Neustar Reports: Revenue Up 8%; Sets $250 Million Repurchase Plan

Neustar, Inc. (NSR), announced results for the quarter ended March 31, 2013 and affirmed its guidance for 2013.

Neustar is the backend provider for several TLD’s including .Us and .Co and hundreds of new gTLD’s and is going to operate the .NYC extension on behalf of the city of New York

The company also announced that it plans to purchase up to $250 million of its Class A common shares beginning May 7, 2013 through December 31, 2013.

Results for First Quarter 2013 Compared to First Quarter 2012

Revenue increased 8% to $216.4 million
Non-NPAC revenue increased 10% to $107.1 million
Net income decreased 1% to $33.8 million, including the impact of a $10.9 million charge for the loss on debt modification and extinguishment
Net income per share was flat at $0.50

Non-GAAP Results for First Quarter 2013 Compared to First Quarter 2012

Adjusted net income increased 23% to $54.1 million, representing a 25% margin
Adjusted net income per share increased 25% to $0.80

Discussion of First Quarter Results

Consolidated revenue totaled $216.4 million, an 8% increase from $199.6 million in the first quarter of 2012. This $16.8 million increase included growth in all three of our operating segments. In particular:

Carrier Services revenue totaled $132.2 million, a 6% increase from $124.4 million in 2012. This increase was primarily due to a $7.5 million increase in NPAC Services revenue;
Enterprise Services revenue totaled $44.8 million, a 13% increase from $39.5 million in 2012. This increase was due to higher revenue in both Internet Infrastructure and Registry Services; and
Information Services revenue totaled $39.5 million, a 10% increase from $35.7 million in 2012. This increase was primarily due to higher revenue in Verification and Analytics Services.

Operating expense totaled $145.6 million, an 8% increase from $135.2 million in the first quarter of 2012. This increase was primarily due to the expansion of the companys operations. In particular, stock-based compensation increased $5.1 million driven by performance-based equity that was granted to a broader employee base.

Cash, cash equivalents and investments totaled $378.2 million as of March 31, 2013, compared to $343.9 million as of December 31, 2012. T

Business Outlook for 2013

The company affirmed its guidance for revenue and adjusted net income provided on February 5, 2013: