Acxiom Posts Q4 Loss, Will Acquire Marketing Firm

Acxiom’s fourth quarter revenue was unchanged, but the Little Rock-based data marketer saw a reversal of profits from one year ago.

Acxiom reported revenue of $277.2 million during the quarter ended March 31, 2014, roughly the same as one year ago when revenue equaled $277.1 million. The company reported a $29.2 million loss compared to a $13.2 million profit one year ago.

For the full fiscal year, Acxiom revenues slipped slightly to $1.097 billion, while annual net income tumbled to $8.86 million compared to $57.6 million in the previous year.

“Fiscal 2014 was a year of innovation and transformation,” said Acxiom CEO Scott Howe, who recently discussed the changes underway at Acxiom in a Talk Business Arkansas exclusive interview. “Looking ahead to 2015, our focus will be on growing our AOS [Audience Operating System] user base, while continuing to innovate and invest in our product portfolio.”

Other key metrics from Acxiom’s core divisions included:

• Marketing and Data Services: Revenue for the fourth quarter was $210 million, up from $203 million for the same period a year ago. U.S. revenue increased 5 percent to $181 million in the current quarter compared to $173 million for the fourth quarter of last year. Income from operations for the fourth quarter was $27 million, up 31 percent from $21 million for the prior-year period. Operating margin improved to 13 percent compared to 10 percent for the fourth quarter of last year.
• IT Infrastructure Management: Revenue for the fourth quarter decreased as expected by 10 percent to $59 million compared to $65 million for the same period a year ago. Income from operations for the recent quarter was $4 million compared to $2 million for the prior-year period. Operating margin was approximately 6 percent, up from 4 percent for the fourth quarter of last year.
• Other Services: Revenue for the fourth quarter was $9 million, down slightly compared to the prior year. Operating margin improved to approximately 7 percent compared to a loss for the fourth quarter of last year.

ACQUISITION MODE
Acxiom disclosed that it entered into a definitive agreement to acquire LiveRamp, a privately held digital marketing application firm for $310 million in cash.

The buyout is expected to expand Acxiom’s capability to bridge gaps between offline data and online marketing applications. Howe discussed this new online strategy in his recent interview.

“This is a win for the entire marketing industry,” said Acxiom CEO Scott Howe. “This deal brings together the world’s leading marketing data company with the emerging leader in data onboarding to create the industry’s most comprehensive network of connections. Together, we will accelerate our vision of a connected ecosystem that delivers true one-to-one marketing at scale. The combination should help virtually everyone in the industry achieve better connections, better insights and better results.”

The acquisition is expected to close mid-summer.