Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - NEUSTAR INC | d432658d8k.htm |
| EX-99.1 - EARNINGS RELEASE - NEUSTAR INC | d432658dex991.htm |
 Earnings Report
November 5, 2012
Neustar, Inc.
Supplemental Information
Exhibit 99.2 |
 2
Revenue by Segment
Segment Revenu ($ in 000s)
Full-Year
Mar
31,
Jun
30,
Sep
30,
Dec
31,
2011
Mar
31,
Jun
30,
Sep
30,
Carrier Services
Numbering Services
99,426
98,813
99,924
99,810
397,973
110,489
110,896
111,726
Order Management Services
7,144
8,481
10,236
9,943
35,804
10,910
10,541
10,104
IP Services
3,045
3,540
3,995
3,537
14,117
2,974
4,910
3,372
Total Carrier Services revenue
109,615
110,834
114,155
113,290
447,894
124,373
126,347
125,202
Enterprise Services
Internet Infrastructure Services (IIS)
20,404
20,117
20,484
21,982
82,987
21,723
22,455
22,856
Registry Services
16,076
16,732
17,858
17,737
68,403
17,762
19,634
20,774
Total Enterprise Services revenue
36,480
36,849
38,342
39,719
151,390
39,485
42,089
43,630
Information Services
Identification Services
-
-
-
13,873
13,873
22,719
22,957
24,212
Verification & Analytics Services
-
-
-
4,465
4,465
8,236
9,821
13,078
Local Search & Licensed Data Services
-
-
-
2,833
2,833
4,769
5,248
5,050
Total Information Services revenue
-
-
-
21,171
21,171
35,724
38,026
42,340
Total consolidated revenue
146,095
147,683
152,497
174,180
620,455
199,582
206,462
211,172
2012 Qtr Ended,
2011 Quarter Ended,
Carrier
Services:
Numbering
Services
–
We
operate
and
maintain
authoritative
databases
for
telephone
number
resources
utilized
by
our
carrier
customers
and
manage
the
telephone
number
lifecycle.
The
services
utilizing
these
databases
are:
NPAC
Services
in
the
United
States
and
Canada,
International
LNP
Services
and
Number
Administration.
Order
Management
Services
–
Our
Order
Management
Services
(OMS)
permit
carrier
customers,
through
a
single
interface,
to
exchange
essential
operating
data
with
multiple
carriers
in
order
to
provision
services.
IP
Services
–
We
provide
scalable
IP
services
to
carriers
which
allow
them
to
manage
access
for
the
routing
of
IP
communications.
Enterprise
Services:
Internet
Infrastructure
Services
–
We
provide
a
suite
of
domain
name
systems
(DNS)
services
to
our
enterprise
customers
built
on
a
global
directory
platform.
These
services
include
Managed
DNS,
Monitoring
and
Load
Testing,
and
IP
Geolocation.
Registry
Services
–
We
operate
the
authoritative
registries
for
certain
Internet
domain
names
and
operate
the
authoritative
U.S.
Common
Short
Code
(CSC)
registry
on
behalf
of
wireless
carriers
in
the
United
States.
These
services
include
the
registry
services
for
.biz,
.us,
.co,
.tel
and
.travel
domain
names,
as
well
as
the
registry
for
U.S.
Common
Short
Codes.
Information
Services:
Identification
Services
–
Our
real-time
identification
services
include
the
provision
of
caller-name
and
related
information
to
telephony
providers,
delivery
of
identity
and
other
attribute
data
for
use
in
call
centers
or
in
remarketing
efforts,
and
geographic-based
solutions
for
intelligent
call
routing,
Web-based
location
lookup,
and
site
planning.
Verification
&
Analytics
Services
–
We
provide
verification
services
that
allow
clients
to
validate
customer-provided
information,
enhance
sales
leads
and
assign
quality
ratings
to
maximize
a
prospect’s
“reachability.”
Our
broad-based
analytic
capabilities
also
utilize
real-time
predictive
scoring
to
determine
which
prospects
are
most
likely
to
purchase,
become
a
high-value
customer
or
respond
to
a
particular
marketing
campaign.
We
also
provide
an
intelligent,
privacy-friendly
mechanism
for
delivering
targeted,
real-time
advertising
on
the
Internet.
Local
Search
&
Licensed
Data
Services
–
We
provide
an
online
listing
identity
management
solution
that
provides
the
essential
tools
to
verify,
enhance
and
manage
the
identity
of
local
listings
across
the
Web.
We
also
maintain
an
expansive
data
repository
that
provides
a
more
current
alternative
to
Directory
Listing
and
White
Page
compilations. |
 3
Key Performance Metrics
Metrics
Full-Year
Revenue category
Mar 31,
Jun 30,
Sep 30,
Dec 31,
2011
Mar 31,
Jun 30,
Sep 30,
Carrier Services
NPAC Services transactions (in thousands)
131,278
130,121
117,792
89,746
468,937
113,243
125,479
138,297
Functionality enhancements NPAC SOWs (in thousands)
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
Enterprise Services
Functionality enhancements SOWs (in thousands)
966
$
161
$
-
$
-
$
1,127
$
42
$
1,104
$
1,893
$
IIS queries (in billions)
1,090
881
962
1,029
3,962
982
986
1,051
IIS new customers
287
306
242
258
1,093
253
222
237
IIS upgrades
321
311
318
311
1,261
381
367
282
Registry - domain names under management (in thousands)
5,143
5,310
5,403
5,451
5,451
5,736
5,787
5,821
CSC - codes under management
4,103
4,256
4,370
4,565
4,565
4,667
4,681
4,895
2011 Quarter Ended,
2012 Qtr Ended, |
 4
Expense by Type
by Quarter and as a Percentage of Revenue
$ in 000s
Full-Year
Mar 31,
Jun 30,
Sep 30,
Dec 31,
2011
Mar 31,
Jun 30,
Sep 30,
Revenue
146,095
147,683
152,497
174,180
620,455
199,582
206,462
211,172
Expense by type
Cost of revenue (excl. depreciation & amortization)
31,052
31,417
34,194
41,329
137,992
44,898
46,127
46,339
% of Revenue
21%
21%
22%
24%
22%
22%
22%
22%
Sales and marketing
24,939
26,267
25,069
33,580
109,855
38,353
41,073
38,040
% of Revenue
17%
18%
16%
19%
18%
19%
20%
18%
Research and development
3,996
3,441
3,746
6,326
17,509
7,724
8,096
7,663
% of Revenue
3%
2%
2%
4%
3%
4%
4%
4%
General and administrative
20,215
21,949
20,960
33,193
96,317
20,993
20,091
20,915
% of Revenue
14%
15%
14%
19%
16%
11%
10%
10%
Depreciation & amortization
9,146
9,386
10,486
17,191
46,209
22,706
22,713
23,622
% of Revenue
6%
6%
7%
10%
7%
11%
11%
11%
Restructuring charges (recoveries)
432
(12)
(33)
3,162
3,549
522
2
(32)
% of Revenue
0%
0%
0%
2%
1%
0%
0%
0%
Total operating expense
89,780
92,448
94,422
134,781
411,431
135,196
138,102
136,547
2011 Quarter Ended,
2012 Qtr Ended, |
 5
Expense Details
Other Details and Headcount
Stock-based compensation by type ($ in 000s)
Full-Year
Mar 31,
Jun 30,
Sep 30,
Dec 31,
2011
Mar 31,
Jun 30,
Sep 30,
Cost of revenue
476
616
780
940
2,812
555
1,158
1,461
Sales and marketing
1,726
1,989
1,907
2,378
8,000
1,736
3,004
3,734
Research and development
335
312
345
381
1,373
359
561
589
General and administrative
3,479
3,083
3,428
5,316
15,306
1,251
2,326
3,253
Total stock-based compensation expense
6,016
6,000
6,460
9,015
27,491
3,901
7,049
9,037
Amortization of intangibles ($ in 000s)
1,129
1,110
1,716
8,152
12,107
12,572
12,571
12,569
Headcount by type
Year-End
Mar 31,
Jun 30,
Sep 30,
Dec 31,
2011
Mar 31,
Jun 30,
Sep 30,
Cost of revenue
385
390
430
658
658
659
674
673
Sales and marketing
300
306
327
461
461
461
470
470
Research and development
83
78
77
137
137
141
158
154
General and administrative
199
200
200
232
232
228
230
232
Total headcount
967
974
1,034
1,488
1,488
1,489
1,532
1,529
2012 Qtr Ended,
2012 Qtr Ended,
2011 Quarter Ended,
2011 Quarter Ended, |
 Non-GAAP Financial
Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
Neustar reports its results in accordance with generally accepted accounting
principles in the United States (GAAP). In this section, Neustar
is
also
providing
certain
non-GAAP
financial
measures
and
reconciliations
to
the
most
directly
comparable
GAAP
measure.
Neustar
cautions investors that the non-GAAP financial measures presented are intended
to supplement Neustar’s GAAP results and are not a substitute
for,
or
superior
to,
financial
measures
calculated
in
accordance
with
GAAP,
and
the
financial
results
calculated
in
accordance
with
GAAP and reconciliations from these results should be carefully evaluated. In
addition, these non-GAAP financial measures may not be comparable with
similar non-GAAP financial measures used by other companies. Management believes that these measures enhance
investors’
understanding of the company’s financial performance and the comparability of
the company’s operating results to prior periods, as well as against
the performance of other companies. |
 7
Reconciliation of Segment Contribution
($ in 000s)
Full-Year
Mar 31,
Jun 30,
Sep 30,
Dec 31,
2011
Mar 31,
Jun 30,
Sep 30,
Segment contribution
Carrier Services
96,579
97,570
99,302
97,549
391,000
108,446
110,438
109,359
Enterprise Services
15,651
15,418
16,551
17,460
65,080
16,731
18,866
20,314
Information Services
-
-
-
12,583
12,583
18,014
16,991
24,064
Total segment contribution
112,230
112,988
115,853
127,592
468,663
143,191
146,295
153,737
Indirect operating expense:
Cost of revenue (excl. depreciation & amortization)
19,627
19,742
20,424
24,197
83,990
24,269
24,741
24,989
Sales and marketing
3,825
4,617
3,584
5,314
17,340
5,730
6,635
6,050
Research and development
3,598
2,912
3,575
6,149
16,234
4,860
4,431
4,270
General and administrative
19,287
21,108
19,742
32,180
92,317
20,718
19,413
20,213
Depreciation and amortization
9,146
9,386
10,486
17,191
46,209
22,706
22,713
23,622
Restructuring charges (recoveries)
432
(12)
(33)
3,162
3,549
522
2
(32)
Consolidated income from operations
56,315
55,235
58,075
39,399
209,024
64,386
68,360
74,625
2011 Quarter Ended,
2012 Qtr Ended, |
 8
Adjusted Net Income from Continuing Operations
$ in 000s, except per share amounts
Full-Year
2012 YTD
2011
Mar 31,
Jun 30,
Sep 30,
Sep 30,
Revenue
620,455
199,582
206,462
211,172
617,216
Income from operations
209,024
64,386
68,360
74,625
207,371
Add: Other (expense) income
(4,313)
(7,964)
(8,294)
(8,377)
(24,635)
Income from continuing operations before income taxes
204,711
56,422
60,066
66,248
182,736
Less: Provision for income taxes, continuing operations
81,137
22,460
21,474
20,495
64,429
Income from continuing operations
123,574
33,962
38,592
45,753
118,307
Add: Stock-based compensation
27,491
3,901
7,049
9,037
19,987
Add: Amortization of acquired intangible assets
12,107
12,572
12,571
12,569
37,712
Add: TARGUSinfo acquisition-related costs
(1)
11,602
-
-
-
-
Add: Tender offer costs
(2)
2,413
-
-
-
-
Less: Adjustment for provision for income taxes
(3)(4)
(18,173)
(6,557)
(7,014)
(6,684)
(20,344)
Adjusted net income from continuing operations
159,014
43,878
51,198
60,675
155,662
Adjusted net income margin from continuing operations
(5)
26%
22%
25%
29%
25%
Adjusted net income from continuing operations per diluted share
(6)
$2.13
$0.64
$0.75
$0.90
$2.29
Weighted average diluted common shares outstanding
74,496
68,478
67,887
67,623
67,961
Quarter Ended 2012,
(1)
Amounts represent costs incurred by the Company in connection with its acquisition of Targus
Information Corporation (TARGUSinfo). (2)
Amounts represent costs incurred by the Company to repurchase 7.2 million shares of its Class A common
stock through a modified “Dutch auction” tender offer which closed on December 8,
2011. These costs were not deductible for income tax purposes. (3)
Adjustment reflects the estimated tax effect of adjustments for stock-based compensation expense,
amortization of acquired intangible assets and approximately $6.3 million of tax
deductible TARGUSinfo acquisition-related costs based on the effective tax rate for income from continuing operations for the applicable period.
(4)
Quarterly amounts for the adjustment for provision for income taxes do not add to the full year amount
due to differences in the effective tax rate for income from continuing operations for the
applicable quarters compared to effective annual tax rate. (5)
Adjusted net income margin is a measure of adjusted net income from continuing operations as a
percentage of revenue. (6)
Quarterly amounts for adjusted net income from continuing operations per diluted share may not add to
the full year amount due to differences in the adjustment for provision for income taxes
discussed in (4) above. |