A month has gone by since the last earnings report for j2 Global, Inc. JCOM. Shares have lost about 3.4% in that time frame, underperforming the market.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

First Quarter Earnings

j2 Global's first-quarter 2017 earnings (on an adjusted basis) of $1.14 per share (including stock-based compensation expenses) missed the Zacks Consensus Estimate by 7 cents. However, earnings increased 11.76% on a year-over-year basis, on the back of higher revenues.

j2 Global's first-quarter 2017 earnings (on an adjusted basis) of $1.14 per share (including stock-based compensation expenses) missed the Zacks Consensus Estimate by 7 cents. However, earnings increased 11.76% on a year-over-year basis, on the back of higher revenues.

j2 Global's first-quarter 2017 earnings (on an adjusted basis) of $1.14 per share (including stock-based compensation expenses) missed the Zacks Consensus Estimate by 7 cents. However, earnings increased 11.76% on a year-over-year basis, on the back of higher revenues.

j2 Global's first-quarter 2017 earnings (on an adjusted basis) of $1.14 per share (including stock-based compensation expenses) missed the Zacks Consensus Estimate by 7 cents. However, earnings increased 11.76% on a year-over-year basis, on the back of higher revenues.

 

Quarterly revenues came in at $254.7 million, up 27.02% year over year. The top line however fell short of the Zacks Consensus Estimate of $258.5 million. 

 

Segment-wise, total Cloud Service revenues grew 2.5% year over year to $140.4 million in the reported quarter. Digital Media revenues came in at $113.1 million, up 81.5%. IP Licensing revenues were flat at $1.2 million in the first quarter of 2017.

 

j2 Global’s quarterly operating expenses were $165.9 million in the quarter under review, up 47% from the year-ago quarter. Quarterly adjusted EBITDA (earnings before interest and other expenses) rise 14.8% year over year to $99.5 million.

 

The company exited the first quarter of 2017 with approximately $187.4 million in cash and cash equivalents, compared with $123.9 million at the beginning of the quarter. Long-term debt at the end of the first quarter of 2017 was $604.3 million, compared with $601.7 million at the start of the quarter. Free cash flow at the end of the quarter increased 1.7% year over year to $61.5 million.