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Actua Announces First Quarter 2017 Financial Results

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RADNOR, Pa., May 04, 2017 (GLOBE NEWSWIRE) -- Actua Corporation (NASDAQ:ACTA) ("Actua") today reported its results for the first quarter ended March 31, 2017.

"2017 is off to a good start," said Walter Buckley, CEO of Actua. "As we anticipated, the strong bookings we saw in the second half of last year resulted in accelerating revenue growth in the first quarter. With a focus on profitable growth, we are well-positioned to continue driving long-term shareholder value."

Revenue was $30.5 million for the first quarter of 2017, up from $25.2 million for the first quarter of 2016.  Net loss attributable to Actua for the first quarter of 2017 was $(9.7) million, or $(0.30) per diluted share, compared to a net loss attributable to Actua of $(14.3) million, or $(0.38) per diluted share, for the comparable prior year quarter.  Non-GAAP net loss for the first quarter of 2017 was $(1.8) million, or $(0.06) per diluted share, as compared to a non-GAAP net loss of $(3.4) million, or $(0.09) per diluted share, for the comparable prior year quarter.  Cash flow from operations was a use of $(3.1) million for the first quarter of 2017, compared to a use of $(3.9) million for the first quarter of 2016.

During the three months ended March 31, 2017, Actua deployed $12.5 million to repurchase approximately 895,000 shares.  From April 1, 2017 through May 3, 2017, Actua deployed an additional $4.6 million to repurchase approximately 355,000 shares, resulting in year-to-date totals of $17.4 million and approximately 1,250,000 shares.

2017 Guidance

Actua continues to expect 2017 annual GAAP revenue in the range of between $125 million and $130 million, representing a range of between 14% and 19% growth from 2016.  Actua continues to expect  2017 annual GAAP cash flow from operations in the range of between a use of $(2.0) million and a source of $2.0 million.  Actua continues to expect 2017 annual non-GAAP net income (loss) per share to be in the range of between $(0.10) and $(0.15) per diluted share.

A reconciliation of the non-GAAP financial measures used above with the most comparable GAAP financial measures is included with the financial tables at the end of this release.

Please see Actua's website at www.actua.com for more information on Actua, its businesses and its first quarter 2017 results.

Actua will host a webcast at 10:00 a.m. ET today to discuss its financial results.  As part of the live webcast for this call, Actua will post a slide presentation to accompany the prepared remarks.  To access the webcast, go to www.actua.com/investors/events-presentations/ and click on the webcast link.  Please log on to the website approximately ten minutes prior to the call to register and download any necessary audio software.  The conference call is also accessible through listen-only mode by dialing 800.708.4540 or 847.619.6397.  The passcode is 44713439.

For those unable to participate in the conference call, a replay will be available from May 4, 2017 at 12:30 p.m. ET until May 11, 2017 at 11:59 p.m. ET.  To access the replay, dial 888.843.7419 or 630.652.3042.  The passcode is 44713439#.  The replay and slide presentation also can be accessed in the investor relations section of the Actua website at www.actua.com/investors/events-presentations/.

About Actua
Actua Corporation (NASDAQ:ACTA), the multi-vertical cloud company, brings the power of the cloud to vertical markets and processes.  Actua is pioneering the second wave of the SaaS revolution - the vertical wave - by growing cloud businesses that are transforming their markets.  With over 700 employees delivering unrivaled domain knowledge, agility and responsiveness to our customers, Actua's rapidly growing vertical cloud businesses are positioned to lead this wave.  For the latest information about Actua and its brands, please go to www.actua.com.

Safe Harbor Statement under Private Securities Litigation Reform Act of 1995

The statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements involve certain risks and uncertainties, including, but not limited to, risks associated with our ability to compete successfully in highly-competitive, rapidly-developing markets, the valuation of public and private cloud-based businesses by analysts, investors and other market participants, our ability to deploy capital effectively and on acceptable terms, the effect of economic conditions generally, capital spending by our customers, our ability to retain existing customer relationships and revenue streams and secure new ones, developments in the markets in which we operate and our ability to respond to those changes in a timely and effective manner, the availability, performance and security of our cloud-based technology, particularly in light of increased cybersecurity risks and concerns, our ability to retain key personnel, our ability to successfully integrate any acquired business, the impact of any potential acquisitions, dispositions, share repurchases or other strategic transactions, our ability to have continued access to capital and to manage capital resources effectively, and other risks and uncertainties detailed in Actua's filings with the U.S. Securities and Exchange Commission.  These and other factors may cause actual results to differ materially from those projected.

 
 Actua Corporation
 Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
               
          Three Months Ended
 March 31,
          2017   2016
               
Revenue       $ 30,507     $ 25,186  
               
Operating expenses          
  Cost of revenue (a)     7,794     6,722  
  Sales and marketing (a)     9,907     10,119  
  General and administrative (a)     12,932     12,326  
  Research and development (a)     6,733     5,307  
  Amortization of intangible assets     3,663     3,582  
  Impairment related and other     360     231  
  Total operating expenses     41,389     38,287  
  Operating income (loss)     (10,882 )   (13,101 )
               
Other income (expense):          
  Other income (loss), net     867     (90 )
  Interest income     155     48  
  Interest expense     (27 )   (33 )
               
Income (loss) before income taxes and noncontrolling interests   (9,887 )   (13,176 )
               
Income tax benefit (expense)     (265 )   (126 )
               
Income (loss) from continuing operations   (10,152 )   (13,302 )
Income (loss) from discontinued operations, net of tax       (2,081 )
Net income (loss)     (10,152 )   (15,383 )
  Less: Net income (loss) attributable to the noncontrolling interests   (482 )   (1,052 )
Net income (loss) attributable to Actua     $ (9,670 )   $ (14,331 )
               
 Amounts attributable to Actua common shareholders:        
Net income (loss) from continuing operations   $ (9,670 )   $ (12,360 )
Net income (loss) from discontinued operations       (1,971 )
Net income (loss) attributable to Actua common shareholders   $ (9,670 )   $ (14,331 )
               
 Basic and diluted net income (loss) per share:          
Income (loss) from continuing operations attributable to Actua common shareholders     $ (0.30 )   $ (0.33 )
Income (loss) from discontinued operations attributable to Actua common shareholders         (0.05 )
Income (loss) attributable to Actua common shareholders     $ (0.30 )   $ (0.38 )
               
Shares used in computation of basic and diluted net income (loss) per common share attributable to Actua common shareholders     32,113     37,293  
               
         
(a) Includes equity-based compensation of:        
  Cost of revenue     $ 102
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