Neustar Completes MarketShare Acquisition and Provides 2016 Guidance

Sterling, VA - 9 December 2015

Strong Growth of Existing Business Expected to Continue

Neustar, Inc. (NYSE:NSR), a trusted neutral provider of real-time information services, announced today that it has completed its acquisition of MarketShare Partners, LLC and provided guidance for 2016.

I am pleased to welcome MarketShare’s talented team to Neustar,” said Lisa Hook, President and Chief Executive Officer of Neustar. “By combining MarketShare’s analytics software with our authoritative identity framework, we are now positioned to help clients build comprehensive marketing plans to reach customers efficiently and attribute sales to the appropriate marketing spend, both online and offline.”

MarketShare founders Jon Vein and Wes Nichols have joined Neustar’s leadership team and will focus on continuing to deliver MarketShare services and ensuring a smooth integration.

Ms. Hook continued, “Our Information Services revenue has grown 10% over the last few quarters and we have managed our expenses prudently. When adjusted for inorganic additions and the loss of the Common Short Codes contract, we are ahead of our plan, allowing us to focus on the MarketShare integration and to provide guidance for 2016.”

Business Outlook for 2016 Compared to the Midpoint of 2015 Guidance Range

The company expects its 2016 revenue to range from $1.16 billion to $1.20 billion, representing growth of 11% to 15%. The company’s Information Services revenue is expected to range from $655 million to $695 million, representing growth of 21% to 29%, and includes at least $90 million in revenue resulting from the MarketShare acquisition.

This guidance assumes that the company will remain the local number portability administrator for 2016 and excludes the impact of the pending acquisition of caller authentication assets from TNS.

Adjusted net income for 2016 is expected to range from $265 million to $285 million, or a 23% margin. On a per share basis, adjusted net income is expected to range from $4.79 to $5.15, an increase of 5% to 13%.

Adjusted EBITDA for 2016 is expected to range from $535 million to $555 million, a margin of 46%. This adjusted EBITDA range reflects a 10% margin for MarketShare and a 49% margin for the remainder of the business versus a 46% margin for 2015. This margin expansion demonstrates continued operating leverage in our Information Services business.

"Both the strength in Information Services revenue and strong visibility into future performance gives us the confidence to provide guidance for 2016 at this time," said Paul Lalljie, Neustar’s Chief Financial Officer. "We expect to grow the top line by approximately $50 million, despite a $40 million reduction of revenue from Common Short Codes. Adjusted for the loss of this contract, the company's Information Services revenue would have grown 16%."

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