwill		533,403			457,422
Other purchased intangibles, net		263,504			223,533
Deferred income taxes		—			1,845
Other assets		13,196			3,413
TOTAL ASSETS	$	1,640,004		$	1,153,789
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	70,781		$	69,570
Income taxes payable		1,187			1,569
Deferred revenue		57,399			36,326
Liability for uncertain tax positions		—			5,535
Deferred income taxes		591			1,892
Other current liabilities		540			—
Total current liabilities		130,498			114,892
Long-term debt		591,464			245,670
Liability for uncertain tax positions		35,793			38,329
Deferred income taxes		61,710			35,833
Deferred revenue		10,945			11,189
Other long-term liabilities		6,033			1,458
Total liabilities		836,443			447,371
Commitments and contingencies		—			—
Stockholders' Equity:
Preferred stock		—			—
Common stock		469			461
Additional paid-in capital		270,857			216,872
Retained earnings		535,567			484,850
Accumulated other comprehensive (loss) income		(3,332	)		4,235
Total stockholders' equity		803,561			706,418
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,640,004		$	1,153,789

- 5 -

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,
	2014			2013			2014			2013
Cloud Service Revenue	$	108,678		$	93,381		$	312,919		$	277,132
Digital Media Revenue		43,163	(1)		33,397	(1)		114,678	(1)		88,868	(1)
IP Licensing Revenue		1,177			1,010			4,289			16,766
Revenues		153,018			127,788			431,886			382,766
Cost of revenues (including share-based compensation of $82 and $263 for the three and nine months of 2014, respectively, and $162 and $581 for the three and nine months of 2013, respectively)		28,044			21,801			76,991			64,715
Gross profit		124,974			105,987			354,895			318,051
Operating expenses:
Sales and marketing (including share-based compensation of $443 and $1,360 for the three and nine months of 2014, respectively, and $465 and $1,315 for the three and nine months of 2013, respectively)		37,047			34,787			105,335			99,638
Research, development and engineering (including share-based compensation of $175 and $537 for the three and nine months of 2014, respectively, and $103 and $311 for the three and nine months of 2013, respectively)		7,637			6,000			22,451			19,134
General and administrative (including share-based compensation of $1,491 and $4,378 for the three and nine months of 2014, respectively, and $1,695 and $4,901 for the three and nine months of 2013, respectively)		33,812			25,892			94,209			74,377
Total operating expenses		78,496			66,679			221,995			193,149
Income from operations		46,478			39,308			132,900			124,902
Interest expense (income), net		10,123			4,972			20,753			14,708
Other expense (income), net		251			(396	)		(254	)		(599	)
Income before income taxes		36,104			34,732			112,401			110,793
Income tax expense		7,345			7,105			19,828			24,428
Net income		28,759			27,627			92,573			86,365
Less net loss attributable to noncontrolling interest		—			(179	)		—			(403	)
Net income attributable to j2 Global, Inc. common shareholders	$	28,759		$	27,806		$	92,573		$	86,768
Basic net income per common share:
Net income attributable to j2 Global, Inc. common shareholders	$	0.60		$	0.60		$	1.94		$	1.88
Diluted net income per common share:
Net income attributable to j2 Global, Inc. common shareholders	$	0.60		$	0.59		$	1.93		$	1.85
Basic weighted average shares outstanding		46,845,477			45,729,171			46,653,836			45,441,265
Diluted weighted average shares outstanding		47,163,912			46,291,631			46,988,427			46,066,604

_________________________

(1)  Amount excludes inter-segment revenue between Business Cloud and Digital Media

- 6 -

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED, IN THOUSANDS)

	NINE MONTHS ENDED SEPTEMBER 30,
	2014			2013
Cash flows from operating activities:
Net income	$	92,573		$	86,365
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		43,307			28,424
Accretion and amortization of discount and premium on investments		983			1,323
Amortization of financing costs and discounts		2,828			456
Share-based compensation		6,538			7,108
Excess tax benefit from share-based compensation		(6,728	)		(3,171	)
Provision for doubtful accounts		3,278			2,565
Deferred income taxes		(2,954	)		472
Decrease (increase) in:
Accounts receivable		1,267			(7,495	)
Prepaid expenses and other current assets		(4,124	)		945
Other assets		(197	)		285
(Decrease) increase in:
Accounts payable and accrued expenses		(2,949	)		4,035
Income taxes payable		7,565			(3,286	)
Deferred revenue		(815	)		13,049
Liability for uncertain tax positions		(8,071	)		3,867
Other liabilities		(380	)		(62	)
Net cash provided by operating activities		132,121			134,880
Cash flows from investing activities:
Maturity of certificate of deposit		14,520			42,615
Purchase of certificates of deposit		—			(22,071	)
Sales of available-for-sale investments		60,456			82,889
Purchases of available-for-sale investments		(112,983	)		(139,955	)
Purchases of property and equipment		(7,147	)		(11,115	)
Purchases of intangible assets		(4,806	)		(2,784	)
Acquisition of business		(118,238	)		(81,566	)
Net cash used in investing activities		(168,198	)		(131,987	)
Cash flows from financing activities:
Issuance of long term debt		402,500			—
Debt issuance costs		(11,527	)		(47	)
Repurchases of stock		(5,473	)		(4,513	)
Issuance of stock, net of costs		6,586			13,676
Excess tax benefit from share-based compensation		6,728			3,171
Dividends paid		(38,547	)		(33,267	)
Acquisition of business		(14,316	)		—
Other		(711	)		(171	)
Net cash provided by (used in) financing activities		345,240			(21,151	)
Effect of exchange rate changes on cash and cash equivalents		(1,967	)		(1,241	)
Net increase (decrease) in cash and cash equivalents		307,196			(19,499	)
Cash and cash equivalents at beginning of period		207,801			218,680
Cash and cash equivalents at end of period	$	514,997		$	199,181

- 7 -

j2 GLOBAL, INC.

RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES

THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

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

Adjusted non-GAAP net income is GAAP net income with the following modifications: (1) elimination of share-based compensation and the associated payroll tax expense; (2) elimination of certain acquisition-related integration costs and the impact of fair value adjustments to deferred revenue purchased in the Livedrive acquisition; (3) IRS consulting fee; (4) elimination of amortization of patents and intangible assets that we acquired; (5) elimination of additional income tax benefit from prior years; and (6) elimination of income tax provision associated with share-based compensation and the associated payroll tax expense, certain acquisition-related integration costs and fair value adjustments to deferred revenue, IRS consulting fee, amortization of patents and intangible assets that we acquired and additional income tax benefit from prior years.

	THREE MONTHS ENDED SEPTEMBER 30, 2014																			THREE MONTHS ENDED SEPTEMBER 30, 2013
	GAAP		(1) Share-based Compensation			(2) Acquisition- related Integration Costs			(3) IRS Consulting Fee			(4) Amortization			(5) Additional Tax Expense (Benefit) from Prior Years			Adjusted Non-GAAP		GAAP			(1) Share-based Compensation			(2) Acquisition- related Integration Costs			(4) Amortization			Adjusted Non-GAAP
Revenues	$	153,018		—			213			—			—			—		$	153,231	$	127,788			—			(814	)		—		$	126,974
Cost of revenues		28,044		(82	)		(57	)		—			(515	)		—			27,390		21,801			(162	)		—			—			21,639
Operating expenses:
Sales and marketing		37,047		(443	)		(40	)		—			—			—			36,564		34,787			(465	)		(1,379	)		—			32,943
Research, development and engineering		7,637		(175	)		(32	)		—			—			—			7,430		6,000			(103	)		-			—			5,897
General and administrative		33,812		(1,491	)		(27	)		(773	)		(10,718	)		—			20,803		25,892			(1,695	)		(373	)		(7,494	)		16,330
Interest expense (income), net		10,123		—			(1,519	)		—			—			—			8,604		4,972			—			—			—			4,972
Other expense (income), net		251		—			—			—			—			—			251		(396	)		—			—			—			(396	)
Income tax provision(6)		7,345		806			660			193			3,720			(414	)		12,310		7,105			831			403			2,607			10,946
Net income attributable to j2 Global, Inc. common stockholders	$	28,759		1,385			1,228			580			7,513			414		$	39,879	$	27,806			1,594			535			4,887		$	34,822
Net income per share attributable to j2 Global, Inc. common stockholders*:
Basic	$	0.60		0.03			0.03			0.01			0.16			0.01		$	0.83	$	0.60			0.04			0.01			0.11		$	0.75
Diluted	$	0.60		0.03			0.03			0.01			0.16			0.01		$	0.83	$	0.59			0.03			0.01			0.11		$	0.74

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

The Company discloses adjusted 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 adjusted 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 adjusted non-GAAP financial measure provides useful information to investors.

Adjusted 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 adjusted non-GAAP measure is not based on any comprehensive set of accounting rules or principles. This adjusted 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.

- 8 -

j2 GLOBAL, INC.

RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES

NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

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

Adjusted non-GAAP net income is GAAP net income with the following modifications: (1) elimination of share-based compensation and the associated payroll tax expense; (2) elimination of certain acquisition-related integration costs and the impact of fair value adjustments to deferred revenue purchased in the Livedrive acquisition; (3) IRS consulting fee; (4) elimination of amortization of patents and intangible assets that we acquired; (5) elimination of additional income tax benefit and indirect tax expense from prior years;  (6) elimination of revenue associated with past damages under a single $27 million license agreement; and (7) elimination of income tax provision associated with share-based compensation and the associated payroll tax expense, certain acquisition-related integration costs and fair value adjustments to deferred revenue, IRS consulting fee, amortization of patents and intangible assets that we acquired, additional income tax benefit and indirect tax expense from prior years and elimination of revenue associated with past damages under a single $27 million license agreement.

	THREE MONTHS ENDED SEPTEMBER 30, 2014																THREE MONTHS ENDED SEPTEMBER 30, 2013
	GAAP			(1) Share-based Compensation		(2) Acquisition- related Integration Costs		(3) IRS Consulting Fee		(4) Amortization		(5) Additional Tax Expense (Benefit) from Prior Years		Adjusted Non-GAAP			GAAP			(1) Share-based Compensation		(2) Acquisition- related Integration Costs		(4) Amortization		(6) Patent Settlement		Adjusted Non-GAAP
Revenues	$	431,886		—		1,739		—		—		—		$	433,625		$	382,766		—		(2,206	)	—		(12,572	)	$	367,988
Cost of revenues		76,991		(263	)	(57	)	—		(1,794	)	—			74,877			64,715		(581	)	(88	)	—		—			64,046
Operating expenses:
Sales and marketing		105,335		(1,360	)	(100	)	—		—		—			103,875			99,638		(1,315	)	(4,432	)	—		—			93,891
Research, development and engineering		22,451		(537	)	(32	)	—		—		—			21,882			19,134		(311	)	(579	)	—		—			18,244
General and administrative		94,209		(4,378	)	445		(773	)	(32,113	)	(713	)		56,677			74,377		(4,901	)	(4,122	)	(21,439	)	—			43,915
Interest expense (income), net		20,753		—		(1,958	)	—		—		—			18,795			14,708		—		—		—		—			14,708
Other expense (income), net		(254	)	—		—		—		—		—			(254	)		(599	)	—		—		—		—			(599	)
Income tax provision(7)		19,828		2,326		1,025		193		11,133		6,435			40,940			24,428		2,384		3,009		7,388		(4,614	)		32,595
Net income attributable to j2 Global, Inc. common stockholders	$	92,573		4,212		2,416		580		22,774		(5,722	)	$	116,833		$	86,768		4,724		4,006		14,051		(7,958	)	$	101,591
Net income per share attributable to j2 Global, Inc. common stockholders*:
Basic	$	1.94		0.09		0.05		0.01		0.49		(0.12	)	$	2.45		$	1.88		0.11		0.09		0.31		(0.18	)	$	2.20
Diluted	$	1.93		0.09		0.05		0.01		0.49		(0.12	)	$	2.43		$	1.85		0.10		0.09		0.31		(0.17	)	$	2.17

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

The Company discloses adjusted 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 adjusted 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 adjusted non-GAAP financial measure provides useful information to investors.

Adjusted 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 adjusted non-GAAP measure is not based on any comprehensive set of accounting rules or principles. This adjusted 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.

- 9 -

j2 GLOBAL, INC.

NET INCOME TO EBITDA RECONCILIATION

THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

(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,
	2014		2013			2014			2013
Net income	$	28,759	$	27,627		$	92,573		$	86,365
Plus:
Interest expense (income), net		10,123		4,972			20,753			14,708
Other expense (income), net		251		(396	)		(254	)		(599	)
Income tax expense		7,345		7,105			19,828			24,428
Depreciation and amortization		14,851		10,178			43,307			28,426
Reconciliation of GAAP to adjusted non-GAAP financial measures:
Patent Settlement		—		—			—			(12,572	)
Share-based compensation and the associated payroll tax expense		2,191		2,425			6,538			7,108
Acquisition-related integration costs		369		938			1,483			7,015
Additional indirect tax expense from prior years		—		—			713			—
Fees associated with prior year tax audits		773		—			773			—
EBITDA	$	64,662	$	52,849		$	185,714		$	154,879

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 adjusted non-GAAP financial measures, including (1) share-based compensation, (2) certain acquisition-related integration costs and (3) additional indirect tax expense from prior years.  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 adjusted 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.

- 10 -

j2 GLOBAL, INC.

NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

		Q1			Q2			Q3			Q4		YTD
2014
Net cash provided by operating activities	$	37,294		$	54,512		$	40,315					$	132,121
Less: Purchases of property and equipment		(2,936	)		(1,087	)		(3,124	)					(7,147	)
Add: Excess tax benefit from share-based compensation		4,082			721			1,925						6,728
Free cash flows	$	38,440		$	54,146		$	39,116		$	—		$	131,702
2013
Net cash provided by operating activities	$	40,048		$	68,973		$	25,859		$	58,444		$	193,324
Less: Purchases of property and equipment		(1,933	)		(4,056	)		(5,126	)		(7,511	)		(18,626	)
Add: Excess tax benefit (deficit) from share-based compensation		280			1,301			1,590			(476	)		2,695
Less: Patent Settlement		—			(27,000	)		—			—			(27,000	)
Free cash flows	$	38,395		$	39,218		$	22,323		$	50,457		$	150,393

The Company discloses 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.

- 11 -

EX-99.2

EXHIBIT 99.2