Neustar (NSR) reported its earnings for the quarter and year ended December 31, 2012 and provided guidance for 2013 after the market closed today.
Neustar is the backend provider for many ccTLD’s including .Co and .Us, the TLD .Biz. and many new gTLD providers. Neustar also has the contract with the City of New York to operate the .NYC registry.
Summary of Fourth Quarter Results Compared to Fourth Quarter of 2011
- Revenue increased 23% to $214.2 million
- Income from continuing operations increased 102% to $37.8 million or $0.56 per share
- Adjusted net income increased 37% to $50.7 million, representing a margin of 24%
- Adjusted earnings per share increased 47% to $0.75
- Adjusted EBITDA was $101.3 million compared to $78.5 million
Summary of 2012 Results Compared to 2011
- Revenue increased 34% to $831.4 million
- Income from continuing operations increased 26% to $156.1 million or $2.30 per share
- Adjusted net income increased 30% to $206.4 million, representing a margin of 25%
- Adjusted earnings per share increased 43% to $3.04
- Adjusted EBITDA was $398.2 million compared to $298.7 million
Business Outlook for 2013
- Revenue to range from $895 million to $915 million or growth of 8% to 10%
- Adjusted net income to range from $220 to $230 million or growth of 7% to 11%. This growth rate was influenced by discrete tax benefits totaling $6.8 million which resulted in higher adjusted net income in 2012. On a per share basis, adjusted net income is expected to range from $3.28 to $3.43
Discussion of Fourth Quarter and Full-Year 2012 Results
Fourth Quarter Revenue
Consolidated revenue totaled $214.2 million, a 23% increase from $174.2 million in the fourth quarter of 2011. In particular:
- Carrier Services revenue totaled $126.2 million, an 11% increase from $113.3 million in 2011. This increase was primarily due to an $11.2 million increase in NPAC Services revenue;
- Enterprise Services revenue totaled $45.2 million, a 14% increase from $39.7 million in 2011. This increase was due to higher revenue in both Internet Infrastructure Services and Registry Services; and
- Information Services generated revenue of $42.8 million in the fourth quarter as compared to revenue of $21.2 million from the November 8, 2011 acquisition date through the end of the year.
Full-Year Revenue
Consolidated revenue totaled $831.4 million, a 34% increase from $620.5 million in 2011. In particular:
- Carrier Services revenue totaled $502.1 million, a 12% increase from $447.9 million in 2011. This increase was primarily due to a $43.8 million increase in NPAC Services revenue;
- Enterprise Services revenue totaled $170.4 million, a 13% increase from $151.4 million in 2011. …
