LiveRamp Holdings Inc, a global technology company specializing in data collaboration and consumer privacy, announced its financial results for the fiscal 2025 first quarter ended June 30, 2024. The company reported a total revenue of $176 million, surpassing the analyst estimate of $171.92 million. However, the GAAP diluted loss per share was $0.11, missing the estimated earnings per share of -$0.09.
Company Overview
LiveRamp Holdings Inc is a leader in data collaboration, helping companies build brand and business value while maintaining consumer trust. The company is known for its commitment to consumer privacy, data ethics, and foundational identity, offering a connected customer view with clarity and context.
Q1 FY25 Financial Highlights
LiveRamp Holdings Inc reported a total revenue of $176 million, marking a 14% increase compared to the prior year period. Subscription revenue grew by 11% to $135 million, while Marketplace & Other revenue surged by 28% to $41 million. The GAAP gross profit was $124 million, up 15%, with a stable GAAP gross margin of 71%. Non-GAAP gross profit also increased by 15% to $130 million, with a non-GAAP gross margin expanding by 1 percentage point to 74%.
| Metric | Q1 FY25 | Q1 FY24 | YoY Change |
|---|---|---|---|
| Total Revenue | $176 million | $154 million | 14% |
| Subscription Revenue | $135 million | $122 million | 11% |
| Marketplace & Other Revenue | $41 million | $32 million | 28% |
| GAAP Gross Profit | $124 million | $108 million | 15% |
| Non-GAAP Gross Profit | $130 million | $112 million | 15% |
| GAAP Operating Loss | ($5 million) | $2 million | -331.2% |
| Non-GAAP Operating Income | $27 million | $21 million | 28.6% |
| GAAP Diluted Loss Per Share | ($0.11) | ($0.02) | -371.3% |
| Non-GAAP Diluted Earnings Per Share | $0.35 | $0.29 | 20.7% |
Performance Analysis
Despite the revenue growth, LiveRamp Holdings Inc faced challenges with its GAAP operating loss of $5 million, compared to an income of $2 million in the prior year period. The GAAP operating margin was negative 3%, down from 1%. However, the non-GAAP operating income improved to $27 million from $21 million, with the non-GAAP operating margin expanding by 2 percentage points to 15%.
CEO Scott Howe commented, “We posted double-digit growth for a second consecutive quarter in both revenue and ARR, and revenue and operating income again exceeded our expectations. Our Data Collaboration Platform is well-positioned for growth, benefiting from multiple industry megatrends — including the shift to cloud computing, the proliferation of AI tools in marketing, growth in Commerce Media and CTV platforms, and the ongoing move to authenticated addressability.”
Key Metrics and Financial Achievements
LiveRamp Holdings Inc ended the quarter with 115 customers whose annualized subscription revenue exceeds $1 million, compared to 96 in the prior year period. The company also reported a subscription net retention rate of 105% and a platform net retention rate of 108%. Annual recurring revenue (ARR) was $478 million, up 12% compared to the prior year period. Current remaining performance obligations (CRPO) were $398 million, up 13% year-over-year.
Balance Sheet and Cash Flow
As of June 30, 2024, LiveRamp Holdings Inc had cash and cash equivalents of $310.4 million, down from $336.9 million as of March 31, 2024. The company reported net cash used in operating activities of $9 million, compared to net cash provided by operating activities of $26 million in the prior year period. The company repurchased approximately 499,000 shares for $16 million during the quarter.
Conclusion
LiveRamp Holdings Inc demonstrated strong revenue growth and improved non-GAAP operating income, reflecting the company's strategic positioning in the data collaboration market. However, the GAAP operating loss and increased operating expenses highlight ongoing challenges. Investors will be keen to see how the company navigates these challenges while capitalizing on industry megatrends.
Explore the complete 8-K earnings release (here) from LiveRamp Holdings Inc for further details.
