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) February 10, 2020

J2 Global, Inc.

(Exact name of registrant as specified in its charter)

Delaware	0-25965	47-1053457
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

700 S. Flower Street, 15th Floor

Los Angeles, California 90017

(Address of principal executive offices)

(323) 860-9200

Registrant's telephone number, including area code

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):

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	JCOM	NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02. Results of Operations and Financial Condition

On February 10, 2020, J2 Global, Inc. (the “Company”) issued a press release (the “Press Release”) announcing its financial results for the fourth quarter and year ended December 31, 2019, and financial guidance for fiscal year 2020.

The Company also announced that it has extended its five million share repurchase program set to expire February 20, 2020 by an additional year. Approximately 1.1 million shares remain available for purchase under the program.

A copy of the Press Release is furnished as Exhibit 99.1 to this Form 8-K.

Item 7.01.  Regulation FD Disclosure

On February 11, 2020, at 8:30 a.m. Eastern Time, the Company will host its fourth quarter and year-end 2019 earnings conference call and Webcast. Via the Webcast, the Company will present portions of its February 2020 Investor Presentation, which contains a summary of the Company’s financial results for the fiscal quarter and fiscal year ended December 31, 2019, financial estimates for fiscal year 2020, 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: The information in this Item 7.01 is being furnished 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 (the “Securities Act”) 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 February 10, 2020
99.2	February 2020 Investor Presentation
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Such forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such forward-looking statements are based on management’s expectations or beliefs as of February 10, 2020. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive, and regulatory factors, many of which are beyond the Company’s control and are described in the Company’s Annual Report on Form 10-K filed by the Company on March 1, 2019 with the Securities and Exchange Commission (the “SEC”) and the other reports the Company files from time to time with the SEC. The Company undertakes no obligation to revise or publicly release any updates to such statements based on future information or actual results.

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:	February 10, 2020	By:	/s/ Jeremy Rossen
			Jeremy Rossen Executive Vice President, General Counsel

EX-99.1

J2 Global Reports Fourth Quarter and Year End 2019 Results and Provides 2020 Outlook

Achieves Record Revenues

Provides Fiscal 2020 Financial Estimates

LOS ANGELES -- J2 Global, Inc. (NASDAQ: JCOM) today reported financial results for the fourth quarter and year ended December 31, 2019, and provided fiscal 2020 financial estimates.

“We had a tremendous finish to a very strong year and have more than doubled our revenues from five years ago,” said Vivek Shah, CEO of J2 Global. “We’re excited to carry that momentum into 2020 with a strong portfolio, balance sheet and leadership team.”

FOURTH QUARTER 2019 HIGHLIGHTS

Q4 2019quarterly revenues increased 17.2% to a Q4 record of $405.6 million compared to $346.1 million for Q4 2018.  

Net cash provided by operating activities decreased 3.7% to $103.2 million compared to $107.2 millionfor Q4 2018.Q4 2019 free cash flow⁽²⁾ decreased 14.3% to $82.1 million compared to $95.8 million for Q4 2018. The decrease over the prior comparable period is primarily due to a greater percentage of revenues and EBITDA coming from the Digital Media business which has a longer collection cycle resulting in less cash inflows associated with accounts receivable of approximately $14.7 million and additional payments and timing differences associated with certain other working capital within the Digital Media business of approximately $9.5 million in comparison to Q4 2018.

GAAP earnings per diluted share⁽³⁾ increased 137.9% to $2.45 in Q4 2019 compared to $1.03 for Q4 2018 and GAAP net income increased 143.1% to $123.0 million in Q4 2019 compared to $50.6 million for Q4 2018 primarily due to the recognition of a $53.7 million tax benefit as the result of an intra-entity transfer as part of the reorganization of our international operating structure.

Adjusted non-GAAP earnings per diluted share⁽³⁾⁽⁴⁾ for the quarter increased 12.8% to $2.38 compared to $2.11 for Q4 2018.

Quarterly Adjusted EBITDA⁽⁵⁾ increased 14.3% to $176.3 million in the quarter compared to $154.3 million for Q4 2018.

J2 ended the quarter with approximately $675.7 million in cash and investments which included $537.1 million of net proceeds from the issuance of 1.75% Convertible Senior Notes.

Key financial results for Q4 2019 versus Q4 2018 are set forth in the following table (in millions, except per share amounts). Reconciliations of Adjusted non-GAAP earnings per diluted share, Adjusted EBITDA and free cash flow to their nearest comparable GAAP financial measures are attached to this Press Release.

	Q4 2019	Q4 2018	% Change
Revenues
Cloud Services	$169.3 million	$148.1 million	14.3%
Digital Media	$236.3 million	$198.0 million	19.3%
Total Revenue: (1)	$405.6 million	$346.1 million	17.2%
Operating Income	$110.2 million	$86.7 million	27.1%
Net Cash Provided by Operating Activities	$103.2 million	$107.2 million	(3.7)%
Free Cash Flow (2)	$82.1 million	$95.8 million	(14.3)%
GAAP Earnings per Diluted Share (3)	$2.45	$1.03	137.9%
Adjusted Non-GAAP Earnings per Diluted Share (3) (4)	$2.38	$2.11	12.8%
GAAP Net Income	$123.0 million	$50.6 million	143.1%
Adjusted Non-GAAP Net Income	$115.5 million	$103.7 million	11.4%
Adjusted EBITDA (5)	$176.3 million	$154.3 million	14.3%
Adjusted EBITDA Margin (5)	43.5%	44.6%	(2.5)%

FULL YEAR 2019 HIGHLIGHTS

2019 revenues increased 13.6% to a record of $1,372.0 million in 2019 compared to $1,207.3 million for 2018.  

Net cash provided by operating activities increased 2.8% to $412.5 million in 2019 compared to $401.3 millionfor 2018.2019 free cash flow⁽²⁾ increased 1.6% to $350.4 million compared to $344.9 million for 2018.

GAAP earnings per diluted share⁽⁶⁾ increased 69.5% to $4.39 in 2019 compared to $2.59 for 2018 and GAAP net income increased by 70.0% to $218.8 million in 2019 compared to $128.7 million for 2018 primarily due to the recognition of a $53.7 million tax benefit as the result of an intra-entity transfer as part of the reorganization of our international operating structure.

Adjusted non-GAAP earnings per diluted share⁽⁶⁾⁽⁷⁾ for the year increased 11.5% to $7.08 compared to $6.35 for 2018.

Annual Adjusted EBITDA⁽⁵⁾ increased 12.4% to $550.2 million in 2019 compared to $489.5 million for 2018.

J2 ended the year with approximately $675.7 million in cash and investments which included $537.1 million of net proceeds from the issuance of 1.75% Convertible Senior Notes and is after deploying approximately $478 million during the year for acquisitions, first and second quarter dividends, and approximately $16 million in respect of its share repurchase program.

Key financial results for 2019 versus 2018 are set forth in the following table (in millions, except per share amounts). Reconciliations of Adjusted non-GAAP earnings per diluted share, Adjusted EBITDA and free cash flow to their nearest comparable GAAP financial measures are attached to this Press Release.

	2019	2018	% Change
Revenues
Cloud Services	$661.8 million	$598.0 million	10.7%
Digital Media	$710.2 million	$609.3 million	16.6%
Total Revenue: (1)	$1,372.0 million	$1,207.3 million	13.6%
Operating Income	$277.1 million	$244.3 million	13.4%
Net Cash Provided by Operating Activities	$412.5 million	$401.3 million	2.8%
Free Cash Flow (2)	$350.4 million	$344.9 million	1.6%
GAAP Earnings per Diluted Share (6)	$4.39	$2.59	69.5%
Adjusted Non-GAAP Earnings per Diluted Share (6) (7)	$7.08	$6.35	11.5%
GAAP Net Income	$218.8 million	$128.7 million	70.0%
Adjusted Non-GAAP Net Income	$344.4 million	$312.3 million	10.3%
Adjusted EBITDA (5)	$550.2 million	$489.5 million	12.4%
Adjusted EBITDA Margin (5)	40.1%	40.5%	(1.0)%

BUSINESS OUTLOOK

For fiscal 2020, the Company estimates that it will achieve: revenues between $1.465 billion and $1.505 billion, Adjusted EBITDA between $575 million and $595 million and Adjusted non-GAAP earnings per diluted share of between $7.36 and $7.66.

Adjusted non-GAAP earnings per diluted share for 2020 excludes share-based compensation of between $19 million and $23 million, amortization of acquired intangibles and the impact of any currently unanticipated items, in each case net of tax.

It is anticipated that the non-GAAP effective tax rate for 2020 (exclusive of the release of reserves for uncertain tax positions) will be between 21% and 23%.

The Company has not reconciled the Adjusted non-GAAP earnings per diluted share and tax rate guidance included in this release to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability with respect to costs related to acquisitions and taxation, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable and significant impact on our future GAAP financial results.

Notes:

(1)	The revenues associated with each of the businesses may not foot precisely since each is presented independently.
(2)	Free cash flow is defined as net cash provided by operating activities, less purchases of property, plant and equipment, plus contingent consideration. Free cash flow amounts are not meant as a substitute for GAAP, but are solely for informational purposes.
(3)	The estimated GAAP effective tax rates were approximately -43.2% for Q4 2019 and 29.5% for Q4 2018. The estimated Adjusted non-GAAP effective tax rates were approximately 21.3% for Q4 2019 and 21.3% for Q4 2018.
(4)	Adjusted non-GAAP earnings per diluted share excludes certain non-GAAP items, as defined in the Reconciliation of GAAP to Adjusted non-GAAP Financial Measures, for the three months ended December 31, 2019 and 2018 totaled ($0.07) and $1.08 per diluted share, respectively.
(5)	Adjusted 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, as defined in the Reconciliation of GAAP to Adjusted non-GAAP Financial Measures. Adjusted EBITDA amounts are not meant as a substitute for GAAP, but are solely for informational purposes.
(6)	The estimated GAAP effective tax rates were approximately -9.7% for 2019 and 25.2% for 2018. The estimated Adjusted non-GAAP effective tax rates were approximately 21.3% for 2019 and 21.0% for 2018.
(7)	Adjusted non-GAAP earnings per diluted share excludes certain non-GAAP items, as defined in the Reconciliation of GAAP to Adjusted non-GAAP Financial Measures, for the twelve months ended December 31, 2019 and 2018 totaled $2.69 and $3.76 per diluted share, respectively.

About J2 Global

J2 Global, Inc. (NASDAQ: JCOM) is a leading internet information and services company consisting of a portfolio of brands including IGN, Mashable, Humble Bundle, Speedtest, PCMag, Offers.com, Spiceworks, Everyday Health, BabyCenter and What To Expect in its Digital Media business and eFax, eVoice, iContact, Campaigner, Vipre, IPVanish and KeepItSafe in its Cloud Services business. J2 reaches in excess 180 million people per month across its brands. As of December 31, 2019, J2 had achieved 24 consecutive fiscal years of revenue growth. For more information about J2, please visit www.J2global.com.

Contact:

Rebecca Wright

J2 Global, Inc.

800-577-1790

press@J2.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, including those contained in Vivek Shah’s quote and the “Business Outlook” portion regarding the Company’s expected fiscal 2020 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: the Company’s ability to grow non-fax revenues, profitability and cash flows; the Company’s ability to identify, close and successfully transition acquisitions; subscriber growth and retention; variability of the Company’s 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, including but not limited to the imposition or increase of taxes or regulatory-related fees; and the numerous other factors set forth in J2 Global’s filings with the Securities and Exchange Commission (“SEC”). For a more detailed description of the risk factors and uncertainties affecting J2 Global, refer to the 2018 Annual Report on Form 10-K filed by J2 Global on March 1, 2019, and the other reports filed by J2 Global 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, including those contained in Vivek Shah’s quote and in the “Business Outlook” portion regarding the Company’s expected fiscal 2020 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.

About non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following Adjusted non-GAAP financial measures: Adjusted non-GAAP net income, Adjusted non-GAAP earnings per diluted share, Adjusted EBITDA and free cash flow. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use these Adjusted non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these Adjusted non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from referring to these Adjusted non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These Adjusted non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity. We believe these Adjusted non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.

For more information on these Adjusted non-GAAP financial measures, please see the appropriate GAAP to Adjusted non-GAAP reconciliation tables included within the attached Exhibit to this Release. 

J2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED, IN THOUSANDS)

	December 31, 2019			December 31, 2018
ASSETS
Cash and cash equivalents	$	575,615		$	209,474
Accounts receivable, net of allowances of $12,701 and $10,422, respectively	261,928			221,615
Prepaid expenses and other current assets	49,347			29,242
Total current assets	886,890			460,331
Long-term investments	100,079			83,828
Property and equipment, net	127,817			98,813
Operating lease right-of-use assets	125,822			—
Goodwill	1,633,033			1,380,376
Other purchased intangibles, net	556,553			526,468
Deferred income taxes, noncurrent	59,976			—
Other assets	15,676			11,014
TOTAL ASSETS	$	3,505,846		$	2,560,830
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	238,059		$	166,521
Income taxes payable, current	17,758			12,915
Deferred revenue, current	162,855			127,568
Operating lease liabilities, current	26,927			—
Other current liabilities	1,973			318
Total current liabilities	447,572			307,322
Long-term debt	1,448,461			1,013,129
Deferred revenue, noncurrent	12,744			13,200
Operating lease liabilities, noncurrent	104,070			—
Income taxes payable, noncurrent	11,675			11,675
Liability for uncertain tax positions	52,451			59,644
Deferred income taxes, noncurrent	107,453			69,048
Other long-term liabilities	10,228			51,068
TOTAL LIABILITIES	2,194,654			1,525,086
Commitments and contingencies	—			—
Preferred stock	—			—
Common stock	476			481
Additional paid-in capital	465,652			354,210
Treasury stock	—			(42,543		)
Retained earnings	891,526			769,575
Accumulated other comprehensive loss	(46,462		)	(45,979		)
TOTAL STOCKHOLDERS’ EQUITY	1,311,192			1,035,744
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,505,846		$	2,560,830

J2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED, IN THOUSANDS)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2019			2018			2019			2018
Total revenues	$	405,588		$	346,059		$	1,372,054		$	1,207,295
Cost of revenues (1)	64,328			55,962			237,323			201,074
Gross profit	341,260			290,097			1,134,731			1,006,221
Operating expenses:
Sales and marketing (1)	105,371			88,113			379,183			338,304
Research, development and engineering (1)	15,704			12,958			54,396			48,370
General and administrative (1)	109,940			102,342			424,072			375,267
Total operating expenses	231,015			203,413			857,651			761,941
Income from operations	110,245			86,684			277,080			244,280
Interest expense, net	18,921			15,559			69,546			61,987
Other expense (income), net	5,234			(1,443		)	7,936			4,706
Income before income taxes and net loss in earnings of equity method investment	86,090			72,568			199,598			177,587
Income tax (benefit) expense	(37,227		)	21,395			(19,376		)	44,760
Net loss in earnings of equity method investment	294			559			168			4,140
Net income	$	123,023		$	50,614		$	218,806		$	128,687
Basic net income per common share:
Net income attributable to J2 Global, Inc. common shareholders	$	2.54		$	1.04		$	4.52		$	2.64
Diluted net income per common share:
Net income attributable to J2 Global, Inc. common shareholders	$	2.45		$	1.03		$	4.39		$	2.59
Basic weighted average shares outstanding	47,626,833			47,967,014			47,647,397			47,950,746
Diluted weighted average shares outstanding	49,425,395			48,505,023			49,025,684			48,927,791
(1) Includes share-based compensation expense as follows:
Cost of revenues	$	135		$	132		$	525		$	510
Sales and marketing	335			418			1,547			1,798
Research, development and engineering	385			366			1,477			1,553
General and administrative	4,673			5,784			20,373			24,232
Total	$	5,528		$	6,700		$	23,922		$	28,093

J2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED, IN THOUSANDS)

	Twelve Months Ended December 31,
	2019			2018
Cash flows from operating activities:
Net income	$	218,806		$	128,687
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	232,032			187,174
Amortization of financing costs and discounts	14,038			11,385
Amortization of operating lease assets	21,419			—
Share-based compensation	23,922			28,093
Provision for doubtful accounts	13,134			17,338
Deferred income taxes, net	(63,444		)	25,050
Changes in fair value of contingent consideration	6,318			18,944
Loss on equity method investments	139			10,506
Impairment loss on equity securities	4,164			—
Decrease (increase) in:
Accounts receivable	(30,680		)	4,034
Prepaid expenses and other current assets	(8,685		)	2,211
Other assets	(4,083		)	2,391
Increase (decrease) in:
Accounts payable and accrued expenses	(770		)	(35,220		)
Income taxes payable	(1,738		)	(29,042		)
Deferred revenue	6,844			11,991
Operating lease liabilities	(20,240		)	—
Liability for uncertain tax positions	(453		)	7,694
Other long-term liabilities	1,816			10,089
Net cash provided by operating activities	412,539			401,325
Cash flows from investing activities:
Distribution from equity method investment	10,288			—
Purchases of equity method investment	(29,584		)	(36,635		)
Purchases of available-for-sale investments	—			(500		)
Purchases of property and equipment	(70,588		)	(56,379		)
Acquisition of businesses, net of cash received	(415,343		)	(312,430		)
Purchases of intangible assets	(46		)	(669		)
Net cash used in investing activities	(505,273		)	(406,613		)
Cash flows from financing activities:
Issuance of long-term debt	550,000			—
Debt issuance cost	(12,862		)	—
Payment of debt	(5,100		)	(2,204		)
Proceeds from line of credit	185,000			—
Repayment of line of credit	(185,000		)	—
Repurchase of common stock	(20,803		)	(47,102		)
Issuance of common stock under employee stock purchase plan	4,512			2,084
Exercise of stock options	5,274			1,540
Dividends paid	(43,533		)	(81,679		)
Deferred payments for acquisitions	(18,876		)	(3,558		)
Other	(1,917		)	(443		)
Net cash provided by (used in) financing activities	456,695			(131,362		)
Effect of exchange rate changes on cash and cash equivalents	2,180			(4,821		)
Net change in cash and cash equivalents	366,141			(141,471		)
Cash and cash equivalents at beginning of year	209,474			350,945
Cash and cash equivalents at end of year	$	575,615		$	209,474

J2 GLOBAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES

THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2019 AND 2018

(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 interest costs in excess of the coupon rate associated with the convertible notes; (4) elimination of amortization of patents and intangible assets that we acquired; (5) elimination of change in value on investment; (6) elimination of additional tax expense/benefit from prior years; (7) elimination of certain restructuring costs; (8) elimination of tax expense/benefit from intra-entity transfers; and (9) elimination of dilutive effect of the convertible debt.

	Three Months Ended December 31,
	2019			Per Diluted Share *			2018			Per Diluted Share *
Net income	$	123,023		$	2.45		$	50,614		$	1.03
Plus:
Share based compensation (1)	7,843			0.16			5,806			0.12
Acquisition related integration costs (2)	(824		)	(0.02		)	6,396			0.13
Interest costs (3)	5,198			0.11			1,915			0.04
Amortization (4)	30,399			0.64			38,113			0.79
Investments (5)	3,567			0.08			671			0.01
Tax benefit from prior years (6)	(10		)	—			(2		)	—
Restructuring costs (7)	—			—			161			—
Intra-entity transfers (8)	(53,690		)	(1.13		)	—			—
Convertible debt dilution (9)	—			0.07			—			0.02
Adjusted non-GAAP net income	$	115,506		$	2.38		$	103,674		$	2.11

	Twelve Months Ended December 31,
	2019			Per Diluted Share *			2018		Per Diluted Share *
Net income	$	218,806		$	4.39		$	128,687	$	2.59
Plus:
Share based compensation (1)	21,701			0.46			21,062		0.44
Acquisition related integration costs (2)	13,152			0.28			25,535		0.53
Interest costs (3)	10,367			0.22			6,079		0.13
Amortization (4)	130,547			2.74			123,789		2.57
Investments (5)	3,441			0.07			6,636		0.14
Tax expense from prior years (6)	62			—			335		0.01
Restructuring costs (7)	—			—			161		—
Intra-entity transfers (8)	(53,690		)	(1.13		)	—		—
Convertible debt dilution (9)	—			0.12			—		0.05
Adjusted non-GAAP net income	$	344,386		$	7.08		$	312,284	$	6.35

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

J2 GLOBAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES

THREE MONTHS ENDED DECEMBER 31, 2019 AND 2018

(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 interest costs in excess of the coupon rate associated with the convertible notes; (4) elimination of amortization of patents and intangible assets that we acquired; (5) elimination of change in value on investment; (6) elimination of additional tax expense/benefit from prior years; (7) elimination of certain restructuring costs; (8) elimination of tax expense/benefit from intra-entity transfers; and (9) elimination of dilutive effect of the convertible debt.

	Three Months Ended December 31,
	2019			2018
Cost of revenues	$	64,328		$	55,962
Plus:
Share based compensation (1)	(135		)	(132		)
Acquisition related integration costs (2)	(43		)	50
Amortization (4)	(450		)	(544		)
Adjusted non-GAAP cost of revenues	$	63,700		$	55,336
Sales and marketing	$	105,371		$	88,113
Plus:
Share based compensation (1)	(335		)	(418		)
Acquisition related integration costs (2)	274			53
Restructuring costs (7)	—			(184		)
Adjusted non-GAAP sales and marketing	$	105,310		$	87,564
Research, development and engineering	$	15,704		$	12,958
Plus:
Share based compensation (1)	(385		)	(366		)
Acquisition related integration costs (2)	48			(38		)
Adjusted non-GAAP research, development and engineering	$	15,367		$	12,554
General and administrative	$	109,940		$	102,342
Plus:
Share based compensation (1)	(4,673		)	(5,784		)
Acquisition related integration costs (2)	801			(6,448		)
Amortization (4)	(48,333		)	(43,186		)
Adjusted non-GAAP general and administrative	$	57,735		$	46,924
Interest expense, net	$	18,921		$	15,559
Plus:
Acquisition related integration costs (2)	—			(15		)
Interest costs (3)	(3,293		)	(2,211		)
Adjusted non-GAAP interest expense, net	$	15,628		$	13,333
Other expense (income), net	$	5,234		$	(1,443	)
Plus:
Investments (5)	(4,164		)	—
Adjusted non-GAAP other expense (income), net	$	1,070		$	(1,443	)

Continued from previous page
Income Tax Provision	$	(37,227	)	$	21,395
Plus:
Share based compensation (1)	(2,315		)	894
Acquisition related integration costs (2)	(256		)	2
Interest costs (3)	(1,905		)	296
Amortization (4)	18,384			5,617
Investments (5)	891			(112		)
Tax expense from prior years (6)	10			2
Restructuring costs (7)	—			23
Intra-entity transfers (8)	53,690			—
Adjusted non-GAAP income tax provision	$	31,272		$	28,117
Net loss in earnings of equity method investment	$	294		$	559
Plus:
Investments (5)	(294		)	(559		)
Adjusted non-GAAP net loss in earnings of equity method investment	$	—		$	—
Total adjustments	$	7,517		$	(53,060	)
GAAP earnings per diluted share	$	2.45		$	1.03
Adjustments *	$	(0.07	)	$	1.08
Adjusted non-GAAP earnings per diluted share	$	2.38		$	2.11

^* 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 a 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.

J2 GLOBAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES

TWELVE MONTHS ENDED DECEMBER 31, 2019 AND 2018

(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 interest costs in excess of the coupon rate associated with the convertible notes; (4) elimination of amortization of patents and intangible assets that we acquired; (5) elimination of change in value on investment; (6) elimination of additional tax expense/benefit from prior years; (7) elimination of certain restructuring costs; (8) elimination of tax expense/benefit from intra-entity transfers; and (9) elimination of dilutive effect of the convertible debt.

	Twelve Months Ended December 31,
	2019			2018
Cost of revenues	$	237,323		$	201,074
Plus:
Share based compensation (1)	(525		)	(510		)
Acquisition related integration costs (2)	(368		)	(296		)
Amortization (4)	(1,893		)	(2,230		)
Adjusted non-GAAP cost of revenues	$	234,537		$	198,038
Sales and marketing	$	379,183		$	338,304
Plus:
Share based compensation (1)	(1,547		)	(1,798		)
Acquisition related integration costs (2)	(2,870		)	(1,872		)
Restructuring costs (7)	—			(184		)
Adjusted non-GAAP sales and marketing	$	374,766		$	334,450
Research, development and engineering	$	54,396		$	48,370
Plus:
Share based compensation (1)	(1,477		)	(1,553		)
Acquisition related integration costs (2)	(2,039		)	(324		)
Adjusted non-GAAP research, development and engineering	$	50,880		$	46,493
General and administrative	$	424,072		$	375,267
Plus:
Share based compensation (1)	(20,373		)	(24,232		)
Acquisition related integration costs (2)	(11,745		)	(26,909		)
Amortization (4)	(180,603		)	(145,849		)
Tax expense from prior years (6)	(104		)	(378		)
Adjusted non-GAAP general and administrative	$	211,247		$	177,899
Interest expense, net	$	69,546		$	61,987
Plus:
Acquisition related integration costs (2)	27			(83		)
Interest costs (3)	(10,121		)	(8,655		)
Tax expense from prior years (6)	—			(57		)
Adjusted non-GAAP interest expense, net	$	59,452		$	53,192
Other expense, net	$	7,936		$	4,706
Plus:
Investments (5)	(4,164		)	(2,900		)
Adjusted non-GAAP other expense, net	$	3,772		$	1,806

Continued from previous page
Income tax provision	$	(19,376	)	$	44,760
Plus:
Share based compensation (1)	2,221			7,031
Acquisition related integration costs (2)	3,843			3,949
Interest costs (3)	(246		)	2,576
Amortization (4)	51,949			24,290
Investments (5)	891			404
Tax expense from prior years (6)	42			100
Restructuring costs (7)	—			23
Intra-entity transfers (8)	53,690			—
Adjusted non-GAAP income tax provision	$	93,014		$	83,133
Net loss in earnings of equity method investment	$	168		$	4,140
Plus:
Investments (5)	(168		)	(4,140		)
Adjusted non-GAAP net loss in earnings of equity method investment	$	—		$	—
Total adjustments	$	(125,580	)	$	(183,597	)
GAAP earnings per diluted share	$	4.39		$	2.59
Adjustments *	$	2.69		$	3.76
Adjusted non-GAAP earnings per diluted share	$	7.08		$	6.35

^* 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 a 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.

Non-GAAP Financial Measures

To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with US GAAP, the Company uses the following Non-GAAP financial measures: Adjusted EBITDA, Adjusted non-GAAP Net Income, and Adjusted non-GAAP Diluted EPS (collectively the “Non-GAAP financial measures”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. The Company uses these Non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about core operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.

(1) Share Based Compensation. The Company excludes stock-based compensation because it is non-cash in nature and because the Company believes that the Non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. The Company further believes this measure is useful to investors in that it allows for greater transparency to certain line items in its financial statements. In addition, excluding this item from the Non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item.

(2) Acquisition Related Integration Costs. The Company excludes certain acquisition and related integration costs such as adjustments to contingent consideration, retention bonuses, severance, lease terminations, and other acquisition-specific items. The Company believes that the Non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In addition, excluding this item from the Non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item.

(3) Interest Costs. In June 2014, the Company issued $402.5 million aggregate principal amount of 3.25% convertible senior notes and in November 2019, the Company issued $550.0 million aggregate principal amount of 1.75% convertible senior notes. In accordance with GAAP, the Company separately accounts for the value of the liability and equity features of its outstanding convertible senior notes in a manner that reflects the Company’s non-convertible debt borrowing rate. The value of the conversion features, reflected as a debt discount, is amortized to interest expense over time. Accordingly, the Company recognizes imputed interest expense on its 3.25% and 1.75% convertible senior notes of approximately 5.8% and 5.5%, respectively, in its income statement. The Company excludes the difference between the imputed interest expense and the coupon interest expense of 3.25% and 1.75%, respectively, because it is non-cash in nature and because the Company believes that the Non-GAAP financial measures excluding this item provide meaningful supplemental information regarding core operational performance. The Company has determined excluding these items from the Non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item.

(4) Amortization. The Company excludes amortization of patents and acquired intangible assets because it is non-cash in nature and because the Company believes that the Non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In addition, excluding this item from the Non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item.

(5) Change in Value on Investments. The Company excludes the change in value on its equity investments. The Company believes that the Non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In addition, excluding this item from the Non-GAAP measures facilitates comparisons to historical operating results.

(6) Tax Expense/Benefit from Prior Years. The Company excludes certain income tax-related items in respect of income tax audit settlements and their related FIN 48 accrual reversals. The Company believes that the Non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In addition, excluding this item from the Non-GAAP measures facilitates comparisons to historical operating results.

(7) Restructuring Costs. The Company excludes certain restructuring costs. The Company believes that the Non-GAAP financial measures excluding this item to provide meaningful supplemental information regarding operational performance. In addition, excluding this item from the Non-GAAP measures facilitates comparisons to historical operating results.

(8) Tax Expense/Benefit from Intra-Entity Transfers. The Company excludes certain income tax-related effects as a result of intra-entity transfers to the extent the related tax asset or liability in the financial statement is not recovered or settled, respectively during the year. During December 2019, the Company entered into an intra-entity asset transfer that resulted in the recording of a tax benefit and related tax asset representing tax deductible amounts to be realized in future years. The Company believes that the Non-GAAP financial measures excluding the cumulative future unrealized benefit of the assets transferred and including the

tax benefit in the year of realization provides meaningful supplemental information regarding operational performance. In addition, excluding this item from the Non-GAAP measures facilitates comparisons to historical operating results.

(9) Convertible Debt Dilution. The Company excludes convertible debt dilution from diluted EPS. The Company believes that the Non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In addition, excluding this item from the Non-GAAP measures facilitates comparisons to historical operating results.

The Company presents Adjusted non-GAAP Cost of Revenues, Adjusted non-GAAP Research, Development and Engineering, Adjusted non-GAAP Sales and Marketing, Adjusted non-GAAP General and Administrative, Adjusted non-GAAP Interest Expense, Adjusted non-GAAP Other Expense (Income), Adjusted non-GAAP Income Tax Provision and Adjusted non-GAAP Net Income because the Company believes that these provide useful information about our operating results and enhance the overall understanding of past financial performance and future prospects.

J2 GLOBAL, INC. AND SUBSIDIARIES

NET INCOME TO ADJUSTED EBITDA RECONCILIATION

THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2019 AND 2018

(UNAUDITED, IN THOUSANDS)

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2019			2018			2019			2018
Net income	$	123,023		$	50,614		$	218,806		$	128,687
Plus:
Interest expense, net	18,921			15,559			69,546			61,987
Other expense (income), net	5,234			(1,443		)	7,936			4,706
Income tax expense	(37,227		)	21,395			(19,376		)	44,760
Depreciation and amortization	61,623			54,324			232,032			187,174
Reconciliation of GAAP to Adjusted non-GAAP financial measures:
Share-based compensation	5,528			6,700			23,922			28,093
Acquisition-related integration costs	(1,080		)	6,383			17,022			29,401
Investments	294			559			168			4,140
Additional indirect tax expense from prior years	—			—			104			378
Restructuring costs	—			184			—			184
Adjusted EBITDA	$	176,316		$	154,275		$	550,160		$	489,510

Adjusted 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; (3) change in value on investments; (4) additional indirect tax expense from prior years; and (5) certain restructuring costs. We disclose Adjusted 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 Adjusted EBITDA are broadly used by analysts, rating agencies and investors in assessing our performance. Accordingly, we believe that the presentation of Adjusted EBITDA provides useful information to investors.

Adjusted 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, Adjusted 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.

J2 GLOBAL, INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

	Q1			Q2			Q3			Q4			YTD
2019
Net cash provided by operating activities	$	116,854		$	95,357		$	97,096		$	103,232		$	412,539
Less: Purchases of property and equipment	(12,531		)	(18,260		)	(18,692		)	(21,105		)	(70,588		)
Add: Contingent consideration*	—			8,698			(240		)	—			8,458
Free cash flows	$	104,323		$	85,795		$	78,164		$	82,127		$	350,409
* Free Cash Flows of $85.8 million for Q2 2019 and $78.2 million for Q3 2019 is before the effect of payments associated with certain contingent consideration associated with recent acquisitions.
	Q1			Q2			Q3			Q4			YTD
2018
Net cash provided by operating activities	$	103,910		$	102,383		$	87,823		$	107,209		$	401,325
Less: Purchases of property and equipment	(13,165		)	(15,393		)	(16,370		)	(11,451		)	(56,379		)
Free cash flows	$	90,745		$	86,990		$	71,453		$	95,758		$	344,946

The Company discloses free cash flows 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.

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.

J2 GLOBAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES

THREE MONTHS ENDED DECEMBER 31, 2019

(UNAUDITED, IN THOUSANDS)

	Cloud		Digital
	Services		Media			Corporate			Total
Revenues
GAAP revenues	$	169,296	$	236,290		$	2		$	405,588
Gross profit
GAAP gross profit	$	132,345	$	208,913		$	2		$	341,260
Non-GAAP adjustments:
Share-based compensation	133		2			—			135
Acquisition related integration costs	43		—			—			43
Amortization	450		—			—			450
Adjusted non-GAAP gross profit	$	132,971	$	208,915		$	2		$	341,888
Operating profit
GAAP operating profit	$	56,165	$	60,427		$	(6,347	)	$	110,245
Non-GAAP adjustments:
Share-based compensation	1,211		1,146			3,171			5,528
Acquisition related integration costs	783		(1,863		)	—			(1,080		)
Amortization	19,531		28,663			589			48,783
Adjusted non-GAAP operating profit	$	77,690	$	88,373		$	(2,587	)	$	163,476
Depreciation	2,995		9,845			—			12,840
Adjusted EBITDA	$	80,685	$	98,218		$	(2,587	)	$	176,316
NOTE 1: Table above excludes certain intercompany allocations
NOTE 2: The table above is impacted by certain expenses associated with the Corporate entity that were allocated to the Cloud Services business and the Digital Media business as these costs are shared costs incurred by the Corporate entity. As a result, expenses were allocated from Corporate to Cloud Services and Digital Media in the amount of $2.5 million and $2.8 million, respectively. The effects noted above reduce Adjusted EBITDA for Cloud Services and Digital Media by $2.5 million and $2.8 million respectively.

J2 GLOBAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES

THREE MONTHS ENDED DECEMBER 31, 2018

(UNAUDITED, IN THOUSANDS)

	Cloud			Digital
	Services			Media		Corporate			Total
Revenues
GAAP revenues	$	148,099		$	197,958	$	2		$	346,059
Gross profit
GAAP gross profit	$	119,394		$	170,701	$	2		$	290,097
Non-GAAP adjustments:
Share-based compensation	130			2		—			132
Acquisition Related Integration Costs	(50		)	—		—			(50		)
Amortization	544			—		—			544
Adjusted non-GAAP gross profit	$	120,018		$	170,703	$	2		$	290,723
Operating profit
GAAP operating profit	$	57,968		$	34,612	$	(5,896	)	$	86,684
Non-GAAP adjustments:
Share-based compensation	1,748			1,074		3,878			6,700
Acquisition related integration costs	(447		)	6,830		—			6,383
Amortization	13,821			29,195		714			43,730
Restructuring costs	—			184		—			184
Adjusted Non-GAAP operating profit	$	73,090		$	71,895	$	(1,304	)	$	143,681
Depreciation	2,697			7,897		—			10,594
Adjusted EBITDA	$	75,787		$	79,792	$	(1,304	)	$	154,275
NOTE 1: Table above excludes certain intercompany allocations
NOTE 2: The table above is impacted by certain expenses associated with the Corporate entity that were allocated to the Cloud Services business and the Digital Media business as these costs are shared costs incurred by the Corporate entity. As a result, expenses were allocated from Corporate to Cloud Services and Digital Media in the amount of $1.7 million and $1.8 million, respectively. The effects noted above reduce Adjusted EBITDA for Cloud Services and Digital Media by $1.7 million and $1.8 million respectively.

J2 GLOBAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES

TWELVE MONTHS ENDED DECEMBER 31, 2019

(UNAUDITED, IN THOUSANDS)

	Cloud		Digital
	Services		Media		Corporate			Total
Revenues
GAAP revenues	$	661,835	$	710,211	$	8		$	1,372,054
Gross profit
GAAP gross profit	$	517,565	$	617,158	$	8		$	1,134,731
Non-GAAP adjustments:
Share-based compensation	516		9		—			525
Acquisition related integration costs	153		215		—			368
Amortization	1,893		—		—			1,893
Adjusted non-GAAP gross profit	$	520,127	$	617,382	$	8		$	1,137,517
Operating profit
GAAP operating profit	$	238,104	$	66,324	$	(27,348	)	$	277,080
Non-GAAP adjustments:
Share-based compensation	3,796		5,016		15,110			23,922
Acquisition related integration costs	1,917		15,105		—			17,022
Amortization	69,386		110,623		2,487			182,496
Additional tax expense from prior years	104		—		—			104
Adjusted non-GAAP operating profit	$	313,307	$	197,068	$	(9,751	)	$	500,624
Depreciation	11,585		37,951		—			49,536
Adjusted EBITDA	$	324,892	$	235,019	$	(9,751	)	$	550,160
NOTE 1: Table above excludes certain intercompany allocations
NOTE 2: The table above is impacted by certain expenses associated with the Corporate entity that were allocated to the Cloud Services business and the Digital Media business as these costs are shared costs incurred by the Corporate entity. As a result, expenses were allocated from Corporate to Cloud Services and Digital Media in the amount of $9.7 million and $10.6 million, respectively. The effects noted above reduce Adjusted EBITDA for Cloud Services and Digital Media by $9.7 million and $10.6 million, respectively.

J2 GLOBAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES

TWELVE MONTHS ENDED DECEMBER 31, 2018

(UNAUDITED, IN THOUSANDS)

	Cloud		Digital
	Services		Media		Corporate			Total
Revenues
GAAP revenues	$	597,975	$	609,314	$	6		$	1,207,295
Gross profit
GAAP gross profit	$	475,821	$	530,395	$	5		$	1,006,221
Non-GAAP adjustments:
Share-based compensation	506		4		—			510
Acquisition related integration costs	216		80		—			296
Amortization	2,230		—		—			2,230
Adjusted non-GAAP gross profit	$	478,773	$	530,479	$	5		$	1,009,257
Operating profit
GAAP operating profit	$	230,180	$	41,375	$	(27,275	)	$	244,280
Non-GAAP adjustments:
Share-based compensation	7,075		5,037		15,981			28,093
Acquisition related integration costs	1,777		27,624		—			29,401
Amortization	50,738		93,764		3,577			148,079
Additional tax expense from prior years	378		—		—			378
Restructuring costs	—		184		—			184
Adjusted non-GAAP operating profit	$	290,148	$	167,984	$	(7,717	)	$	450,415
Depreciation	10,016		29,079		—			39,095
Adjusted EBITDA	$	300,164	$	197,063	$	(7,717	)	$	489,510
NOTE 1: Table above excludes certain intercompany allocations
NOTE 2: The table above is impacted by certain expenses associated with the Corporate entity that were allocated to the Cloud Services business and Digital Media business as these costs are shared costs incurred by the Corporate entity. As a result, expenses were allocated from Corporate to Cloud Services and Digital Media in the amount of $6.1 million and $5.9 million, respectively. The effects noted above reduce Adjusted EBITDA for Cloud Services and Digital Media by $6.1 million and $5.9 million, respectively.

EX-99.2

FOURTH QUARTER AND FULL YEAR 2019 RESULTS FEBRUARY 11, 2020

Safe Harbor for Forward-Looking Statements Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those regarding our 2020 Financial Guidance. Such forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in those statements. Readers should carefully review the Risk Factors slide of this presentation. These forward-looking statements are based on management’s expectations or beliefs as of February 11, 2020 as well as those set forth in our Annual Report on Form 10-K filed by us on March 1, 2019 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 publicly release 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 taxes All information in this presentation speaks as of February 11, 2020 and any redistribution or rebroadcast of this presentation after that date is not intended and will not be construed as updating or confirming such information. 2

Risk Factors The following factors, among others, could cause our business, prospects, financial condition, operating results and 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 credit and debit card payment declines • Inability to acquire businesses on acceptable terms or successfully integrate and realize anticipated synergies • Failure to offer compelling digital media content causing reduced traffic and advertising levels; loss of advertisers or reduction in advertising spend; increased prevalence or effectiveness of advertising blocking technologies; inability to monetize handheld devices and handheld traffic supplanting monetized traffic; and changes by our vendors or partners that impact 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 telecommunications taxes • Reduced use of fax services due to increased use of email, scanning or continued adoption of digital signatures or otherwise • 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 our businesses • 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 sufficient quantities 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 and financial 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 to existing 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 1, 2019 with the SEC and the other reports we file from time to time with the SEC 3

Q4 2019 Consolidated Financial Snapshot Revenue Adjusted Gross Profit (1) (2) (in millions) (in millions) 17.2% 17.6% $405.6 $341.9 Q2 2018 $233,192,653 $346.1 $290.7 Q2 2018 $102,668,939 Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q2 2018 $1.22 Adjusted EBITDA (1)(2) Adjusted EPS (1)( 2) (in millions) 14.3% 12.8% $176.3 $2.38 $2.11 $154.3 Q4 2018 Q4 2019 Q4 2018 Q4 2019 (1) See slides 16, 19, 20 for a GAAP reconciliation of adjusted non-GAAP gross profit, adjusted EBITDA and adjusted earnings per diluted share for the Company as a whole and by Business for Q4 2019 4 (2) Figures are adjusted non-GAAP

FY 2019 Consolidated Financial Snapshot Revenue (1)(2) Adjusted Gross Profit FY 2017 (in millions) (in millions) 1,117,837,852 13.6% 12.7% $1,372.0 $1,137.5 FY 2017 $1,207.3 $1,009.3 $949,136,299 FY 2017 $462,951,882 FY 2018 FY 2019 FY 2018 FY 2019 FY 2017 $5.64 Adjusted EBITDA (1)(2) Adjusted EPS (1)(2) (in millions) 11.5% 12.4% $7.08 $550.2 $6.35 $489.5 FY 2018 FY 2019 FY 2018 FY 2019 (1) See slides 16, 21, 22 for a GAAP reconciliation of adjusted non-GAAP gross profit, adjusted EBITDA and adjusted earnings per diluted share for the Company as a whole and by Business for FY 2019 5 (2) Figures are adjusted non-GAAP

Adjusted EBITDA and Free Cash Flow(1) Adjusted EBITDA Adjusted EBITDA (2) Q4Y/Y '18 FCF vs Q4 '19 (2) 2013 220,446,000 (in millions) (in millions) $550.2 14.3% $489.5 $463.0 $396.1 $176.3 $333.3 $262.6 $154.3 $220.4 Free Cash Flow 2013 $150,393,000 2013 2014 2015 2016 2017 2018 2019 Q4 2018 Q4 2019 Q1 2018 $90,745,490 Free Cash Flow (2) Q4 '18 vs Q4 '19 (2) (3) (in millions) (in millions) (14.3)% $350.4 FCF not done yet $344.9 $267.9 $264.8 $223.2 $95.8 $171.5 $82.1 $150.4 2013 2014 2015 2016 2017 2018 2019 Q4 2018 Q4 2019 (1) See slides 17 and 18 for a GAAP reconciliation of Adjusted EBITDA and Free Cash Flow (2) Figures are adjusted non-GAAP (3) Net cash provided by operating activities decreased 3.7% to $103.2 million compared to $107.2 million for Q4 2018. Q4 2019 free cash flow(2) decreased 14.3% to $82.1 million compared to $95.8 million for Q4 2018. The decrease in free cash flow over the prior comparable period is primarily due to a greater percentage of revenues and EBITDA coming from the Digital Media business which has a longer collection cycle resulting in less cash inflows associated with accounts receivable of approximately $14.7 million; additional payments and timing differences associated with certain other working capital within the Digital Media 6 business of approximately $9.5 million in comparison to Q4 2018

Q4 2019 Financial Snapshot By Business ```CLOUD SERVICES DIGITAL MEDIA Revenue Revenue (in millions) (in millions) 14.3% $169.3 19.3% $236.3 $148.1 $198.0 Q4 2018 Q4 2019 Q4 2018 Q4 2019 Adjusted EBITDA (1)(2) Adjusted EBITDA (1)(2) (in millions) (in millions) 6.5% $80.7 23.1% $98.2 $75.8 $79.8 Q4 2018 Q4 2019 Q4 2018 Q4 2019 (1) See slides 19 and 20 for a GAAP reconciliation of adjusted EBITDA for the Company as a whole and by Business for Q4 2019 (2) Figures are adjusted non-GAAP; Certain shared corporate expenses at J2 Global, Inc. were allocated to Cloud Services and Digital Media resulting in reductions to Adjusted EBITDA as follows: Cloud Services Adjusted EBITDA was reduced by $1.7MM and $2.5MM in Q4 2018 and Q4 2019, respectively, and Digital Media Adjusted EBITDA was reduced by $1.8MM and 7 $2.8MM in Q4 2018 and Q4 2019, respectively. No allocations occurred prior to 2018

FY 2019 Financial Snapshot By Business ```CLOUD SERVICES DIGITAL MEDIA Revenue Revenue (in millions) (in millions) 10.7% $661.8 16.6% $710.2 $598.0 $609.3 FY 2018 FY 2019 FY 2018 FY 2019 Adjusted EBITDA (1)(2) Adjusted EBITDA (1)(2) (in millions) (in millions) 8.2% $324.9 19.3% $235.0 $300.2 $197.1 FY 2018 FY 2019 FY 2018 FY 2019 (1) See slides 21 and 22 for a GAAP reconciliation of adjusted EBITDA for the Company as a whole and by Business for FY 2019 (2) Figures are adjusted non-GAAP; Certain shared corporate expenses at J2 Global, Inc. were allocated to Cloud Services and Digital Media resulting in reductions to Adjusted EBITDA as follows: Cloud Services Adjusted EBITDA was reduced by $6.1MM and $9.7MM in FY 2018 and FY 2019, respectively, and Digital Media Adjusted EBITDA was reduced by $5.9MM and 8 $10.6MM in FY 2018 and FY 2019, respectively. No allocations occurred prior to 2018

2020 FINANCIAL GUIDANCE

2020 Outlook (Forward-Looking Statements) Cloud Services • Revenue growth expected to be ~5% • Adjusted EBITDA(1)(2) margin in line with prior year’s levels of ~50% • Additional depreciation due to capital expenditures throughout the Cloud businesses, as well as the full-year impact of M&A completed in 2019 Digital Media • Revenue growth expected to be in excess of 10% • Adjusted EBITDA(1)(2) margin expected to be ~34% • Distribution of Revenues in 2020 • Q1 expected to represent ~20% of total annual Revenue, similar to prior years • Q4 expected to represent ~30% of total annual Revenue, similar to prior years Corporate • Tax rate expected to be between 21% - 23% • Excludes Share-Based Compensation of between $19.0 - $23.0MM • Effective Share Count used for EPS calculation is estimated to be 48.7MM, with no assumed dilution from the convertible notes • $3.0MM increase in corporate expenses due to the company-wide shift of our financial systems to Oracle Fusion and expansion of our cybersecurity initiatives 10 (1) Figures are adjusted non-GAAP. (2) See slides 16-22 for a GAAP reconciliation of adjusted earnings per diluted share, free cash flow, and adjusted EBITDA; these EBITDA margins are before corporate allocations

2020 Guidance (Forward-Looking Statements) Our annual guidance of Revenues, Adjusted EBITDA and Adjusted non-GAAP EPS Revenues $1,465MM - $1,505MM Adjusted $575MM - $595MM EBITDA(1)(2) Adjusted non- GAAP EPS(1)(2) $7.36 - $7.66 (1) Figures are adjusted non-GAAP 11 (2) 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 tax

SUPPLEMENTAL INFORMATION

Consolidated Metrics J2 Consolidated 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue by Business Cloud Services Revenues $141,544 $144,709 $145,787 $146,916 $149,485 $150,297 $150,094 $148,099 $152,245 $169,132 $171,163 $169,296 Digital Media Revenues $113,125 $128,465 $127,829 $169,464 $131,137 $137,591 $142,628 $197,958 $147,647 $153,298 $172,975 $236,290 Corporate $0 $0 $0 $0 $1 $1 $2 $2 $1 $2 $3 $2 Total Revenues $254,669 $273,174 $273,616 $316,380 $280,623 $287,889 $292,724 $346,059 $299,893 $322,432 $344,141 $405,588 |---(in '000s)---| Diluted EPS GAAP $0.52 $0.63 $0.66 $1.02 $0.38 $0.57 $0.61 $1.03 $0.66 $0.66 $0.62 $2.45 Adjusted non-GAAP (1) $1.19 $1.33 $1.34 $1.79 $1.22 $1.50 $1.53 $2.11 $1.40 $1.60 $1.70 $2.38 Cash & Investment $187.5 $330.8 $402.5 $408.7 $396.7 $428.0 $386.0 $293.3 $320.3 $259.5 $189.0 $675.7 Free Cash Flow (2) (4) $61.5 $71.1 $56.8 $75.3 $90.7 $87.0 $71.5 $95.8 $104.3 $85.8 $78.2 $82.1 Adjusted EBITDA (3) (4) $99.5 $110.2 $111.3 $141.9 $102.7 $113.5 $119.1 $154.3 $113.9 $125.2 $134.8 $176.3 |--(millions)--| (1) See slide 16 for a reconciliation of adjusted non-GAAP earnings and EPS to GAAP Net Income and diluted GAAP EPS (2) See slide 17 for a definition of Free Cash Flow and reconciliation to Net Cash Provided by Operating Activities (3) See slide 18 for a definition of adjusted EBITDA and reconciliation to Net Income 13 (4) Figures are adjusted non-GAAP

Cloud Services & Digital Media Metrics Cloud Services Metrics 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue by Type Fixed Subscriber Revenues $115,726 $117,556 $118,755 $119,232 $120,840 $123,648 $123,111 $121,350 $124,309 $140,352 $141,832 $143,246 Variable Subscriber Revenues $24,606 $25,863 $25,808 $26,651 $28,482 $26,479 $26,781 $26,591 $27,481 $28,557 $29,139 $25,899 Subscriber Revenues $140,332 $143,419 $144,563 $145,882 $149,322 $150,127 $149,892 $147,940 $151,790 $168,909 $170,971 $169,145 Other Licenses Revenue (1) $1,212 $1,291 $1,223 $1,034 $163 $170 $202 $158 $455 $223 $192 $151 Total Cloud Services Revenues $141,544 $144,709 $145,787 $146,916 $149,485 $150,297 $150,094 $148,099 $152,245 $169,132 $171,163 $169,296 Revenue - DID vs Non-DID DID Based Revenues $93,438 $95,490 $96,702 $99,299 $98,692 $98,488 $98,897 $97,003 $97,068 $97,379 $97,219 $96,668 Non-DID Based Revenues $48,106 $49,220 $49,084 $47,617 $50,793 $51,809 $51,197 $51,096 $55,177 $71,753 $73,944 $72,628 Total Cloud Services Revenues $141,544 $144,709 $145,787 $146,916 $149,485 $150,297 $150,094 $148,099 $152,245 $169,132 $171,163 $169,296 (2) 3,116 3,141 3,175 3,176 3,185 3,197 3,204 3,165 3,148 4,015 4,039 4,036 Cloud Services Customers |----------------------(in '000s)----------------------| Average Monthly Revenue/Customer (3) $15.03 $15.28 $15.26 $15.31 $15.65 $15.68 $15.61 $15.49 $16.03 $14.01 $14.15 $13.96 Cancel Rate (4) 2.3% 2.1% 2.2% 2.0% 2.2% 2.0% 2.2% 2.1% 2.2% 2.5% 2.4% 2.4% Digital Media Metrics (5) Visits 1,401,666 1,352,200 1,394,177 1,572,398 1,957,985 1,952,270 1,949,167 1,846,496 1,806,992 1,618,612 1,856,953 2,259,469 Views 5,386,097 6,054,062 5,872,437 6,418,612 8,159,496 7,528,471 7,980,168 8,058,385 7,086,701 6,492,120 7,008,292 8,704,905 (in '000s)(in (1) Cloud Services revenue includes IP Licensing revenue (2) Cloud Services Customers are defined as paying DIDs for Fax & Voice services and direct and resellers’ accounts for other services (3) Quarterly Average Revenue per Customer is calculated using our standard convention of applying the average of the quarter’s beginning and ending customer base to the total revenue of the quarter; Q2 2019 assumes NetProtect acquisition closed on March 31, instead of April 2, 2019 (4) User cancel rate, also called user churn, is defined as cancellation of service by Cloud Business customers with greater than four months of continuous service (continuous service includes Cloud Business customers that are administratively cancelled and reactivated within the same calendar month). User cancel rate is calculated monthly and expressed here as an average over the three months of the quarter 14 (5) Digital Media Traffic figures based on Google Analytics & Partner Platforms

Return on Invested Capital (ROIC) Calculation Cumulative Cumulative Invested ROIC FCF (3) / Cumulative Adjusted Spend / Free Cash ROIC FCF (3) / IEC (4) & Net (3) Equity Capital (4) (1) (2)(3) (3) FCF since (4) (5) (IEC & Net Spend EBITDA Adjusted Flow (FCF) (4) IEC Debt 2008 (IEC) (5) EBITDA (3) Debt ) (in Millions) 2010 $441.8 $133.9 3.3x $108.8 $300.2 $298.9 36.4% $298.9 36.4% 2011 $456.9 $177.7 2.6x $157.5 $457.7 $314.8 50.0% $314.8 50.0% 2012 $666.6 $194.3 3.4x $166.0 $623.7 $391.3 42.4% $417.8 39.7% 2013 $825.8 $220.4 3.7x $150.4 $774.1 $446.6 33.7% $484.4 31.0% 2014 $1,104.7 $262.6 4.2x $171.5 $945.6 $513.1 33.4% $672.7 25.5% 2015 $1,440.6 $333.3 4.3x $223.2 $1,168.8 $580.9 38.4% $926.5 24.1% 2016 $2,071.2 $396.1 5.2x $267.9 $1,436.7 $659.8 40.6% $1,137.6 23.5% 2017 $2,179.2 $463.0 4.7x $264.8 $1,701.5 $718.2 36.9% $1,419.8 18.7% 2018 $2,552.3 $489.5 5.2x $344.9 $2,046.4 $722.8 47.7% $1,526.5 22.6% 2019 $2,986.5 $550.2 5.4x $350.4 $2,396.8 $802.4 43.7% $1,675.3 20.9% (1) Cumulative spend based on PPE, purchase of acquisitions (net of proceeds from sale of businesses), purchase of intangibles and deferred payments for acquisitions from Statement of Cash Flow (2) Adjusted EBITDA is defined as net income plus interest and other expense, net; income tax expense; depreciation and amortization and the items used to reconcile GAAP to Adjusted Non-GAAP EPS. Adjusted EBITDA amounts are not meant as a substitute for GAAP, but are solely for informational purposes. See slide 18 for GAAP reconciliation to adjusted EBITDA (3) Figures are adjusted non-GAAP (4) Investment Equity Capital defined as Initial Equity plus GAAP Net Income less Dividends less Buybacks 15 (5) Net Debt defined as Total Debt less Cash

Q4 and FY 2019 Reconciliation of GAAP to Adjusted Non-GAAP Earnings & EPS (1) 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; (3) elimination of interest costs in excess of the coupon rate associated with the convertible notes; (4) elimination of amortization of patents and intangible assets that we acquired; (5) elimination of change in value on investment; and (6) elimination of additional tax or indirect tax related expense/benefit from prior years; (7) elimination of certain restructuring costs; and (8) elimination of tax expense/benefit from intra-entity transfers. 16

GAAP Reconciliation - Free Cash Flow(1) (2) Figures in Thousands 2013 2014 2015 2016 2017 2018 2019 Q4 2018 (3) Q4 2019 (3) Net cash provided by operating activities $ 193,324 $ 177,231 $ 229,061 $ 282,387 $ 264,420 $ 401,325 $ 412,539 $ 107,209 $ 103,232 Less: Purchases of property and equipment (18,626) (11,221) (17,297) (24,746) (39,595) $ (56,379) (70,588) (11,451) (21,105) Less: Patent Settlement (27,000) - - - - - - - - Add: Excess tax benefit from share-based compensation 2,695 5,512 4,486 2,271 - - - - - Add: IRS Settlement - - 6,917 - - - - - - Add: Contingent consideration * - - - 8,000 39,950 - 8,458 - - Free cash flows (2) $ 150,393 $ 171,522 $ 223,167 $ 267,912 $ 264,775 $ 344,946 $ 350,409 $ 95,758 $ 82,127 * Free cash flows of $132.6 million in 2017, and $164.0 million in 2019 are before the effect of payments associated with certain contingent consideration associated with recent acquisitions (1) Free Cash Flow is defined as net cash provided by operating activities, less purchases of property, plant and equipment, less patent settlement, plus excess tax benefits (deficits) from share based compensation, plus IRS settlement, plus contingent consideration. Free Cash Flow amounts are not meant as a substitute for GAAP, but are solely for informational purposes (2) Figures are adjusted non-GAAP (3) Net cash provided by operating activities decreased 3.7% to $103.2 million compared to $107.2 million for Q4 2018. Q4 2019 free cash flow(2) decreased 14.3% to $82.1 million compared to $95.8 million for Q4 2018. The decrease in free cash flow over the prior comparable period is primarily due to a greater percentage of revenues and EBITDA coming from the Digital Media business which has a longer collection cycle resulting in less cash inflows associated with accounts receivable of approximately $14.7 million; additional payments and timing differences associated with certain other working capital within the Digital Media business of approximately $9.5 million in comparison to Q4 2018 17

GAAP Reconciliation - Adjusted EBITDA(1) (2) (1) Adjusted EBITDA is defined as net income plus interest and other expense, net; income tax expense; depreciation and amortization and the items used to reconcile GAAP to Adjusted Non-GAAP EPS. Adjusted EBITDA amounts are not meant as a substitute for GAAP, but are solely for informational purposes (2) Figures are adjusted non-GAAP 18

(1) Q4 2019 Reconciliation of GAAP to Adjusted EBITDA NOTE 1: Table above excludes certain intercompany allocations NOTE 2: The table above is impacted by certain expenses associated with the Corporate entity that were allocated to the Cloud Services business and the Digital Media business as these costs are shared costs incurred by the Corporate entity. As a result, expenses were allocated from Corporate to Cloud Services and Digital Media in the amount of $2.5 million and $2.8 million, respectively. The effects noted above reduce Adjusted EBITDA for Cloud Services and Digital Media by $2.5 million and $2.8 million respectively. (1) Figures are adjusted non-GAAP 19

(1) Q4 2018 Reconciliation of GAAP to Adjusted EBITDA NOTE 1: Table above excludes certain intercompany allocations NOTE 2: The table above is impacted by certain expenses associated with the Corporate entity that were allocated to the Cloud Services business and the Digital Media business as these costs are shared costs incurred by the Corporate entity. As a result, expenses were allocated from Corporate to Cloud Services and Digital Media in the amount of $1.7 million and $1.8 million, respectively. The effects noted above reduce Adjusted EBITDA for Cloud Services and Digital Media by $1.7 million and $1.8 million respectively. (1) Figures are adjusted non-GAAP 20

(1) FY 2019 Reconciliation of GAAP to Adjusted EBITDA NOTE 1: Table above excludes certain intercompany allocations NOTE 2: The table above is impacted by certain expenses associated with the Corporate entity that were allocated to the Cloud Services business and the Digital Media business as these costs are shared costs incurred by the Corporate entity. As a result, expenses were allocated from Corporate to Cloud Services and Digital Media in the amount of $9.7 million and $10.6 million, respectively. The effects noted above reduce Adjusted EBITDA for Cloud Services and Digital Media by $9.7 million and $10.6 million, respectively (1) Figures are adjusted non-GAAP 21

(1) FY 2018 Reconciliation of GAAP to Adjusted EBITDA NOTE 1: Table above excludes certain intercompany allocations NOTE 2: The table above is impacted by certain expenses associated with the Corporate entity that were allocated to the Cloud Services business and Digital Media business as these costs are shared costs incurred by the Corporate entity. As a result, expenses were allocated from Corporate to Cloud Services and Digital Media in the amount of $6.1 million and $5.9 million, respectively. The effects noted above reduce Adjusted EBITDA for Cloud Services and Digital Media by $6.1 million and $5.9 million, respectively (1) Figures are adjusted non-GAAP 22

XML

Document and Entity Information Document	Feb. 10, 2020
Cover page.
Document Type	8-K
Document Period End Date	Feb. 10, 2020
Entity Registrant Name	J2 Global, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	0-25965
Entity Tax Identification Number	47-1053457
Entity Address, Address Line One	700 S. Flower Street,
Entity Address, Address Line Two	15th Floor
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90017
City Area Code	323
Local Phone Number	860-9200
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	JCOM
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001084048
Amendment Flag	false