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j2 Global (JCOM) Q2 Earnings Beat, Cloud Revenues Up Y/Y
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j2 Global, Inc.’s second-quarter 2018 adjusted earnings of $1.50 per share beat the Zacks Consensus Estimate by eight cents and increased 12.8% on a year-over-year basis.
Revenues came in at $287.9 million, up 5.8% year over year but lagged the Zacks Consensus Estimate of $290 million.
Quarter Details
Revenues from Cloud Services increased 3.9% from the year-ago quarter to $150.3 million. Digital Media revenues were $137.6 million, up 7.1% year over year. The company’s total subscription revenues increased 4.7% year over year to $150.1 million.
At the end of the quarter, the company had 3,197 cloud services customers. Average Monthly Revenue per Customer increased 2.6% from the year-ago quarter to $15.68.
Adjusted gross margin contracted 80 basis points (bps) on a year-over-year basis to 83.7%. Cloud Services and Digital Media adjusted gross margin contracted 50 bps and 30 bps, respectively.
Adjusted EBITDA margin contracted 90 bps to 39.4%. Cloud Services adjusted EBITDA margin contracted 190 bps from the year-ago quarter. However, Digital Media adjusted EBITDA margin expanded 30 bps.
Adjusted operating margin contracted 160 bps to 36.1%. Cloud Services and Digital Media adjusted operating margin contracted 190 bps and 40 bps, respectively.
Balance Sheet and Cash Flow
As of Jun 30, 2018, cash and cash equivalents were $357.4 million compared with $331.4 million at the end of the previous quarter. Long-term debt during the period was $1 billion.
Cash flow from operations was $102.4 million in the second quarter compared with $103.9 million at the end of the previous quarter.
Free cash flow was $87 million compared with $90.7 million at the end of the previous quarter.
Guidance
j2 Global reaffirmed its earlier guidance. Revenues are expected to be between $1.20 billion and $1.25 billion for 2018. Additionally, the company projects adjusted EBITDA in a band of $480-$505 million.
Adjusted earnings are now anticipated between $6.16 and $6.46 per share, up from previous guidance of $5.95-$6.25.
Zacks Rank & Stocks to Consider
j2 Global currently carries a Zacks Rank #3 (Hold).
Long-term earnings growth rate for Attunity, Five9 and Paycom is pegged at 20%, 20% and 24.82%, respectively.
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j2 Global (JCOM) Q2 Earnings Beat, Cloud Revenues Up Y/Y
j2 Global, Inc.’s second-quarter 2018 adjusted earnings of $1.50 per share beat the Zacks Consensus Estimate by eight cents and increased 12.8% on a year-over-year basis.
Revenues came in at $287.9 million, up 5.8% year over year but lagged the Zacks Consensus Estimate of $290 million.
Quarter Details
Revenues from Cloud Services increased 3.9% from the year-ago quarter to $150.3 million. Digital Media revenues were $137.6 million, up 7.1% year over year. The company’s total subscription revenues increased 4.7% year over year to $150.1 million.
At the end of the quarter, the company had 3,197 cloud services customers. Average Monthly Revenue per Customer increased 2.6% from the year-ago quarter to $15.68.
j2 Global, Inc. Price, Consensus and EPS Surprise
j2 Global, Inc. Price, Consensus and EPS Surprise | j2 Global, Inc. Quote
Adjusted gross margin contracted 80 basis points (bps) on a year-over-year basis to 83.7%. Cloud Services and Digital Media adjusted gross margin contracted 50 bps and 30 bps, respectively.
Adjusted EBITDA margin contracted 90 bps to 39.4%. Cloud Services adjusted EBITDA margin contracted 190 bps from the year-ago quarter. However, Digital Media adjusted EBITDA margin expanded 30 bps.
Adjusted operating margin contracted 160 bps to 36.1%. Cloud Services and Digital Media adjusted operating margin contracted 190 bps and 40 bps, respectively.
Balance Sheet and Cash Flow
As of Jun 30, 2018, cash and cash equivalents were $357.4 million compared with $331.4 million at the end of the previous quarter. Long-term debt during the period was $1 billion.
Cash flow from operations was $102.4 million in the second quarter compared with $103.9 million at the end of the previous quarter.
Free cash flow was $87 million compared with $90.7 million at the end of the previous quarter.
Guidance
j2 Global reaffirmed its earlier guidance. Revenues are expected to be between $1.20 billion and $1.25 billion for 2018. Additionally, the company projects adjusted EBITDA in a band of $480-$505 million.
Adjusted earnings are now anticipated between $6.16 and $6.46 per share, up from previous guidance of $5.95-$6.25.
Zacks Rank & Stocks to Consider
j2 Global currently carries a Zacks Rank #3 (Hold).
Attunity , Five9 (FIVN - Free Report) and Paycom (PAYC - Free Report) are stocks worth considering in the same industry. All the three stocks sport Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Attunity, Five9 and Paycom is pegged at 20%, 20% and 24.82%, respectively.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>