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

ACXIOM ANNOUNCES FIRST QUARTER RESULTS

Connectivity Revenue Growth Accelerates to 44% Year-Over-Year

CONWAY, Ark., August 3, 2017—Acxiom® (Nasdaq: ACXM), the data foundation for the world's best marketers, today announced financial results for its first quarter ended June 30, 2017.

Financial Highlights

· Revenue: Total revenue was $213 million or down 1% compared to the first quarter of last year. Year-over-year revenue growth was negatively impacted by $12 million associated with the 2017 divestiture of Acxiom Impact and $1 million of FX.

· Operating Income (Loss): GAAP operating loss was $6 million compared to operating income of $8 million in the prior year. Non-GAAP operating income improved 6% to approximately $22 million.

· Earnings (Loss) per Share: GAAP diluted loss per share was $0.02 compared to earnings per share of $0.05 in the prior year. Non-GAAP diluted earnings per share were $0.14 compared to $0.15 a year ago.

· Operating Cash Flow: Operating cash flow was $5 million, up from $1 million in the prior year.

· Free Cash Flow to Equity: Free cash flow to equity was negative $6 million, up from negative $22 million in the prior year. For the trailing twelve-month period, free cash flow to equity improved to $79 million, up from $8 million in the comparable period.

Segment Results

$M

Connectivity	Q118	Q117	Y/Y Δ
Revenue	$ 45	$ 31	44%
Gross Profit	$ 28	$ 18	57%
Gross Margin	61%	56%	480 bps
Segment Operating Income (Loss)	$ (0)	$ 0	(117%)
Segment Margin	(0%)	1%	(100) bps
Audience Solutions	Q118	Q117	Y/Y Δ
Revenue	$ 76	$ 74	3%
Gross Profit	$ 47	$ 42	13%
Gross Margin	62%	57%	550 bps
Segment Operating Income	$ 29	$ 25	14%
Segment Margin	38%	34%	370 bps

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Marketing Services	Q118	Q117	Y/Y Δ
Revenue	$ 92	$ 110	(17%)
Gross Profit	$ 31	$ 37	(16%)
Gross Margin	34%	34%	10 bps
Segment Operating Income	$ 20	$ 20	(2%)
Segment Margin	22%	18%	320 bps

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.

"We remain on track to meet our profit objectives for the year," said Acxiom CEO Scott Howe. "While our near-term top-line expectations have declined, our business remains strong. We are expanding internationally, our Connectivity business continues to fire on all cylinders, and we are making good progress against our key growth inititiatives."

Recent Business Highlights

· LiveRamp® added approximately 40 new direct clients during the quarter and added over 25 new partner integrations. Marketers can now onboard and activate their data across a growing network of more than 500 publishers and marketing technology providers.

· LiveRamp launched IdentityLink™ for publishers. This solution allows publishers to better monetize their audiences by supporting brands' people-based marketing initiatives. Over 200 publishers are now using IdentityLink, which unifies LiveRamp's identity resolution suite of capabilities with those acquired in the 2016 acquisitions of Arbor and Circulate.

· Audience Solutions announced several new data partnerships, including a measurement partnership with Pinterest and an integration with LinkedIn that will enhance people-based targeting on its platform.

· Acxiom launched Connected Spaces, a global solution designed to deliver more relevant customer experiences at retail, travel and leisure locations such as airports, malls, sports stadiums, concert arenas and resorts. In partnership with Adobe Experience Cloud, Connected Spaces enables locations to identify, understand and engage with the thousands of people coming through their doors.

· Acxiom launched its InfoBase® consumer database and AbiliTec® Identity Resolution offering in Mexico, enabling companies to reach 78 million unique individuals, covering 84 percent of all adults in Mexico.

· Acxiom was awarded five new patents for data processing and management technology. Designed to support the data science underlying its best-of-breed marketing solutions, the new patents extend Acxiom's leadership in people-based marketing and ethical data use.

· Acxiom was named one of the Best Places to Work in Arkansas by Arkansas Business. Acxiom has previously been recognized as a Best Place to Work by Glassdoor, San Francisco Business Times and Silicon Valley Business Journal, among others. It has also been certified as a great workplace by the independent analysts at Great Place to Work®.

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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 business separation costs.

For fiscal 2018, Acxiom expects to report:

· Revenue of between $920 million and$930 million, an increase of between 7% and 8% year-over-year after adjusting for the Acxiom Impact divestiture. This represents a downward adjustment of $15 million to $25 million from prior guidance.

· GAAP diluted loss per share of approximately $0.06

· Non-GAAP diluted earnings per share of approximately $0.80, an increase of 13% year-over-year

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 and can be found on our investor site. A slide presentation will be referenced during the call and can be accessed here.

About Acxiom

Acxiom 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 ethical data use 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. Acxiom is a registered trademark of Acxiom Corporation. For more information, visit Acxiom.com.

Forward-Looking Statements

This release and today's conference call contain 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 the integration of acquired businesses may not be successful as planned; 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 purchasers will reduce their reliance on us by developing and using their own, or alternative, sources of data generally or with respect to certain data elements or categories; 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 the possibility that other risks and uncertainties may emerge, 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, 2017, which was filed with the Securities and Exchange Commission on May 26, 2017.

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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.

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

For more information, contact:

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

EACXM

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ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
	For the Three Months Ended
	June 30,
							$				%
	2017			2016			Variance			Variance
Revenues		212,514			214,801			(2,287	)		(1.1	%)
Cost of revenue		113,960			122,819			(8,859	)		(7.2	%)
Gross profit		98,554			91,982			6,572			7.1	%
% Gross margin		46.4	%		42.8	%
Operating expenses:
Research and development		23,563			18,652			4,911			26.3	%
Sales and marketing		48,440			37,348			11,092			29.7	%
General and administrative		32,356			27,506			4,850			17.6	%
Gains, losses and other items, net		(98	)		314			(412	)		(131.2	%)
Total operating expenses		104,261			83,820			20,441			24.4	%
Income (loss) from operations		(5,707	)		8,162			(13,869	)		(169.9	%)
% Margin		-2.7	%		3.8	%
Other income (expense):
Interest expense		(2,342	)		(1,812	)		(530	)		(29.2	%)
Other, net		(672	)		307			(979	)		(319.0	%)
Total other expense		(3,014	)		(1,505	)		(1,509	)		(100.3	%)
Earnings (loss) before income taxes		(8,721	)		6,657			(15,378	)		(231.0	%)
Income taxes		(7,421	)		2,681			(10,102	)		(376.8	%)
Net earnings (loss)		(1,300	)		3,976			(5,276	)		(132.7	%)
Basic earnings (loss) per share		(0.02	)		0.05			(0.07	)		(132.2	%)
Diluted earnings (loss) per share		(0.02	)		0.05			(0.07	)		(133.0	%)
Basic weighted average shares		78,672			77,471
Diluted weighted average shares		78,672			79,353

5

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
(Unaudited)
(Dollars in thousands, except per share amounts)
	For the Three Months Ended
	June 30,
	2017			2016
Earnings (loss) before income taxes		(8,721	)		6,657
Income taxes		(7,421	)		2,681
Net earnings (loss)		(1,300	)		3,976
Earnings (loss) per share:
Basic		(0.02	)		0.05
Diluted		(0.02	)		0.05
Excluded items:
Purchased intangible asset amortization (cost of revenue)		5,966			4,077
Non-cash stock compensation (cost of revenue and operating expenses)		15,031			8,590
Restructuring and merger charges (gains, losses, and other)		(98	)		314
Separation and transformation costs (general and administrative)		7,119			-
Total excluded items		28,018			12,981
Earnings before income taxes
and excluding items		19,297			19,638
Income taxes (2)		7,720			7,852
Non-GAAP net earnings		11,577			11,786
Non-GAAP earnings per share:
Basic		0.15			0.15
Diluted		0.14			0.15
Basic weighted average shares		78,672			77,471
Diluted weighted average shares		81,440			79,353
(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 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% in both periods presented. The difference between our GAAP and non-GAAP tax rates were primarily due to the net tax effects of the excluded items.

6

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INCOME (LOSS) FROM OPERATIONS (1)
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	June 30,
	2017			2016
Income (loss) from operations		(5,707	)		8,162
Excluded items:
Purchased intangible asset amortization (cost of revenue)		5,966			4,077
Non-cash stock compensation (cost of revenue and operating expenses)		15,031			8,590
Restructuring and merger charges (gains, losses, and other)		(98	)		314
Separation and transformation costs (general and administrative)		7,119			-
Total excluded items		28,018			12,981
Income from operations before excluded items		22,311			21,143
(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 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
	June 30,
							$				%
	2017			2016			Variance			Variance
Revenues
Marketing Services		91,594			109,715			(18,121	)		(16.5	%)
Audience Solutions		75,734			73,744			1,990			2.7	%
Connectivity		45,186			31,342			13,844			44.2	%
Total operating segment revenues		212,514			214,801			(2,287	)		(1.1	%)
Gross profit
Marketing Services		31,358			37,466			(6,108	)		(16.3	%)
Audience Solutions		47,210			41,912			5,298			12.6	%
Connectivity		27,525			17,575			9,950			56.6	%
Total operating segment gross profit		106,093			96,953			9,140			9.4	%
Gross margin %
Marketing Services		34.2	%		34.1	%
Audience Solutions		62.3	%		56.8	%
Connectivity		60.9	%		56.1	%
Total operating segment gross margin		49.9	%		45.1	%
Income (loss) from operations
Marketing Services		19,784			20,145			(361	)		(1.8	%)
Audience Solutions		28,542			25,096			3,446			13.7	%
Connectivity		(48	)		291			(339	)		(116.6	%)
Total operating segment income from operations		48,277			45,532			2,745			6.0	%
Operating income (loss) margin %
Marketing Services		21.6	%		18.4	%
Audience Solutions		37.7	%		34.0	%
Connectivity		(0.1	%)		0.9	%
Total operating segment operating margin		22.7	%		21.2	%
Some totals may not add due to rounding.

8

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF SEGMENT RESULTS
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	June 30,
	2017			2016
Total operating segment gross profit		106,093			96,953
Less:
Purchased intangible asset amortization		5,966			4,077
Non-cash stock compensation		1,573			894
Gross profit		98,554			91,982
Total operating segment income from operations		48,277			45,532
Less:
Corporate expenses		25,967			24,389
Purchased intangible asset amortization		5,966			4,077
Non-cash stock compensation		15,031			8,590
Restructuring charges		(98	)		314
Separation and transformation costs		7,119			-
Income (loss) from operations		(5,707	)		8,162
Some totals may not add due to rounding.

9

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA (1)
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	June 30,
	2017			2016
Net earnings (loss)		(1,300	)		3,976
Income taxes		(7,421	)		2,681
Other expense		(3,014	)		(1,505	)
Income (loss) from operations		(5,707	)		8,162
Depreciation and amortization		21,110			20,790
EBITDA		15,403			28,952
Other adjustments:
Non-cash stock compensation (cost of revenue and operating expenses)		15,031			8,590
Gains, losses, and other items, net		(98	)		314
Separation and transformation costs (general and administrative)		7,119			-
Other adjustments		22,052			8,904
Adjusted EBITDA		37,455			37,856
(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
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
	June 30,			March 31,			$				%
	2017			2017			Variance			Variance
Assets
Current assets:
Cash and cash equivalents		163,146			170,343			(7,197	)		(4.2	%)
Trade accounts receivable, net		131,339			142,768			(11,429	)		(8.0	%)
Refundable income taxes		15,925			7,098			8,827			124.4	%
Other current assets		44,809			48,310			(3,501	)		(7.2	%)
Total current assets		355,219			368,519			(13,300	)		(3.6	%)
Property and equipment		480,212			476,281			3,931			0.8	%
Less - accumulated depreciation and amortization		325,962			320,307			5,655			1.8	%
Property and equipment, net		154,250			155,974			(1,724	)		(1.1	%)
Software, net of accumulated amortization		44,089			47,638			(3,549	)		(7.4	%)
Goodwill		592,761			592,731			30			0.0	%
Purchased software licenses, net of accumulated amortization		7,159			7,972			(813	)		(10.2	%)
Deferred income taxes		12,240			10,261			1,979			19.3	%
Other assets, net		48,179			51,443			(3,264	)		(6.3	%)
		1,213,897			1,234,538			(20,641	)		(1.7	%)
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt		2,339			39,819			(37,480	)		(94.1	%)
Trade accounts payable		41,414			40,208			1,206			3.0	%
Accrued payroll and related expenses		22,230			53,238			(31,008	)		(58.2	%)
Other accrued expenses		58,111			59,861			(1,750	)		(2.9	%)
Deferred revenue		32,522			37,087			(4,565	)		(12.3	%)
Total current liabilities		156,616			230,213			(73,597	)		(32.0	%)
Long-term debt		228,145			189,241			38,904			20.6	%
Deferred income taxes		60,026			58,374			1,652			2.8	%
Other liabilities		15,653			17,730			(2,077	)		(11.7	%)
Stockholders' equity:
Common stock		13,407			13,288			119			0.9	%
Additional paid-in capital		1,174,496			1,154,429			20,067			1.7	%
Retained earnings		603,551			602,609			942			0.2	%
Accumulated other comprehensive income		8,651			7,999			652			8.2	%
Treasury stock, at cost		(1,046,648	)		(1,039,345	)		(7,303	)		(0.7	%)
Total stockholders' equity		753,457			738,980			14,477			2.0	%
		1,213,897			1,234,538			(20,641	)		(1.7	%)

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ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	June 30,
	2017			2016
Cash flows from operating activities:
Net earnings (loss)		(1,300	)		3,976
Non-cash operating activities:
Depreciation and amortization		21,110			20,790
Loss on disposal of assets		163			-
Accelerated deferred debt costs		720			-
Deferred income taxes		2,497			(678	)
Non-cash stock compensation expense		15,038			8,590
Changes in operating assets and liabilities:
Accounts receivable		11,960			9,487
Other assets		(3,377	)		5,383
Accounts payable and other liabilities		(37,073	)		(41,021	)
Deferred revenue		(4,787	)		(5,777	)
Net cash provided by operating activities		4,951			750
Cash flows from investing activities:
Capitalized software		(3,388	)		(3,982	)
Capital expenditures		(6,888	)		(10,694	)
Data acquisition costs		(190	)		(20	)
Net cash used in investing activities		(10,466	)		(14,696	)
Cash flows from financing activities:
Proceeds from debt		230,000			-
Payments of debt		(225,572	)		(8,053	)
Fees for debt refinancing		(4,001	)		-
Sale of common stock, net of stock acquired for withholding taxes		(2,539	)		2,974
Excess tax benefits from share-based compensation		-			514
Acquisition of treasury stock		-			(20,207	)
Net cash used in financing activities		(2,112	)		(24,772	)
Effect of exchange rate changes on cash		430			(751	)
Net change in cash and cash equivalents		(7,197	)		(39,469	)
Cash and cash equivalents at beginning of period		170,343			189,629
Cash and cash equivalents at end of period		163,146			150,160
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest		2,375			2,258
Income taxes		354			(76	)

12

ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW TO EQUITY (1)
(Unaudited)
(Dollars in thousands)
	06/30/16			09/30/16			12/31/16			03/31/17			FY2017			06/30/17
Net Cash Provided by Operating Activities		750			35,482			48,933			30,665			115,830			4,951
Less (plus):
Capitalized software		(3,982	)		(3,893	)		(3,296	)		(3,306	)		(14,477	)		(3,388	)
Capital expenditures		(10,694	)		(9,845	)		(9,557	)		(17,897	)		(47,993	)		(6,888	)
Data acquisition costs		(20	)		(247	)		(196	)		(418	)		(881	)		(190	)
Required debt payments		(8,053	)		(8,058	)		(8,062	)		(8,070	)		(32,243	)		(572	)
Net cash received in disposition		-			16,988			-			-			16,988			-
Proceeds from sales of assets		-			-			-			25,494			25,494			-
Free Cash Flow to Equity		(21,999	)		30,427			27,822			26,468			62,718			(6,087	)
(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
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
																			Q1 FY18 to Q1 FY17
	06/30/16			09/30/16			12/31/16			03/31/17			FY2017			06/30/17			%			$
Revenues		214,801			217,267			223,312			224,867			880,247			212,514			-1.1	%	(2,287	)
Cost of revenue		122,819			120,105			116,468			118,294			477,686			113,960			-7.2	%	(8,859	)
Gross profit		91,982			97,162			106,844			106,573			402,561			98,554			7.1	%	6,572
% Gross margin		42.8	%		44.7	%		47.8	%		47.4	%		45.7	%		46.4	%
Operating expenses
Research and development		18,652			19,029			20,950			23,478			82,109			23,563			26.3	%	4,911
Sales and marketing		37,348			37,847			43,048			48,433			166,676			48,440			29.7	%	11,092
General and administrative		27,506			32,866			31,620			37,721			129,714			32,356			17.6	%	4,850
Impairment of goodwill and other		-			-			-			1,315			1,315			-			-		-
Gains, losses and other items, net		314			300			2,111			4,335			7,058			(98	)		-131.3	%	(412	)
Total operating expenses		83,820			90,042			97,729			115,282			386,872			104,261			24.4	%	20,441
Income (loss) from operations		8,162			7,120			9,115			(8,709	)		15,689			(5,707	)		-169.9	%	(13,869	)
% Margin		3.8	%		3.3	%		4.1	%		-3.9	%		1.8	%		-2.7	%
Other income (expense)
Interest expense		(1,812	)		(1,689	)		(1,743	)		(2,137	)		(7,381	)		(2,342	)		-29.2	%	(530	)
Other, net		307			(207	)		35			199			334			(672	)		-319.0	%	(979	)
Total other expense		(1,505	)		(1,896	)		(1,708	)		(1,937	)		(7,047	)		(3,014	)		-100.3	%	(1,509	)
Earnings (loss) before income taxes		6,657			5,224			7,407			(10,646	)		8,642			(8,721	)		-231.0	%	(15,378	)
Income taxes		2,681			(1,916	)		6,334			(2,565	)		4,534			(7,421	)		-376.8	%	(10,102	)
Net earnings (loss)		3,976			7,140			1,073			(8,081	)		4,108			(1,300	)		-132.7	%	(5,276	)
Diluted earnings (loss) per share		0.05			0.09			0.01			(0.10	)		0.05			(0.02	)		-133.0	%	(0.07	)
Some earnings (loss) per share amounts may not add due to rounding.

14

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
(Unaudited)
(Dollars in thousands, except per share amounts)
	06/30/16		09/30/16			12/31/16		03/31/17			FY2017			06/30/17
Earnings (loss) before income taxes		6,657		5,224			7,407		(10,646	)		8,642			(8,721	)
Income taxes		2,681		(1,916	)		6,334		(2,565	)		4,534			(7,421	)
Net earnings (loss)		3,976		7,140			1,073		(8,081	)		4,108			(1,300	)
Earnings (loss) per share:
Basic		0.05		0.09			0.01		(0.10	)		0.05			(0.02	)
Diluted		0.05		0.09			0.01		(0.10	)		0.05			(0.02	)
Excluded items:
Purchased intangible asset amortization (cost of revenue)		4,077		3,890			4,621		6,056			18,644			5,966
Non-cash stock compensation (cost of revenue and operating expenses)		8,590		11,938			13,427		15,190			49,145			15,031
Impairment of goodwill and other		-		-			-		1,315			1,315			-
Restructuring and merger charges (gains, losses, and other)		314		300			2,111		7,321			10,045			(98	)
Gain on sales of assets (gains, losses and other)		-		-			-		(2,986	)		(2,986	)		-
Separation and transformation costs (general and administrative)		-		1,455			4,118		3,066			8,639			7,119
Total excluded items		12,981		17,583			24,277		29,962			84,803			28,018
Earnings before income taxes
and excluding items		19,638		22,807			31,684		19,315			93,444			19,297
Income taxes		7,852		8,910			12,751		7,139			36,652			7,720
Non-GAAP net earnings		11,786		13,897			18,933		12,177			56,792			11,577
Non-GAAP earnings per share:
Basic		0.15		0.18			0.24		0.16			0.73			0.15
Diluted		0.15		0.18			0.24		0.15			0.71			0.14
Basic weighted average shares		77,471		77,446			77,507		78,012			77,609			78,672
Diluted weighted average shares		79,353		79,277			79,851		80,912			79,848			81,440
Some totals 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 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 and the material limitations on the usefulness of these measures, please see Appendix A.

15

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
																			Q1 FY18 to Q1 FY17
	06/30/16			09/30/16			12/31/16			03/31/17			FY2017			06/30/17			%			$
Revenues:
																			��
Marketing Services		109,715			105,679			101,177			94,269			410,840			91,594			-16.5	%	(18,121	)
Audience Solutions		73,744			78,526			83,399			86,396			322,065			75,734			2.7	%	1,990
Connectivity		31,342			33,062			38,736			44,203			147,342			45,186			44.2	%	13,844
Total operating segment revenues		214,801			217,267			223,312			224,867			880,247			212,514			-1.1	%	(2,287	)
Gross profit:
Marketing Services		37,466			34,480			37,494			31,207			140,647			31,358			-16.3	%	(6,108	)
Audience Solutions		41,912			47,998			53,120			55,154			198,185			47,210			12.6	%	5,298
Connectivity		17,575			19,843			23,091			27,742			88,251			27,525			56.6	%	9,950
Total operating segment gross profit		96,953			102,321			113,705			114,104			427,084			106,093			9.4	%	9,140
Gross margin %:
Marketing Services		34.1	%		32.6	%		37.1	%		33.1	%		34.2	%		34.2	%
Audience Solutions		56.8	%		61.1	%		63.7	%		63.8	%		61.5	%		62.3	%
Connectivity		56.1	%		60.0	%		59.6	%		62.8	%		59.9	%		60.9	%
Total operating segment gross margin		45.1	%		47.1	%		50.9	%		50.7	%		48.5	%		49.9	%
Income (loss) from operations:
Marketing Services		20,145			19,837			21,127			19,513			80,622			19,784			-1.8	%	(361	)
Audience Solutions		25,096			29,972			34,572			33,598			123,238			28,542			13.7	%	3,446
Connectivity		291			1,663			1,877			1,502			5,333			(48	)		-116.6	%	(339	)
Total operating segment income from operations		45,532			51,472			57,576			54,613			209,193			48,277			6.0	%	2,745
Operating income (loss) margin %:
Marketing Services		18.4	%		18.8	%		20.9	%		20.7	%		19.6	%		21.6	%
Audience Solutions		34.0	%		38.2	%		41.5	%		38.9	%		38.3	%		37.7	%
Connectivity		0.9	%		5.0	%		4.8	%		3.4	%		3.6	%		-0.1	%
Total operating segment operating margin		21.2	%		23.7	%		25.8	%		24.3	%		23.8	%		22.7	%
Some totals may not add due to rounding.

16

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS GUIDANCE (1)
(Unaudited)
(Dollars in thousands, except per share amounts)
	For the year ending
	March 31, 2018
Earnings before income taxes		1,500
Income taxes		6,500
Net loss		(5,000	)
Diluted loss per share	$	(0.06	)
Excluded items:
Purchased intangible asset amortization		24,000
Non-cash stock compensation		64,000
Gains, losses and other items, net		6,000
Separation and transformation costs		15,000
Total excluded items		109,000
Earnings before income taxes and excluding items		110,500
Income taxes (2)		44,200
Non-GAAP net earnings		66,300
Non-GAAP diluted earnings per share	$	0.80
Basic weighted average shares		80,000
Diluted weighted average shares		83,000
(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.

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ACXIOM CORPORATION	APPENDIX A
Q1 FISCAL 2018 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 and publisher 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.  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 previous 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 prior and
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 this fiscal year. We believe excluding these items from
our non-GAAP financials measures is useful for investors and provides meaningful supplemental information.

18

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.

19