Acxiom Logo 100Acxiom® (Nasdaq: ACXM), an enterprise data, analytics and software-as-a-service company, reported revenues of US$197 million up 5% for the first quarter ended June 30, 2015.  Operating Income (Loss): GAAP operating loss from continuing operations was $3 million compared to a loss of $13 million in the prior year.  Non-GAAP operating income from continuing operations improved 71% to approximately $15 million compared to $9 million a year ago.   Operating Cash Flow: Operating cash flow from continuing operations improved to $12 million compared to negative $15 million a year ago. ·

Segment Results During the first quarter of fiscal 2016, Acxiom realigned its organizational structure to better reflect its business strategy.  The Company will report its financial performance based on the following segments:

Acxiom Q1  Fiscal 2016Marketing Services and Audience Solutions:  Revenue was $176 million, down 3% compared to the first quarter of last year primarily due to declines in International.  US revenue of $159 million was roughly flat year-over-year.  Non-GAAP gross margin decreased from 43% to 41%.  Non-GAAP operating income was $40 million compared to $47 million in the prior year. The decline was primarily driven by lower revenue.

Connectivity:  Revenue was $21 million, up approximately 376% compared to the first quarter of last year, driven by the addition of LiveRamp™ and continued onboarding momentum.  Non-GAAP gross margin improved from negative 83% to positive 60%.  Non-GAAP operating loss improved by approximately $14 million to roughly breakeven driven by growth in subscriptions and royalties. Non-GAAP results exclude items including non-cash compensation, purchased intangible asset amortization, and separation and transformation costs.

“The first quarter was a solid start to fiscal 2016,” said Acxiom CEO Scott Howe. “Our results this quarter demonstrate the continued strength of Connectivity. A growing list of customers and synergies from our combination with LiveRamp contributed to dramatically expanding revenue, gross margin and bottom-line performance.” “We are also pleased to announce that the sale of our IT Infrastructure Management business was completed on July 31, 2015, leaving Acxiom with a portfolio of businesses that share a single vision and mission,” continued Howe.

Business Highlights:

  • LiveRamp added 30 new customers during the quarter and added 10 new partner integrations. Marketers can now onboard and distribute their data to a growing network of over 200 marketing platforms and data providers.
  • Acxiom relaunched its email and cross-channel marketing business, Acxiom Impact™, an advanced marketing offering specifically designed to meet the unique needs of sophisticated enterprise marketers.
  • The Company appointed Jeremy Allen as President of Marketing Services. Allen’s appointment completes Acxiom’s new divisional structure, which includes Travis May as President of Connectivity and Rick Erwin as President of Audience Solutions. Acxiom’s CFO, Warren Jenson, is heading the Company’s international operations.
  • Acxiom repurchased approximately 832,000 shares for $15 million during the quarter. Since inception of the share repurchase program in August 2011, the Company has repurchased 13.7 million shares for $217 million.
  • On July 31, 2015, Acxiom completed the sale of its IT Infrastructure Management business to Charlesbank Capital Partners and co-investor M/C Partners.

Financial Outlook: The Company’s guidance excludes the impact of unusual items, non-cash compensation and acquired intangible asset amortization. Acxiom reconfirms the following estimates for fiscal 2016:  Revenue from continuing operations in the range of $815 million to $840 million.   Earnings per diluted share from continuing operations in the range of $0.45 to $0.50.

Source: Acxiom Press Release