Acxiom Announces Second Quarter Results

Acxiom® (Nasdaq: ACXM), the data foundation for the world's best marketers, today announced financial results for its second quarter ended September 30, 2016.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20161107006514/en/

Financial Highlights
  • Revenue: Total revenue was $217 million, up 5% compared to the second quarter of last year, driven by growth in Connectivity and Audience Solutions.
  • Operating Income (Loss): GAAP operating income from continuing operations was $7 million compared to a loss of $2 million in the prior year. Non-GAAP operating income from continuing operations improved 34% to approximately $25 million.
  • Earnings (Loss) per Share: GAAP diluted earnings per share from continuing operations were $0.09 compared to a loss per share of $0.02 in the prior year. Non-GAAP diluted earnings per share from continuing operations were $0.18, up from $0.14 a year ago.
  • Operating Cash Flow: Operating cash flow from continuing operations improved to $35 million, up from $21 million in the prior year. For the trailing twelve-month period, operating cash flow from continuing operations was $117 million, up from $96 million in the comparable period.
  • Free Cash Flow to Equity: Free cash flow to equity improved to $30 million, up from negative $1 million in the prior year. For the trailing twelve-month period, free cash flow to equity was $39 million, up from negative $2 million in the comparable period.

Segment Results

Marketing Services
  • Revenue was $106 million, down 6% compared to the second quarter of last year. Marketing Database and Strategy & Analytics revenue grew 1% year-over-year, but was more than offset by the sale of Acxiom Impact.
  • Gross margin remained roughly flat at 33%.
  • Segment income was $20 million, up 11% compared to the prior year.

Audience Solutions
  • Revenue was $79 million, up 9% compared to the prior year.
  • Gross margin improved from 54% to 61%.
  • Segment income was $30 million, up 19% compared to the prior year.

Connectivity
  • Revenue was $33 million, up 49% compared to the second quarter of last year. Connectivity exited the quarter with a $135 million annualized revenue run rate.
  • Gross margin declined slightly to 60%.
  • Segment income was $2 million compared to a loss of $1 million in the prior year.

A detailed discussion of our non-GAAP financial measures and a reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release.

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