NeustarQ 4 2014 revenue for the fourth quarter totaled $252.4 million, a 6% increase from $237.6 million in 2013.  Marketing Services revenue grew 8% to $41.7 million driven by increased demand for the company’s services that help its clients make informed and high-impact decisions to promote their businesses.  Security Services revenue grew 29% to $39.8 million driven by increased demand for the company’s DNS services and the contribution of $4.8 million from the completion of the acquisition of .CO Internet.  Data Services revenue decreased 8% to $52.2 million due to lower revenue from caller identification services.  NPAC Services revenue grew 6% to $118.7 million driven by an increase in NPAC fixed-fee revenue.

Operating expense for the fourth quarter totaled $177.9 million, a 2% increase from $174.3 million in 2013.  This $3.6 million increase included the addition of $1.9 million in operating expense from the company’s recent acquisitions.  Of the remaining $1.7 million increase, the company incurred $3.9 million in professional fees and marketing expenses associated with the NPAC vendor selection process, and a $3.8 million increase in costs related to information technology and systems, partially offset by a $6.6 million decrease in other professional fees.

Full-Year 2014 Revenue for the year totaled $963.6 million, a 7% increase from $902.0 million in 2013.  Marketing Services revenue grew 17% to $147.0 million driven by increased demand for the company’s services.  Security Services revenue grew 24% to $140.3 million driven by increased demand for the company’s DNS services and the contribution of $12.6 million from the acquisition .CO Internet.  Data Services revenue decreased 7% to $201.4 million due to lower revenue from caller identification services.  NPAC Services revenue grew 6% to $474.8 million driven by an increase in NPAC fixed-fee revenue.

Operating expense for 2014 totaled $702.3 million, a 15% increase from $612.7 million in 2013.  This $89.5 million increase included the addition of $31.6 million in operating expense from the company’s recent acquisitions.  Of the remaining $57.9 million increase, personnel and personnel-related expense increased $21.3 million driven primarily by stock-based compensation.  In addition, in 2014, the company incurred $17.7 million in professional fees and marketing expenses associated with the NPAC vendor selection process.

Randy Giusto, VP & Practice Leader of Outsell Inc. commented in his recent Insight: “….  the NPAC contract renewal remains a huge looming issue, and the company has spent significant money and effort to lobby the FCC about the underlying security issues in awarding the contract to a non-US-based company and about the transfer costs that would hit small carriers.

This contract not only impacts nearly half of this $1 billion company’s revenue but also its customer-facing data capabilities.  Neustar has aggregated data on over 120 million US households focusing on identity so marketers can segment and profile customers and prospects to optimize their media mix, while observing online and offline behavior as well as response to inbound and outbound marketing efforts.

The company has a number of partnerships with other data providers including comScore, Facebook, and Omnicom. If Neustar loses the NPAC contract or only gets partial award of it, it will need to secure additional ways to keep its data robust as it continues to evolve its marketing and security services offerings that layer on top of its data prowess.”

About the NPAC (Number Portability Administration Center):  The NPAC System is part of the infrastructure for the telecommunications industry, providing the portability that supports the continued convergence of wireline, wireless, voice over Internet protocol (VoIP) and IP communications. Today, the NPAC is the world’s largest number portability registry, managing over 500 million telephone numbers for over 2,000 carriers across the U.S. and Canada .

The NPAC has been administered by CIS-Lockheed Martin, and then Neustar, since its inception in 1996.

About Neustar, Inc.

Neustar, Inc. (NYSE: NSR) is the first real-time provider of cloud-based information services and data analytics, enabling marketing and IT security professionals to promote and protect their businesses.  With a commitment to privacy and neutrality, Neustar operates complex data registries and uses its expertise to deliver actionable, data-driven insights that help clients make high-value business decisions in real time, one customer interaction at a time.  More information is available at www.neustar.biz.

Source:  Neustar Press ReleaseOutsell Inc.