Acxiom LogoTotal revenue was down 3 percent compared to the second quarter of fiscal 2014 as a result of expected IT Infrastructure Management declines.

  • Marketing and Data Services revenue was $204 million, up 2 percent compared to the second quarter of fiscal 2014.
  • IT Infrastructure Management revenue was down approximately 17 percent compared to the same period a year ago.
  • AOS® revenue, which includes LiveRamp, was approximately $15 million in the quarter.
  • Gross media spend through the Audience Operating System was approximately $37 million, up 32 percent compared to the first quarter of fiscal 2015.Acxiom Q2 2015
  • GAAP operating income and diluted earnings per share were down due to expenses associated with business separation and transformation activities, non-cash compensation and acquired intangible asset amortization, as well as declines in IT Infrastructure Management.
  • Net loss per diluted share from continuing operations was $0.02 compared to earnings per share of $0.12 a year ago. Unusual items, non-cash compensation and intangible asset amortization impacted GAAP earnings per share by $0.20 in the quarter. Unusual items included expenses associated with the Company’s restructuring activities, separation and transformation initiatives and LiveRamp acquisition costs.
  • Operating cash flow from continuing operations was $132 million for the trailing twelve months, down 22 percent compared to the same period a year ago. Free cash flow to equity was $33 million for the trailing twelve-month period compared to $69 million for the comparable period. The decline was primarily due to cash restructuring and business transformation expenses.

Non-GAAP operating income and diluted earnings per share were down as a result of the declines in the IT Infrastructure Management business.

  • Non-GAAP diluted earnings per share were $0.18 compared to $0.23 a year ago.
  • Non-GAAP operating income was $25 million, down from $32 million for the same period last year.
  • Non-GAAP Marketing and Data Services operating margin improved to 10% from 9% a year ago.

Our non-GAAP results exclude unusual items, non-cash compensation and acquired intangible asset amortization. A reconciliation between GAAP and non-GAAP results is attached to this release.

The Company tightens its full year revenue and earnings per share guidance.

“While we remain hard at work rebuilding our U.S. Marketing and Data Services pipeline, we are excited that AOS adoption continues to accelerate,” said Acxiom CEO Scott Howe. “The second quarter was our best quarter to date. We signed 15 new AOS agreements during the quarter and gross media spend through the platform was up over 30 percent sequentially. With the addition of LiveRamp, our partner network expanded substantially. Advertisers can now connect their data to over 120 marketing applications.”

Second Quarter Business Highlights

  • Acxiom signed several Marketing and Data Services agreements during the quarter including new database contracts with Duke Energy, Dennis Publishing and TD Bank Group, as well as renewals with a top three credit card issuer and a leading insurance agency.
  • The Company signed 15 new AOS agreements during the quarter with several industry-leading companies including AT&T Inc., Toyota Motor Company, a global retailer and two major credit card issuers.
  • Acxiom inked three new agency partnerships during the second quarter. The Company signed a European-wide partnership with Starcom Mediavest Group, the number one ranked global media network. Acxiom also struck partnerships with Hakuhodo Inc., Japan’s second largest advertising agency, and DMG Solutions, a leading multicultural marketing solutions provider.
  • The Company signed a strategic partnership with Weibo Corporation, China’s leading social media platform. As part of the relationship, Weibo will leverage AOS to deliver greater digital marketing efficiency to its advertisers in a privacy-compliant and secure fashion.
  • Acxiom repurchased approximately 529,000 shares for $9.9 million during the quarter. Since inception of the share repurchase program in August 2011, the Company has repurchased 12.9 million shares, or approximately 16 percent of the outstanding common stock, for $202 million.

Financial Outlook

Our guidance includes the impact of the LiveRamp acquisition but excludes the impact of unusual items, non-cash compensation and acquired intangible asset amortization. Acxiom’s estimates for fiscal 2015 are as follows:

  • We now expect revenue from continuing operations for the fiscal year to be down roughly four percent compared to fiscal year 2014. The decline in revenue is primarily due to the impact of lost IT Infrastructure Management customers and the exit of our analog paper survey business in Europe.
  • We now expect earnings per diluted share to be in the range of $0.73 to $0.78.

Source:  Acxiom Earnings Release