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

For more information, contact:

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

EACXM

ACXIOM ANNOUNCES SECOND QUARTER RESULTS

Total Revenue Increases 5% Driving Strong Earnings Growth

LiveRamp Launches IdentityLink to Power People-Based Marketing for the Ecosystem

LITTLE ROCK, Ark. – November 7, 2016 Acxiom® (Nasdaq: ACXM), the data foundation for the world's best marketers, today announced financial results for its second quarter ended September 30, 2016.

Financial Highlights

· Revenue: Total revenue was $217 million, up 5% compared to the second quarter of last year, driven by growth in Connectivity and Audience Solutions.

· Operating Income (Loss): GAAP operating income from continuing operations was $7 million compared to a loss of $2 million in the prior year. Non-GAAP operating income from continuing operations improved 34% to approximately $25 million.

· Earnings (Loss) per Share: GAAP diluted earnings per share from continuing operations were $0.09 compared to a loss per share of $0.02 in the prior year. Non-GAAP diluted earnings per share from continuing operations were $0.18, up from $0.14 a year ago.

· Operating Cash Flow: Operating cash flow from continuing operations improved to $35 million, up from $21 million in the prior year. For the trailing twelve-month period, operating cash flow from continuing operations was $117 million, up from $96 million in the comparable period.

· Free Cash Flow to Equity: Free cash flow to equity improved to $30 million, up from negative $1 million in the prior year. For the trailing twelve-month period, free cash flow to equity was $39 million, up from negative $2 million in the comparable period.

Segment Results

Marketing Services

· Revenue was $106 million, down 6% compared to the second quarter of last year. Marketing Database and Strategy & Analytics revenue grew 1% year-over-year, but was more than offset by the sale of Acxiom Impact.

· Gross margin remained roughly flat at 33%.

· Segment income was $20 million, up 11% compared to the prior year.

Audience Solutions

· Revenue was $79 million, up 9% compared to the prior year.

· Gross margin improved from 54% to 61%.

· Segment income was $30 million, up 19% compared to the prior year.

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Connectivity

· Revenue was $33 million, up 49% compared to the second quarter of last year. Connectivity exited the quarter with a $135 million annualized revenue run rate.

· Gross margin declined slightly to 60%.

· Segment income was $2 million 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.

"Solid second quarter performance was driven by continued strong global execution across each of our businesses," said Acxiom CEO Scott Howe. "In addition, we are very excited by the launch of LiveRamp^TM IdentityLink^TM to power people-based marketing for the open ecosystem. Identity resolution is key to understanding the customer journey and delivering superior customer experiences. LiveRamp is creating the foundation which will enable true omnichannel marketing."

Recent Business Highlights

· Acxiom completed the sale of its Impact email business to Zeta Interactive on August 31, 2016 and plans to use the sale proceeds to help fund its recently expanded share repurchase program.

· LiveRamp launched IdentityLink, its new omnichannel resolution service. IdentityLink builds on the Company's existing identity resolution capabilities to help brands create a unified view of the consumer and activate that understanding across the marketing ecosystem.

· Connectivity added more than 40 new direct 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 400 marketing platforms and data providers.

· Audience Solutions entered into a Premier Partnership with Adobe, enabling Acxiom and Adobe Marketing Cloud clients to access Acxiom data via Adobe's Audience Marketplace with even greater ease to drive more accurate marketing campaigns.

· Acxiom repurchased 390,000 shares for approximately $10 million during the quarter. Since the inception of its share repurchase program in August 2011, Acxiom has repurchased 16.8 million shares for $286 million.

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.

For fiscal 2017, Acxiom expects to report:

· Revenue in the range of $860 million to $870 million

· GAAP diluted earnings per share of approximately $0.12

· Non-GAAP diluted earnings per share of approximately $0.60

Included in the Company's revenue guidance is approximately $20 million of revenue from its disposed Acxiom Impact business.

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.

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About Acxiom

Acxiom is a technology and services company that provides the data foundation for the world's best marketers. We enable people-based marketing everywhere through a simple, open approach to connecting systems and data that drives seamless customer experiences and higher ROI. A leader in identity and the ethical use of data for more than 45 years, Acxiom helps thousands of clients and partners around the globe work together to create a world where all marketing is relevant. 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 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.

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.

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ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings (loss) per share)
	For the Three Months Ended
	September 30,
							$				%
	2016			2015			Variance			Variance
Revenues		217,267			207,345			9,922			4.8	%
Cost of revenue		120,105			121,312			(1,207	)		(1.0	%)
Gross profit		97,162			86,033			11,129			12.9	%
% Gross margin		44.7	%		41.5	%
Operating expenses:
Research and development		19,029			19,078			(49	)		(0.3	%)
Sales and marketing		37,847			34,259			3,588			10.5	%
General and administrative		32,866			31,519			1,347			4.3	%
Impairment of goodwill and other		-			729			(729	)		(100.0	%)
Gains, losses and other items, net		300			2,504			(2,204	)		(88.0	%)
Total operating expenses		90,042			88,089			1,953			2.2	%
Income (loss) from operations		7,120			(2,056	)		9,176			446.3	%
% Margin		3.3	%		-1.0	%
Other income (expense):
Interest expense		(1,689	)		(1,956	)		267			13.7	%
Other, net		(207	)		59			(266	)		(450.8	%)
Total other expense		(1,896	)		(1,897	)		1			0.1	%
Earnings (loss) from continuing operations before income taxes		5,224			(3,953	)		9,177			232.2	%
Income taxes		(1,916	)		(2,608	)		692			26.5	%
Net earnings (loss) from continuing operations		7,140			(1,345	)		8,485			630.9	%
Earnings from discontinued operations, net of tax		-			12,068			(12,068	)		(100.0	%)
Net earnings		7,140			10,723			(3,583	)		(33.4	%)
Basic earnings (loss) per share:
Net earnings (loss) from continuing operations		0.09			(0.02	)		0.11			634.4	%
Net earnings from discontinued operations		-			0.15			(0.15	)		(100.0	%)
Net earnings		0.09			0.14			(0.05	)		(33.0	%)
Diluted earnings (loss) per share:
Net earnings (loss) from continuing operations		0.09			(0.02	)		0.11			622.0	%
Net earnings from discontinued operations		-			0.15			(0.15	)		(100.0	%)
Net earnings		0.09			0.14			(0.05	)		(34.5	%)
Basic weighted average shares		77,446			77,960
Diluted weighted average shares		79,277			77,960
Some earnings per share amounts may not add due to rounding

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ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings (loss) per share)
	For the Six Months Ended
	September 30,
							$				%
	2016			2015			Variance			Variance
Revenues		432,068			404,240			27,828			6.9	%
Cost of revenue		242,924			239,021			3,903			1.6	%
Gross profit		189,144			165,219			23,925			14.5	%
% Gross margin		43.8	%		40.9	%
Operating expenses:
Research and development		37,681			39,089			(1,408	)		(3.6	%)
Sales and marketing		75,195			63,753			11,442			17.9	%
General and administrative		60,372			63,262			(2,890	)		(4.6	%)
Impairment of goodwill and other		-			729			(729	)		(100.0	%)
Gains, losses and other items, net		614			3,311			(2,697	)		(81.5	%)
Total operating expenses		173,862			170,144			3,718			2.2	%
Income (loss) from operations		15,282			(4,925	)		20,207			410.3	%
% Margin		3.5	%		-1.2	%
Other income (expense):
Interest expense		(3,501	)		(3,841	)		340			8.9	%
Other, net		100			363			(263	)		(72.5	%)
Total other expense		(3,401	)		(3,478	)		77			2.2	%
Earnings (loss) from continuing operations before income taxes		11,881			(8,403	)		20,284			241.4	%
Income taxes		765			(1,876	)		2,641			140.8	%
Net earnings (loss) from continuing operations		11,116			(6,527	)		17,643			270.3	%
Earnings from discontinued operations, net of tax		-			16,211			(16,211	)		(100.0	%)
Net earnings		11,116			9,684			1,432			14.8	%
Basic earnings (loss) per share:
Net earnings (loss) from continuing operations		0.14			(0.08	)		0.23			271.4	%
Net earnings from discontinued operations		-			0.21			(0.21	)		(100.0	%)
Net earnings		0.14			0.12			0.02			15.5	%
Diluted earnings (loss) per share:
Net earnings (loss) from continuing operations		0.14			(0.08	)		0.22			267.3	%
Net earnings from discontinued operations		-			0.21			(0.21	)		(100.0	%)
Net earnings		0.14			0.12			0.02			12.8	%
Basic weighted average shares		77,459			77,939
Diluted weighted average shares		79,317			77,939
Some earnings per share amounts may not add due to rounding

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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						For the Six Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Earnings (loss) from continuing operations before income taxes		5,224			(3,953	)		11,881			(8,403	)
Income taxes		(1,916	)		(2,608	)		765			(1,876	)
Net earnings (loss) from continuing operations		7,140			(1,345	)		11,116			(6,527	)
Earnings from discontinued operations, net of tax		-			12,068			-			16,211
Net earnings		7,140			10,723			11,116			9,684
Earnings per share:
Basic		0.09			0.14			0.14			0.12
Diluted		0.09			0.14			0.14			0.12
Excluded items:
Purchased intangible asset amortization  (cost of revenue)		3,890			3,754			7,967			7,508
Non-cash stock compensation (cost of revenue and operating expenses)		11,938			7,360			20,528			15,483
Impairment of goodwill and other		-			729			-			729
Restructuring charges (gains, losses, and other)		929			2,504			1,243			3,311
Gain on sale of Impact (gains, losses, and other)		(629	)		-			(629	)		-
Separation and transformation costs (general and administrative)		1,455			6,098			1,455			9,512
Accelerated amortization (cost of revenue)		-			78			-			1,520
Total excluded items, continuing operations		17,583			20,523			30,564			38,063
Earnings from continuing operations before income taxes
and excluding items		22,807			16,570			42,445			29,660
Income taxes (2)		8,910			5,163			16,762			10,795
Non-GAAP net earnings		13,897			11,407			25,683			18,865
Non-GAAP earnings per share:
Basic		0.18			0.15			0.33			0.24
Diluted		0.18			0.14			0.32			0.24
Basic weighted average shares		77,446			77,960			77,459			77,939
Diluted weighted average shares		79,277			79,310			79,317			79,331
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitue 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 and the material limitations on the usefulness of these measures, please see Appendix A.
(2) Income taxes were calculated using an effective non-GAAP tax rate of 39.1% and 31.2% in the second quarter of fiscal 2017 and 2016, respectively, and 39.5% and 36.4% for the six months ended September 30, 2016 and 2015, respectively. The differences between our GAAP and non-GAAP tax rates were primarily due to the net tax effects of the excluded items, including the federal and state income tax benefit related to the sale of Impact.

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ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INCOME (LOSS) FROM OPERATIONS (1)
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended						For the Six Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Income (loss) from operations		7,120			(2,056	)		15,282			(4,925	)
Excluded items:
Purchased intangible asset amortization  (cost of revenue)		3,890			3,754			7,967			7,508
Non-cash stock compensation (cost of revenue and operating expenses)		11,938			7,360			20,528			15,483
Impairment of goodwill and other		-			729			-			729
Restructuring charges (gains, losses, and other)		929			2,504			1,243			3,311
Gain on sale of Impact (gains, losses, and other)		(629	)		-			(629	)		-
Separation and transformation costs (general and administrative)		1,455			6,098			1,455			9,512
Accelerated amortization (cost of revenue)		-			78			-			1,520
Total excluded items, continuing operations		17,583			20,523			30,564			38,063
Income from operations before excluded items		24,703			18,467			45,846			33,138
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitue 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 and the material limitations on the usefulness of these measures, please see Appendix A.

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ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	September 30,
							$				%
	2016			2015			Variance			Variance
Revenues
Marketing Services		105,679			112,979			(7,300	)		(6.5	%)
Audience Solutions		78,526			72,122			6,404			8.9	%
Connectivity		33,062			22,244			10,818			48.6	%
Total operating segment revenues		217,267			207,345			9,922			4.8	%
Gross profit
Marketing Services		34,480			37,545			(3,065	)		(8.2	%)
Audience Solutions		47,998			39,170			8,828			22.5	%
Connectivity		19,843			13,499			6,344			47.0	%
Total operating segment gross profit		102,321			90,214			12,107			13.4	%
Gross margin %
Marketing Services		32.6	%		33.2	%
Audience Solutions		61.1	%		54.3	%
Connectivity		60.0	%		60.7	%
Total operating segment gross margin		47.1	%		43.5	%
Income (loss) from operations
Marketing Services		19,837			17,908			1,929			10.8	%
Audience Solutions		29,972			25,190			4,782			19.0	%
Connectivity		1,663			(1,068	)		2,731			255.7	%
Total operating segment income from operations		51,472			42,030			9,442			22.5	%
Operating income (loss) margin %
Marketing Services		18.8	%		15.9	%
Audience Solutions		38.2	%		34.9	%
Connectivity		5.0	%		-4.8	%
Total operating segment operating margin		23.7	%		20.3	%

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ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
	For the Six Months Ended
	September 30,
							$				%
	2016			2015			Variance			Variance
Revenues
Marketing Services		215,394			220,705			(5,311	)		(2.4	%)
Audience Solutions		152,270			140,672			11,598			8.2	%
Connectivity		64,404			42,863			21,541			50.3	%
Total operating segment revenues		432,068			404,240			27,828			6.9	%
Gross profit
Marketing Services		71,946			73,579			(1,633	)		(2.2	%)
Audience Solutions		89,910			75,994			13,916			18.3	%
Connectivity		37,418			25,452			11,966			47.0	%
Total operating segment gross profit		199,274			175,025			24,249			13.9	%
Gross margin %
Marketing Services		33.4	%		33.3	%
Audience Solutions		59.0	%		54.0	%
Connectivity		58.1	%		59.4	%
Total operating segment gross margin		46.1	%		43.3	%
Income (loss) from operations
Marketing Services		39,982			34,761			5,221			15.0	%
Audience Solutions		55,068			49,277			5,791			11.8	%
Connectivity		1,954			(1,859	)		3,813			205.1	%
Total operating segment income from operations		97,004			82,179			14,825			18.0	%
Operating income (loss) margin %
Marketing Services		18.6	%		15.7	%
Audience Solutions		36.2	%		35.0	%
Connectivity		3.0	%		-4.3	%
Total operating segment operating margin		22.5	%		20.3	%

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ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF SEGMENT RESULTS
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended						For the Six Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Total operating segment gross profit		102,321			90,214			199,274			175,025
Less:
Purchased intangible asset amortization		3,890			3,754			7,967			7,508
Non-cash stock compensation		1,269			349			2,163			778
Accelerated amortization		-			78			-			1,520
Gross profit		97,162			86,033			189,144			165,219
Total operating segment income from operations		51,472			42,030			97,004			82,179
Less:
Corporate expenses		26,769			23,563			51,158			49,041
Purchased intangible asset amortization		3,890			3,754			7,967			7,508
Non-cash stock compensation		11,938			7,360			20,528			15,483
Impairment of goodwill and other		-			729			-			729
Restructuring charges		929			2,504			1,243			3,311
Gain on sale of Impact		(629	)		-			(629	)		-
Separation and transformation costs		1,455			6,098			1,455			9,512
Accelerated amortization		-			78			-			1,520
Income (loss) from operations		7,120			(2,056	)		15,282			(4,925	)

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ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA (1)
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended						For the Six Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Net earnings (loss) from continuing operations		7,140			(1,345	)		11,116			(6,527	)
Income taxes		(1,916	)		(2,608	)		765			(1,876	)
Other expense		(1,896	)		(1,897	)		(3,401	)		(3,478	)
Income (loss) from operations		7,120			(2,056	)		15,282			(4,925	)
Depreciation and amortization		20,360			20,635			41,150			42,410
Less:
Deferred interest amortization		-			333			-			589
Adjusted depreciation and amortization		20,360			20,302			41,150			41,821
EBITDA		27,480			18,246			56,432			36,896
Other adjustments:
Non-cash stock compensation (cost of revenue and operating expenses)		11,938			7,360			20,528			15,483
Impairment of goodwill and other		-			729			-			729
Gains, losses, and other items, net		300			2,504			614			3,311
Separation and transformation costs (general and administrative)		1,455			6,098			1,455			9,512
Other adjustments		13,693			16,691			22,597			29,035
Adjusted EBITDA		41,173			34,937			79,029			65,931
(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.

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ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
	September 30,			March 31,			$				%
	2016			2016			Variance			Variance
Assets
Current assets:
Cash and cash equivalents		175,409			189,629			(14,220	)		(7.5	%)
Trade accounts receivable, net		130,509			138,650			(8,141	)		(5.9	%)
Refundable income taxes		5,347			9,834			(4,487	)		(45.6	%)
Other current assets		42,916			37,897			5,019			13.2	%
Total current assets		354,181			376,010			(21,829	)		(5.8	%)
Property and equipment		521,793			528,675			(6,882	)		(1.3	%)
Less - accumulated depreciation and amortization		346,857			345,632			1,225			0.4	%
Property and equipment, net		174,936			183,043			(8,107	)		(4.4	%)
Software, net of accumulated amortization		45,048			55,735			(10,687	)		(19.2	%)
Goodwill		487,055			492,745			(5,690	)		(1.2	%)
Purchased software licenses, net of accumulated amortization		8,792			10,116			(1,324	)		(13.1	%)
Deferred income taxes		10,038			6,885			3,153			45.8	%
Other assets, net		22,007			25,315			(3,308	)		(13.1	%)
		1,102,057			1,149,849			(47,792	)		(4.2	%)
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt		32,281			32,243			38			0.1	%
Trade accounts payable		36,300			37,717			(1,417	)		(3.8	%)
Accrued payroll and related expenses		35,413			61,309			(25,896	)		(42.2	%)
Other accrued expenses		46,581			48,254			(1,673	)		(3.5	%)
Deferred revenue		33,394			44,477			(11,083	)		(24.9	%)
Total current liabilities		183,969			224,000			(40,031	)		(17.9	%)
Long-term debt		142,341			157,897			(15,556	)		(9.9	%)
Deferred income taxes		53,532			53,964			(432	)		(0.8	%)
Other liabilities		14,727			15,020			(293	)		(2.0	%)
Stockholders' equity:
Common stock		13,190			13,039			151			1.2	%
Additional paid-in capital		1,115,194			1,082,220			32,974			3.0	%
Retained earnings		609,617			598,501			11,116			1.9	%
Accumulated other comprehensive income		7,616			8,590			(974	)		(11.3	%)
Treasury stock, at cost		(1,038,129	)		(1,003,382	)		(34,747	)		(3.5	%)
Total stockholders' equity		707,488			698,968			8,520			1.2	%
		1,102,057			1,149,849			(47,792	)		(4.2	%)

12

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	September 30,
	2016			2015
Cash flows from operating activities:
Net earnings		7,140			10,723
Earnings from discontinued operations, net of tax		-			(12,068	)
Non-cash operating activities:
Depreciation and amortization		20,360			20,635
Loss (gain) on disposal or impairment of assets		(629	)		(57	)
Impairment of goodwill and other		-			729
Deferred income taxes		(5,861	)		1,806
Non-cash stock compensation expense		11,914			7,360
Changes in operating assets and liabilities:
Accounts receivable		(11,051	)		(1,244	)
Other assets		(1,704	)		(2,405	)
Accounts payable and other liabilities		19,241			(6,829	)
Deferred revenue		(3,928	)		2,707
Net cash provided by operating activities		35,482			21,357
Cash flows from investing activities:
Capitalized software		(3,893	)		(3,936	)
Capital expenditures		(9,845	)		(10,244	)
Data acquisition costs		(247	)		(281	)
Net cash received in disposition		16,988			-
Net cash provided by (used in) investing activities		3,003			(14,461	)
Cash flows from financing activities:
Payments of debt		(8,058	)		(63,039	)
Sale of common stock, net of stock acquired for withholding taxes		4,326			2,033
Excess tax benefits from share-based compensation		901			(475	)
Acquisition of treasury stock		(10,335	)		(12,310	)
Net cash used in financing activities		(13,166	)		(73,791	)
Cash flows from discontinued operations:
From operating activities		-			(1,938	)
From investing activities		-			127,315
From financing activities		-			(53	)
Net cash provided by discontinued operations		-			125,324
Effect of exchange rate changes on cash		(70	)		(676	)
Net change in cash and cash equivalents		25,249			57,753
Cash and cash equivalents at beginning of period		150,160			123,192
Cash and cash equivalents at end of period		175,409			180,945
Supplemental cash flow information:
Cash paid during the period for:
Interest		1,704			2,152
Income taxes		273			6,310
Prepayment of debt		-			55,000
Payments on capital leases and installment payment arrangements		-			53
Other debt payments, excluding line of credit		8,058			8,039

13

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
	For the Six Months Ended
	September 30,
	2016			2015
Cash flows from operating activities:
Net earnings		11,116			9,684
Earnings from discontinued operations, net of tax		-			(16,211	)
Non-cash operating activities:
Depreciation and amortization		41,150			42,410
Loss (gain) on disposal or impairment of assets		(629	)		161
Impairment of goodwill and other		-			729
Deferred income taxes		(6,539	)		284
Non-cash stock compensation expense		20,504			15,483
Changes in operating assets and liabilities:
Accounts receivable		(1,564	)		(9,281	)
Other assets		3,679			(2,021	)
Accounts payable and other liabilities		(21,780	)		(10,336	)
Deferred revenue		(9,705	)		2,452
Net cash provided by operating activities		36,232			33,354
Cash flows from investing activities:
Capitalized software		(7,875	)		(6,733	)
Capital expenditures		(20,539	)		(23,120	)
Data acquisition costs		(267	)		(711	)
Net cash received in disposition		16,988			-
Net cash used in investing activities		(11,693	)		(30,564	)
Cash flows from financing activities:
Payments of debt		(16,111	)		(71,138	)
Sale of common stock, net of stock acquired for withholding taxes		7,300			4,102
Excess tax benefits from share-based compensation		1,415			(552	)
Acquisition of treasury stock		(30,542	)		(27,261	)
Net cash used in financing activities		(37,938	)		(94,849	)
Cash flows from discontinued operations:
From operating activities		-			9,715
From investing activities		-			122,831
From financing activities		-			(206	)
Net cash provided by discontinued operations		-			132,340
Effect of exchange rate changes on cash		(821	)		(346	)
�� Net change in cash and cash equivalents		(14,220	)		39,935
Cash and cash equivalents at beginning of period		189,629			141,010
Cash and cash equivalents at end of period		175,409			180,945
Supplemental cash flow information:
Cash paid during the period for:
Interest		3,962			4,337
Income taxes		197			5,266
Prepayment of debt		-			55,000
Payments on capital leases and installment payment arrangements		-			269
Other debt payments, excluding line of credit		16,111			16,075

14

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			09/30/16			YTD FY2017
Net Cash Provided by Operating Activities		11,997			21,357			37,018			43,270			113,642			750			35,482			36,232
Less (plus):
Capitalized software		(2,797	)		(3,936	)		(3,627	)		(4,520	)		(14,880	)		(3,982	)		(3,893	)		(7,875	)
Capital expenditures		(12,876	)		(10,244	)		(10,702	)		(13,601	)		(47,423	)		(10,694	)		(9,845	)		(20,539	)
Data acquisition costs		(430	)		(281	)		(424	)		(418	)		(1,553	)		(20	)		(247	)		(267	)
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	)		(8,058	)		(16,111	)
Net cash received in disposition		-			-			-			-			-			-			16,988			16,988
Free Cash Flow to Equity		(12,205	)		(1,143	)		14,220			16,683			17,555			(21,999	)		30,427			8,428
(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.

15

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS-GAAP
(Unaudited)
(Dollars in thousands, except earnings (loss) per share)
																									Q2 FY17 to Q2 FY16
	06/30/15			09/30/15			12/31/15			03/31/16			FY2016			06/30/16			09/30/16			YTD FY2017			%			$
Revenues		196,895			207,345			221,193			224,655			850,088			214,801			217,267			432,068			4.8	%	9,922
Cost of revenue		117,709			121,312			125,735			123,626			488,382			122,819			120,105			242,924			-1.0	%	(1,207	)
Gross profit		79,186			86,033			95,458			101,029			361,706			91,982			97,162			189,144			12.9	%	11,129
% Gross margin		40.2	%		41.5	%		43.2	%		45.0	%		42.5	%		42.8	%		44.7	%		43.8	%
Operating expenses
Research and development		20,011			19,078			18,400			16,758			74,247			18,652			19,029			37,681			-0.3	%	(49	)
Sales and marketing		29,494			34,259			36,581			45,842			146,176			37,348			37,847			75,195			10.5	%	3,588
General and administrative		31,743			31,519			36,793			35,330			135,385			27,506			32,866			60,372			4.3	%	1,347
Impairment of goodwill and other		-			729			-			6,100			6,829			-			-			-			-100.0	%	(729	)
Gains, losses and other items, net		807			2,504			4,058			4,763			12,132			314			300			614			-88.0	%	(2,204	)
Total operating expenses		82,055			88,089			95,832			108,793			374,769			83,820			90,042			173,862			2.2	%	1,953
Income (loss) from operations		(2,869	)		(2,056	)		(374	)		(7,764	)		(13,063	)		8,162			7,120			15,282			446.3	%	9,176
% Margin		-1.5	%		-1.0	%		-0.2	%		-3.5	%		-1.5	%		3.8	%		3.3	%		3.5	%
Other income (expense)
Interest expense		(1,885	)		(1,956	)		(1,948	)		(1,880	)		(7,669	)		(1,812	)		(1,689	)		(3,501	)		13.7	%	267
Other, net		304			59			303			(214	)		452			307			(207	)		100			-450.8	%	(266	)
Total other expense		(1,581	)		(1,897	)		(1,645	)		(2,094	)		(7,217	)		(1,505	)		(1,896	)		(3,401	)		0.1	%	1
Earnings (loss) from continuing operations before income taxes		(4,450	)		(3,953	)		(2,019	)		(9,858	)		(20,280	)		6,657			5,224			11,881			232.2	%	9,177
Income taxes		732			(2,608	)		(1,580	)		(8,176	)		(11,632	)		2,681			(1,916	)		765			26.5	%	692
Net earnings (loss) from continuing operations		(5,182	)		(1,345	)		(439	)		(1,682	)		(8,648	)		3,976			7,140			11,116			630.9	%	8,485
Earnings (loss) from discontinued operations, net of tax		4,143			12,068			(971	)		111			15,351			-			-			-			-100.0	%	(12,068	)
Net earnings (loss)		(1,039	)		10,723			(1,410	)		(1,571	)		6,703			3,976			7,140			11,116			-33.4	%	(3,583	)
Diluted earnings (loss) per share		(0.01	)		0.14			(0.02	)		(0.02	)		0.09			0.05			0.09			0.14			-34.5	%	(0.05	)
Diluted earnings (loss) per share continuing operations		(0.07	)		(0.02	)		(0.01	)		(0.02	)		(0.11	)		0.05			0.09			0.14			622.0	%	0.11
Some earnings (loss) per share amounts may not add due to rounding

16

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
(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		09/30/16			YTD FY2017
Earnings (loss) from continuing operations before income taxes		(4,450	)		(3,953	)		(2,019	)		(9,858	)		(20,280	)		6,657		5,224			11,881
Income taxes		732			(2,608	)		(1,580	)		(8,176	)		(11,632	)		2,681		(1,916	)		765
Net earnings (loss) from continuing operations		(5,182	)		(1,345	)		(439	)		(1,682	)		(8,648	)		3,976		7,140			11,116
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		7,140			11,116
Earnings (loss) per share:
Basic		(0.01	)		0.14			(0.02	)		(0.02	)		0.09			0.05		0.09			0.14
Diluted		(0.01	)		0.14			(0.02	)		(0.02	)		0.09			0.05		0.09			0.14
Excluded items:
Purchased intangible asset amortization  (cost of revenue)		3,754			3,754			3,754			4,204			15,466			4,077		3,890			7,967
Non-cash stock compensation (cost of revenue and operating expenses)		8,123			7,360			8,046			7,934			31,463			8,590		11,938			20,528
Impairment of goodwill and other		-			729			-			6,100			6,829			-		-			-
Restructuring charges (gains, losses, and other)		807			2,504			4,058			4,763			12,132			314		929			1,243
Gain on sale of Impact (gains, losses, and other)		-			-			-			-			-			-		(629	)		(629	)
Separation and transformation costs (general and administrative)		3,414			6,098			6,628			4,686			20,826			-		1,455			1,455
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		17,583			30,564
Earnings from continuing operations before income taxes
and excluding items		13,090			16,570			20,545			18,081			68,286			19,638		22,807			42,445
Income taxes		5,632			5,163			6,399			4,262			21,456			7,852		8,910			16,762
Non-GAAP net earnings		7,458			11,407			14,146			13,819			46,830			11,786		13,897			25,683
Non-GAAP earnings per share:
Basic		0.10			0.15			0.18			0.18			0.60			0.15		0.18			0.33
Diluted		0.09			0.14			0.18			0.18			0.59			0.15		0.18			0.32
Basic weighted average shares		77,918			77,960			77,831			76,753			77,616			77,471		77,446			77,459
Diluted weighted average shares		79,352			79,310			79,346			78,386			79,099			79,353		79,277			79,317
Some earnings per share amounts may not add due to rounding
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitue 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 and the material limitations on the usefulness of these measures, please see Appendix A.

17

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
																									Q2 FY17 to Q2 FY16
	06/30/15			09/30/15			12/31/15			03/31/16			FY2016			06/30/16			09/30/16			YTD FY2017			%			$
Revenues:
Marketing Services		107,726			112,979			115,725			113,342			449,772			109,715			105,679			215,394			-6.5	%	(7,300	)
Audience Solutions		68,550			72,122			77,046			80,128			297,846			73,744			78,526			152,270			8.9	%	6,404
Connectivity		20,619			22,244			28,422			31,185			102,470			31,342			33,062			64,404			48.6	%	10,818
Total operating segment revenues		196,895			207,345			221,193			224,655			850,088			214,801			217,267			432,068			4.8	%	9,922
Gross profit:
Marketing Services		36,034			37,545			38,561			40,117			152,257			37,466			34,480			71,946			-8.2	%	(3,065	)
Audience Solutions		36,824			39,170			45,265			46,457			167,716			41,912			47,998			89,910			22.5	%	8,828
Connectivity		11,953			13,499			16,130			19,617			61,199			17,575			19,843			37,418			47.0	%	6,344
Total operating segment gross profit		84,811			90,214			99,956			106,191			381,172			96,953			102,321			199,274			13.4	%	12,107
Gross margin:
Marketing Services		33.4	%		33.2	%		33.3	%		35.4	%		33.9	%		34.1	%		32.6	%		33.4	%
Audience Solutions		53.7	%		54.3	%		58.8	%		58.0	%		56.3	%		56.8	%		61.1	%		59.0	%
Connectivity		58.0	%		60.7	%		56.8	%		62.9	%		59.7	%		56.1	%		60.0	%		58.1	%
Total operating segment gross margin		43.1	%		43.5	%		45.2	%		47.3	%		44.8	%		45.1	%		47.1	%		46.1	%
Income (loss) from operations:
Marketing Services		16,853			17,908			20,309			19,301			74,371			20,145			19,837			39,982			10.8	%	1,929
Audience Solutions		24,087			25,190			30,723			29,598			109,598			25,096			29,972			55,068			19.0	%	4,782
Connectivity		(791	)		(1,068	)		(1,015	)		(424	)		(3,298	)		291			1,663			1,954			255.7	%	2,731
Total operating segment income from operations		40,149			42,030			50,017			48,475			180,671			45,532			51,472			97,004			22.5	%	9,442
Operating income (loss) margin:
Marketing Services		15.6	%		15.9	%		17.5	%		17.0	%		16.5	%		18.4	%		18.8	%		18.6	%
Audience Solutions		35.1	%		34.9	%		39.9	%		36.9	%		36.8	%		34.0	%		38.2	%		36.2	%
Connectivity		-3.8	%		-4.8	%		-3.6	%		-1.4	%		-3.2	%		0.9	%		5.0	%		3.0	%
Total operating segment operating margin		20.4	%		20.3	%		22.6	%		21.6	%		21.3	%		21.2	%		23.7	%		22.5	%
Some totals may not add due to rounding.

18

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
Earnings before income taxes		11,000
Income taxes		1,700
Net earnings		9,300
Diluted earnings per share	$	0.12
Excluded items:
Purchased intangible asset amortization		16,000
Non-cash stock compensation		42,000
Restructuring charges and gain on sale of Impact		1,000
Separation and transformation costs		10,000
Total excluded items		69,000
Earnings before income taxes and excluding items		80,000
Income taxes (2)		32,000
Non-GAAP net earnings		48,000
Non-GAAP diluted earnings per share	$	0.60
Diluted weighted average shares		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 using 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, including the federal and state income tax benefit related to the sale of Impact.

19

ACXIOM CORPORATION	APPENDIX A
Q2 FISCAL 2017 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES
To supplement our financial results, we use non-GAAP measures which exclude certain acquisition related
expenses, non-cash stock compensation and restructuring charges. We believe these measures 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 consolidated GAAP financial statements. Our management regularly uses these non-GAAP
financial measures internally to understand, manage and evaluate our business and to make operating decisions.
These 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 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: 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. During the current year, we also recognized a gain of the sale of the Acxiom Impact business. These
items, reported as gains, losses, and other items, net, are excluded from non-GAAP results because such amounts
are not used by us to assess the core profitability of our business operations.
Separation and transformation costs:  In prior years, we incurred significant expenses in connection with the
separation of our IT Infrastructure Management ("ITO") and the subsequent transformation of our remaining
operating segments. This work enabled us to transform our external reporting and provide investors with enhanced
transparency and more granular segment-level disclosures in addition to facilitating the ITO disposition. In the
current year, we are incurring expenses to further separate the financial statements of our three operating segments,
with particular focus on segment-level balance sheets, and to evaluate portfolio priorities. Our criteria for excluding
separation and transformation expenses from our non-GAAP measures is as follows: 1) projects are discrete in
nature; 2) excluded expenses consist only of third-party consulting fees that we would not incur otherwise; and
3) we do not exclude employee related expenses or other costs associated with the ongoing operations of our
business. We expect to complete these current projects in the next 8 to 12 months. We believe excluding these
items from our non-GAAP financials measures is useful for investors and provides meaningful supplemental information.

Our non-GAAP financial schedules are:

Non-GAAP EPS and Non-GAAP Income (loss) from Operations: Our non-GAAP earnings per share and Non-

GAAP income (loss) from operations reflect 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.