A Leading Provider of Cloud Email Security, Productivity & Compliance Solutions - NASDAQ: ZIXI
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A Leading Provider of Cloud
Email Security, Productivity
& Compliance Solutions
NASDAQ: ZIXI
August 2021
1
Important Cautions Regarding
Forward-Looking Statements
Statements in this presentation that are not purely historical facts or that necessarily depend upon future events, including statements about
forecasts of projections of future business, market share, revenue, earnings, EBITDA, recognition of revenues from backlog, cash or other
financial metrics, or other statements about anticipations, beliefs, expectations, hopes, plans, intentions or strategies for the future, may be
forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not
to place undue reliance on forward-looking statements. All forward-looking statements are based upon information available to Zix at the time of
its most recent earnings announcement. This presentation is not an update of, and Zix undertakes no obligation to publicly update or revise, any
forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and
uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements,
including risks or uncertainties related to economic conditions and performance, the ongoing COVID-19 pandemic, migration of customers to
cloud-based solutions, technological change, competitive threats, how privacy and data security law mandates may affect demand for Zix’s
products, Zix’s ability to successfully complete and integrate acquisitions, and Zix’s ability to obtain and retain customers, grow revenues and
deliver new products, whether organically or through acquisitions. Zix may not succeed in addressing these and other risks. Further information
regarding factors that could affect Zix financial and other results can be found in the risk factors sections of Zix's most recent filings on Form 10-
K and Form 10-Q with the Securities and Exchange Commission.
Detailed explanations of our non-GAAP financial measures and reconciliations of our adjusting items to the most directly comparable
GAAP financial measure can be found at http://investor.zixcorp.com.
NASDAQ: ZIXI 2
Company Overview
• Leader in small medium business email $252.4M $53.5M (23%)
protection and productivity
• 100% Subscription Revenue, 89% Cloud Annual Recurring Revenue (ARR) Adjusted EBITDA (Margin)
Trailing Twelve Months1
at June 30, 2021
• 101% Net Dollar Retention1
18% 100,000+
• 527 Employees
YOY Revenue Growth Total End Customers
Q2 2021 Q2 2021
• Headquartered in Dallas, TX
For a reconciliation of GAAP to adjusted non-GAAP results, see the
company’s earnings release on Aug. 5, 2021, which is available on the investor
relations Web page at http://investor.zixcorp.com
1. Three months ended June 30, 2021 NASDAQ: ZIXI 3
Company Vision
To be THE leading provider of cloud email security, compliance and productivity solutions
2021 to 2025
World-Class SaaS Platform and Service
Layered Security Around the Mailbox
$252.4M
2016 to 2021 ARR MSP Focus and International Market Expansion
to
$55M to Platform Intelligence for Enhanced Customer Protection
$500M in
$252.4M Security, Resiliency and Compliance in the Cloud
ARR
Leverage transition to the
cloud for productivity,
security and compliance
NASDAQ: ZIXI 4
Secure Cloud
Backup & Recovery
NASDAQ: ZIXI 5
Q2 2021 Cloud ARR Growth
Zix’s Growth in Cloud based on Annual Recurring Revenue
Accelerated by Recent Acquisitions
Cloud ARR represents 89% of Total ARR
__% Year-over-year Growth
NASDAQ: ZIXI 6Extrinsic Market Drivers
A Confluence of Market Factors are Aligning that Provide Zix with Powerful Tailwinds
Email Still the Top Communication Strengthening
Attacked Vector is Evolving the Cloud
SaaS Platforms Not Expanding
Liable for Data Loss Regulations
94% 45% 85%
Accelerated
Digital
Transformation Of malware sent via
96% increase in 43% of organizations
email collaboration
Using Office 365 will rely on
tool spend non-Microsoft security tools to
maintain consistent security policies
of companies who increase of annual
have a backup and compliance spend
recovery plan, survive Average cost of compliance rose
ransomware attacks to nearly $5.5M annually
• COVID-19 accelerated • Expect increases in • Ransomware accounts • 30% of the workforce • Increased public • Large market
the need for digitization targeted phishing due for 27% of all malware will work remotely scrutiny of business opportunity driven
of business operations to the SolarWinds incidents a few days a week in data security by the need for
and services by 4 breach & Microsoft 2021 & beyond specialized security
• 1 in 3 companies • HIPAA, SEC rules and
years Zero-day disclosures for cloud offerings
experience SaaS • Microsoft saw a industry regulations
data loss require protection of
3,891% increased
use of MS Teams consumer data
NASDAQ: ZIXI 7Intrinsic Growth Drivers
Consistent Customer Expanded Product
Future Trajectory
Satisfaction Offering (R&D)
Prioritized Channel Expanded Product
Investments Offering & Cross-Sell
Opportunities
(Acquisitions)
Strategic expansion of our
TAM and focus on the
Net Promoter Score cloud, positions the
exceeds competition, Company to better exploit
demonstrating the value Cloud platform market trends in business
of Zix and the opportunity investments driving resilience, compliance,
to attach more adoption of our core and email security
multi-tenant solution
Expand VAR and MSP
relationships through
automating partner Bundled email security &
specific workflows & PSA compliance solution
integration enhancements driving higher cross-selling
NASDAQ: ZIXI 8Excellence through Experience
~20-year relationship as Microsoft CSP
>14,000 successful M365 migrations
> 90,000 joint customers
97% first call resolution on M365 support calls
Long-standing member of Microsoft PAC
NASDAQ: ZIXI 9Better Together – Zix & M365
Phenomenal Support
for M365
Quick, effective support
Gold Standard
Compliance for M365
Simple, effective tools
Back up for M365
Critical business resilience
M365 Security Audit
Insight and remediation
Email Security
for M365
Peace of mind security
M365 CSP
Experience you can trust
NASDAQ: ZIXI 10Key Growth Areas
New Customer Sales to Increase
Acquisition Existing Retention
Customers
NASDAQ: ZIXI 11Financial Information
Financial Highlights
Strong Healthcare & Financial Customers Focused on Compliance
Mission Critical Applications for the SMB ~ Email Box & Surrounding Security
100% 10+ Years No Customer
Subscription Revenue Consistent Profitability* >1% Revenue
101.4% Net Dollar 18% Q2 2021
Revenue Retention(1) Revenue Growth
1 Three months ended June 30, 2021 *Zix profitability defined as non-GAAP adjusted net income before deemed NASDAQ: ZIXI 13
dividends and excluding deferred tax (benefit) expenseAnnual Recurring Revenue (ARR)
• ARR increased 17% year-
over-year to record $252.4M ARR Growth
$252.4
$243.6
• Email security and $237.7
$222.3
productivity solutions driving $209.7 $214.3
$215.9
strong cross-selling $193.7
$200.3
activity and ARR growth
• Cloud-based offerings
comprise 89% of ARR
Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
*$ in millions
NASDAQ: ZIXI 14Q2 2021 Financial Highlights
• Revenue increased 18% year-
over-year to record $62.8M
Quarterly Revenue Growth
• GAAP fully diluted EPS $62.8
$60.0
attributable to common $57.9
$54.8
stockholders of ($0.10) $52.4 $53.3
$50.4
$47.8
• Non-GAAP fully diluted EPS $45.9
before deemed dividends and
excluding deferred tax (benefit)
of $0.14
• 14.7M Cash Flow from
Operations an increase of $10.0
million from Q2 2020
• $33.9M in cash/investments
Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
*$ in millions
NASDAQ: ZIXI 15New Customers & Secure Cloud Adoption
Majority of New Customers On-boarded to Secure Cloud Platform
New Customers New Partners by Year Number of Services
Percentage of New per
Secure Cloud Customer
Customers on-boarded to
Secure Cloud in Q4-20
5,232 5,644
1.32
5,003
4,503 4,520 4,734 1.31
4,256 4,459
3,863 1.30
3,849
1.29
1.26
Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 2017 2018 2019 2020 2021 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
*Secure Cloud launched in April 2020. NASDAQ: ZIXI 16Generating Substantial Cash Flow
Cash Flow from
Operations $31.3
*$ in millions
$25.4
$18.2
$16.7
$14.7
$14.0
$9.1
$4.7
2017 2018 2019 2020 Q2 2020 Q2 2021 YTD 2020 YTD 2021
NASDAQ: ZIXI 17Balance Sheet & Capital Structure
Strong, unlevered free cash flow generation positions Zix
favorably versus debt obligations
Maximum Total Net
Leverage Ratio vs. Leverage Ratio by Quarter4
Debt Covenant Schedule3
• Cash: $33.9M1 Date
Maximum Total
Net Leverage
Net Debt to Adj. EBITDA Ratio Cushion Ratio
September 30, 2019 5.25:1.00
• Total Debt: $211.3M1(due Feb. 20, 2024) December 31, 2019 5.00:1.00
4.75 4.75 March 31, 2020 5.00:1.00
• 5-Year Term Loan: $201.5M (@ 4.00%) 4.50 4.50 June 30, 2020 5.00:1.00
• Delayed Draw Term Loan: $9.8M (@ 3.41%) 1.05 1.25
September 30, 2020 4.75:1.00
1.20 1.50 December 31, 2020 4.75:1.00
March 31, 2021 4.75:1.00
• Adjusted EBITDA (FY21): ~$56.0M2 June 30, 2021 4.50:1.00
September 30, 2021 4.50:1.00
1. Balance sheet data as of June 30, 2021 December 31, 2021 4.50:1.00
2. Outlook effective only as of August 5, 2021 3.7 3.5 3.3
3. Leverage ratios based on adjusted EBITDA calculations for the 3.0 March 31, 2022 and
4.25:1.00
trailing four quarters in each period as previously disclosed in thereafter
quarterly results press releases and 8K filings
4. Maximum Total Net Leverage Ratio by Quarter4 as stated in Zix’s
credit agreement dated Feb. 20, 2019, as amended, and filed
under an 8-K on November 9, 2021
Q4 2020 Q1 2021 Q2 2021 Q4 2021 Estimate
Based on ~$56.0M
Adjusted EBITDA
NASDAQ: ZIXI 18ESG Efforts Enhance Business Resiliency
Zix exceeds sector-specific ESG performance
requirements set by ISS, earning a top industry ranking
*“Prime Status” ranking by ISS (2020-2021)
ENVIRONMENT S O C I AL G O V E R N AN C E
New Ideas and Preparedness
Reduced Techniques from
Consumption & Corporate “Operating
Diverse Viewpoints System” for Setting and
Cost Savings DE&I Strategy to Grow Diversity, Achieving Goals
Data Center Efficiency
Initially Focused on Inclusion in: (modeled after the
• Assignments Objective Key-Result
Management • Decision Making, and
process)
• 2011 Upgrade and • Mentoring
Ongoing Upkeep
Employee Career
Development
Risk Mitigation
14% Office Space Tested Business
Self-Directed and Team
Reduction Developmental Learning Continuity Procedures,
(+500 Employees) Including During the Covid
• Average Time per Individual: 6h 15m Shift to Work-From-Home
• Courses Completed: 2,409
NASDAQ: ZIXI 19Key Takeaways
• Industry leader in cloud email
security, productivity and compliance
solutions
Revenue $253.1-
$ in millions
$218.5 $253.9
• Broad solution suite addresses
$173.4
entire business communications
market from enterprise to SMB
$54.7 $60.1 $65.7 $70.5
• Diversified customer base with
2015 2016 2017 2018 2019 2020 2021F
robust go-to-market channels of
direct sales teams, VARs, and MSPs
• 100% subscription-based Fully Diluted Non-GAAP
predictable business model with
eight consecutive years of profitability
Adjusted EPS
• Strong cash flow generation and
$0.60 $0.58-
$200M+ in NOLs
$0.43 $0.60
• Strong outlook for adjusted EBITDA $0.26 $0.29 $0.33
$0.21
dollar growth and market share 2015 2016 2017 2018 2019 2020 2021F
expansion
• Before deemed dividends and acquisition related expenses and excluding deferred tax (benefit) expense
• For a reconciliation of GAAP to adjusted non-GAAP results, see the company’s earnings release on August 5,
Note: Outlook effective only as of August 5, 2021. 2021, which is available on the investor relations Web page at http://investor.zixcorp.com
NASDAQ: ZIXI 20Contact Us
Company Contact:
Dave Rockvam
Chief Financial Officer
Zix Corporation
drockvam@zixcorp.com
Investor Relations:
Matt Glover or Tom Colton
Gateway Investor Relations
(949) 574-3860
ZIXI@gatewayir.com
NASDAQ: ZIXI 21Appendix
NASDAQ: ZIXI 22Reconciliation of GAAP to Non-GAAP Financial Measures
Three Months Ended Six Months Ended
2nd Quarter 2021 (Unaudited) 2021
June 30,
2020 2021
June 30,
2020
Revenue:
GAAP revenue $ 62,829,000 $ 53,337,000 $ 122,844,000 $ 105,771,000
Cost of revenue
GAAP cost of revenue $ 34,604,000 $ 28,258,000 $ 67,742,000 $ 54,337,000
Stock-based compensation charges (1) (A) (123,000) (836,000) (391,000) (1,008,000)
Strategic consulting and litigation costs (2) (B) (8,000) (56,000) (9,000) (115,000)
Intangible Amortization (3) (C) (2,916,000) (2,339,000) (5,839,000) (4,946,000)
Corporate separation payment (4) (D) (52,000) (867,000) (52,000) (867,000)
Non-GAAP adjusted cost of revenue $ 31,505,000 $ 24,160,000 $ 61,451,000 $ 47,401,000
Gross profit:
GAAP gross profit $ 28,225,000 $ 25,079,000 $ 55,102,000 $ 51,434,000
Stock-based compensation charges (1) (A) 123,000 836,000 391,000 1,008,000
Strategic consulting and litigation costs (2) (B) 8,000 56,000 9,000 115,000
Intangible Amortization (3) (C) 2,916,000 2,339,000 5,839,000 4,946,000
Corporate separation payment (4) (D) 52,000 867,000 52,000 867,000
Non-GAAP adjusted gross profit $ 31,324,000 $ 29,177,000 $ 61,393,000 $ 58,370,000
Research and development expense
GAAP research and development expense $ 6,882,000 $ 5,820,000 $ 12,942,000 $ 11,206,000
Stock-based compensation charges (1) (A) (963,000) (414,000) (1,576,000) (752,000)
Strategic consulting and litigation costs (2) (B) (17,000) (26,000) (33,000) (132,000)
Intangible Amortization (3) (C) (76,000) (76,000) (151,000) (152,000)
Corporate separation payment (4) (D) (167,000) (128,000) (167,000) (128,000)
Non-GAAP adjusted research and development expense $ 5,659,000 $ 5,176,000 $ 11,015,000 $ 10,042,000
Selling and marketing expense
GAAP selling and marketing expense $ 15,646,000 $ 14,458,000 $ 30,568,000 $ 28,799,000
Stock-based compensation charges (1) (A) (1,256,000) (767,000) (2,338,000) (1,311,000)
Strategic consulting and litigation costs (2) (B) (1,000) (13,000) (2,000) (52,000)
Intangible Amortization (3) (C) (3,348,000) (3,108,000) (6,675,000) (6,227,000)
Corporate separation payment (4) (D) (131,000) (439,000) (174,000) (439,000)
Non-GAAP adjusted selling and marketing expense $ 10,910,000 $ 10,131,000 $ 21,379,000 $ 20,770,000
General and administrative expense
GAAP general and administrative expense $ 6,745,000 $ 4,758,000 $ 13,120,000 $ 10,446,000
Stock-based compensation charges (1) (A) (2,117,000) (1,233,000) (3,959,000) (2,170,000)
Strategic consulting and litigation costs (2) (B) (89,000) (26,000) (492,000) (202,000)
Corporate separation payment (4) (D) (45,000) (109,000) (45,000) (109,000)
Non-GAAP adjusted general and administrative expense $ 4,494,000 $ 3,390,000 $ 8,624,000 $ 7,965,000
Note – referenced footnotes (1) – (4) can be found on the following page and (A) – (D) on page 4
23Reconciliation of GAAP to Non-GAAP Financial Measures
Three Months Ended Six Months Ended
2nd Quarter 2021 (Unaudited) 2021
June 30,
2020 2021
June 30,
2020
Operating income:
GAAP operating income $ (1,048,000) $ 43,000 $ (1,528,000) $ 983,000
Stock-based compensation charges (1) (A) 4,459,000 3,250,000 8,264,000 5,241,000
Strategic consulting and litigation costs (2) (B) 115,000 121,000 536,000 501,000
Intangible Amortization (3) (C) 6,340,000 5,523,000 12,665,000 11,325,000
Corporate separation payment (4) (D) 395,000 1,543,000 438,000 1,543,000
Non-GAAP adjusted operating income $ 10,261,000 $ 10,480,000 $ 20,375,000 $
$ 19,593,000
-
Adjusted Operating Margin 16.3% 19.6% 16.6% 18.5%
Net income:
GAAP net (loss) income $ (2,931,000) $ (1,902,000) $ (5,391,000) $ (2,754,000)
Stock-based compensation charges (1) (A) 4,459,000 3,250,000 8,264,000 5,241,000
Strategic consulting and litigation costs (2) (B) 115,000 121,000 536,000 501,000
Intangible Amortization (3) (C) 6,340,000 5,523,000 12,665,000 11,325,000
Corporate separation payment (4) (D) 395,000 1,543,000 438,000 1,543,000
Non-GAAP adjusted net income $ 8,378,000 $ 8,535,000 $ 16,512,000 $ 15,856,000
Deferred tax (benefit) expense (510,000) (574,000) (732,000) (1,207,000)
Non-GAAP adjusted net income excluding deferred tax (benefit) expense $ 7,868,000 $ 7,961,000 $ 15,780,000 $ 14,649,000
Deemed and accrued dividends on preferred stock (2,399,000) (2,218,000) (4,722,000) (4,447,000)
Adjusted Net income attributable to common stockholders $ 5,469,000 $ 5,743,000 $ 11,058,000 $ 10,202,000
Diluted net income per common share:
GAAP net income per share before deemed dividends $ (0.05) $ (0.03) $ (0.10) $ (0.05)
Adjustments per share (A-D) $ 0.20 $ 0.19 $ 0.40 $ 0.34
Non-GAAP adjusted net income per share before deemed dividends $ 0.15 $ 0.16 $ 0.30 $ 0.29
dividends
Deferred tax (benefit) expense impact to Non-GAAP adjusted net income before deemed (E) (0.01)
$ per share $ (0.01) $ (0.01) $ (0.02)
$
Non-GAAP adjusted net income before deemed dividends per share excluding deferred tax (benefit) 0.14
expense $ 0.15 $ 0.29 $ 0.27
Deemed dividends per share impact to Non-GAAP adjusted net income $ (0.04) $ (0.04) $ (0.09) $ (0.08)
Adjusted Net income per share attributable to common stockholders $ 0.10 $ 0.10 $ 0.20 $ 0.19
Shares used to compute Non-GAAP adjusted net income per share - diluted 55,075,242 54,788,858 54,806,858 53,770,821
Note – referenced footnotes (1) – (4) can be found on the following page and (A) – (E) on page 4
24Reconciliation of GAAP to Non-GAAP Financial Measures
Three Months Ended Six Months Ended
2nd Quarter 2021 (Unaudited) 2021
June 30,
2020 2021
June 30,
2020
Reconciliation of Net income to EBITDA and Adjusted EBITDA: (F)
Net income $ (2,931,000) $ (1,902,000) $ (5,391,000) $ (2,754,000)
Income tax provision (352,000) (570,000) (455,000) (1,440,000)
Interest expense 2,187,000 2,508,000 4,313,000 5,155,000
Depreciation 1,059,000 1,285,000 2,207,000 2,597,000
Amortization 8,323,000 6,436,000 16,475,000 12,917,000
EBITDA 8,286,000 7,757,000 17,149,000 16,475,000
Adjustments:
Stock-based compensation charges (1) (A) 4,459,000 3,250,000 8,264,000 5,241,000
Strategic consulting and litigation costs (2) (B) 115,000 121,000 536,000 501,000
Corporate separation payment (4) (D) 395,000 1,543,000 438,000 1,543,000
Adjusted EBITDA $ 13,255,000 $ 12,671,000 $ 26,387,000 $ 23,760,000
Adjusted EBITDA margin 21.1% 23.8% 21.5% 22.5%
(1) Stock-based compensation charges are included as follows:
Cost of revenues $ 123,000 $ 836,000 $ 391,000 $ 1,008,000
Research and development 963,000 414,000 1,576,000 752,000
Selling and marketing 1,256,000 767,000 2,338,000 1,311,000
General and administrative 2,117,000 1,233,000 3,959,000 2,170,000
$ 4,459,000 $ 3,250,000 $ 8,264,000 $ 5,241,000
(2) Strategic consulting, acquisition, integration and litigation costs are included as follows:
Cost of revenues 8,000 56,000 9,000 115,000
Research and development 17,000 26,000 33,000 132,000
Selling and marketing 1,000 13,000 2,000 52,000
General and administrative 89,000 26,000 492,000 202,000
$ 115,000 $ 121,000 $ 536,000 $ 501,000
(3) Intangible Amortization is included as follows:
Cost of revenues 2,916,000 2,339,000 5,839,000 4,946,000
Research and development 76,000 76,000 151,000 152,000
Selling and marketing 3,348,000 3,108,000 6,675,000 6,227,000
$ 6,340,000 $ 5,523,000 $ 12,665,000 $ 11,325,000
(4) Corporate separation payment is included as follows:
Cost of revenues 52,000 867,000 52,000 867,000
Research and development 167,000 128,000 167,000 128,000
Selling and marketing 131,000 439,000 174,000 439,000
General and administrative 45,000 109,000 45,000 109,000
$ 395,000 $ 1,543,000 $ 438,000 $ 1,543,000
(5) Net Income tax components:
Current tax (benefit)/expense 157,000 4,000 277,000 (233,000)
Deferred tax (benefit)/expense (510,000) (574,000) (732,000) (1,207,000)
$ (353,000) $ (570,000) $ (455,000) $ (1,440,000)
Note – referenced footnotes (1) – (4) can be found on the following page and (A) – (D) on page 4
25Use of Non-GAAP Financial Information This presentation includes Non-GAAP measures. Our Non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations of these measures, see items (A) through (F) below. Items (A) through (F) on the "Reconciliation of GAAP to Non-GAAP Financial Measures" table are listed to the right of certain categories under "Gross profit," "Operating income," "Net income," "Net income excluding deferred tax (benefit) expense," "Net income per share – diluted," "Net income per share excluding deferred tax (benefit) expense- diluted" and "EBITDA" and correspond to the categories explained in further detail below under (A) through (F). (A) Non-cash stock-based compensation charges relating to stock option grants, restricted stock, restricted stock units, and performance units awarded to employees and accounted for in accordance with Share-Based Payment accounting guidance. See (1) on previous page for breakdown of stock-based compensation. Because of varying valuation methodologies, subjective assumptions and varying award types, the Company believes that the exclusion of stock-based compensation charges provides for more accurate comparisons to our peer companies and for a more accurate comparison of our financial results to previous periods. Additionally, the Company believes it is useful to investors to understand the specific impact of non-cash stock-based compensation charges on our operating results. (B) Strategic consulting, acquisition, integration and litigation costs. See item (2) on previous page for breakdown of strategic consulting, acquisition, integration and legal costs. The Company’s management excludes these costs when evaluating its ongoing performance and/or predicting its earnings trends and therefore excludes these charges on our adjusted operating results. (C) Intangible amortization costs. See item (3) on previous page. The Company’s management excludes amortization expenses associated with the acquisition of intangible assets when evaluating its ongoing performance and/or predicting its earnings trends and therefore excludes these charges on our adjusted operating results. (D) Corporate separation payment relating to employment termination benefits agreement. See item (4) on previous page. The Company’s management excludes these costs when evaluating its ongoing performance and/or predicting its earnings trends and therefore excludes these charges on our adjusted operating results. (E) Deferred tax expense represents the non-cash tax expense included in the GAAP tax provision, including the current period utilization of deferred tax assets created in previous periods. The remaining provision for income taxes represents expected cash taxes to be paid. (F) EBITDA represents earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA adds back stock-based compensation charges and non-recurring litigation expenses. 26
Executive Management Team
David Wagner Dave Rockvam
President & Chief Executive Officer Chief Financial Officer
David Wagner joined Zix as President and Chief Executive Officer in January Dave Rockvam joined Zix as Vice President and Chief Financial Officer in
2016. He is a member of Zix's Board of Directors. Prior to Zix, David held June 2016. Dave brings a wealth of experience in the data security market and
leadership roles at Entrust for 20 years. Most recently David served as more than 20 years of experience in investor relations, financial planning, and
President of Entrust from 2013 through 2015, where he led the successful business and corporate development. Prior to his role at Zix, Dave served in
integration of Entrust after its acquisition by Datacard. David delivered several executive roles during 18 years with Entrust, including Chief Investor
revenue growth and led the re-investment strategy to move Entrust solutions Relations Officer and CFO of Asia Digital Media, an Entrust joint venture. He
to the cloud. He also served as Chief Financial Officer of Entrust from 2003 to also held executive roles at Entrust such as General Manager of Entrust
2013. Before joining Entrust, David held various finance and accounting Certificate Services, Chief Marketing Officer, and SVP of Product Marketing.
positions at Nortel Networks and at Raytheon Systems. He is a graduate of Dave began his career at Nortel Networks, where he served in various
The Pennsylvania State University where he received an undergraduate financial leadership positions. He earned a master of business administration
degree in accounting and a master’s of business administration. from The University of Texas at Dallas and an undergraduate degree from
Texas Tech University.
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