Acxiom® announced financial results for its fourth quarter and fiscal year ended March 31, 2016.  Fourth quarter revenue was $225 million, up 9% compared to the fourth quarter of last year driven by growth in each segment.  Excluding an unfavorable currency impact of approximately $1 million, revenue was up 10%. US revenue of $205 million was up 11% year-over-year. International revenue of $20 million increased 2% on a constant currency basis.

Operating Income (Loss): GAAP operating loss from continuing operations improved to $8 million compared to a loss of $11 million in the prior year. Non-GAAP operating income from continuing operations declined 7% to approximately $20 million.

Operating Cash Flow: Operating cash flow from continuing operations was $43 million, up 47% from $29 million last year. Free Cash Flow to Equity: Free cash flow to equity was $17 million, up from $2 million in the prior year.

Fiscal Year Financial Highlights:   Total revenue was $850 million, up 6% compared to fiscal 2015 (AFX) or excluding an unfavorable currency impact of approximately $8 million, revenue was up 7%.  US revenue of $770 million increased 9% year-over-year. International revenue of $80 million was down 8% on a constant currency basis. Connectivity revenue of $102 million increased 86% year-over-year.

Operating Income (Loss): GAAP operating loss from continuing operations improved to $13 million compared to a loss of $33 million in the prior year. Non-GAAP operating income from continuing operations improved 16% to approximately $76 million.  Earnings (Loss) per Share: GAAP loss per share from continuing operations was $0.11 compared to a loss per share of $0.34 in the prior year. Non-GAAP diluted earnings per share from continuing operations were $0.59, up from $0.49 a year ago.

Acxiom Q4 Fiscal 2016 A.pptxFourth Quarter Segment Results:

  • Marketing Services: Revenue was $113 million, up 3% compared to the fourth quarter of last year. US revenue of $104 million was up 4% year-over-year. Gross margin improved from 33% to 35%. Operating income was $19 million, up 7% compared to the prior year.
  • Audience Solutions: Revenue was $80 million, up 4% compared to the prior year period. US revenue of $71 million was up 6% year-over-year. Gross margin improved from 55% to 58%.  Operating income was $30 million, down 3% compared to the prior year.
  • Connectivity: Revenue was $31 million, up 62% compared to the fourth quarter of last year. Connectivity exited the quarter with an $110 million annualized revenue run-rate. Gross margin improved from 43% to 63%. Operating loss improved by $6 million to nearly break-even.

“Our strong fourth quarter performance capped off a year of solid execution across each of our businesses,” said Acxiom CEO Scott Howe. “In fiscal 2016, we extended our leadership in data connectivity with the launch of LiveRamp Customer Link™ and expansion of data onboarding to the UK and France.  At the same time, Marketing Services and Audience Solutions had a number of key customer and partner wins.  We enter fiscal 2017 from a position of strength, propelled by our recent progress and and momentum.”

Source:  Acxiom Earning Release