Acxiom® (Nasdaq: ACXM) announced total  revenue of  $223 million, up 1% compared to the third quarter of last year driven by growth in Connectivity and Audience Solutions offset by the divestiture of Acxiom Impact.

Operating Income (Loss): GAAP operating income from continuing operations was $9 million compared to a small loss in the prior year.  Non-GAAP operating income from continuing operations improved 50% to approximately $33 million.  Earnings (Loss) per Share: GAAP diluted earnings per share from continuing operations were $0.01 compared to a loss per share of $0.01 in the prior year. Non-GAAP diluted earnings per share from continuing operations were $0.24, up from $0.18 a year ago.

Operating Cash Flow: Operating cash flow from continuing operations improved to $49 million, up from $37 million in the prior year. For the trailing twelve-month period, operating cash flow from continuing operations was $128 million, up from $100 million in the comparable period.   Free Cash Flow to Equity: Free cash flow to equity improved to $28 million, up from $14 million in the prior year. For the trailing twelve-month period, free cash flow to equity was $53 million, up from $3 million in the comparable period.

Segment Results

Marketing  Services :  Revenue was $101 million, down 13% compared to the third quarter of last year. Marketing Database and Strategy & Analytics revenue grew 1% year-over-year, but was more than offset by the divestiture of Acxiom Impact.   Gross margin improved from 33% to 37%.  Segment income was $21 million, up 4% compared to the prior year. Segment margin improved to 21%.

Audience Solutions : Revenue was $83 million, up 8% compared to the prior year.   Gross margin improved from 59% to 64%.   Segment income was $35 million, up 13% compared to the prior year. Segment margin improved to 41%.

Connectivity:   Revenue, which includes the Arbor and Circulate acquisitions, was $39 million, up 36% compared to the third quarter of last year. LiveRamp™ product revenue grew 61% year-over-year.  Gross margin improved from 57% to 60%.  Segment income was $2 million compared to a loss of $1 million in the prior year.  Segment margin improved to 5%.

Recent Business Highlights:

  • LiveRamp completed the acquisitions of Arbor and Circulate, two companies at the forefront of helping publishers connect people-based data to the marketing ecosystem. The acquisitions double LiveRamp’s publisher partnerships and bring strong “mobile-first” technology, international reach and impressive teams to LiveRamp.
  • Connectivity added more than 50 new direct customers during the quarter and added over 30 new partner integrations. Marketers can now onboard and activate their data across a growing network of more than 450 publishers and marketing technology providers.
  • Audience Solutions launched the Audience Cloud™ for advanced cross-channel management of Acxiom data. The self-service tool simplifies the process for creating and distributing audiences created from Acxiom data, resulting in better campaign planning, optimized marketing spend and increased ROI.
  • Acxiom was certified as a great workplace by the independent analysts at Great Place to Work® based on extensive ratings provided by its associates in anonymous surveys. In addition, LiveRamp was recently recognized as one of the top ten Best Places to Work by Glassdoor.

“Our global momentum continues to accelerate,” said Acxiom CEO Scott Howe. “In addition, the integration of Arbor and Circulate is well underway and we are delivering the client benefits and financial synergies we anticipated. This is a win for our partner network, clients and shareholders.”

Source:  Acxiom Earnings Release