The following excerpt is from the company's .
October 29, 2015
— Neustar, Inc. (NYSE: NSR), a trusted, neutral provider of real-time information services, today announced results for the quarter ended
September 30, 2015
, and increased its guidance for full-year 2015.
Results for Third Quarter 2015 Compared to Third Quarter 2014
Revenue increased
$261.7 million
Marketing Services revenue increased
$41.1 million
Security Services revenue increased
$43.2 million
, including $2.8 million in revenue from the Bombora acquisition completed in July 2015
Net income increased
$50.3 million
. Net income for the third quarter of 2015 included a $3.2 million benefit from discrete income tax items compared to $9.8 million for the third quarter of 2014
Net income per share increased
Non-GAAP Results for Third Quarter 2015 Compared to Third Quarter 2014
Adjusted net income decreased
$70.9 million
. Adjusted net income for the third quarter of 2015 included a $3.2 million benefit from discrete income tax items compared to $9.8 million for the third quarter of 2014
Adjusted net income per share decreased
“Our results demonstrated momentum in Information Services. During the quarter, we built on our foundation as an authentication expert,” said Lisa Hook, Neustar’s President and Chief Executive Officer. “We agreed to acquire the caller authentication assets from TNS which will provide us with authoritative mobile datasets, enhancing our identity framework. The Bombora acquisition provides additional opportunities to manage the digital presence for major brands. Looking ahead, we are excited to deliver enhanced solutions for our clients in the digital marketplace.”
Paul Lalljie, Neustar’s Chief Financial Officer, added, “In the third quarter, we once again delivered double-digit revenue growth in both Marketing and Security Services, and we made investments to further our strategy in Information Services. We are pleased with our 10% year-over-year growth in Marketing Services in light of a very strong third quarter in 2014. Our visibility into the fourth quarter of 2015 provides us with the confidence to increase our full-year guidance. This guidance excludes the impact of the announced acquisition of the caller authentication assets from TNS, which is expected to close in the fourth quarter.”
Discussion of Third Quarter Results
Revenue totaled
$261.7 million
increase from $243.9 million in 2014. Marketing Services revenue grew
$41.1 million
driven by increased demand for the company's services that help its clients make informed and high-impact decisions to promote their products and services. Security Services revenue grew
$43.2 million
driven by the addition of new top-level domains and increased demand for the
company's DNS Services. Data Services revenue decreased
$51.2 million
reflecting a decrease in carrier provisioning services that was partially offset by an increase in caller identification services. NPAC Services revenue grew
$126.2 million
driven by an increase in NPAC fixed-fee revenue.
Operating expense totaled
$180.9 million
$177.1 million
in the third quarter of 2014. This
$3.9 million
increase was driven by $6.4 million in acquisition-related expense, including $2.7 million of incremental operating costs as a result of the Bombora acquisition, $2.7 million in costs associated with signed or closed acquisitions, and $1.0 million in depreciation and amortization resulting from acquisitions. This $6.4 million increase was offset by a reduction of $9.6 million in stock-based compensation, and an increase of $4.3 million in ongoing personnel and personnel-related expense. In addition, we saw an increase of $2.5 million for costs related to information technology and systems.
As of
, the company's cash and cash equivalents totaled
$358.4 million
, an increase of
$31.8 million
$326.6 million
as of December 31, 2014. As of
, the company's outstanding debt under its term facilities and senior notes was
$777.3 million
. During the quarter, the company purchased approximately
1.6 million
shares at an average price of
$28.15
per share, for approximately
$44.5 million
Business Outlook for 2015
The company increased its full-year 2015 guidance provided on July 30, 2015:
Revenue to range from $1.04 billion to $1.05 billion or growth of 8% to 9%
Adjusted net income to range from $252 million to $258 million or flat to a decline of 2%. In 2014, the company recorded a net benefit of $12.2 million in discrete tax items
Adjusted net income per share to range from $4.52 to $4.62 or an increase of 4% to 7%
Conference Call
As announced on October 15, 2015, Neustar will conduct an...