On May 22, 2024, LiveRamp Holdings Inc (RAMP, Financial) released its 8-K filing detailing its financial results for the fourth quarter and fiscal year ended March 31, 2024. LiveRamp, a leading data collaboration platform, helps businesses optimize customer data to enhance advertising and marketing strategies.
Q4 Financial Highlights
LiveRamp reported total revenue of $172 million for Q4 FY24, a 16% increase year-over-year, surpassing the analyst estimate of $160.62 million. Subscription revenue grew by 11% to $134 million, while Marketplace & Other revenue surged by 38% to $38 million. The company's GAAP gross profit was $124 million, with a gross margin of 72%, up by 1 percentage point from the previous year. Non-GAAP gross profit was $129 million, maintaining a gross margin of 75%.
GAAP operating loss narrowed significantly to $14 million from $47 million in the prior year, reflecting an operating margin improvement of 23 percentage points to negative 8%. Non-GAAP operating income was $16 million, with an unchanged operating margin of 9%. GAAP diluted loss per share was $0.08, while non-GAAP diluted earnings per share were $0.25, exceeding the analyst estimate of -$0.19.
Fiscal Year 2024 Financial Highlights
For the full fiscal year 2024, LiveRamp reported total revenue of $660 million, an 11% increase from the previous year. Subscription revenue, which constitutes 78% of total revenue, grew by 6% to $514 million. Marketplace & Other revenue increased by 28% to $146 million. GAAP gross profit was $480 million, with a gross margin of 73%, up by 1 percentage point. Non-GAAP gross profit was $493 million, with a gross margin of 75%, down by 1 percentage point.
GAAP operating income was $11 million, a significant turnaround from a loss of $126 million in the prior year, resulting in an operating margin of 2%. Non-GAAP operating income was $105 million, with an operating margin of 16%, up by 6 percentage points. GAAP diluted EPS was $0.17, and non-GAAP diluted EPS was $1.45.
Key Metrics and Achievements
LiveRamp's operating cash flow for FY24 was $106 million, a substantial increase from $34 million in the previous year. The company repurchased approximately 2.1 million shares for $61 million during the fiscal year, with $157 million remaining under the share repurchase authorization as of March 31, 2024.
CEO Scott Howe commented on the results, stating,
We ended fiscal 2024 on a high note, with fourth quarter revenue and operating income exceeding our expectations, and a positive inflection in several key performance indicators, including annual recurring revenue and $1 million plus customer additions."
Income Statement Summary
| Metric | Q4 FY24 | FY24 |
|---|---|---|
| Total Revenue | $172 million | $660 million |
| Subscription Revenue | $134 million | $514 million |
| Marketplace & Other Revenue | $38 million | $146 million |
| GAAP Gross Profit | $124 million | $480 million |
| Non-GAAP Gross Profit | $129 million | $493 million |
| GAAP Operating Income (Loss) | $(14) million | $11 million |
| Non-GAAP Operating Income | $16 million | $105 million |
| GAAP Diluted EPS | $(0.08) | $0.17 |
| Non-GAAP Diluted EPS | $0.25 | $1.45 |
Analysis and Outlook
LiveRamp's strong performance in Q4 and FY24 highlights its robust business model and effective execution. The significant growth in Marketplace & Other revenue indicates a successful diversification of revenue streams. The improvement in operating margins and reduction in GAAP operating loss reflect effective cost management and operational efficiency.
Looking ahead, LiveRamp's Data Collaboration Platform is well-positioned to address the evolving needs of advertisers and publishers, particularly in the context of cookie deprecation and technological advancements. The company's strategic initiatives, including the next-generation platform and enhanced capabilities with Amazon services, are expected to drive further growth and customer engagement.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from LiveRamp Holdings Inc for further details.
