Neustar, Inc. (NSR), the back end provider of the ccTLD’s, .Us .Co and the TLD of .Biz and for hundreds of new gTLD applicants today announced results for the quarter ended September 30, 2013, and in a separate release stated that it has acquired Aggregate Knowledge, Inc., a leading campaign and predictive analytics platform, for approximately $119 million in cash consideration.
Results for Third Quarter 2013 Compared to Third Quarter 2012
- Revenue increased 8% to $227.6 million
- Non-NPAC revenue increased 9% to $118.3 million
- Net income increased 4% to $47.5 million. Net income for the third quarter of 2012 included $5.2 million of discrete income tax benefits
- Net income per share increased 7% to $0.73
Non-GAAP Results for Third Quarter 2013 Compared to Third Quarter 2012
- Adjusted net income increased 3% to $62.3 million, representing a 27% margin. Adjusted net income for the third quarter of 2012 included $5.2 million of discrete income tax benefits
- Adjusted net income per share increased 6% to $0.95
Discussion of Third Quarter Results
Consolidated revenue totaled $227.6 million, an 8% increase from $211.2 million in the third quarter of 2012. In particular:
- Carrier Services revenue totaled $139.5 million, an 11% increase from $125.2 million in 2012. This increase was primarily due to a $6.7 million increase in NPAC Services revenue and a $6.2 million increase in Order Management Services revenue;
- Enterprise Services revenue totaled $44.9 million, a 3% increase from $43.6 million in 2012. This increase was due to a 9% increase in Internet Infrastructure Services revenue, partially offset by a decrease in Registry Services revenue driven by one-time project-related revenue in 2012; and
- Information Services revenue totaled $43.3 million, a 2% increase from $42.3 million in 2012.
Operating expense totaled $147.2 million, an 8% increase from $136.5 million in the third quarter of 2012. This increase was driven by investments to support business growth, in particular, professional fees increased to pursue new business opportunities and to support the company’s long-term sales strategy. In addition, advertising and marketing costs increased to promote awareness of the company’s services and solutions. Cash, cash equivalents and investments totaled $352.7 million as of September 30, 2013, compared to $381.6 million as of June 30, 2013 and to $343.9 million as of December 31, 2012. During the third quarter, the company purchased approximately 1.8 million shares at an average price of $52.06 per share, for approximately $96.1 million
Business Outlook for 2013
The company updated its revenue guidance, which was provided on February 5, 2013 and affirmed in the previous two earnings releases. In addition, the company updated its profitability guidance previously provided on July 30, 2013.
- Revenue to range from $895 million to $905 million, representing growth of 8% to 9%
- Adjusted net income to range from $225 million to $231 million, representing growth of 9% to 12%
- Adjusted earnings per share to range from $3.39 to $3.48, representing growth of 12% to 14%
Neustar, Inc. (NSR), also today announced it has acquired Aggregate Knowledge, Inc., a leading campaign and predictive analytics platform for advertising agencies and brand marketers.
The combination of Neustar’s real-time, offline and online marketing solutions and Aggregate Knowledge’s media intelligence platform provides agencies and marketers the ability to plan, target, engage and measure cross-channel campaigns more effectively in a single view.
The comprehensive workflow solution allows marketers to tailor their media spending plans, efficiently reach target audiences, and improve performance and engagement across devices and channels. This privacy-by-design marketing suite will help clients drive greater campaign success and increase return on investment.
“Aggregate Knowledge brings us a highly scalable data management platform that many of our existing customers already utilize in conjunction with our data analytics services, as well as a recognized ability to increase ROI on customer campaigns and an experienced management team,” said Lisa Hook, Neustar President and Chief Executive Officer. “These assets represent a strong fit with our strategic vision and our existing capabilities, enabling us to provide a unified marketing solution that links disparate media and audience intelligence in a centralized real-time platform. This platform allows agencies and brands to interact with target audiences using the most effective channels while immediately measuring a campaign’s performance.”
Aggregate Knowledge offers advertisers and agencies a scientific methodology to pinpoint where to reach highest performing customers in a single platform. Aggregate Knowledge’s patented Media Intelligence Platform™ (MIP) combines both media and audience data, enabling marketers to effectively allocate media dollars, resulting in increased reach and improved media spend efficiency.