J2 Global Picks Up Several Small Acquisitions

Los-Angeles-based J2 Global (Nasdaq: JCOM) is a leading Internet-based information and services company. The company recently reported its fourth-quarter results. Prior to the recent turmoil, its stock was climbing to record highs.

J2 Global’s Financials

J2 Global provides digital media services across technology, healthcare, communications, security, and MarTech sectors. Its portfolio includes brands like IGN, Mashable, Humble Bundle, Speedtest, PCMag, Offers.com, Spiceworks, Everyday Health, BabyCenter, and What To Expect. Additionally, the company also offers cloud services such as eFax, eVoice, iContact, Campaigner, VIPRE, IPVanish, and KeepItSafe to its customers. Its solutions reach over 180 million people each month globally.

For the fourth quarter of the year, J2 Global’s revenues grew 17% over the year to $405.6 million ahead of the market’s forecast by 3.7%. Adjusted EPS was $2.38, ahead of the market’s forecast of $2.37 and growing over previous year’s $2.11.

By segment, Cloud revenues grew 14.3% to $169.1 million, driven by 18% growth in fixed subscriber revenues. Digital Media revenues grew 19% over the year to $236.3 million.

J2 Global ended the year with revenues growing 13.6% to a record $1.37 billion and adjusted net income growing 10% to $344.4 million.

J2 Global expects to end the current year with revenues of $1.47-$1.51 billion with an adjusted EPS of $7.36-$7.66. The Street was looking for revenues of $1.45 billion with an EPS of $7.56 for the year.

J2 Global’s Acquisitions

J2 Global has a very active M&A strategy to expand its business offerings. It started last year with the acquisition of iContact, a North Carolina-based email marketing and social media marketing services provider, for an undisclosed sum. iContact focuses on the SMB segment and is one of the largest private provider of email marketing and social media marketing software and services globally. Its solutions simplify the process of creating, sending, and tracking email newsletters, surveys, and autoresponders.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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