Acxiom reports third quarter loss, ups yearly guidance

by Wesley Brown ([email protected]) 237 views 

Acxiom Corp.’s third quarter earnings slipped into the red on Thursday (Feb. 4), but the Little Rock data analytics firm still raised its fiscal 2016 guidance for yearly profits and top line revenue.

For the period ended Dec. 31, 2015, Acxiom reported a net loss of $1.4 million, or two cents per share, compared to earnings of $4.1 million, or five cents per share, in the third quarter of fiscal 2015. Quarterly revenues, however, jumped 6.2% to $221.1 million, compared to $208 million a year ago.

Earnings, adjusted for one-time items, rose a penny to 18 cents per share, compared to 17 cents in the same period of 2014. Analysts surveyed by Thomson Reuters had expected the Little Rock technology concern to report earnings of 12 cents per share on revenue of $214 million.

“We are pleased to report a solid quarter highlighted by new customer additions and revenue growth across all of our divisions,” said Acxiom CEO Scott Howe. “Our divisional structure is beginning to pay dividends, and the investments we are making against our long-term strategy continue to build the foundation for sustainable future growth.”

Other highlights from the earnings report issued Thursday (Jan. 14) after the markets closed include:
• Connectivity added over 20 new customers during the quarter and added 25 new partner integrations. Marketers can now onboard and distribute their data to a growing network of more than 275 marketing platforms and data providers.

• Acxiom powered $122 million of gross media spend in the third quarter, up 66% year-over-year. On a trailing twelve-month basis, Acxiom powered $317 million of gross media spend, up 107% over the comparable period.

• Acxiom expanded its addressable TV offering with the acquisition of the Audience Interconnect data platform from Allant Group. The Little Rock company said ad sellers, agencies and brands can activate data across an expanded ecosystem that includes TV partners representing nearly 50 million addressable homes and over 100 million individuals.

• Dennis Self was appointed president and general manager of marketing services. Self has held several roles within Acxiom, including senior vice president of delivery for marketing services. Prior to that, he served as the company’s chief information officer and senior vice president of technical operations.

• Acxiom repurchased 463,000 shares for approximately $10 million during the quarter. Since inception of the share repurchase program in August 2011, Acxiom has repurchased 14.8 million shares for $240 million.

Going forward, Acxiom raised expectations for the remained of fiscal 2016, which ends on March 31. The Little Rock company upped to the range of $835 million to $840 million from the previous estimate of between $815 to $840 million. The Little Rock company also now expects yearly earnings of 54 cents per share, up from the previous forecast of between 45 and 50 cents.

Acxiom shares (NASDAQ: ACXM), which have fallen 13% in the past month, closed Thursday down five cents at $18.26. The Little Rock technology company’s share has traded in the range of $15.78 on the low end and a high of $23.42 over the past 52 weeks.

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