Q1 2025 Liveramp Holdings Inc Earnings Call Transcript
Key Points
- Q1 exceeded expectations on both top and bottom lines, with revenue at $176 million and operating income at $27 million.
- Annual recurring revenue (ARR) grew by $11 million quarter-on-quarter, marking the third consecutive quarter of double-digit millions net new ARR.
- Subscription net retention increased by 2 points quarter-on-quarter to 105%, indicating strong performance with existing customers.
- Marketplace revenue grew 28%, reflecting strong demand across digital advertising tactics, including CTV.
- Integration of Habu has been smooth, contributing roughly $3 million in revenue and showing robust pipeline interest.
- Q1 deal cycles remained elongated versus historical norms, with customers cautious due to macroeconomic uncertainty.
- Operating cash flow was negative $9 million, down from positive $26 million a year ago, due to seasonal working capital movements.
- Stock-based compensation increased to $28 million, up from $13 million a year ago, impacting GAAP operating income.
- The selling environment remains mixed, with overall software budgets under greater scrutiny and customers being more cautious.
- Despite strong performance, the company maintained a wide guidance range for FY25 due to the challenging selling environment and uncertain macroeconomic conditions.
Good afternoon, ladies and gentlemen, and welcome to LiveRamp's fiscal 2025 first quarter earnings call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the call over to your host, Drew Borst, Vice President of Investor Relations.
Thank you, operator. Good afternoon, everyone, and thank you for joining our fiscal 2025 first quarter earnings call. With me today are Scott Howe, our CEO; and Lauren Dillard, our CFO.
Today's press release and this call may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. For a detailed description of these risks please read the Risk Factors section of our public filings and the press release. A copy of our press release and financial schedules, including any reconciliations to non-GAAP financial measures is available at investors.liveramp.com. Also during the call today, we'll be referring to the slide deck that is
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