Neustar Reports Results for First Quarter 2014
Neustar, announced recently results for the quarter ended March 31,2014 and affirmed its revenue and adjusted net income guidance for 2014.
You can read the press release after the jump :
“Neustar, Inc. (NYSE: NSR), a trusted, neutral provider of real-time information services and analytics, today announced results for the quarter ended March 31, 2014, and affirmed its revenue and adjusted net income guidance for 2014.
Results for First Quarter 2014 Compared to First Quarter 2013
Revenue increased 6% to $229.9 million
Revenue from Marketing Services increased 21% to $32.9 million
Revenue from Security Services increased 11% to $30.1 million
Net income decreased 6% to $31.7 million
Net income per share was flat at $0.50
Non-GAAP Results for First Quarter 2014 Compared to First Quarter 2013
Adjusted net income decreased 3% to $52.4 million
Adjusted net income per share increased 5% to $0.84
“Our first quarter results demonstrate that we are delivering on our strategic initiative to become a leader in information services and analytics,” said Lisa Hook, Neustar’s President and Chief Executive Officer. “Our targeted investments are paying off and we are seeing strong and growing market demand for our IS&A offerings. We are competing vigorously in the LNPA vendor selection process, and will continue to advocate strongly that we are the logical choice to remain as administrator, which we believe is beneficial to the industry and consumers alike.”
Paul Lalljie, Neustar’s Chief Financial Officer, added, “During the first quarter, we delivered 16% revenue growth in our Marketing and Security Services. We closed on the acquisition of .CO earlier this week, bolstering our position as a key player in the expanding gTLD market. We remain confident in our full-year forecast driven by our first quarter results and leading indicators, and as a result we are affirming our guidance for the year.”
Discussion of First Quarter Results
Revenue totaled $229.9 million, a 6% increase from $216.4 million in 2013. Marketing Services revenue of $32.9 million grew 21% driven by higher demand for our workflow solutions. Security Services revenue of $30.1 million grew 11% driven by increased demand for our DDoS protection services. NPAC Services revenue of $118.8 million grew 6% driven by an increase in the fixed fee established under our contracts to provide local number portability services. Data Services revenue of $48.1 million declined 5% due to lower revenue in caller identification services.
Operating expense totaled $174.6 million, a 20% increase from $145.6 million in the first quarter of 2013. This $29.0 million increase was primarily driven by $6.2 million in advertising and professional fees associated with the NPAC vendor selection process and $5.0 million in costs for restructuring initiatives designed to improve efficiencies. In addition, personnel and personnel-related costs increased $6.8 million and depreciation and amortization expense increased $3.0 million.
As of March 31, 2014, cash and cash equivalents totaled $386.5 million, compared to $223.3 million as of December 31, 2013. During the quarter, the company borrowed $175 million under its revolving credit facility. At the end of the quarter, the company’s outstanding debt under its term facilities and 4.5% senior notes was $789.3 million. During the first quarter, the company purchased approximately 1.2 million shares at an average price of $34.85 per share, for approximately $41.9 million.
Business Outlook for 2014
The company affirmed its guidance for revenue and adjusted net income provided on January 29, 2014:
Revenue to range from $945 million to $970 million, or growth of 5% to 8%
Adjusted net income to range from $233 million to $243 million, or flat to growth of 4%
Adjusted earnings per share to range from $3.64 to $3.80, or growth of 3% to 8%”
