LiveRamp (RAMP) 8-K Acxiom Announces First Quarter Results

For more information, contact:

Lauren Dillard Investor Relations(650) 372-2242investor.relations@acxiom.com

EACXM

ACXIOM ANNOUNCES FIRST QUARTER RESULTS

Total Revenue Grows 9% Year-over-Year

Enters Into Definitive Agreement to Sell Impact Email Business

Expands Share Repurchase Program

LITTLE ROCK, Ark. – August 4, 2016 Acxiom® (Nasdaq: ACXM), an enterprise data, analytics and software-as-a-service company, today announced financial results for its first quarter ended June 30, 2016.

Financial Highlights

· Revenue: Total revenue was $215 million, up 9% compared to the first quarter of last year driven by growth in each segment. US revenue of $197 million was up 11% year-over-year.

· Operating Income (Loss): GAAP operating income from continuing operations improved to $8 million compared to a loss of $3 million in the prior year. Non-GAAP operating income from continuing operations improved 44% to approximately $21 million.

· Earnings (Loss) per Share: GAAP diluted earnings per share from continuing operations were $0.05 compared to a loss per share of $0.07 in the prior year. Non-GAAP diluted earnings per share from continuing operations were $0.15, up from $0.09 a year ago.

· Operating Cash Flow: Operating cash flow from continuing operations was $1 million, down from $12 million last year. For the trailing twelve-month period, operating cash flow from continuing operations was $102 million, up from $89 million in the comparable period.

● Free Cash Flow to Equity: Free cash flow to equity was negative $22 million compared to negative $12 million in the prior year. For the trailing twelve-month period, free cash flow to equity was $8 million, up from negative $12 million in the comparable period.

Segment Results

Marketing Services

● Revenue was $110 million, up 2% compared to the first quarter of last year. Marketing Database and Consulting revenue grew 8% year-over-year, but was offset by declines in Acxiom Impact. US revenue of $102 million was up 4% year-over-year.

· Gross margin improved from 33% to 34%.

· Segment income was $20 million, up 20% compared to the prior year.

Audience Solutions

· Revenue was $74 million, up 8% compared to the prior year. US revenue of $66 million was up 9% year-over-year.

· Gross margin improved from 54% to 57%.

· Segment income was $25 million, up 4% compared to the prior year.

Connectivity

· Revenue was $31 million, up 52% compared to the first quarter of last year. Connectivity exited the quarter with a $120 million annualized revenue run rate.

· Gross margin declined from 58% to 56%.

· Segment income was break-even compared to a loss of $1 million in the prior year.

A detailed discussion of our non-GAAP financial measures and a reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release.

"I am pleased to report a solid first quarter, highlighted by strong financial performance, new partnerships and continued product innovation," said Acxiom CEO Scott Howe. "Fiscal 2017 is off to a good start, and we are focused on extending our early momentum through the remainder of the year."

Recent Business Highlights

· Connectivity added more than 20 new customers during the quarter and added over 50 new partner integrations. Marketers can now onboard and activate their data across a growing network of more than 350 marketing platforms and data providers.

· LiveRamp™ extended its data connectivity partnership with Google,adding Customer Match to an extensive set of integrations that include Google Analytics 360 Suite, Google DoubleClick Digital Marketing solutions and Google Store Transactions for both AdWords and DoubleClick Search. The new integration with Google Customer Match enables brands to activate their first-party data for targeting across YouTube, Search and Gmail.

· LiveRamp announced a new integration with Facebook's Offline Conversions API, allowing clients to connect Facebook advertising campaigns with offline sales transactions taking place in stores, branch offices, contact centers and other brick-and-mortar locations.

· Acxiom announced strategic "next-gen" enhancements to its proprietary recognition technology, AbiliTec®, improving marketers' ability to bring together disparate consumer data sources for a single, current and accurate view of a customer across all channels.

· Acxiom repurchased 926,000 shares for approximately $20 million during the quarter. Since inception of the share repurchase program in August 2011, Acxiom has repurchased 16.4 million shares for $275 million.

Acxiom Impact Divestiture

Acxiom also announced that it has entered into a definitive agreement to sell its Impact email business (Acxiom Impact) to Zeta Interactive. In addition, Acxiom will enter into a separate multi-year contract to provide Zeta Interactive with Connectivity and Audience Solutions services. The transaction sharpens Acxiom's focus on providing the data foundation for the world's best marketers and opens the door to deeper partnerships with the marketing ecosystem.

The sale is expected to close in the second quarter of fiscal 2017, following the satisfaction of customary closing conditions.

Acxiom will use proceeds from the sale to help fund the expansion of its share repurchase program. As part of the revised program, Acxiom's Board of Directors has increased the share repurchase authorization by $100 million to $400 million and extended the duration of the program through June 30, 2018.  The company is authorized to repurchase shares from time to time in open market or privately negotiated transactions, depending on prevailing market conditions and other factors. The repurchase program may be suspended or discontinued at any time.

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Financial Outlook

Acxiom's non-GAAP guidance excludes the impact of non-cash compensation, purchased intangible asset amortization, restructuring charges and separation and transformation costs. Acxiom's fiscal 2017 guidance assumes that the sale of Acxiom Impact will close on September 30, 2016.

For fiscal 2017, Acxiom now expects to report:

· Revenue in the range of $850 million to $870 million

· GAAP diluted earnings per share in the range of $0.10 to $0.14

· Non-GAAP diluted earnings per share in the range of $0.55 to $0.60

Conference Call

Acxiom will hold a conference call at 4:00 p.m. CT today to further discuss this information. Interested parties are invited to listen to the call which will be broadcast via the Internet at investors.acxiom.com. A slide presentation will be referenced during the call and can be accessed here.

About Acxiom

Acxiom is an enterprise data, analytics and software-as-a-service company that uniquely fuses trust, experience and scale to fuel data-driven results. For over 45 years, Acxiom has been an innovator in harnessing the most important sources and uses of data to strengthen connections between people, businesses and their partners. Utilizing a channel and media neutral approach, we leverage cutting-edge, data-oriented products and services to maximize customer value. Every week, Acxiom powers more than a trillion transactions that enable better living for people and better results for our 3,250+ global clients. For more information about Acxiom, visit Acxiom.com.

Forward-Looking Statements

This release and today's conference call contains forward-looking statements including, without limitation, statements regarding expected levels of revenue and earnings per share. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. The following are factors, among others, that could cause actual results to differ materially from these forward-looking statements: the possibility that the expected revenue from the divisions may not be realized within the expected timeframe; the possibility that certain contracts may not generate the anticipated revenue or profitability or may not be closed within the anticipated time frames; the possibility that significant customers may experience extreme, severe economic difficulty or otherwise reduce or cancel the amount of business they do with us; the possibility that we will not successfully complete customer contract requirements on time or meet the service levels specified in the contracts, which may result in contract penalties or lost revenue; the possibility that we will not complete the sale of Acxiom Impact within the anticipated timeframe; the possibility that data suppliers might withdraw data from us, leading to our inability to provide certain products and services to our clients; the possibility that we may not be able to attract, retain or motivate qualified technical, sales and leadership associates, or that we may lose key associates; the possibility that we may not be able to adequately adapt to rapidly changing computing environments, technologies and marketing practices; the possibility that we will not be able to continue to receive credit upon satisfactory terms and conditions; the possibility that negative changes in economic conditions in general or other conditions might lead to a reduction in demand for our products and services; the possibility that there will be changes in consumer or business information industries and markets that negatively impact the company; the possibility that the historical seasonality of our business may change; the possibility that we will not be able to achieve anticipated cost reductions and avoid unanticipated costs; the possibility that the fair value of certain of our assets may not be equal to the carrying value of those assets now or in future time periods; the possibility that unusual charges may be incurred; the possibility that changes in accounting pronouncements may occur and may impact these forward-looking statements; the possibility that we may encounter difficulties when entering new markets or industries; the possibility that we could experience loss of data center capacity or interruption of telecommunication links; the possibility that new laws may be enacted which limit our ability to provide services to our clients and/or which limit the use of data; and other risks and uncertainties, including those detailed from time to time in our current and periodic reports filed with the Securities and Exchange Commission, including our current reports on Form 8-K, quarterly reports on Form 10-Q and annual reports on Form 10-K, particularly the discussion under the caption "Item 1A. RISK FACTORS" in our Annual Report on Form 10-K for the year ended March 31, 2016, which was filed with the Securities and Exchange Commission on May 27, 2016.

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With respect to the provision of products or services outside our primary base of operations in the United States, all of the above factors apply, along with the difficulty of doing business in numerous sovereign jurisdictions due to differences in scale, competition, culture, laws and regulations.

We undertake no obligation to update the information contained in this press release or any other forward-looking statement.

Acxiom is a registered trademark of Acxiom Corporation.

To automatically receive Acxiom Corporation financial news by email, please visit www.acxiom.com and subscribe to email alerts.

4

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings (loss) per share)
	For the Three Months Ended
	June 30,
							$				%
	2016			2015			Variance			Variance
Revenues		214,801			196,895			17,906			9.1	%
Cost of revenue		122,819			117,709			5,110			4.3	%
Gross profit		91,982			79,186			12,796			16.2	%
% Gross margin		42.8	%		40.2	%
Operating expenses:
Research and development		18,652			20,011			(1,359	)		(6.8	%)
Sales and marketing		37,348			29,494			7,854			26.6	%
General and administrative		27,506			31,743			(4,237	)		(13.3	%)
Gains, losses and other items, net		314			807			(493	)		(61.1	%)
Total operating expenses		83,820			82,055			1,765			2.2	%
Income (loss) from operations		8,162			(2,869	)		11,031			384.5	%
% Margin		3.8	%		-1.5	%
Other income (expense):
Interest expense		(1,812	)		(1,885	)		73			3.9	%
Other, net		307			304			3			1.0	%
Total other expense		(1,505	)		(1,581	)		76			4.8	%
Earnings (loss) from continuing operations before income taxes		6,657			(4,450	)		11,107			249.6	%
Income taxes		2,681			732			1,949			266.3	%
Net earnings (loss) from continuing operations		3,976			(5,182	)		9,158			176.7	%
Earnings from discontinued operations, net of tax		-			4,143			(4,143	)		(100.0	%)
Net earnings (loss)		3,976			(1,039	)		5,015			482.7	%
Basic earnings (loss) per share:
Net earnings (loss) from continuing operations		0.05			(0.07	)		0.12			177.2	%
Net earnings from discontinued operations		-			0.05			(0.05	)		(100.0	%)
Net earnings (loss)		0.05			(0.01	)		0.06			484.9	%
Diluted earnings (loss) per share:
Net earnings (loss) from continuing operations		0.05			(0.07	)		0.12			175.3	%
Net earnings from discontinued operations		-			0.05			(0.05	)		(100.0	%)
Net earnings (loss)		0.05			(0.01	)		0.06			475.8	%
Basic weighted average shares		77,471			77,918
Diluted weighted average shares		79,353			77,918
Some earnings (loss) per share amounts may not add due to rounding

5

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
(Unaudited)
(Dollars in thousands, except earnings (loss) per share)
	For the Three Months Ended
	June 30,
	2016		2015
Earnings (loss) from continuing operations before income taxes		6,657		(4,450	)
Income taxes		2,681		732
Net earnings (loss) from continuing operations		3,976		(5,182	)
Earnings from discontinued operations, net of tax		-		4,143
Net earnings (loss)		3,976		(1,039	)
Earnings (loss) per share:
Basic		0.05		(0.01	)
Diluted		0.05		(0.01	)
Excluded items:
Purchased intangible asset amortization  (cost of revenue)		4,077		3,754
Non-cash stock compensation (cost of revenue and operating expenses)		8,590		8,123
Restructuring charges and other adjustments (gains, losses, and other)		314		807
Separation and transformation costs (general and administrative)		-		3,414
Accelerated amortization (cost of revenue)		-		1,442
Total excluded items, continuing operations		12,981		17,540
Earnings from continuing operations before income taxes
and excluding items		19,638		13,090
Income taxes (2)		7,852		5,632
Non-GAAP net earnings		11,786		7,458
Non-GAAP earnings per share:
Basic		0.15		0.10
Diluted		0.15		0.09
Basic weighted average shares		77,471		77,918
Diluted weighted average shares		79,353		79,352
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a
substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial
statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP
measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on
the usefulness of these measures, please see Appendix A.
(2) Income taxes were calculated reflecting an effective non-GAAP tax rate of 40.0% and 43.0% in the first quarter of fiscal
2017 and 2016, respectively. The difference between our GAAP and non-GAAP tax rates in the first quarter of fiscal 2017 and
2016 were primarily due to the net tax effects of excluded items.

6

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	June 30,
							$			%
	2016			2015			Variance		Variance
Revenues
Marketing Services		109,715			107,726			1,989		1.8	%
Audience Solutions		73,744			68,550			5,194		7.6	%
Connectivity		31,342			20,619			10,723		52.0	%
Total operating segment revenues		214,801			196,895			17,906		9.1	%
Gross profit
Marketing Services		37,466			36,034			1,432		4.0	%
Audience Solutions		41,912			36,824			5,089		13.8	%
Connectivity		17,575			11,953			5,622		47.0	%
Total operating segment gross profit		96,953			84,811			12,142		14.3	%
Gross profit margin %
Marketing Services		34.1	%		33.4	%
Audience Solutions		56.8	%		53.7	%
Connectivity		56.1	%		58.0	%
Total operating segment gross margin		45.1	%		43.1	%
Income (loss) from operations
Marketing Services		20,145			16,853			3,292		19.5	%
Audience Solutions		25,096			24,087			1,009		4.2	%
Connectivity		291			(791	)		1,082		136.8	%
Total operating segment income from operations		45,532			40,149			5,383		13.4	%
Operating income (loss) margin %
Marketing Services		18.4	%		15.6	%
Audience Solutions		34.0	%		35.1	%
Connectivity		0.9	%		-3.8	%
Total operating segment operating margin		21.2	%		20.4	%

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ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF SEGMENT RESULTS
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	June 30,
	2016		2015
Total operating segment gross profit		96,953		84,811
Less:
Purchased intangible asset amortization		4,077		3,754
Non-cash stock compensation		894		429
Accelerated amortization		-		1,442
Gross profit		91,982		79,186
Total operating segment income from operations		45,532		40,149
Less:
Corporate expenses		24,389		25,478
Purchased intangible asset amortization		4,077		3,754
Non-cash stock compensation		8,590		8,123
Restructuring charges and other adjustments		314		807
Separation and transformation costs		-		3,414
Accelerated amortization		-		1,442
Income (loss) from operations		8,162		(2,869	)

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ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA (1)
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	June 30,
	2016			2015
Net earnings (loss) from continuing operations		3,976			(5,182	)
Income taxes		2,681			732
Other expense		(1,505	)		(1,581	)
Income (loss) from operations		8,162			(2,869	)
Depreciation and amortization		20,790			21,775
Less:
Deferred interest amortization		-			256
Adjusted depreciation and amortization		20,790			21,519
EBITDA		28,952			18,650
Other adjustments:
Non-cash stock compensation (cost of revenue and operating expenses)		8,590			8,123
Restructuring charges and other adjustments (gains, losses, and other)		314			807
Separation and transformation costs (general and administrative)		-			3,414
Other adjustments		8,904			12,344
Adjusted EBITDA		37,856			30,994
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a
substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial
statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP
measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on
the usefulness of these measures, please see Appendix A.

9

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
	June 30,			March 31,			$				%
	2016			2016			Variance			Variance
Assets
Current assets:
Cash and cash equivalents		150,160			189,629			(39,469	)		(20.8	%)
Trade accounts receivable, net		127,655			138,650			(10,995	)		(7.9	%)
Refundable income taxes		7,606			9,834			(2,228	)		(22.7	%)
Other current assets		34,919			37,897			(2,978	)		(7.9	%)
Total current assets		320,340			376,010			(55,670	)		(14.8	%)
Property and equipment		530,588			528,675			1,913			0.4	%
Less - accumulated depreciation and amortization		351,377			345,632			5,745			1.7	%
Property and equipment, net		179,211			183,043			(3,832	)		(2.1	%)
Software, net of accumulated amortization		52,537			55,735			(3,198	)		(5.7	%)
Goodwill		492,598			492,745			(147	)		(0.0	%)
Purchased software licenses, net of accumulated amortization		9,561			10,116			(555	)		(5.5	%)
Deferred income taxes		6,170			6,885			(715	)		(10.4	%)
Other assets, net		23,547			25,315			(1,768	)		(7.0	%)
		1,083,964			1,149,849			(65,885	)		(5.7	%)
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt		32,262			32,243			19			0.1	%
Trade accounts payable		26,216			37,717			(11,501	)		(30.5	%)
Accrued payroll and related expenses		27,733			61,309			(33,576	)		(54.8	%)
Other accrued expenses		47,977			48,254			(277	)		(0.6	%)
Deferred revenue		38,378			44,477			(6,099	)		(13.7	%)
Total current liabilities		172,566			224,000			(51,434	)		(23.0	%)
Long-term debt		150,124			157,897			(7,773	)		(4.9	%)
Deferred income taxes		52,571			53,964			(1,393	)		(2.6	%)
Other liabilities		14,939			15,020			(81	)		(0.5	%)
Stockholders' equity:
Common stock		13,102			13,039			63			0.5	%
Additional paid-in capital		1,095,510			1,082,220			13,290			1.2	%
Retained earnings		602,477			598,501			3,976			0.7	%
Accumulated other comprehensive income		7,590			8,590			(1,000	)		(11.6	%)
Treasury stock, at cost		(1,024,915	)		(1,003,382	)		(21,533	)		(2.1	%)
Total stockholders' equity		693,764			698,968			(5,204	)		(0.7	%)
		1,083,964			1,149,849			(65,885	)		(5.7	%)

10

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	June 30,
	2016			2015
Cash flows from operating activities:
Net earnings (loss)		3,976			(1,039	)
Earnings from discontinued operations, net of tax		-			(4,143	)
Non-cash operating activities:
Depreciation and amortization		20,790			21,775
Loss on disposal or impairment of assets		-			241
Deferred income taxes		(678	)		(1,522	)
Non-cash stock compensation expense		8,590			8,123
Changes in operating assets and liabilities:
Accounts receivable		9,487			(8,037	)
Other assets		5,383			384
Accounts payable and other liabilities		(41,021	)		(3,530	)
Deferred revenue		(5,777	)		(255	)
Net cash provided by operating activities		750			11,997
Cash flows from investing activities:
Capitalized software		(3,982	)		(2,797	)
Capital expenditures		(10,694	)		(12,876	)
Data acquisition costs		(20	)		(430	)
Net cash used in investing activities		(14,696	)		(16,103	)
Cash flows from financing activities:
Payments of debt		(8,053	)		(8,099	)
Sale of common stock, net of stock acquired for withholding taxes		2,974			2,069
Excess tax benefits from share-based compensation		514			(77	)
Acquisition of treasury stock		(20,207	)		(14,951	)
Net cash used in financing activities		(24,772	)		(21,058	)
Cash flows from discontinued operations:
From operating activities		-			11,653
From investing activities		-			(4,484	)
From financing activities		-			(153	)
Net cash provided by discontinued operations		-			7,016
Effect of exchange rate changes on cash		(751	)		330
Net change in cash and cash equivalents		(39,469	)		(17,818	)
Cash and cash equivalents at beginning of period		189,629			141,010
Cash and cash equivalents at end of period		150,160			123,192
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest		2,258			2,185
Income taxes		(76	)		(1,044	)
Payments on capital leases and installment payment arrangements		-			216
Other debt payments, excluding line of credit		8,053			8,036

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ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW TO EQUITY (1)
(Unaudited)
(Dollars in thousands)
	06/30/15			09/30/15			12/31/15			03/31/16			FY2016			06/30/16
GAAP Net Cash Provided by Operating Activities		11,997			21,357			37,018			43,270			113,642			750
Less:
Capitalized software		(2,797	)		(3,936	)		(3,627	)		(4,520	)		(14,880	)		(3,982	)
Capital expenditures		(12,876	)		(10,244	)		(10,702	)		(13,601	)		(47,423	)		(10,694	)
Data acquisition costs		(430	)		(281	)		(424	)		(418	)		(1,553	)		(20	)
Payments on capital leases and installment payment arrangements		(63	)		-			-			-			(63	)		-
Other required debt payments		(8,036	)		(8,039	)		(8,045	)		(8,048	)		(32,168	)		(8,053	)
Free Cash Flow to Equity		(12,205	)		(1,143	)		14,220			16,683			17,555			(21,999	)
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a
substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial
statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP
measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on
the usefulness of these measures, please see Appendix A.

12

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS-GAAP
(Unaudited)
(Dollars in thousands, except earnings (loss) per share)
																			Q1 FY17 to Q1 FY16
	06/30/15			09/30/15			12/31/15			03/31/16			FY2016			06/30/16			%			$
Revenues		196,895			207,345			221,193			224,655			850,088			214,801			9.1	%	17,906
Cost of revenue		117,709			121,312			125,735			123,626			488,382			122,819			4.3	%	5,110
Gross profit		79,186			86,033			95,458			101,029			361,706			91,982			16.2	%	12,796
% Gross margin		40.2	%		41.5	%		43.2	%		45.0	%		42.5	%		42.8	%
Operating expenses
Research and development		20,011			19,078			18,400			16,758			74,247			18,652			-6.8	%	(1,359	)
Sales and marketing		29,494			34,259			36,581			45,842			146,176			37,348			26.6	%	7,854
General and administrative		31,743			31,519			36,793			35,330			135,385			27,506			-13.3	%	(4,237	)
Impairment of goodwill and other		-			729			-			6,100			6,829			-			-		-
Gains, losses and other items, net		807			2,504			4,058			4,763			12,132			314			-61.1	%	(493	)
Total operating expenses		82,055			88,089			95,832			108,793			374,769			83,820			2.2	%	1,765
Income (loss) from operations		(2,869	)		(2,056	)		(374	)		(7,764	)		(13,063	)		8,162			384.5	%	11,031
% Margin		-1.5	%		-1.0	%		-0.2	%		-3.5	%		-1.5	%		3.8	%
Other income (expense)
Interest expense		(1,885	)		(1,956	)		(1,948	)		(1,880	)		(7,669	)		(1,812	)		3.9	%	73
Other, net		304			59			303			(214	)		452			307			1.0	%	3
Total other expense		(1,581	)		(1,897	)		(1,645	)		(2,094	)		(7,217	)		(1,505	)		4.8	%	76
Earnings (loss) from continuing operations before income taxes		(4,450	)		(3,953	)		(2,019	)		(9,858	)		(20,280	)		6,657			249.6	%	11,107
Income taxes		732			(2,608	)		(1,580	)		(8,176	)		(11,632	)		2,681			266.3	%	1,949
Net earnings (loss) from continuing operations		(5,182	)		(1,345	)		(439	)		(1,682	)		(8,648	)		3,976			176.7	%	9,158
Earnings (loss) from discontinued operations, net of tax		4,143			12,068			(971	)		111			15,351			-			-100.0	%	(4,143	)
Net earnings (loss)		(1,039	)		10,723			(1,410	)		(1,571	)		6,703			3,976			482.7	%	5,015
Diluted earnings (loss) per share		(0.01	)		0.14			(0.02	)		(0.02	)		0.09			0.05			475.8	%	0.06
Diluted earnings (loss) per share continuing operations		(0.07	)		(0.02	)		(0.01	)		(0.02	)		(0.11	)		0.05			175.3	%	0.12
Some earnings (loss) per share amounts may not add due to rounding

13

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS
(Unaudited)
(Dollars in thousands, except earnings (loss) per share)
	06/30/15			09/30/15			12/31/15			03/31/16			FY2016			06/30/16
Earnings (loss) from continuing operations before income taxes		(4,450	)		(3,953	)		(2,019	)		(9,858	)		(20,280	)		6,657
Income taxes		732			(2,608	)		(1,580	)		(8,176	)		(11,632	)		2,681
Net earnings (loss) from continuing operations		(5,182	)		(1,345	)		(439	)		(1,682	)		(8,648	)		3,976
Earnings (loss) from discontinued operations, net of tax		4,143			12,068			(971	)		111			15,351			-
Net earnings (loss)		(1,039	)		10,723			(1,410	)		(1,571	)		6,703			3,976
Earnings (loss) per share:
Basic		(0.01	)		0.14			(0.02	)		(0.02	)		0.09			0.05
Diluted		(0.01	)		0.14			(0.02	)		(0.02	)		0.09			0.05
Excluded items:
Purchased intangible asset amortization  (cost of revenue)		3,754			3,754			3,754			4,204			15,466			4,077
Non-cash stock compensation (cost of revenue and operating expenses)		8,123			7,360			8,046			7,934			31,463			8,590
Impairment of goodwill and other		-			729			-			6,100			6,829			-
Restructuring charges and other adjustments (gains, losses, and other)		807			2,504			4,058			4,763			12,132			314
Separation and transformation costs (general and administrative)		3,414			6,098			6,628			4,686			20,826			-
Accelerated amortization (cost of revenue)		1,442			78			78			252			1,850			-
Total excluded items, continuing operations		17,540			20,523			22,564			27,939			88,566			12,981
Earnings from continuing operations before income taxes
and excluding items		13,090			16,570			20,545			18,081			68,286			19,638
Income taxes		5,632			5,163			6,399			4,262			21,456			7,852
Non-GAAP net earnings		7,458			11,407			14,146			13,819			46,830			11,786
Non-GAAP earnings per share:
Basic		0.10			0.15			0.18			0.18			0.60			0.15
Diluted		0.09			0.14			0.18			0.18			0.59			0.15
Basic weighted average shares		77,918			77,960			77,831			76,753			77,616			77,471
Diluted weighted average shares		79,352			79,310			79,346			78,386			79,099			79,353
Some earnings per share amounts may not add due to rounding

14

 ACXIOM CORPORATION AND SUBSIDIARIES

 RESULTS BY SEGMENT

 (Unaudited)

 (Dollars in thousands)

																			Q1 FY17 to Q1 FY16
	06/30/14			09/30/14			12/31/14			03/31/15			FY2016			06/30/16			%			$
Marketing services		107,726			112,979			115,725			113,342			449,772			109,715			1.8	%	1,989
Audience Solutions		68,550			72,122			77,046			80,128			297,846			73,744			7.6	%	5,194
Connectivity		20,619			22,244			28,422			31,185			102,470			31,342			52.0	%	10,723
Total operating segment revenues		196,895			207,345			221,193			224,655			850,088			214,801			9.1	%	17,906
Marketing services		36,034			37,545			38,561			40,117			152,257			37,466			4.0	%	1,432
Audience Solutions		36,824			39,170			45,265			46,457			167,716			41,912			13.8	%	5,089
Connectivity		11,953			13,499			16,130			19,617			61,199			17,575			47.0	%	5,622
Total operating segment gross profit		84,811			90,214			99,956			106,191			381,172			96,953			14.3	%	12,142
Marketing services		33.4	%		33.2	%		33.3	%		35.4	%		33.9	%		34.1	%
Audience Solutions		53.7	%		54.3	%		58.8	%		58.0	%		56.3	%		56.8	%
Connectivity		58.0	%		60.7	%		56.8	%		62.9	%		59.7	%		56.1	%
Total operating segment gross margin		43.1	%		43.5	%		45.2	%		47.3	%		44.8	%		45.1	%
Marketing services		16,853			17,908			20,309			19,301			74,371			20,145			19.5	%	3,292
Audience Solutions		24,087			25,190			30,723			29,598			109,598			25,096			4.2	%	1,009
Connectivity		(791	)		(1,068	)		(1,015	)		(424	)		(3,298	)		291			136.8	%	1,082
Total operating segment income from operations		40,149			42,030			50,017			48,475			180,671			45,532			13.4	%	5,383
Marketing services		15.6	%		15.9	%		17.5	%		17.0	%		16.5	%		18.4	%
Audience Solutions		35.1	%		34.9	%		39.9	%		36.9	%		36.8	%		34.0	%
Connectivity		-3.8	%		-4.8	%		-3.6	%		-1.4	%		-3.2	%		0.9	%
Total operating segment operating margin		20.4	%		20.3	%		22.6	%		21.6	%		21.3	%		21.2	%
Some totals may not add due to rounding.

15

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS GUIDANCE (1)
(Unaudited)
(Dollars in thousands, except earnings per share)
	For the year ending
	March 31, 2017
	Low Range		High Range
Earnings before income taxes		14,000		21,000
Income taxes		7,000		9,870
Net earnings		7,000		11,130
Diluted earnings per share	$	0.09	$	0.14
Excluded items:
Purchased intangible asset amortization		16,000		16,000
Non-cash stock compensation		32,000		32,000
Restructuring charges		1,000		1,000
Separation and transformation costs		10,000		10,000
Total excluded items		59,000		59,000
Earnings before income taxes and excluding items		73,000		80,000
Income taxes (2)		29,200		32,000
Non-GAAP net earnings		43,800		48,000
Non-GAAP diluted earnings per share	$	0.55	$	0.60
Diluted weighted average shares		80,000		80,000
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a
substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial
statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP
measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on
the usefulness of these measures, please see Appendix A.
(2) Income taxes were calculated reflecting an effective non-GAAP tax rate of 40.0%. The difference between our GAAP and Non-GAAP
tax rates was due to the effect of excluded items.

16

ACXIOM CORPORATION	APPENDIX A
Q1 FISCAL 2017 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES
To supplement our financial results we use non-GAAP measures as indicated in the press release
schedules, which excludes certain expenses related to acquisitions as well as other significant expenses
including non-cash stock compensation and restructuring charges, that we belive are helpful in
understanding our past performance and our future results.  Our non-GAAP financial measures and
schedules are not meant to be considered in isolation or as a substitute for comparable GAAP
measures and should be read only in conjunction with our condensed consolidated financial statements
prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP
financial measures internally to understand, manage and evaluate our business and to make operating
decisions. These non-GAAP measures are among the primary factors management uses in planning
for and forecasting future periods. Compensation of our executives is also based in part on the
performance of our business based on these non-GAAP measures.
Our non-GAAP financial measures, including non-GAAP earnings per share and adjusted EBITDA,
reflect adjustments based on the following items, as well as the related income tax effects when applicable:
Purchased intangible asset amortization: We incur amortization of purchased intangibles in connection with our
acquisitions. Purchased intangibles include (i) developed technology, (ii) customer relationships, and (iii) trade
names. We expect to amortize for accounting purposes the fair value of the purchased intangibles based on the
pattern in which the economic benefits of the intangible assets will be consumed as revenue is generated.
Although the intangible assets generate revenue for us, we exclude this item because this expense is non-cash
in nature and because we believe the non-GAAP financial measures excluding this item provide meaningful
supplemental information regarding our operational performance.
Non-cash stock compensation: Non-cash stock compensation consists of charges for associate restricted stock
units, performance shares and stock options in accordance with current GAAP related to stock-based
compensation including expense associated with stock-based compensation related to unvested options assumed
in connection with our acquisitions. As we apply current stock-based compensation standards, we believe that it
is useful to investors to understand the impact of the application of these standards to our operational
performance. Although stock-based compensation expense is calculated in accordance with current GAAP and
constitutes an ongoing and recurring expense, such expense is excluded from non-GAAP results because it is
not an expense that typically requires or will require cash settlement by us and because such expense is not used
by us to assess the core profitability of our business operations.
Restructuring charges and other adjustments: During the past several years, we have initiated certain
restructuring activities in order to align our costs in connection with both our operating plans and our business
strategies based on then-current economic conditions. As a result, we recognized costs related to termination
benefits for associates whose positions were eliminated, lease termination charges, and leasehold improvement
write offs. These charges, reported as gains, losses, and other items, net, are excluded from non-GAAP results
because such expense is not used by us to assess the core profitability of our business operations.
Separation and transformation costs:  We incurred significant expenses in connection with the separation
of the IT Infrastructure Management and Marketing and Data Services business and subsequent
transformation activities post separation, which we generally would not have otherwise incurred in the periods
presented as part of our continuing operations.  Separation and transformation costs consist of third party
consulting arrangements. We believe it is useful for investors to understand the effects of these items and
excluding such items in non-GAAP financial measures provides meaningful supplemental information.

17

Our non-GAAP financial schedules are:

Non-GAAP EPS: Our non-GAAP earnings per share reflects adjustments as described above, as well as the

related tax effects where applicable.

Adjusted EBITDA: Adjusted EBITDA is defined as net income (loss) from continuing operations before income

taxes, other expenses, depreciation and amortization, and including adjustments as described above.  We use

Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as

within our operating segments and to compare our results to those of our competitors. We believe that the

inclusion of Adjusted EBITDA provides useful supplementary information to and facilitates analysis by investors

in evaluating the Company's performance and trends. The presentation of Adjusted EBITDA is not meant to be

considered in isolation or as an alternative to net earnings as an indicator of our performance.

Free Cash Flow to Equity: To supplement our statement of cash flows, we use a non-GAAP measure of cash

flow to analyze cash flows generated from operations. Free cash flow to equity is defined as operating cash flow

less cash used by investing activities (excluding the impact of cash paid in acquisitions), less required payments

of debt, and excluding the impact of discontinued operations. Management believes that this measure of cash

flow is meaningful since it represents the amount of money available from continuing operations for the

Company's discretionary spending after funding all required obligations including scheduled debt payments.

The presentation of non-GAAP free cash flow to equity is not meant to be considered in isolation or as an

alternative to cash flows from operating activities as a measure of liquidity.

18