JCOM
#there will be more of EBITDA, just to clarify.
That represents an even higher amount of total EBITDA for the year for media.
So, if you're 30% plus in revs, it's even higher share of EBITDA.
No.
It should go up because as I said through the call we are consolidating newly acquired companies in the Nordic, newly acquired company in the backup and newly acquired company in FuseMail.
All of those companies in the beginning tend to deliver weaker EBITDA, and they continue to improve as we continue to consolidate.
I think on a more longer term arc, I think, with the exception of web hosting, which still remains an asset that we are incubating in the Australian markets, the Web24 assets, I think each of the core business elements that we are in or business services that we are in, when they reach scale, will be 50% or better EBITDA margin businesses.
In fact, in some cases we're already honing in on that.
In other cases the revenue stream is just not large enough today.
It probably needs to be, in our judgment, for most of these services $100 million of revenue or more.
You know, in general, we just made a focused theme on Cloud Connect, which is $340 million.
And we have a focused theme on media which is north of $200 million.
My job and focus now, including everything, is also to take those other division and help them and aid them and bring them to the scale of $100 million plus, where they can really reach EBITDAs of 50% on the cloud side.
This is what is our new focus now.
Yes.
I think that of the nine, most were in March.
One was in February.
The largest one, which as you know, tailing everything around it, is SugarSync and they were end of quarter.
It's the largest of them.
You're welcome.
Jim, nice name, Walter.
All right.
Go ahead.
Alright.
Go ahead.
I don't have it.
Gross as to what.
Yes.
Of the total ---+ of the total adds, units.
Units.
Right.
The 240,000 units that I said.
Those are the net adds.
Those are the net adds.
Not the gross adds.
So 240 are net.
And you can calculate that the churn is 2.3%.
I mean, it's hard for me to do it on the fly.
But you can basically reverse engineer it to the gross adds.
I can tell you that our marketing and cost per acquisitions are all same or better.
I also indicated that we get some new boost to our sales through lead generation, which was not something that we have seen so well in the past.
Our Google search and everything is optimized and j2 is very disciplined.
So if we don't get what we want, we are not trying to climb the glass wall.
If it doesn't work, we look for another alternative, not to keep the money in the bank.
So costs of acquisition are managed well.
We are seeing more lead generation, we're seeing some affiliates coming in, in Japan and we have more reseller than we ever had before, selling on three or four, almost all of our products now have some level of reseller.
Some the resellers are very high, like the Backup and the fax is low.
But basically those are new channels that you pay only for success.
Yes.
At a high level, if you go back actually now, a couple of years ago, shortly after we acquired Ziff Davis, we had an Analyst Day in New York in July of 2013.
I believe that ---+ it's not on our website anymore.
But I believe that that presentation is still available through SEC.
gov because I think it was filed.
But I'd say the key to our Digital Media strategy is multiple streams of monetization of the traffic and marrying that traffic with data analytics to get premium pricing.
In a nutshell, that's really what's going on.
So we have the content that is ---+ for the most part are owned and operated across a variety of web properties in the tech games and men's lifestyle area.
Traffic is showing up basically on an organic basis.
So we don't have large, if any really, traffic acquisition costs.
They're nil.
They're nonexistent.
And then we have to monetize that traffic.
So, there's different theories and methods of how you do it.
We have straight display monetization, we have performance-based marketing.
We have high-quality leads we call it, which is our B2B program for basically medium to large enterprise and we have licensing programs.
<UNK> mentioned at the end of the prepared remarks about taking some of the intellectual property and content and in non-English speaking countries releasing those websites for which we receive certain fees.
Also I used or we used to mention last year in the earning calls the position of Ziff Davis and IGN as being number one or number two, most of the time number one player in the place.
So if you're number one in tech and you're number one in video ---+
In games.
Sorry, in games, people have to come to you.
You don't have to spend so much money like the others and the margins are higher.
Everybody with number one just sits there and waits for people to come to him, because nobody can just go and launch a campaign, ignoring the number one or the number two.
So that's also a big contributor to our position and profitability.
And j2 all the time is trying to become the lead brand in its space or one of them, which always, always drives to higher EBITDA.
I hope I answered you.
Yes.
We don't want to disclose what exactly.
But we are looking into additional verticals all the time.
We have an internal scale of what we like and what we don't.
You know, like sports, we think is less attractive to us than other verticals.
We are looking and, with our discipline, once we find the right one, we will take it.
If you look at the core of the content that we have today, and particularly this hones in on the tech and games area, it is content that aids in decision making for a purchase.
So, people are coming because they want to find out about the latest games, platforms, tech gear, software services.
And so that engagement is important because there is, in many instances, an intent to want to own whatever it is that they are researching and investigating.
And that's why, like as <UNK> mentioned, in the sports category, although there are some that do it very well and make a lot of money, that doesn't fit as well into our overall philosophy.
Yes.
And Ookla, on the other side, a decision to potentially move to another provider, which is the name of the game there.
You know, you want to make a purchase decision, it's a long-term commitment, subscription.
Those that are trying to move subscribers to their network are willing to pay to justify the fact that Ookla is number one in the space in the world.
All the best.
Thanks, Jim.
Thank you very much.
We appreciate your time and attention today for listening to our Q1 earnings call.
Tomorrow or Monday we'll be putting out a press release regarding the upcoming conferences, at which we'll be presenting over the next couple of months.
And we look forward to seeing you at one of those conferences or if you have follow-up questions, just reach out and contact us.
Otherwise our next regularly scheduled call will be in early August to report Q2 results.
Thank you.
Thank you, everybody.
And bye-bye.
