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LiveRamp Announces Third Quarter Results

SAN FRANCISCO--(BUSINESS WIRE)--

Total Revenue Increased by 35%

Subscription Revenue Grew 42%

Company Tightens Full Year Guidance

LiveRamp (NYSE: RAMP), the identity platform powering exceptional experiences, today announced its financial results for the quarter ended December 31, 2018.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190211005709/en/

Third Quarter Financial Highlights

  • Total revenue of $80 million, up 35% compared to the prior year period. Excluding the impact of Facebook, revenue increased 49%.
  • Subscription revenue of $65 million, up 42%.
  • Marketplace & Other revenue of $15 million grew 13%. Excluding the impact of Facebook, Marketplace & Other revenue increased 91%.
  • GAAP loss per share from continuing operations was ($0.20) and non-GAAP earnings per share from continuing operations was $0.03. Earnings benefited from interest income related to invested proceeds from the Acxiom Marketing Solutions (AMS) sale.
  • Cash flow used in operating activities improved sequentially to $11 million compared to $27 million during the second quarter of fiscal 2019. At quarter end, the Company had cash and cash equivalents totaling $1.5 billion and no debt. LiveRamp expects to pay taxes of roughly $450 million during its fiscal fourth quarter as a result of the gain on the sale of AMS.
  • The Company completed a $500 million tender for 11.2 million shares, reducing its share count by approximately 14%. Additionally, during the quarter, LiveRamp repurchased 0.4 million shares for $18 million under its $1 billion stock repurchase program. Since inception of its share repurchase program in 2011, the Company has repurchased 22.4 million shares for $439 million, leaving remaining capacity of $561 million.

“This was a landmark quarter for LiveRamp,” said LiveRamp CEO Scott Howe. “During our first official quarter as a stand-alone public company, we received $2.3 billion from the sale of AMS, completed a $500 million share repurchase, and at the same time, delivered a record top-line performance. We are excited about the value we bring to our customers and our role as the neutral and open platform for the safe and ethical use of data across the ecosystem.”

“Land, expand and extend is our way of life,” said LiveRamp President and CFO Warren Jenson. “This quarter, we added 30 new direct customers and meaningfully grew our existing customer relationships. As a result, subscription revenue was up 42%, and our dollar-based net retention rate exceeded 115% for the tenth consecutive quarter.”

Third Quarter GAAP and Non-GAAP Results

The following table summarizes the Company’s financial results for its third fiscal quarter ($ in millions):

Q3 Fiscal 2019 Q3 Fiscal 2019
GAAP Results Non-GAAP Results

YoY YoY
Subscription $65 42% $65 42%
Marketplace & other

$15

13%

$15

13%

Total Revenue $80 35% $80 35%
Gross profit $45 31% $51 24%
% Gross margin 56% (200 bps) 64% (590 bps)
Operating loss ($48) nm ($11) nm
% Operating margin (60%) (1,340 bps) (14%) (710 bps)
Net earnings (loss) from continuing operations ($15) nm $2 nm
Earnings (loss) per share ($0.20) nm $0.03 nm
Net cash used in operating activities ($11) nm ($11) nm
Free cash flow nm nm ($13) nm

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.

Key Metrics and Business Highlights

  • LiveRamp added 30 new direct customers during the quarter, bringing its total direct customer count to 640, an increase of 23% year-over-year. We now serve 19% of the Fortune 500 compared to 15% in the prior year period.
  • LiveRamp has 42 clients whose subscription contracts exceed $1 million in annual revenue, up from 31 in the prior year period.
  • Dollar-based net retention was in excess of 115% for the tenth consecutive quarter.
  • During the quarter, TV related revenue grew 38% year-over-year and addressable campaign volumes more than doubled. Recent LiveRamp TV wins included Cox, Turner and iSpot.

Financial Outlook

LiveRamp’s non-GAAP guidance excludes the impact of non-cash stock compensation, purchased intangible asset amortization, restructuring charges and business separation costs.

For fiscal 2019, LiveRamp now expects to report:

  • Revenue of up to $284 million, an increase of 29% year-over-year as compared to the Company’s previous revenue growth guidance of 25% to 30%.
  • GAAP operating loss from continuing operations of approximately $181 million as compared to previous GAAP operating loss guidance of $170 million to $158 million. The increased GAAP operating loss is associated with incremental restructuring charges and higher stock compensation.
  • Non-GAAP operating loss from continuing operations of approximately $55 million as compared to previous operating loss guidance of $64 million to $52 million.

The Company’s GAAP and non-GAAP operating loss guidance includes approximately $21 million of transition-related spend associated with establishing standalone operations at LiveRamp. The $21 million is broken out as follows: approximately $4 million in the second quarter, $9 million in the third quarter and $8 million in the fourth quarter. Transition-related spending is expected to be largely complete by mid-FY20.

Conference Call

LiveRamp will hold a conference call at 2:00 p.m. PT today to further discuss this information. Interested parties are invited to listen to the call which will be broadcast via the Internet and can be found on our investor site . A slide presentation will be referenced during the call and can be accessed here .

Upcoming Conference Attendance

LiveRamp management will be presenting at the 2019 Morgan Stanley TMT Conference on February 27th at 3:50 p.m. PT in San Francisco, California.

RampUp™ 2019

LiveRamp will be hosting RampUp 2019, the premiere conference for leaders in MarTech, on February 25th and 26th in San Francisco, California. This year’s event will include speakers from Cars.com, Dun & Bradstreet, Macy’s, Spark Foundry, Unity Technologies, and many more .

About LiveRamp

LiveRamp provides the identity platform leveraged by brands and their partners to deliver innovative products and exceptional experiences. LiveRamp IdentityLink connects people, data, and devices across the digital and physical world, powering the people-based marketing revolution and allowing consumers to safely connect with the brands and products they love. For more information, visit www.LiveRamp.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 expected revenue 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 third-party cookies will be restricted by regulators and or platform partners, which could impact the accuracy of our Identity Graph; 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 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 the European General Data Protection Regulation, which became effective May 25, 2018, will make it more difficult and/or costly for us to do business in the EU; the possibility the California Consumer Privacy Act of 2018, which becomes effective January 1, 2020, will make it more difficult and/or costly for us to do business in California and other states within the U.S.; 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, 2018, which was filed with the Securities and Exchange Commission on May 25, 2018 and the discussion under the caption “Item 1A. RISK FACTORS” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, which was filed with the Securities and Exchange Commission on November 1, 2018.

With respect to the provision of products or services outside our primary base of operations in the United States, all 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.

To automatically receive LiveRamp financial news by email, please visit www.LiveRamp.com and subscribe to email alerts.

LiveRamp , IdentityLink™, Abilitec™ and all other LiveRamp marks contained herein are trademarks or service marks of LiveRamp, Inc. All other marks are the property of their respective owners.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
For the Three Months Ended
December 31,
$ %
2018 2017 Variance Variance
Revenues 80,021 59,121 20,900 35.4 %
Cost of revenue 34,838 24,526 10,312 42.0 %
Gross profit 45,183 34,595 10,588 30.6 %
% Gross margin 56.5 % 58.5 %
Operating expenses:
Research and development 20,469 14,311 6,158 43.0 %
Sales and marketing 40,054 27,832 12,222 43.9 %
General and administrative 27,828 20,929 6,899 33.0 %
Gains, losses and other items, net 5,043 (788 ) 5,831 740.0 %
Total operating expenses 93,394 62,284 31,110 49.9 %
Loss from operations (48,211 ) (27,689 ) (20,522 ) (74.1 %)
% Margin -60.2 % -46.8 %
Total other income 10,404 432 9,972 2308.3 %
Loss from continuing operations before income taxes (37,807 ) (27,257 ) (10,550 ) (38.7 %)
Income taxes (benefit) (22,546 ) (29,791 ) 7,245 24.3 %
Net earnings (loss) from continuing operations (15,261 ) 2,534 (17,795 ) (702.2 %)
Earnings from discontinued operations, net of tax 1,071,661 20,407 1,051,254 5151.4 %
Net earnings 1,056,400 22,941 1,033,459 4504.9 %
Basic earnings (loss) per share:
Continuing operations (0.20 ) 0.03 (0.23 ) (715.0 %)
Discontinued operations 13.85 0.26 13.59 5263.1 %
Net earnings 13.65 0.29 13.36 4602.7 %
Diluted earnings (loss) per share:
Continuing operations (0.20 ) 0.03 (0.23 ) (737.0 %)
Discontinued operations 13.85 0.25 13.60 5454.8 %
Net earnings 13.65 0.28 13.37 4770.9 %
Basic weighted average shares 77,398 79,043
Diluted weighted average shares 77,398 81,869

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
For the Nine Months Ended
December 31,
$ %
2018 2017 Variance Variance
Revenues 207,304 159,891 47,413 29.7 %
Cost of revenue 82,958 72,596 10,362 14.3 %
Gross profit 124,346 87,295 37,051 42.4 %
% Gross margin 60.0 % 54.6 %
Operating expenses:
Research and development 54,379 44,750 9,629 21.5 %
Sales and marketing 109,317 77,904 31,413 40.3 %
General and administrative 71,129 68,240 2,889 4.2 %
Gains, losses and other items, net 5,533 2,042 3,491 171.0 %
Total operating expenses 240,358 192,936 47,422 24.6 %
Loss from operations (116,012 ) (105,641 ) (10,371 ) (9.8 %)
% Margin -56.0 % -66.1 %
Total other income 10,479 115 10,364 9012.2 %
Loss from continuing operations before income taxes (105,533 ) (105,526 ) (7 ) (0.0 %)
Income taxes (benefit) (21,274 ) (54,980 ) 33,706 61.3 %
Net loss from continuing operations (84,259 ) (50,546 ) (33,713 ) (66.7 %)
Earnings from discontinued operations, net of tax 1,158,267 68,851 1,089,416 1582.3 %
Net earnings 1,074,008 18,305 1,055,703 5767.3 %
Basic earnings (loss) per share:
Continuing operations (1.09 ) (0.64 ) (0.45 ) (70.4 %)
Discontinued operations 14.99 0.87 14.12 1619.8 %
Net earnings 13.90 0.23 13.67 5898.1 %
Diluted earnings (loss) per share:
Continuing operations (1.09 ) (0.64 ) (0.45 ) (70.4 %)
Discontinued operations 14.99 0.87 14.12 1619.8 %
Net earnings 13.90 0.23 13.67 5898.1 %
Basic weighted average shares 77,260 78,983
Diluted weighted average shares 77,260 78,983

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP EPS (1)

(Unaudited)
(Dollars in thousands, except per share amounts)
For the Three Months Ended For the Nine Months Ended
December 31, December 31,
2018 2017 2018 2017
Loss from continuing operations before income taxes (37,807 ) (27,257 ) (105,533 ) (105,526 )
Income taxes (benefit) (22,546 ) (29,791 ) (21,274 ) (54,980 )
Net earnings (loss) from continuing operations (15,261 ) 2,534 (84,259 ) (50,546 )
Earnings from discontinued operations, net of tax 1,071,661 20,407 1,158,267 68,851
Net earnings 1,056,400 22,941 1,074,008 18,305
Earnings per share:
Basic 13.65 0.29 13.90 0.23
Diluted 13.65 0.28 13.90 0.23
Excluded items:
Purchased intangible asset amortization (cost of revenue) 3,359 5,965 12,877 17,939
Non-cash stock compensation (cost of revenue and operating expenses) 26,082 13,290 61,547 38,844
Accelerated depreciation (cost of revenue and operating expenses) 1,959 - 1,959 -
Restructuring and merger charges (gains, losses, and other) 5,043 (788 ) 5,533 2,042
Separation and transformation costs (general and administrative) 700 5,214 2,822 17,786
Total excluded items, continuing operations 37,143 23,681 84,738 76,611

Earnings (loss) from continuing operations before income taxes and excluding items

(664 ) (3,576 ) (20,795 ) (28,915 )
Income taxes (benefit) (2) (2,941 ) (2,514 ) (7,809 ) (10,234 )
Non-GAAP net earnings (loss) from continuing operations 2,277 (1,062 ) (12,986 ) (18,681 )
Non-GAAP earnings (loss) per share from continuing operations:
Basic 0.03 (0.01 ) (0.17 ) (0.24 )
Diluted 0.03 (0.01 ) (0.17 ) (0.24 )
Basic weighted average shares 77,398 79,043 77,260 78,983
Diluted weighted average shares 80,674 79,043 77,260 78,983

(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 442.9% and 70.3% in the third quarter of fiscal 2019 and 2018, respectively, and 37.5% and 35.4% for the nine months ended December 31, 2018 and 2017, respectively. The difference between our GAAP and non-GAAP tax rates were primarily due to the net tax effects of the excluded items. The rates for the three months and nine months ended December 31, 2018 reflect the impact of the Tax Acts and Jobs Act.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP LOSS FROM OPERATIONS (1)

(Unaudited)
(Dollars in thousands)
For the Three Months Ended For the Nine Months Ended
December 31, December 31,
2018 2017 2018 2017
Loss from continuing operations (48,211 ) (27,689 ) (116,012 ) (105,641 )
Excluded items:
Purchased intangible asset amortization (cost of revenue) 3,359 5,965 12,877 17,939
Non-cash stock compensation (cost of revenue and operating expenses) 26,082 13,290 61,547 38,844
Accelerated depreciation (cost of revenue and operating expenses) 1,959 - 1,959 -
Restructuring and merger charges (gains, losses, and other) 5,043 (788 ) 5,533 2,042
Separation and transformation costs (general and administrative) 700 5,214 2,822 17,786
Total excluded items 37,143 23,681 84,738 76,611
Loss from continuing operations before excluded items (11,068 ) (4,008 ) (31,274 ) (29,030 )

(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.

LIVERAMP HOLDINGS, INC. 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,
2018 2017 2018 2017
Net loss from continuing operations (15,261 ) 2,534 (84,259 ) (50,546 )
Income taxes (benefit) (22,546 ) (29,791 ) (21,274 ) (54,980 )
Other income (expense) 10,404 432 10,479 115
Loss from operations (48,211 ) (27,689 ) (116,012 ) (105,641 )
Depreciation and amortization 8,853 9,297 25,274 28,255
EBITDA (39,358 ) (18,392 ) (90,738 ) (77,386 )
Other adjustments:
Non-cash stock compensation (cost of revenue and operating expenses) 26,082 13,290 61,547 38,844
Restructuring and merger charges (gains, losses, and other) 5,043 (788 ) 5,533 2,042
Separation and transformation costs (general and administrative) 700 5,214 2,822 17,786
Other adjustments 31,825 17,716 69,902 58,672
Adjusted EBITDA (7,533 ) (676 ) (20,836 ) (18,714 )

(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.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 31, March 31, $ %
2018 2018 Variance Variance

Assets

Current assets:
Cash and cash equivalents 1,546,774 140,018 1,406,756 1004.7 %
Trade accounts receivable, net 71,906 52,047 19,859 38.2 %
Refundable income taxes - 9,977 (9,977 ) (100.0 %)
Other current assets 27,366 20,173 7,193 35.7 %
Assets held for sale - 138,374 (138,374 ) (100.0 %)
Total current assets 1,646,046 360,589 1,285,457 356.5 %
Property and equipment 58,782 62,353 (3,571 ) (5.7 %)
Less - accumulated depreciation and amortization 34,195 30,013 4,182 13.9 %
Property and equipment, net 24,587 32,340 (7,753 ) (24.0 %)
Software, net of accumulated amortization 8,027 13,970 (5,943 ) (42.5 %)
Goodwill 204,671 203,639 1,032 0.5 %
Deferred income taxes 149 10,703 (10,554 ) (98.6 %)
Deferred commissions, net 9,478 - 9,478 -
Other assets, net 34,560 37,854 (3,294 ) (8.7 %)
Assets held for sale - 550,402 (550,402 ) (100.0 %)
1,927,518 1,209,497 718,021 59.4 %

Liabilities and Stockholders' Equity

Current liabilities:
Current installments of long-term debt - 1,583 (1,583 ) (100.0 %)
Trade accounts payable 25,125 18,759 6,366 33.9 %
Accrued payroll and related expenses 13,960 13,774 186 1.4 %
Other accrued expenses 55,135 39,624 15,511 39.1 %
Deferred revenue 2,929 4,506 (1,577 ) (35.0 %)
Income taxes payable 443,590 - 443,590 -
Liabilities held for sale - 100,353 (100,353 ) (100.0 %)
Total current liabilities 540,739 178,599 362,140 202.8 %
Long-term debt - 227,837 (227,837 ) (100.0 %)
Deferred income taxes 178 40,243 (40,065 ) (99.6 %)
Other liabilities 26,985 10,016 16,969 169.4 %
Other liabilities held for sale - 3,707 - (100.0 %)
Stockholders' equity:
Common stock 14,084 13,609 475 3.5 %
Additional paid-in capital 1,366,221 1,235,679 130,542 10.6 %
Retained earnings 1,715,066 628,331 1,086,735 173.0 %
Accumulated other comprehensive income 7,891 10,767 (2,876 ) (26.7 %)
Treasury stock, at cost (1,743,646 ) (1,139,291 ) (604,355 ) (53.0 %)
Total stockholders' equity 1,359,616 749,095 610,521 81.5 %
1,927,518 1,209,497 718,021 59.4 %

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
December 31,
2018 2017
Cash flows from operating activities:
Net earnings 1,056,400 22,941
Earnings from discontinued operations, net of tax (1,071,661 ) (20,407 )
Non-cash operating activities:
Depreciation and amortization 8,853 9,297
Loss on disposal or impairment of assets 2,870 178
Provision for doubtful accounts 628 60
Deferred income taxes 8,279 (16,793 )
Non-cash stock compensation expense 26,082 13,290
Changes in operating assets and liabilities:
Accounts receivable (32,362 ) (5,143 )
Deferred commissions (988 ) -
Other assets 13,134 3,501
Accounts payable and other liabilities (22,117 ) 5,505
Deferred revenue (40 ) 1,667
Net cash provided by (used in) operating activities (10,922 ) 14,096
Cash flows from investing activities:
Capitalized software - (507 )
Capital expenditures (1,938 ) (2,562 )
Payments for investments - (1,000 )
Net cash used in investing activities (1,938 ) (4,069 )
Cash flows from financing activities:
Payments of debt (230,000 ) (582 )
Sale of common stock 9,234 3,645
Shares repurchased for tax withholdings upon vesting of stock-based awards (22,282 ) (2,233 )
Acquisition of treasury stock (18,341 ) (19,665 )
Acquisition of treasury stock from tender offer (503,393 ) -
Net cash used in financing activities (764,782 ) (18,835 )
Cash flows from discontinued operations:
From operating activities (13,336 ) 29,249
From investing activities - (12,749 )
From investing activities - proceeds from sale of AMS 2,251,032 -
Effect of exchange rate changes on cash - 64
Net cash provided by discontinued operations 2,237,696 16,564
Effect of exchange rate changes on cash (327 ) 259
Net change in cash and cash equivalents 1,459,727 8,015
Cash and cash equivalents at beginning of period 87,047 168,352
Cash and cash equivalents at end of period 1,546,774 176,367
Supplemental cash flow information:
Cash (received) during the period for:
Income taxes (124 ) (133 )
Noncash investing and financing activities:
Leasehold improvements paid directly by lessor - 978
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LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the Nine Months Ended
December 31,
2018 2017
Cash flows from operating activities:
Net earnings 1,074,008 18,305
Earnings from discontinued operations (1,158,267 ) (68,851 )
Non-cash operating activities:
Depreciation and amortization 25,274 28,255
Loss on disposal or impairment of assets 3,345 2,303
Provision for doubtful accounts 1,259 322
Accelerated deferred debt costs - 720
Deferred income taxes 20,723 (19,425 )
Non-cash stock compensation expense 61,547 38,844
Changes in operating assets and liabilities:
Accounts receivable (35,011 ) (9,818 )
Deferred commissions (3,035 ) -
Other assets 654 2,365
Accounts payable and other liabilities (29,274 ) 1,786
Deferred revenue (1,555 )