LiveRamp Holdings, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 PRESS RELEASE AND FINANCIALS

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8-K - FORM 8-K Q3FY17 - LiveRamp Holdings, Inc.	f8k.htm

For more information, contact:

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

EACXM

ACXIOM ANNOUNCES THIRD QUARTER RESULTS

Strong Results Driven by Connectivity and Audience Solutions

Raises Fiscal 2017 Full-Year EPS Guidance

LITTLE ROCK, Ark. – January 31, 2017 Acxiom® (Nasdaq: ACXM), the data foundation for the world's best marketers, today announced financial results for its third quarter ended December 31, 2016.

Financial Highlights

·	Revenue: Total revenue was $223 million, up 1% compared to the third quarter of last year driven by growth in Connectivity and Audience Solutions offset by the divestiture of Acxiom Impact.

·	Operating Income (Loss): GAAP operating income from continuing operations was $9 million compared to a small loss in the prior year. Non-GAAP operating income from continuing operations improved 50% to approximately $33 million.

·	Earnings (Loss) per Share: GAAP diluted earnings per share from continuing operations were $0.01 compared to a loss per share of $0.01 in the prior year. Non-GAAP diluted earnings per share from continuing operations were $0.24, up from $0.18 a year ago.

·	Operating Cash Flow: Operating cash flow from continuing operations improved to $49 million, up from $37 million in the prior year. For the trailing twelve-month period, operating cash flow from continuing operations was $128 million, up from $100 million in the comparable period.

·	Free Cash Flow to Equity: Free cash flow to equity improved to $28 million, up from $14 million in the prior year. For the trailing twelve-month period, free cash flow to equity was $53 million, up from $3 million in the comparable period.

Segment Results

Marketing Services

·	Revenue was $101 million, down 13% compared to the third quarter of last year. Marketing Database and Strategy & Analytics revenue grew 1% year-over-year, but was more than offset by the divestiture of Acxiom Impact.

·	Gross margin improved from 33% to 37%.

·	Segment income was $21 million, up 4% compared to the prior year. Segment margin improved to 21%.

Audience Solutions

·	Revenue was $83 million, up 8% compared to the prior year.

·	Gross margin improved from 59% to 64%.

·	Segment income was $35 million, up 13% compared to the prior year. Segment margin improved to 41%.

Connectivity

·	Revenue, which includes the Arbor and Circulate acquisitions, was $39 million, up 36% compared to the third quarter of last year. LiveRamp™ product revenue grew 61% year-over-year.

·	Gross margin improved from 57% to 60%.

·	Segment income was $2 million compared to a loss of $1 million in the prior year. Segment margin improved to 5%.

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.

"Our global momentum continues to accelerate," said Acxiom CEO Scott Howe. "In addition, the integration of Arbor and Circulate is well underway and we are delivering the client benefits and financial synergies we anticipated. This is a win for our partner network, clients and shareholders."

Recent Business Highlights

LiveRamp completed the acquisitions of Arbor and Circulate, two companies at the forefront of helping publishers connect people-based data to the marketing ecosystem. The acquisitions double LiveRamp's publisher partnerships and bring strong "mobile-first" technology, international reach and impressive teams to LiveRamp.

·	Connectivity added more than 50 new direct customers during the quarter and added over 30 new partner integrations. Marketers can now onboard and activate their data across a growing network of more than 450 publishers and marketing technology providers.

·	Audience Solutions launched the Audience Cloud™ for advanced cross-channel management of Acxiom data. The self-service tool simplifies the process for creating and distributing audiences created from Acxiom data, resulting in better campaign planning, optimized marketing spend and increased ROI.

·	Acxiom was certified as a great workplace by the independent analysts at Great Place to Work® based on extensive ratings provided by its associates in anonymous surveys. In addition, LiveRamp was recently recognized as one of the top ten Best Places to Work by Glassdoor.

Financial Outlook

Acxiom's non-GAAP guidance excludes the impact of non-cash compensation, purchased intangible asset amortization, restructuring and merger charges, the gain on the disposal of Acxiom Impact and separation and transformation costs.

For fiscal 2017, Acxiom expects to report:

·	Revenue in the range of $870 million to $875 million

·	GAAP diluted earnings per share of approximately $0.11

·	Non-GAAP diluted earnings per share of approximately $0.70

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.

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 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 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, 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.

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings (loss) per share)


	For the Three Months Ended
	December 31,
							$				%
	2016			2015			Variance			Variance

Revenues		223,312			221,193			2,119			1.0	%

Cost of revenue		116,468			125,735			(9,267	)		(7.4	%)
Gross profit		106,844			95,458			11,386			11.9	%
% Gross margin		47.8	%		43.2	%

Operating expenses:
Research and development		20,950			18,400			2,550			13.9	%
Sales and marketing		43,048			36,581			6,467			17.7	%
General and administrative		31,620			36,793			(5,173	)		(14.1	%)
Gains, losses and other items, net		2,111			4,058			(1,947	)		(48.0	%)
Total operating expenses		97,729			95,832			1,897			2.0	%

Income (loss) from operations		9,115			(374	)		9,489			2537.2	%
% Margin		4.1	%		-0.2	%
Other income (expense):
Interest expense		(1,743	)		(1,948	)		205			10.5	%
Other, net		35			303			(268	)		(88.4	%)
Total other expense		(1,708	)		(1,645	)		(63	)		(3.8	%)

Earnings (loss) from continuing operations before income taxes		7,407			(2,019	)		9,426			466.9	%

Income taxes		6,334			(1,580	)		7,914			500.9	%

Net earnings (loss) from continuing operations		1,073			(439	)		1,512			344.4	%

Loss from discontinued operations, net of tax		-			(971	)		971			100.0	%

Net earnings (loss)		1,073			(1,410	)		2,483			176.1	%

Basic earnings (loss) per share:
Net earnings (loss) from continuing operations		0.01			(0.01	)		0.02			345.4	%
Net loss from discontinued operations		-			(0.01	)		0.01			100.0	%
Net earnings (loss)		0.01			(0.02	)		0.03			176.4	%

Diluted earnings (loss) per share:
Net earnings (loss) from continuing operations		0.01			(0.01	)		0.02			338.2	%
Net loss from discontinued operations		-			(0.01	)		0.01			100.0	%
Net earnings (loss)		0.01			(0.02	)		0.03			174.2	%

Basic weighted average shares		77,507			77,831

Diluted weighted average shares		79,851			77,831


ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings (loss) per share)


	For the Nine Months Ended
	December 31,
							$				%
	2016			2015			Variance			Variance

Revenues		655,380			625,433			29,947			4.8	%

Cost of revenue		359,392			364,756			(5,364	)		(1.5	%)
Gross profit		295,988			260,677			35,311			13.5	%
% Gross margin		45.2	%		41.7	%

Operating expenses:
Research and development		58,631			57,489			1,142			2.0	%
Sales and marketing		118,243			100,334			17,909			17.8	%
General and administrative		91,993			100,055			(8,062	)		(8.1	%)
Impairment of goodwill and other		-			729			(729	)		(100.0	%)
Gains, losses and other items, net		2,724			7,369			(4,645	)		(63.0	%)
Total operating expenses		271,591			265,976			5,615			2.1	%

Income (loss) from operations		24,397			(5,299	)		29,696			560.4	%
% Margin		3.7	%		-0.8	%
Other income (expense):
Interest expense		(5,244	)		(5,789	)		545			9.4	%
Other, net		135			666			(531	)		(79.7	%)
Total other expense		(5,109	)		(5,123	)		14			0.3	%

Earnings (loss) from continuing operations before income taxes		19,288			(10,422	)		29,710			285.1	%

Income taxes		7,099			(3,456	)		10,555			305.4	%

Net earnings (loss) from continuing operations		12,189			(6,966	)		19,155			275.0	%

Earnings from discontinued operations, net of tax		-			15,240			(15,240	)		(100.0	%)

Net earnings		12,189			8,274			3,915			47.3	%

Basic earnings (loss) per share:
Net earnings (loss) from continuing operations		0.16			(0.09	)		0.25			275.9	%
Net earnings from discontinued operations		-			0.20			(0.20	)		(100.0	%)
Net earnings		0.16			0.11			0.05			48.1	%

Diluted earnings (loss) per share:
Net earnings (loss) from continuing operations		0.15			(0.09	)		0.24			271.5	%
Net earnings from discontinued operations		-			0.20			(0.20	)		(100.0	%)
Net earnings		0.15			0.11			0.05			44.4	%

Basic weighted average shares		77,475			77,903

Diluted weighted average shares		79,494			77,903


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 Nine Months Ended
	December 31,					December 31,
	2016		2015			2016			2015


Earnings (loss) from continuing operations before income taxes		7,407		(2,019	)		19,288			(10,422	)

Income taxes		6,334		(1,580	)		7,099			(3,456	)

Net earnings (loss) from continuing operations		1,073		(439	)		12,189			(6,966	)

Earnings (loss) from discontinued operations, net of tax		-		(971	)		-			15,240

Net earnings (loss)		1,073		(1,410	)		12,189			8,274

Earnings (loss) per share:

Basic		0.01		(0.02	)		0.16			0.11

Diluted		0.01		(0.02	)		0.15			0.11

Excluded items:
Purchased intangible asset amortization (cost of revenue)		4,621		3,754			12,588			11,262
Non-cash stock compensation (cost of revenue and operating expenses)		13,427		8,046			33,955			23,529
Impairment of goodwill and other		-		-			-			729
Restructuring and merger charges (gains, losses, and other)		2,111		4,058			3,354			7,369
Gain on sale of Impact (gains, losses, and other)		-		-			(629	)		-
Separation and transformation costs (general and administrative)		4,118		6,628			5,573			16,140
Accelerated amortization (cost of revenue)		-		78			-			1,598

Total excluded items, continuing operations		24,277		22,564			54,841			60,627

Earnings from continuing operations before income taxes
and excluding items		31,684		20,545			74,129			50,205

Income taxes (2)		12,751		6,399			29,513			17,194

Non-GAAP net earnings		18,933		14,146			44,616			33,011

Non-GAAP earnings per share:

Basic		0.24		0.18			0.58			0.42

Diluted		0.24		0.18			0.56			0.42

Basic weighted average shares		77,507		77,831			77,475			77,903

Diluted weighted average shares		79,851		79,346			79,494			79,336

(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 40.2% and 31.1% in the third quarter of fiscal 2017 and 2016, respectively, and 39.8% and 34.2% for the nine months ended December 31, 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.


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 Nine Months Ended
	December 31,					December 31,
	2016		2015			2016			2015


Income (loss) from operations		9,115		(374	)		24,397			(5,299	)

Excluded items:
Purchased intangible asset amortization (cost of revenue)		4,621		3,754			12,588			11,262
Non-cash stock compensation (cost of revenue and operating expenses)		13,427		8,046			33,955			23,529
Impairment of goodwill and other		-		-			-			729
Restructuring and merger charges (gains, losses, and other)		2,111		4,058			3,354			7,369
Gain on sale of Impact (gains, losses, and other)		-		-			(629	)		-
Separation and transformation costs (general and administrative)		4,118		6,628			5,573			16,140
Accelerated amortization (cost of revenue)		-		78			-			1,598

Total excluded items, continuing operations		24,277		22,564			54,841			60,627

Income from operations before excluded items		33,392		22,190			79,238			55,328


(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.


ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)


	For the Three Months Ended
	December 31,
							$				%
	2016			2015			Variance			Variance

Revenues
Marketing Services		101,177			115,725			(14,548	)		(12.6	%)
Audience Solutions		83,399			77,046			6,352			8.2	%
Connectivity		38,736			28,422			10,314			36.3	%
Total operating segment revenues		223,312			221,193			2,118			1.0	%

Gross profit
Marketing Services		37,494			38,561			(1,067	)		(2.8	%)
Audience Solutions		53,120			45,265			7,855			17.4	%
Connectivity		23,091			16,130			6,961			43.2	%
Total operating segment gross profit		113,705			99,956			13,749			13.8	%

Gross margin %
Marketing Services		37.1	%		33.3	%
Audience Solutions		63.7	%		58.8	%
Connectivity		59.6	%		56.8	%
Total operating segment gross margin		50.9	%		45.2	%

Income (loss) from operations
Marketing Services		21,127			20,309			818			4.0	%
Audience Solutions		34,572			30,723			3,849			12.5	%
Connectivity		1,877			(1,015	)		2,892			284.9	%
Total operating segment income from operations		57,576			50,017			7,559			15.1	%

Operating income (loss) margin %
Marketing Services		20.9	%		17.5	%
Audience Solutions		41.5	%		39.9	%
Connectivity		4.8	%		-3.6	%
Total operating segment operating margin		25.8	%		22.6	%


ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)


	For the Nine Months Ended
	December 31,
							$				%
	2016			2015			Variance			Variance

Revenues
Marketing Services		316,571			336,430			(19,859	)		(5.9	%)
Audience Solutions		235,669			217,718			17,951			8.2	%
Connectivity		103,140			71,285			31,854			44.7	%
Total operating segment revenues		655,380			625,433			29,947			4.8	%

Gross profit
Marketing Services		109,440			112,140			(2,700	)		(2.4	%)
Audience Solutions		143,030			121,259			21,772			18.0	%
Connectivity		60,509			41,582			18,926			45.5	%
Total operating segment gross profit		312,979			274,981			37,998			13.8	%

Gross margin %
Marketing Services		34.6	%		33.3	%
Audience Solutions		60.7	%		55.7	%
Connectivity		58.7	%		58.3	%
Total operating segment gross margin		47.8	%		44.0	%

Income (loss) from operations
Marketing Services		61,109			55,070			6,039			11.0	%
Audience Solutions		89,640			80,000			9,640			12.1	%
Connectivity		3,831			(2,874	)		6,705			233.3	%
Total operating segment income from operations		154,580			132,196			22,384			16.9	%

Operating income (loss) margin %
Marketing Services		19.3	%		16.4	%
Audience Solutions		38.0	%		36.7	%
Connectivity		3.7	%		-4.0	%
Total operating segment operating margin		23.6	%		21.1	%


ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF SEGMENT RESULTS
(Unaudited)
(Dollars in thousands)

	For the Three Months Ended					For the Nine Months Ended
	December 31,					December 31,

	2016		2015			2016			2015

Total operating segment gross profit		113,705		99,956			312,979			274,981

Less:
Purchased intangible asset amortization		4,621		3,754			12,588			11,263
Non-cash stock compensation		2,240		666			4,404			1,443
Accelerated amortization		-		78			-			1,598

Gross profit		106,844		95,458			295,988			260,677


Total operating segment income from operations		57,576		50,017			154,580			132,196

Less:
Corporate expenses		24,185		27,827			75,342			76,868
Purchased intangible asset amortization		4,621		3,754			12,588			11,262
Non-cash stock compensation		13,427		8,046			33,955			23,529
Impairment of goodwill and other		-		-			-			729
Restructuring and merger charges		2,111		4,058			3,354			7,369
Gain on sale of Impact		-		-			(629	)		-
Separation and transformation costs		4,118		6,628			5,573			16,140
Accelerated amortization		-		78			-			1,598

Income (loss) from operations		9,115		(374	)		24,397			(5,299	)


ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA (1)
(Unaudited)
(Dollars in thousands)

	For the Three Months Ended						For the Nine Months Ended
	December 31,						December 31,
	2016			2015			2016			2015


Net earnings (loss) from continuing operations		1,073			(439	)		12,189			(6,966	)

Income taxes		6,334			(1,580	)		7,099			(3,456	)

Other expense		(1,708	)		(1,645	)		(5,109	)		(5,123	)

Income (loss) from operations		9,115			(374	)		24,397			(5,299	)

Depreciation and amortization		19,947			20,811			61,097			63,221
Less:
Deferred interest amortization		-			311			-			901
Adjusted depreciation and amortization		19,947			20,500			61,097			62,320

EBITDA		29,062			20,126			85,494			57,021


Other adjustments:
Non-cash stock compensation (cost of revenue and operating expenses)		13,427			8,046			33,955			23,529
Impairment of goodwill and other		-			-			-			729
Gains, losses, and other items, net		2,111			4,058			2,724			7,369
Separation and transformation costs (general and administrative)		4,118			6,628			5,573			16,140

Other adjustments		19,656			18,732			42,253			47,767

Adjusted EBITDA		48,718			38,858			127,747			104,788

(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.


ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)

	December 31,			March 31,			$				%
	2016			2016			Variance			Variance
Assets
Current assets:
Cash and cash equivalents		137,850			189,629			(51,779	)		(27.3	%)
Trade accounts receivable, net		137,523			138,650			(1,127	)		(0.8	%)
Refundable income taxes		526			9,834			(9,308	)		(94.7	%)
Other current assets		48,035			37,897			10,138			26.8	%

Total current assets		323,934			376,010			(52,076	)		(13.8	%)

Property and equipment		526,847			528,675			(1,828	)		(0.3	%)
Less - accumulated depreciation and amortization		352,842			345,632			7,210			2.1	%

Property and equipment, net		174,005			183,043			(9,038	)		(4.9	%)

Software, net of accumulated amortization		51,308			55,735			(4,427	)		(7.9	%)
Goodwill		591,102			492,745			98,357			20.0	%
Purchased software licenses, net of accumulated amortization		7,989			10,116			(2,127	)		(21.0	%)
Deferred income taxes		9,115			6,885			2,230			32.4	%
Other assets, net		52,421			25,315			27,106			107.1	%

		1,209,874			1,149,849			60,025			5.2	%

Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt		36,050			32,243			3,807			11.8	%
Trade accounts payable		43,117			37,717			5,400			14.3	%
Accrued payroll and related expenses		45,082			61,309			(16,227	)		(26.5	%)
Other accrued expenses		57,187			48,254			8,933			18.5	%
Deferred revenue		32,644			44,477			(11,833	)		(26.6	%)

Total current liabilities		214,080			224,000			(9,920	)		(4.4	%)

Long-term debt		200,798			157,897			42,901			27.2	%

Deferred income taxes		57,165			53,964			3,201			5.9	%

Other liabilities		14,721			15,020			(299	)		(2.0	%)

Stockholders' equity:
Common stock		13,222			13,039			183			1.4	%
Additional paid-in capital		1,131,553			1,082,220			49,333			4.6	%
Retained earnings		610,690			598,501			12,189			2.0	%
Accumulated other comprehensive income		6,297			8,590			(2,293	)		(26.7	%)
Treasury stock, at cost		(1,038,652	)		(1,003,382	)		(35,270	)		(3.5	%)
Total stockholders' equity		723,110			698,968			24,142			3.5	%

		1,209,874			1,149,849			60,025			5.2	%


ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)

	For the Three Months Ended
	December 31,

	2016			2015

Cash flows from operating activities:
Net earnings (loss)		1,073			(1,410	)
Earnings from discontinued operations, net of tax		-			971
Non-cash operating activities:
Depreciation and amortization		19,947			20,811
Loss (gain) on disposal or impairment of assets		(78	)		48
Deferred income taxes		4,557			(5,140	)
Non-cash stock compensation expense		13,427			8,046
Changes in operating assets and liabilities:
Accounts receivable		(4,597	)		(5,957	)
Other assets		4,974			(622	)
Accounts payable and other liabilities		10,172			13,518
Deferred revenue		(542	)		6,753
Net cash provided by operating activities		48,933			37,018
Cash flows from investing activities:
Capitalized software		(3,296	)		(3,627	)
Capital expenditures		(9,557	)		(10,702	)
Data acquisition costs		(196	)		(424	)
Net cash paid in acquisitions		(137,383	)		(5,386	)
Net cash used in investing activities		(150,432	)		(20,139	)
Cash flows from financing activities:
Proceeds from debt		70,000			-
Payments of debt		(8,062	)		(8,045	)
Sale of common stock, net of stock acquired for withholding taxes		2,370			2,241
Excess tax benefits from share-based compensation		370			2,574
Acquisition of treasury stock		-			(10,274	)
Net cash provided by (used in) financing activities		64,678			(13,504	)
Cash flows from discontinued operations:
From operating activities		-			562
From investing activities		-			1,675
From financing activities		-			-
Net cash provided by discontinued operations		-			2,237
Effect of exchange rate changes on cash		(738	)		(167	)

Net change in cash and cash equivalents		(37,559	)		5,445
Cash and cash equivalents at beginning of period		175,409			180,945
Cash and cash equivalents at end of period		137,850			186,390

Supplemental cash flow information:
Cash paid during the period for:
Interest		1,339			1,883
Income taxes		4,599			738
Other debt payments, excluding line of credit		8,062			8,045


ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)

	For the Nine Months Ended
	December 31,

	2016			2015

Cash flows from operating activities:
Net earnings		12,189			8,274
Earnings from discontinued operations, net of tax		-			(15,240	)
Non-cash operating activities:
Depreciation and amortization		61,097			63,221
Loss (gain) on disposal or impairment of assets		(520	)		209
Impairment of goodwill and other		-			729
Deferred income taxes		(1,982	)		(4,856	)
Non-cash stock compensation expense		33,955			23,529
Changes in operating assets and liabilities:
Accounts receivable		(6,161	)		(15,238	)
Other assets		8,653			(2,643	)
Accounts payable and other liabilities		(11,819	)		3,182
Deferred revenue		(10,247	)		9,205
Net cash provided by operating activities		85,165			70,372
Cash flows from investing activities:
Capitalized software		(11,171	)		(10,360	)
Capital expenditures		(30,096	)		(33,822	)
Data acquisition costs		(463	)		(1,135	)
Net cash paid in acquisitions		(137,383	)		(5,386	)
Net cash received in disposition		16,988			-
Net cash used in investing activities		(162,125	)		(50,703	)
Cash flows from financing activities:
Proceeds from debt		70,000			-
Payments of debt		(24,173	)		(79,183	)
Sale of common stock, net of stock acquired for withholding taxes		9,670			6,343
Excess tax benefits from share-based compensation		1,785			2,022
Acquisition of treasury stock		(30,542	)		(37,535	)
Net cash provided by (used in) financing activities		26,740			(108,353	)
Cash flows from discontinued operations:
From operating activities		-			10,277
From investing activities		-			124,506
From financing activities		-			(206	)
Net cash provided by discontinued operations		-			134,577
Effect of exchange rate changes on cash		(1,559	)		(513	)

Net change in cash and cash equivalents		(51,779	)		45,380
Cash and cash equivalents at beginning of period		189,629			141,010
Cash and cash equivalents at end of period		137,850			186,390

Supplemental cash flow information:
Cash paid during the period for:
Interest		5,301			6,220
Income taxes		4,796			6,004
Prepayment of debt		-			55,000
Payments on capital leases and installment payment arrangements		-			269
Other debt payments, excluding line of credit		24,173			24,120


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	12/31/16	YTD FY2017

Net Cash Provided by Operating Activities		11,997	21,357	37,018	43,270	113,642	750	35,482	48,933	85,165

Less (plus):
	Capitalized software	(2,797)	(3,936)	(3,627)	(4,520)	(14,880)	(3,982)	(3,893)	(3,296)	(11,171)
	Capital expenditures	(12,876)	(10,244)	(10,702)	(13,601)	(47,423)	(10,694)	(9,845)	(9,557)	(30,096)
	Data acquisition costs	(430)	(281)	(424)	(418)	(1,553)	(20)	(247)	(196)	(463)
	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)	(8,062)	(24,173)
	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	27,822	36,250

(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.


ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS-GAAP
(Unaudited)
(Dollars in thousands, except earnings (loss) per share)

																												Q3 FY17 to Q3 FY16
	06/30/15			09/30/15			12/31/15			03/31/16			FY2016			06/30/16			09/30/16			12/31/16			YTD FY2017			%			$
Revenues		196,895			207,345			221,193			224,655			850,088			214,801			217,267			223,312			655,380			1.0	%	2,119

Cost of revenue		117,709			121,312			125,735			123,626			488,382			122,819			120,105			116,468			359,392			-7.4	%	(9,267	)
Gross profit		79,186			86,033			95,458			101,029			361,706			91,982			97,162			106,844			295,988			11.9	%	11,386
% Gross margin		40.2	%		41.5	%		43.2	%		45.0	%		42.5	%		42.8	%		44.7	%		47.8	%		45.2	%

Operating expenses
Research and development		20,011			19,078			18,400			16,758			74,247			18,652			19,029			20,950			58,631			13.9	%	2,550
Sales and marketing		29,494			34,259			36,581			45,842			146,176			37,348			37,847			43,048			118,243			17.7	%	6,467
General and administrative		31,743			31,519			36,793			35,330			135,385			27,506			32,866			31,620			91,993			-14.1	%	(5,173	)
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			300			2,111			2,724			-48.0	%	(1,947	)
Total operating expenses		82,055			88,089			95,832			108,793			374,769			83,820			90,042			97,729			271,591			2.0	%	1,897

Income (loss) from operations		(2,869	)		(2,056	)		(374	)		(7,764	)		(13,063	)		8,162			7,120			9,115			24,397			2537.2	%	9,489
% Margin		-1.5	%		-1.0	%		-0.2	%		-3.5	%		-1.5	%		3.8	%		3.3	%		4.1	%		3.7	%
Other income (expense)
Interest expense		(1,885	)		(1,956	)		(1,948	)		(1,880	)		(7,669	)		(1,812	)		(1,689	)		(1,743	)		(5,244	)		10.5	%	205
Other, net		304			59			303			(214	)		452			307			(207	)		35			135			-88.4	%	(268	)
Total other expense		(1,581	)		(1,897	)		(1,645	)		(2,094	)		(7,217	)		(1,505	)		(1,896	)		(1,708	)		(5,109	)		-3.8	%	(63	)

Earnings (loss) from continuing operations before income taxes		(4,450	)		(3,953	)		(2,019	)		(9,858	)		(20,280	)		6,657			5,224			7,407			19,288			466.9	%	9,426
Income taxes		732			(2,608	)		(1,580	)		(8,176	)		(11,632	)		2,681			(1,916	)		6,334			7,099			500.9	%	7,914

Net earnings (loss) from continuing operations		(5,182	)		(1,345	)		(439	)		(1,682	)		(8,648	)		3,976			7,140			1,073			12,189			344.4	%	1,512

Earnings (loss) from discontinued operations, net of tax		4,143			12,068			(971	)		111			15,351			-			-			-			-			100.0	%	971

Net earnings (loss)		(1,039	)		10,723			(1,410	)		(1,571	)		6,703			3,976			7,140			1,073			12,189			176.1	%	2,483

Diluted earnings (loss) per share		(0.01	)		0.14			(0.02	)		(0.02	)		0.09			0.05			0.09			0.01			0.15			174.2	%	0.03

Diluted earnings (loss) per share continuing operations		(0.07	)		(0.02	)		(0.01	)		(0.02	)		(0.11	)		0.05			0.09			0.01			0.15			338.2	%	0.02

Some earnings (loss) per share amounts may not add due to rounding

Basic shares		77,918			77,960			77,831			76,753			77,616			77,471			77,446			77,507			77,475
Diluted shares		79,352			79,310			79,346			78,386			79,099			79,353			79,277			79,851			79,494


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	12/31/16	YTD FY2017


Earnings (loss) from continuing operations before income taxes	(4,450)	(3,953)	(2,019)	(9,858)	(20,280)	6,657	5,224	7,407	19,288

Income taxes	732	(2,608)	(1,580)	(8,176)	(11,632)	2,681	(1,916)	6,334	7,099

Net earnings (loss) from continuing operations	(5,182)	(1,345)	(439)	(1,682)	(8,648)	3,976	7,140	1,073	12,189

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	1,073	12,189

Earnings (loss) per share:

Basic	(0.01)	0.14	(0.02)	(0.02)	0.09	0.05	0.09	0.01	0.16

Diluted	(0.01)	0.14	(0.02)	(0.02)	0.09	0.05	0.09	0.01	0.15

Excluded items:
Purchased intangible asset amortization (cost of revenue)	3,754	3,754	3,754	4,204	15,466	4,077	3,890	4,621	12,588
Non-cash stock compensation (cost of revenue and operating expenses)	8,123	7,360	8,046	7,934	31,463	8,590	11,938	13,427	33,955
Impairment of goodwill and other	-	729	-	6,100	6,829	-	-	-	-
Restructuring and merger charges (gains, losses, and other)	807	2,504	4,058	4,763	12,132	314	929	2,111	3,354
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	4,118	5,573
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	24,277	54,841

Earnings from continuing operations before income taxes
and excluding items	13,090	16,570	20,545	18,081	68,286	19,638	22,807	31,684	74,129

Income taxes	5,632	5,163	6,399	4,262	21,456	7,852	8,910	12,751	29,513

Non-GAAP net earnings	7,458	11,407	14,146	13,819	46,830	11,786	13,897	18,933	44,616

Non-GAAP earnings per share:

Basic	0.10	0.15	0.18	0.18	0.60	0.15	0.18	0.24	0.58

Diluted	0.09	0.14	0.18	0.18	0.59	0.15	0.18	0.24	0.56

Basic weighted average shares	77,918	77,960	77,831	76,753	77,616	77,471	77,446	77,507	77,475

Diluted weighted average shares	79,352	79,310	79,346	78,386	79,099	79,353	79,277	79,851	79,494

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 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.

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
																												Q3 FY17 to Q3 FY16
	06/30/15			09/30/15			12/31/15			03/31/16			FY2016			06/30/16			09/30/16			12/31/16			YTD FY2017			%			$

Revenues:
Marketing Services		107,726			112,979			115,725			113,342			449,772			109,715			105,679			101,177			316,571			-12.6	%	(14,548	)
Audience Solutions		68,550			72,122			77,046			80,128			297,846			73,744			78,526			83,399			235,669			8.2	%	6,352
Connectivity		20,619			22,244			28,422			31,185			102,470			31,342			33,062			38,736			103,140			36.3	%	10,314

Total operating segment revenues		196,895			207,345			221,193			224,655			850,088			214,801			217,267			223,312			655,380			1.0	%	2,118

Gross profit:

Marketing Services		36,034			37,545			38,561			40,117			152,257			37,466			34,480			37,494			109,440			-2.8	%	(1,067	)
Audience Solutions		36,824			39,170			45,265			46,457			167,716			41,912			47,998			53,120			143,030			17.4	%	7,855
Connectivity		11,953			13,499			16,130			19,617			61,199			17,575			19,843			23,091			60,509			43.2	%	6,961

Total operating segment gross profit		84,811			90,214			99,956			106,191			381,172			96,953			102,321			113,705			312,979			13.8	%	13,749

Gross margin:

Marketing Services		33.4	%		33.2	%		33.3	%		35.4	%		33.9	%		34.1	%		32.6	%		37.1	%		34.6	%
Audience Solutions		53.7	%		54.3	%		58.8	%		58.0	%		56.3	%		56.8	%		61.1	%		63.7	%		60.7	%
Connectivity		58.0	%		60.7	%		56.8	%		62.9	%		59.7	%		56.1	%		60.0	%		59.6	%		58.7	%

Total operating segment gross margin		43.1	%		43.5	%		45.2	%		47.3	%		44.8	%		45.1	%		47.1	%		50.9	%		47.8	%

Income (loss) from operations:

Marketing Services		16,853			17,908			20,309			19,301			74,371			20,145			19,837			21,127			61,109			4.0	%	818
Audience Solutions		24,087			25,190			30,723			29,598			109,598			25,096			29,972			34,572			89,640			12.5	%	3,849
Connectivity		(791	)		(1,068	)		(1,015	)		(424	)		(3,298	)		291			1,663			1,877			3,831			284.9	%	2,892

Total operating segment income from operations		40,149			42,030			50,017			48,475			180,671			45,532			51,472			57,576			154,580			15.1	%	7,559

Operating income (loss) margin:

Marketing Services		15.6	%		15.9	%		17.5	%		17.0	%		16.5	%		18.4	%		18.8	%		20.9	%		19.3	%
Audience Solutions		35.1	%		34.9	%		39.9	%		36.9	%		36.8	%		34.0	%		38.2	%		41.5	%		38.0	%
Connectivity		-3.8	%		-4.8	%		-3.6	%		-1.4	%		-3.2	%		0.9	%		5.0	%		4.8	%		3.7	%

Total operating segment operating margin		20.4	%		20.3	%		22.6	%		21.6	%		21.3	%		21.2	%		23.7	%		25.8	%		23.6	%

Some totals may not add due to rounding.


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		13,000

Income taxes		4,000

Net earnings		9,000

Diluted earnings per share	$	0.11

Excluded items:
Purchased intangible asset amortization		19,000
Non-cash stock compensation		50,000
Gains, losses and other items, net		2,000
Separation and transformation costs		8,000

Total excluded items		79,000

Earnings before income taxes and excluding items		92,000

Income taxes (2)		36,000

Non-GAAP net earnings		56,000

Non-GAAP diluted earnings per share	$	0.70

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 39.0%. 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.

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.

Merger expenses: During the current year we have incurred certain third party expenses associated with the
acquisitions of Arbor and Circulate. These items, reported as gains, losses and other items, net, are excluded from
non-GAAP results because such amounts are 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.

LiveRamp Holdings, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 PRESS RELEASE AND FINANCIALS - January 31, 2017

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LiveRamp Holdings, Inc. Reports