Advanced Computing in the Age of AI | Friday, March 29, 2024

Acxiom Releases 4Q, FY 2015 Financials 

Acxiom, an enterprise data, analytics and software-as-a-service company, today announced financial results for its fourth quarter and full year ended March 31, 2015.

For the fourth quarter, total revenue was $257 million, down 4 percent compared with the fourth quarter of fiscal 2014 as a result of expected IT Infrastructure management declines. Marketing and Data Services revenue was $206 million, down 2 percent versus the same period last year. Connectivity revenue, which is included in Marketing and Data Services, was $22 million, up $17 million or 367percent compared with the same period a year ago. IT Infrastructure Management revenue was $52 million, down approximately 12 percent versus the prior year period.

GAAP loss per share was lower as a result of unusual items associated with European restructuring activities in the prior year. Net loss per share from continuing operations was $0.08 compared with a net loss of $0.33 a year ago. Unusual items, non-cash compensation, and intangible asset amortization impacted GAAP earnings per share by $0.32 in the quarter. Unusual items included expenses associated with the company’s restructuring activities as well as separation and transformation initiatives. Operating cash flow from continuing operations was $34 million, down 15 percent versus the same period in 2014. Free cash flow to equity was $4 million compared with $15 million for the prior year period.

Non-GAAP operating income and diluted earnings per share were down as a result of declines in International Marketing and Data Services. Non-GAAP diluted earnings per share were $0.24 versus $0.26 a year ago. Earnings per share in the current period were positively impacted by a tax adjustment resulting in a $0.04 improvement. Non-GAAP operating income was $31 million, down from $35 million for the same period last year.

Fiscal Year 2015 Financial Highlights

Total revenue was $1,020 million, down 4 percent compared with $1.062 billion in fiscal 2014 as a result of expected IT Infrastructure Management declines.

Marketing and Data Services revenue was $805 million, roughly flat compared to the prior year. Connectivity revenue was $63 million, up $48 million or 326 percent compared with fiscal 2014. IT Infrastructure Management revenue was down year-over-year approximately 16 percent.

GAAP loss per share was 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 share from continuing operations was $0.12 compared to earnings per share of $0.14 a year ago. Unusual items, non-cash compensation and intangible asset amortization impacted GAAP earnings per share by $0.90 for the year. Unusual items included expenses associated with the Company’s restructuring activities as well as separation and transformation initiatives. Operating cash flow from continuing operations was $105 million, down 36 percent compared to the prior year. The decline was driven by changes in working capital, and to a lesser extent, lower earnings. Free cash flow to equity was negative $10 million versus $76 million in 2014. The decline was primarily due to lower operating cash flow and higher capital expenditures.

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 $0.78 compared to $0.95 in the prior year. Earnings per share in both periods were positively impacted by a tax adjustment resulting in a $0.04 improvement. Non-GAAP operating income was $105 million, down from $126 million in fiscal 2014. 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.

“Connectivity’s strong performance in the fourth quarter capped off a year of explosive adoption and growth,” said Acxiom CEO Scott Howe. “Our focus in fiscal 2016 is on aggressively extending our early lead in onboarding and Connectivity, and returning our Marketing and Data Services business to a position of growth.”

Fourth Quarter Business Highlights

  • The company added 20 new Connectivity customers during the quarter including several major advertisers and marketing applications. Customers can now onboard and distribute data to a growing universe of over 140 leading publishers and marketing applications.
  • Acxiom joined the newly renamed Facebook Marketing Partners ProgramAs part of this program, Acxiom’s audience data and onboarding capabilities are available to Facebook marketers globally.
  • The company expanded its global data partnership with Twitter during the quarter. Twitter’s behavior targeting and partner audiences program will leverage Acxiom’s third party data to power its advertising reach. Advertisers are now able to select from 135 Acxiom audience categories to define or find a group of users on Twitter.
  • Acxiom appointed Rick Erwin as president and general manager of Audience Solutions, a newly formed business unit comprised of the company’s Data and Decision Sciences assets. With over two decades of marketing services experience, Erwin, a leading voice in the field of data-driven marketing, will be responsible for driving the strategy, growth and profitability of Acxiom’s industry-leading data and recognition products and services.
  • Subsequent to quarter-end, Acxiom entered into a definitive agreement to sell its IT Infrastructure Management business to Charlesbank Capital Partners and co-investor M/C Partners for total cash consideration of up to $190 million. The sale will allow the Company to focus more sharply on its Marketing and Data Services business.

 

Financial Outlook

The company’s guidance excludes the IT Infrastructure Management business as it will be reported as a discontinued operation beginning in the first quarter of fiscal 2016. It also excludes the impact of unusual items, non-cash compensation and acquired intangible asset amortization. Acxiom’s estimates for fiscal 2016 are as follows:

  • 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.

 

About the author: Alison Diana

Managing editor of Enterprise Technology. I've been covering tech and business for many years, for publications such as InformationWeek, Baseline Magazine, and Florida Today. A native Brit and longtime Yankees fan, I live with my husband, daughter, and two cats on the Space Coast in Florida.

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