STERLING, Va.--(BUSINESS WIRE)--Neustar, Inc. (NYSE: NSR), a trusted, neutral provider of real-time information services, today announced results for the quarter ended June 30, 2016, and affirmed its guidance for full-year 2016.

Results for Second Quarter 2016 Compared to Second Quarter 2015

• Revenue increased 16% to $297.6 million
• Marketing Services revenue increased 56% to $63.9 million
• Security Services revenue increased 22% to $49.3 million
• Net income decreased 15% to $38.1 million or $0.69 per share

Non-GAAP Results for Second Quarter 2016 Compared to Second Quarter 2015

• Adjusted EBITDA increased 12% to $131.4 million, a margin of 44%
• Adjusted net income increased 12% to $69.4 million or $1.26 per share

“During the second quarter, we delivered strong financial results and improved our growth prospects in attractive markets by entering into key strategic partnerships with companies that include Limelight Networks and Experian. Through these partnerships, we have created the world’s largest and most distributed DDoS mitigation network, and we have established a best-in-class marketing solution to target and deliver audience data in an omni-channel environment,” said Lisa Hook, Neustar’s President and Chief Executive Officer. “We are focused on expanding our differentiated position in these markets, and delivering on our 2016 objectives.”

Paul Lalljie, Neustar’s Chief Financial Officer, added, “Information Services continued to deliver strong results for the quarter, with 21% organic revenue growth from Marketing Services. In the second quarter, we made voluntary debt prepayments improving our financial flexibility as we position our business for long-term success. Our second quarter results and leading indicators provide us with the visibility to affirm our full-year guidance.”

Discussion of Second Quarter Results

Neustar's year-over-year quarterly revenue growth of 16% was driven by strong demand for our Marketing Services and revenue generated from our prior year acquisitions. In particular, Marketing Services revenue grew 21% organically and included $14.4 million from MarketShare, acquired in 2015.

Comparing second quarter 2016 results to the corresponding period in 2015:

• Revenue from Marketing Services increased 56% to $63.9 million driven by increased demand for Neustar's services that help its clients make high-impact decisions to promote their services
• Revenue from Security Services increased 22% to $49.3 million driven by $8.7 million in revenue from Bombora Technologies, acquired in 2015
• Revenue from Data Services increased 13% to $55.8 million driven by $15.4 million in revenue from the TNS assets acquired in 2015, partially offset by a $9.7 million decrease in revenue due to the expiration of the common short codes contract in 2015
• Revenue from NPAC Services increased 2% to $128.5 million driven by the transition statement of work under Neustar's contracts to provide local number portability services

Total operating expense for the second quarter of 2016 increased 27% to $226.2 million from $178.7 million in the second quarter of 2015. This $47.5 million increase was driven primarily by $40.8 million in operating costs and depreciation and amortization expense associated with acquisitions completed in 2015. In addition, we incurred expenses of $6.1 million for restructuring initiatives designed to improve operating efficiencies, and $4.2 million of costs related to the company's intention to separate into two independent publicly-traded companies, announced on June 21, 2016.

Neustar ended the quarter with cash and cash equivalents of $50.7 million compared to $89.1 million as of December 31, 2015, and $69.8 million as of March 31, 2016. Neustar's outstanding debt under its term facilities and senior notes was $998.9 million as of June 30, 2016. During the quarter, Neustar paid $99.9 million of principal under its term loan facility, including $73.0 million in voluntary prepayments of principal.

Business Outlook for 2016

Neustar affirmed its full-year 2016 guidance provided on April 28, 2016. All of the measures used by Neustar for guidance assume that it will remain the local number portability administrator for 2016.

• Revenue to range from $1.22 billion to $1.24 billion or growth of 16% to 18%
• Information Services revenue to range from $715 million to $735 million or growth of 32% to 35%
• Net income to range from $160 million to $190 million or $2.89 to $3.44 per share
• Adjusted EBITDA to range from $555 million to $565 million or a margin of 45% to 46%
• Adjusted net income to range from $278 million to $298 million or a margin of 23% to 24%
• Adjusted net income per share to range from $5.03 to $5.39 or growth of 4% to 12%

About Neustar, Inc.

Every day, the world generates roughly 2.5 quadrillion bits of data. Neustar isolates certain elements and analyzes, simplifies and edits them to make precise and valuable decisions that drive results. As one of the few companies capable of knowing with certainty who is on the other end of every interaction, we’re trusted by the world’s great brands to make critical decisions some 20 billion times a day. We help marketers send timely and relevant messages to the right people. Because we can authoritatively tell a client exactly who is calling or connecting with them, we make critical real-time responses possible. And the same comprehensive information that enables our clients to direct and manage orders also stops attackers. We know when someone isn’t who they claim to be, which helps stop fraud and denial of service before they’re a problem. Because we’re also an experienced manager of some of the world’s most complex databases, we help clients control their online identity, registering and protecting their domain name, and routing traffic to the correct network address. By linking the most essential information with the people who depend on it, we provide more than 12,000 clients worldwide with decisions-not just data. More information is available at www.neustar.biz