LiveRamp Announces Fourth Quarter and Fiscal Year Results
LiveRamp announced its Q4 and fiscal year results for the period ending March 31, 2024. Q4 revenue increased by 16% to $172 million, with subscription revenue up by 11% to $134 million. GAAP gross profit grew by 18% to $124 million, while non-GAAP gross profit rose by 16% to $129 million. GAAP operating loss improved to $14 million from $47 million, with non-GAAP operating income at $16 million. For the fiscal year, total revenue reached $660 million, up by 11%, and GAAP operating income stood at $11 million, compared to a loss of $126 million previously. Non-GAAP operating income was $105 million, an increase from $61 million. GAAP diluted EPS was $0.17, and non-GAAP diluted EPS was $1.45. Operating cash flow for the year was $106 million, a significant increase from $34 million the previous year. Share repurchases totaled $61 million for fiscal 2024. The company highlighted enhanced capabilities in its Data Collaboration Platform and recognition as a Google Cloud Partner of the Year.
- Q4 revenue up 16% to $172 million.
- Q4 subscription revenue up 11% to $134 million.
- Fiscal year total revenue up 11% to $660 million.
- GAAP gross profit for Q4 up 18% to $124 million.
- Non-GAAP gross profit for Q4 up 16% to $129 million.
- GAAP operating loss for Q4 improved to $14 million from $47 million.
- Non-GAAP operating income for Q4 $16 million.
- GAAP operating income for the fiscal year $11 million from a loss of $126 million.
- Non-GAAP operating income for the fiscal year $105 million from $61 million.
- GAAP diluted EPS for the fiscal year $0.17.
- Non-GAAP diluted EPS for the fiscal year $1.45.
- Operating cash flow for the fiscal year $106 million, up from $34 million.
- Share repurchases totaled $61 million for fiscal 2024.
- Recognized as a Google Cloud Partner of the Year.
- GAAP operating margin for Q4 is -8%.
- GAAP diluted loss per share for Q4 is $0.08.
- Net cash provided by operating activities decreased to $28 million from $31 million.
- Non-GAAP gross margin for the fiscal year contracted by 1 point.
- The company ended the quarter with 900 direct subscription customers, down from 920.
Insights
LiveRamp’s fourth quarter and fiscal year results show strong top-line growth, with overall revenue up 16% year-over-year for Q4 and 11% for the fiscal year. Subscription revenue, which makes up the majority of their total revenue, rose 11% in Q4 and 6% for the fiscal year. This indicates a healthy demand for LiveRamp's core services. Furthermore, the company’s Marketplace & Other revenue surged by 38% in Q4, reflecting the potential expansion of their service offerings.
Notably, LiveRamp managed to narrow its GAAP operating loss by a significant margin, reducing it from
The company’s operating cash flow also saw a significant increase, reaching
Additionally, LiveRamp’s share repurchases totaling
Improved margins, strong cash flow and continued investment in new capabilities suggest that LiveRamp is well-positioned for future growth. However, the remaining GAAP losses and modest revenue growth projections indicate areas for caution.
From a market standpoint, LiveRamp’s strategic developments and partnerships are noteworthy. The introduction of the next-generation Data Collaboration Platform with enhanced user interface and cross-cloud interoperability is a major value addition that can attract more clients and improve user experience.
The delay in Google's deprecation of third-party cookies to early 2025 provides a temporary relief but doesn’t change LiveRamp’s strategy, which already emphasizes the use of first-party data and privacy-enhancing technologies. This proactive approach reflects well on LiveRamp’s adaptability to changing market dynamics.
The recognition as Google Cloud Partner of the Year for retail solutions underscores LiveRamp’s industry expertise and strengthens their market position. Such accolades could enhance their credibility and attract more business from major retailers and brands looking to leverage marketing data and analytics.
However, the slight decline in the number of direct subscription customers (from 920 to 900) may indicate a need to address customer retention or acquisition strategies. Nonetheless, the increase in customers with $1 million+ annualized subscription revenue is a positive sign of growing business from high-value clients.
The company's focus on providing high-quality, scalable solutions for advertisers and publishers in a cookie-less environment is also noteworthy. LiveRamp’s competitive edge relies on their ability to stay ahead in the evolving ad-tech landscape and maintaining robust demand for their services.
The latest updates to LiveRamp’s Data Collaboration Platform, with new capabilities like enhanced connectivity, simplified user interface and cross-cloud interoperability, are significant for clients relying on cutting-edge technology for data-driven marketing. These advancements can streamline the data collaboration process, making it easier for users to leverage data across different platforms and drive better marketing outcomes.
LiveRamp’s focus on privacy-enhancing technologies reflects the broader industry trend towards data security and consumer privacy. This is important in the current market, where regulatory compliance and consumer trust play a pivotal role.
The integrations with Amazon’s Marketing Cloud and Demand-Side Platform allow customers to optimize their advertising strategies across Amazon’s ecosystem. This could potentially boost the efficacy of their marketing campaigns by unlocking deeper insights and analytics, thereby enhancing return on investment.
Moreover, LiveRamp’s Authenticated Traffic Solution (ATS) and clean room technology are future-proofing investments. ATS’s widespread adoption (over 21,000 publisher domains) highlights its effectiveness in providing a scalable solution for addressable advertising in an era where third-party cookies are becoming obsolete.
These technological advancements not only enhance LiveRamp’s service offerings but also position them as a leader in providing scalable, secure and efficient data collaboration solutions.
Q4 Revenue up
Q4 Subscription Revenue up
FY24 Operating Margin of
FY24 Operating Cash Flow of
SAN FRANCISCO, Calif., May 22, 2024 (GLOBE NEWSWIRE) -- LiveRamp® (NYSE: RAMP), the leading data collaboration platform, today announced its financial results for the quarter and fiscal year ended March 31, 2024.
Q4 Financial Highlights1
- Total revenue was
$172 million , up16% . - Subscription revenue was
$134 million , up11% . - Marketplace & Other revenue was
$38 million , up38% . - GAAP gross profit was
$124 million , up18% . GAAP gross margin of72% expanded by 1 percentage point. Non-GAAP gross profit was$129 million , up16% . Non-GAAP gross margin of75% was unchanged. - GAAP operating loss was
$14 million compared to$47 million . GAAP operating margin of negative8% expanded by 23 points. Non-GAAP operating income was$16 million compared to$14 million . Non-GAAP operating margin of9% was unchanged. - GAAP diluted loss per share was
$0.08 and non-GAAP diluted earnings per share was$0.25 . - Net cash provided by operating activities was
$28 million compared to$31 million . - Share repurchases in the fourth quarter totaled approximately 405,000 shares for
$15 million .
Fiscal Year Financial Highlights1
- Total revenue was
$660 million , up11% . - Subscription revenue was
$514 million , up6% , and represented78% of total revenue. - Marketplace & Other revenue was
$146 million , up28% . - GAAP gross profit was
$480 million , up13% , and GAAP gross margin of73% expanded by 1 percentage point. Non-GAAP gross profit was$493 million , up10% , and non-GAAP gross margin of75% contracted by 1 point. - GAAP operating income was
$11 million compared to a loss of$126 million . GAAP operating margin of2% expanded by 23 points. Non-GAAP operating income was$105 million compared to$61 million . Non-GAAP operating margin of16% expanded by 6 points. - GAAP diluted EPS was
$0.17 , and non-GAAP diluted EPS was$1.45 . - Net cash provided by operating activities was
$106 million compared to$34 million . - Share repurchases in fiscal 2024 totaled approximately 2.1 million shares for
$61 million . As of March 31, 2024, there was$157 million in remaining capacity under the share repurchase authorization that expires on December 31, 2024.
A reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release.
Commenting on the results, CEO Scott Howe said: "We ended fiscal 2024 on a high note, with fourth quarter revenue and operating income exceeding our expectations, and a positive inflection in several key performance indicators, including annual recurring revenue and
GAAP and Non-GAAP Results
The following table summarizes the Company’s financial results for the fiscal 2024 fourth quarter and full year ended March 31, 2024 ($ in millions, except per share amounts):
| GAAP | Non-GAAP | ||||||
| Q4 FY24 | FY24 | Q4 FY24 | FY24 | ||||
| Subscription revenue | — | — | |||||
| YoY change | 11% | 6% | — | — | |||
| Marketplace & Other revenue | — | — | |||||
| YoY change | 38% | 28% | — | — | |||
| Total revenue | $172 | $660 | — | — | |||
| YoY change | 16% | 11% | — | — | |||
| Gross profit | $124 | $480 | $129 | $493 | |||
| % Gross margin | |||||||
| YoY change | 1 pt | 1 pt | 0 pts | (1 pt) | |||
| Operating income (loss) | ($14) | $11 | $16 | $105 | |||
| % Operating margin | ( | ||||||
| YoY change | 23 pts | 23 pts | 0 pts | 6 pts | |||
| Net earnings (loss) | ( | ||||||
| Diluted earnings (loss) per share | ($0.08) | $0.17 | $0.25 | $1.45 | |||
| Shares to calculate diluted EPS | 66.3 | 67.9 | 68.5 | 67.9 | |||
| YoY change | 2% | 2% | 3% | 1% | |||
| Net operating cash flow | $28 | $106 | — | — | |||
| Free cash flow to equity | — | — | $26 | $101 | |||
| Totals may not sum due to rounding. | |||||||
A detailed discussion of our non-GAAP financial measures and a reconciliation between GAAP and non-GAAP results is provided in the schedules attached to this press release.
Additional Business Highlights & Metrics
- In February 2024 we unveiled the next generation of the LiveRamp Data Collaboration Platform, which brings together solutions for the end-to-end marketing lifecycle onto a single platform. The unified offering introduces new capabilities such as a simplified user interface, composable technology for cross-cloud interoperability, and a partner marketplace where innovative third-party developers can build applications showcasing their trusted expertise (additional information).
- In February 2024 we launched enhanced capabilities that help customers optimize addressability, connectivity and measurement across Amazon Marketing Cloud (AMC) and Amazon Demand-Side Platform (DSP). Brand marketers, advertisers, and agencies can now leverage LiveRamp’s integrations with these services to unlock insights and analytics with an industry-leading, privacy-enhancing approach (additional information).
- In April 2024 we were selected as a Google Cloud Partner of the Year for “Industry Solution - Technology: Retail.” LiveRamp was recognized for delivering solutions that help retailers and brands unlock the value of marketing data and analytics in Google Cloud (additional information). This accolade follows LiveRamp’s recognition as Google Cloud’s “Global Industry Technology Partner of the Year” in 2023 and Habu’s recognition in 2023 as Databricks’ Partner of the Year for “Communications, Media and Entertainment.”
- In April 2024 Google announced that it will delay the full deprecation of third-party cookies in Chrome from the second half of 2024 until early 2025. This delay does not change our strategy or market approach. We have been preparing for the deprecation of third-party cookies for some time with the build out of our Authenticated Traffic Solution (ATS) and our investment in clean room technology to enable secure first-party data collaboration.
- ATS is a fully scaled solution that connects publisher and marketer data to better personalize and measure advertising on authenticated inventory. ATS has been adopted by over 21,000 publisher domains and
75% of the comScore 100 publishers. In addition, it is integrated with all major demand-side platforms (DSPs) and supply-side platforms (SSPs). Through these integrations, LiveRamp connects to over92% of US consumer time spent online. - LiveRamp ended the quarter with 115 customers whose annualized subscription revenue exceeds
$1 million , compared to 95 in the prior year period. - LiveRamp ended the quarter with 900 direct subscription customers, compared to 920 in the prior year period.
- Fourth quarter subscription net retention was
103% and platform net retention was108% . - Fourth quarter annual recurring revenue (ARR), which is the last month of the quarter fixed subscription revenue annualized, was
$467 million , up10% compared to the prior year period. - Current remaining performance obligations (CRPO), which is contracted and committed revenue expected to be recognized over the next 12 months, was
$414 million , up23% compared to the prior year period.
Financial Outlook
LiveRamp’s non-GAAP operating income guidance excludes the impact of non-cash stock compensation, purchased intangible asset amortization, and restructuring and related charges.
For the first quarter of fiscal 2025, LiveRamp expects to report:
- Revenue of
$172 million , an increase of12% - GAAP operating loss of
$8 million - Non-GAAP operating income of
$25 million
For fiscal 2025, LiveRamp expects to report:
- Revenue of between
$710 million and$730 million , an increase of between8% and11% - GAAP operating loss of between
$8 million and$4 million - Non-GAAP operating income of between
$125 million and$129 million
Conference Call
LiveRamp will hold a conference call today at 1:30 p.m. PT (4:30 p.m. ET) to further discuss this information. Interested parties are invited to listen to a webcast of the conference, which can be accessed on LiveRamp’s investor site. A slide presentation will be referenced during the call and is available here.
About LiveRamp
LiveRamp is the data collaboration platform of choice for the world’s most innovative companies. A groundbreaking leader in consumer privacy, data ethics, and foundational identity, LiveRamp offers a connected customer view with clarity and context while protecting brand and consumer trust. We offer flexibility to collaborate wherever data lives to support a wide range of data collaboration use cases—within organizations, between brands, and across our global network of premier partners. Global innovators, from iconic consumer brands and tech platforms to retailers, financial services, and healthcare leaders, turn to LiveRamp to deepen customer engagement and loyalty, activate new partnerships, and maximize the value of their first-party data while staying on the forefront of rapidly evolving compliance and privacy requirements. LiveRamp is based in San Francisco, California with offices worldwide. Learn more at LiveRamp.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended (the “PSLRA”). These statements, which are not statements of historical fact, may contain estimates, assumptions, projections and/or expectations regarding the Company’s financial position, results of operations for fiscal 2025 and beyond, the integration and expected benefits from the acquisition of Habu, market position, product development, growth opportunities, economic conditions, and other similar forecasts and statements of expectation. Forward-looking statements are often identified by words or phrases such as “anticipate,” “estimate,” “plan,” “expect,” “believe,” “intend,” “foresee,” or the negative of these terms or other similar variations thereof.
These forward-looking statements are not guarantees of future performance and are subject to a number of factors and uncertainties that could cause the Company’s actual results and experiences to differ materially from the anticipated results and expectations expressed in the forward-looking statements.
Among the factors that may cause actual results and expectations to differ from anticipated results and expectations expressed in forward-looking statements are uncertainties related to rising interest rates, cost increases, the possibility of a recession, general inflationary pressure, geo-political circumstances that could result in increased economic uncertainties and the associated impacts of these potential events on our suppliers, customers and partners; the Company’s dependence upon customer renewals; new customer additions and upsell within our subscription business; our reliance upon partners, including data suppliers; competition; rapidly changing technology’s impact on our products and services; the risk that we fail to realize the potential benefits of or have difficulty integrating Habu; and attracting, motivating and retaining talent. Additional risks include maintaining our culture and our ability to innovate and evolve while operating in a hybrid work environment, with some employees working remotely at least some of the time within a rapidly changing industry, while also avoiding disruption from reductions in our current workforce as well as disruptions resulting from acquisition, divestiture and other activities affecting our workforce. Our global workforce strategy could possibly encounter difficulty and not be as beneficial as planned. Our international operations are also subject to risks, including the performance of third parties as well as impacts from war and civil unrest, that may harm the Company’s business. The risk of a significant breach of the confidentiality of the information or the security of our or our customers’, suppliers’, or other partners’ data and/or computer systems, or the risk that our current insurance coverage may not be adequate for such a breach, that an insurer might deny coverage for a claim or that such insurance will continue to be available to us on commercially reasonable terms, or at all, could be detrimental to our business, reputation and results of operations. Other business risks include unfavorable publicity and negative public perception about our industry; interruptions or delays in service from data center or cloud hosting vendors we rely upon; and our dependence on the continued availability of third-party data hosting and transmission services. Our clients’ ability to use data on our platform could be restricted if the industry’s use of third-party cookies and tracking technology declines due to technology platform changes, regulation or increased user controls. Changes in regulations and legislation relating to information collection and use represents a risk, as well as changes in tax laws and regulations that are applied to our customers which could cause enterprise software budget tightening. In addition, third parties may claim that we are infringing their intellectual property or may infringe our intellectual property which could result in competitive injury and / or the incurrence of significant costs and draining of our resources.
For a discussion of these and other risks and uncertainties that could affect LiveRamp’s business, reputation, results of operation, financial condition and stock price, please refer to LiveRamp’s filings with the U.S. Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of LiveRamp’s most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings.
The financial information set forth in this press release reflects estimates based on information available at this time.
LiveRamp assumes no obligation and does not currently intend to update these forward-looking statements.
To automatically receive LiveRamp financial news by email, please visit www.LiveRamp.com and subscribe to email alerts.
For more information, contact:
LiveRamp Investor Relations
Investor.Relations@LiveRamp.com
LiveRampⓇ and RampID™ and all other LiveRamp marks contained herein are trademarks or service marks of LiveRamp, Inc. All other marks are the property of their respective owners.
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
| (Unaudited) | ||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||
| For the Three Months Ended | ||||||||||
| March 31, | ||||||||||
| $ | % | |||||||||
| 2024 | 2023 | Variance | Variance | |||||||
| Revenues | 171,852 | 148,626 | 23,226 | 15.6 | % | |||||
| Cost of revenue | 47,722 | 43,472 | 4,250 | 9.8 | % | |||||
| Gross profit | 124,130 | 105,154 | 18,976 | 18.0 | % | |||||
| % Gross margin | 72.2 | % | 70.8 | % | ||||||
| Operating expenses: | ||||||||||
| Research and development | 45,161 | 52,220 | (7,059 | ) | (13.5 | %) | ||||
| Sales and marketing | 60,476 | 57,506 | 2,970 | 5.2 | % | |||||
| General and administrative | 30,252 | 32,832 | (2,580 | ) | (7.9 | %) | ||||
| Gains, losses and other items, net | 2,516 | 9,723 | (7,207 | ) | (74.1 | %) | ||||
| Total operating expenses | 138,405 | 152,281 | (13,876 | ) | (9.1 | %) | ||||
| Loss from operations | (14,275 | ) | (47,127 | ) | 32,852 | 69.7 | % | |||
| % Margin | -8.3 | % | -31.7 | % | ||||||
| Total other income, net | 5,070 | 4,735 | 335 | 7.1 | % | |||||
| Loss from continuing operations before income taxes | (9,205 | ) | (42,392 | ) | 33,187 | 78.3 | % | |||
| Income tax benefit | (3,027 | ) | (6,460 | ) | 3,433 | 53.1 | % | |||
| Net loss from continuing operations | (6,178 | ) | (35,932 | ) | 29,754 | 82.8 | % | |||
| Earnings from discontinued operations, net of tax | 805 | 4,568 | (3,763 | ) | (82.4 | %) | ||||
| Net loss | (5,373 | ) | (31,364 | ) | 25,991 | 82.9 | % | |||
| Basic earnings (loss) per share: | ||||||||||
| Continuing operations | (0.09 | ) | (0.55 | ) | 0.46 | 83.1 | % | |||
| Discontinued operations | 0.01 | 0.07 | (0.06 | ) | (82.7 | %) | ||||
| Basic earnings (loss) per share | (0.08 | ) | (0.48 | ) | 0.40 | 83.2 | % | |||
| Diluted earnings (loss) per share: | ||||||||||
| Continuing operations | (0.09 | ) | (0.55 | ) | 0.46 | 83.1 | % | |||
| Discontinued operations | 0.01 | 0.07 | (0.06 | ) | (82.7 | %) | ||||
| Diluted earnings (loss) per share: | (0.08 | ) | (0.48 | ) | 0.40 | 83.2 | % | |||
| Basic weighted average shares | 66,323 | 65,126 | ||||||||
| Diluted weighted average shares | 66,323 | 65,126 | ||||||||
| Some totals may not sum due to rounding. | ||||||||||
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
| (Unaudited) | ||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||
| For the Twelve Months Ended | ||||||||||
| March 31, | ||||||||||
| $ | % | |||||||||
| 2024 | 2023 | Variance | Variance | |||||||
| Revenues | 659,661 | 596,583 | 63,078 | 10.6 | % | |||||
| Cost of revenue | 179,489 | 170,084 | 9,405 | 5.5 | % | |||||
| Gross profit | 480,172 | 426,499 | 53,673 | 12.6 | % | |||||
| % Gross margin | 72.8 | % | 71.5 | % | ||||||
| Operating expenses: | ||||||||||
| Research and development | 151,201 | 189,195 | (37,994 | ) | (20.1 | %) | ||||
| Sales and marketing | 195,693 | 202,437 | (6,744 | ) | (3.3 | %) | ||||
| General and administrative | 110,166 | 125,351 | (15,185 | ) | (12.1 | %) | ||||
| Gains, losses and other items, net | 11,708 | 35,316 | (23,608 | ) | (66.8 | %) | ||||
| Total operating expenses | 468,768 | 552,299 | (83,531 | ) | (15.1 | %) | ||||
| Income (loss) from operations | 11,404 | (125,800 | ) | 137,204 | 109.1 | % | ||||
| % Margin | 1.7 | % | -21.1 | % | ||||||
| Total other income, net | 22,957 | 6,946 | 16,011 | 230.5 | % | |||||
| Income (loss) from continuing operations before income taxes | 34,361 | (118,854 | ) | 153,215 | 128.9 | % | ||||
| Income tax expense | 24,270 | 5,252 | 19,018 | 362.1 | % | |||||
| Net earnings (loss) from continuing operations | 10,091 | (124,106 | ) | 134,197 | 108.1 | % | ||||
| Earnings from discontinued operations, net of tax | 1,790 | 5,404 | (3,614 | ) | (66.9 | %) | ||||
| Net earnings (loss) | 11,881 | (118,702 | ) | 130,583 | 110.0 | % | ||||
| Basic earnings (loss) per share: | ||||||||||
| Continuing operations | 0.15 | (1.87 | ) | 2.02 | 108.1 | % | ||||
| Discontinued operations | 0.03 | 0.08 | (0.05 | ) | (66.8 | %) | ||||
| Basic earnings (loss) per share | 0.18 | (1.79 | ) | 1.97 | 110.0 | % | ||||
| Diluted earnings (loss) per share: | ||||||||||
| Continuing operations | 0.15 | (1.87 | ) | 2.02 | 107.9 | % | ||||
| Discontinued operations | 0.03 | 0.08 | (0.06 | ) | (67.6 | %) | ||||
| Diluted earnings (loss) per share: | 0.17 | (1.79 | ) | 1.96 | 109.8 | % | ||||
| Basic weighted average shares | 66,266 | 66,352 | ||||||||
| Diluted weighted average shares | 67,918 | 66,352 | ||||||||
| Some totals may not sum due to rounding. | ||||||||||
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | ||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP EPS (1) | ||||||||||
| (Unaudited) | ||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||
| For the Three Months Ended | For the Twelve Months Ended | |||||||||
| March 31, | March 31, | |||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||
| Income (loss) from continuing operations before income taxes | (9,205 | ) | (42,392 | ) | 34,361 | (118,854 | ) | |||
| Income tax expense (benefit) | (3,027 | ) | (6,460 | ) | 24,270 | 5,252 | ||||
| Net earnings (loss) from continuing operations | (6,178 | ) | (35,932 | ) | 10,091 | (124,106 | ) | |||
| Earnings from discontinued operations, net of tax | 805 | 4,568 | 1,790 | 5,404 | ||||||
| Net earnings (loss) | (5,373 | ) | (31,364 | ) | 11,881 | (118,702 | ) | |||
| Earnings (loss) per share: | ||||||||||
| Basic | (0.08 | ) | (0.48 | ) | 0.18 | (1.79 | ) | |||
| Diluted | (0.08 | ) | (0.48 | ) | 0.17 | (1.79 | ) | |||
| Excluded items: | ||||||||||
| Purchased intangible asset amortization (cost of revenue) | 3,097 | 3,336 | 8,785 | 16,825 | ||||||
| Non-cash stock compensation (cost of revenue and operating expenses) | 24,780 | 44,658 | 71,304 | 125,800 | ||||||
| Transformation costs (general and administrative) | - | 3,663 | 1,875 | 9,025 | ||||||
| Restructuring charges (gains, losses, and other) | 2,516 | 9,723 | 11,708 | 35,316 | ||||||
| Total excluded items, continuing operations | 30,393 | 61,380 | 93,672 | 186,966 | ||||||
| Income from continuing operations before income taxes and excluding items | 21,188 | 18,988 | 128,033 | 68,112 | ||||||
| Income tax expense (benefit) (2) | 3,947 | (2,141 | ) | 29,882 | 10,121 | |||||
| Non-GAAP net earnings from continuing operations | 17,241 | 21,129 | 98,151 | 57,991 | ||||||
| Non-GAAP earnings per share from continuing operations: | ||||||||||
| Basic | 0.26 | 0.32 | 1.48 | 0.87 | ||||||
| Diluted | 0.25 | 0.32 | 1.45 | 0.86 | ||||||
| Basic weighted average shares | 66,323 | 65,126 | 66,266 | 66,352 | ||||||
| Diluted weighted average shares | 68,471 | 66,268 | 67,918 | 67,097 | ||||||
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.
(2) Income taxes were calculated by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusting for discrete tax items in the period. The differences between our GAAP and non-GAAP effective tax rates were primarily due to the net tax effects of the excluded items, coupled with larger pre-tax losses for GAAP purposes versus smaller pre-tax losses or income for non-GAAP purposes.
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | |||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP INCOME (LOSS) FROM OPERATIONS (1) | |||||||||||
| (Unaudited) | |||||||||||
| (Dollars in thousands) | |||||||||||
| For the Three Months Ended | For the Twelve Months Ended | ||||||||||
| March 31, | March 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Income (loss) from continuing operations | (14,275 | ) | (47,127 | ) | 11,404 | (125,800 | ) | ||||
| Excluded items: | |||||||||||
| Purchased intangible asset amortization (cost of revenue) | 3,097 | 3,336 | 8,785 | 16,825 | |||||||
| Non-cash stock compensation (cost of revenue and operating expenses) | 24,780 | 44,658 | 71,304 | 125,800 | |||||||
| Transformation costs (general and administrative) | - | 3,663 | 1,875 | 9,025 | |||||||
| Restructuring charges (gains, losses, and other) | 2,516 | 9,723 | 11,708 | 35,316 | |||||||
| Total excluded items | 30,393 | 61,380 | 93,672 | 186,966 | |||||||
| Income from continuing operations before excluded items | 16,118 | 14,253 | 105,076 | 61,166 | |||||||
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | ||||||||||||
| RECONCILIATION OF ADJUSTED EBITDA (1) | ||||||||||||
| (Unaudited) | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||
| March 31, | March 31, | |||||||||||
| 2024 | 2023 | 2023 | 2022 | |||||||||
| Net earnings (loss) from continuing operations | (6,178 | ) | (35,932 | ) | 10,091 | (124,106 | ) | |||||
| Income tax expense (benefit) | (3,027 | ) | (6,460 | ) | 24,270 | 5,252 | ||||||
| Other income, net | (5,070 | ) | (4,735 | ) | (22,957 | ) | (6,946 | ) | ||||
| Income (loss) from operations | (14,275 | ) | (47,127 | ) | 11,404 | (125,800 | ) | |||||
| Depreciation and amortization | 3,823 | 4,226 | 11,508 | 20,787 | ||||||||
| EBITDA | (10,452 | ) | (42,901 | ) | 22,912 | (105,013 | ) | |||||
| Other adjustments: | ||||||||||||
| Non-cash stock compensation (cost of revenue and operating expenses) | 24,780 | 44,658 | 71,304 | 125,800 | ||||||||
| Transformation costs (general and administrative) | - | 3,663 | 1,875 | 9,025 | ||||||||
| Restructuring charges (gains, losses, and other) | 2,516 | 9,723 | 11,708 | 35,316 | ||||||||
| Other adjustments | 27,296 | 58,044 | 84,887 | 170,141 | ||||||||
| Adjusted EBITDA | 16,844 | 15,143 | 107,799 | 65,128 | ||||||||
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (Dollars in thousands) | ||||||||||
| March 31, | March 31, | $ | % | |||||||
| 2024 | 2023 | Variance | Variance | |||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | 336,867 | 464,448 | (127,581 | ) | (27.5 | %) | ||||
| Restricted cash | 2,604 | - | 2,604 | n/a | ||||||
| Short-term investments | 32,045 | 32,807 | (762 | ) | (2.3 | %) | ||||
| Trade accounts receivable, net | 190,313 | 157,379 | 32,934 | 20.9 | % | |||||
| Refundable income taxes, net | 8,521 | 28,897 | (20,376 | ) | (70.5 | %) | ||||
| Other current assets | 31,682 | 31,028 | 654 | 2.1 | % | |||||
| Total current assets | 602,032 | 714,559 | (112,527 | ) | (15.7 | %) | ||||
| Property and equipment | 25,394 | 39,393 | (13,999 | ) | (35.5 | %) | ||||
| Less - accumulated depreciation and amortization | 17,213 | 32,308 | (15,095 | ) | (46.7 | %) | ||||
| Property and equipment, net | 8,181 | 7,085 | 1,096 | 15.5 | % | |||||
| Intangible assets, net | 34,583 | 9,868 | 24,715 | 250.5 | % | |||||
| Goodwill | 501,756 | 363,116 | 138,640 | 38.2 | % | |||||
| Deferred commissions, net | 48,143 | 37,030 | 11,113 | 30.0 | % | |||||
| Other assets, net | 36,748 | 41,045 | (4,297 | ) | (10.5 | %) | ||||
| 1,231,443 | 1,172,703 | 58,740 | 5.0 | % | ||||||
| Liabilities and Stockholders' Equity | ||||||||||
| Current liabilities: | ||||||||||
| Trade accounts payable | 81,202 | 86,568 | (5,366 | ) | (6.2 | %) | ||||
| Accrued payroll and related expenses | 61,575 | 33,434 | 28,141 | 84.2 | % | |||||
| Other accrued expenses | 42,857 | 35,736 | 7,121 | 19.9 | % | |||||
| Deferred revenue | 30,942 | 19,091 | 11,851 | 62.1 | % | |||||
| Total current liabilities | 216,576 | 174,829 | 41,747 | 23.9 | % | |||||
| Other liabilities | 65,732 | 71,798 | (6,066 | ) | (8.4 | %) | ||||
| Stockholders' equity: | ||||||||||
| Preferred stock | - | - | - | n/a | ||||||
| Common stock | 15,594 | 15,399 | 195 | 1.3 | % | |||||
| Additional paid-in capital | 1,933,776 | 1,855,916 | 77,860 | 4.2 | % | |||||
| Retained earnings | 1,314,172 | 1,302,291 | 11,881 | 0.9 | % | |||||
| Accumulated other comprehensive income | 3,964 | 4,504 | (540 | ) | (12.0 | %) | ||||
| Treasury stock, at cost | (2,318,371 | ) | (2,252,034 | ) | (66,337 | ) | 2.9 | % | ||
| Total stockholders' equity | 949,135 | 926,076 | 23,059 | 2.5 | % | |||||
| 1,231,443 | 1,172,703 | 58,740 | 5.0 | % | ||||||
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | |||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
| (Unaudited) | |||||
| (Dollars in thousands) | |||||
| For the Three Months Ended | |||||
| March 31, | |||||
| 2024 | 2023 | ||||
| Cash flows from operating activities: | |||||
| Net loss | (5,373 | ) | (31,364 | ) | |
| Earnings from discontinued operations, net of tax | (805 | ) | (4,568 | ) | |
| Non-cash operating activities: | |||||
| Depreciation and amortization | 3,823 | 4,226 | |||
| Loss on disposal or impairment of assets | 6 | 16 | |||
| Lease impairments | (546 | ) | 9,380 | ||
| Provision for doubtful accounts | 1,947 | 48 | |||
| Deferred income taxes | (498 | ) | (89 | ) | |
| Non-cash stock compensation expense | 24,780 | 44,658 | |||
| Changes in operating assets and liabilities: | |||||
| Accounts receivable | 8,700 | 15,048 | |||
| Deferred commissions | (3,971 | ) | (4,313 | ) | |
| Other assets | 8,514 | 6,117 | |||
| Accounts payable and other liabilities | (246 | ) | (6,060 | ) | |
| Income taxes | (7,285 | ) | (6,371 | ) | |
| Deferred revenue | (1,403 | ) | 3,937 | ||
| Net cash provided by operating activities | 27,643 | 30,665 | |||
| Cash flows from investing activities: | |||||
| Capital expenditures | (1,791 | ) | (103 | ) | |
| Purchases of investments | (24,509 | ) | (25,197 | ) | |
| Proceeds from sale of investments | 25,000 | - | |||
| Proceeds from sale of strategic investments | - | 994 | |||
| Net cash paid in acquisition | (170,281 | ) | - | ||
| Net cash used in investing activities | (171,581 | ) | (24,306 | ) | |
| Cash flows from financing activities: | |||||
| Proceeds related to the issuance of common stock under stock and employee benefit plans | 1 | 4 | |||
| Shares repurchased for tax withholdings upon vesting of stock-based awards | (719 | ) | (218 | ) | |
| Acquisition of treasury stock | (15,177 | ) | - | ||
| Net cash used in financing activities | (15,895 | ) | (214 | ) | |
| Cash flows from discontinued operations: | |||||
| From operating activities | 805 | 4,568 | |||
| Net cash provided by discontinued operations | 805 | 4,568 | |||
| Effect of exchange rate changes on cash | (447 | ) | 219 | ||
| Net change in cash and cash equivalents | (159,475 | ) | 10,932 | ||
| Cash, cash equivalents, and restricted cash at beginning of period | 498,946 | 453,516 | |||
| Cash, cash equivalents, and restricted cash at end of period | 339,471 | 464,448 | |||
| Supplemental cash flow information: | |||||
| Cash paid for income taxes, net - continuing operations | 4,905 | 1,076 | |||
| Cash (received) for income taxes, net - discontinued operations | (1,258 | ) | (7,025 | ) | |
| Cash paid for operating lease liabilities | 2,594 | 2,510 | |||
| Operating lease assets obtained in exchange for operating lease liabilities | 148 | - | |||
| Purchases of property, plant, & equipment, net remaining unpaid at end of period | 104 | 47 | |||
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | |||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
| (Unaudited) | |||||
| (Dollars in thousands) | |||||
| For the Twelve Months Ended | |||||
| March 31, | |||||
| 2024 | 2023 | ||||
| Cash flows from operating activities: | |||||
| Net earnings (loss) | 11,881 | (118,702 | ) | ||
| Earnings from discontinued operations, net of tax | (1,790 | ) | (5,404 | ) | |
| Non-cash operating activities: | |||||
| Depreciation and amortization | 11,508 | 20,787 | |||
| Loss on disposal or impairment of assets | 1,219 | 4,137 | |||
| Gain on sale of strategic investment | - | (194 | ) | ||
| Lease impairments | 1,769 | 27,545 | |||
| Provision for doubtful accounts | 2,254 | 1,776 | |||
| Impairment of goodwill | 2,875 | - | |||
| Deferred income taxes | (458 | ) | 115 | ||
| Non-cash stock compensation expense | 71,304 | 125,800 | |||
| Changes in operating assets and liabilities: | |||||
| Accounts receivable | (32,336 | ) | (12,123 | ) | |
| Deferred commissions | (11,113 | ) | (6,436 | ) | |
| Other assets | 9,426 | 7,705 | |||
| Accounts payable and other liabilities | 8,508 | (15,369 | ) | ||
| Income taxes | 22,275 | 596 | |||
| Deferred revenue | 8,334 | 4,208 | |||
| Net cash provided by operating activities | 105,656 | 34,441 | |||
| Cash flows from investing activities: | |||||
| Capital expenditures | (4,255 | ) | (4,696 | ) | |
| Purchases of investments | (48,894 | ) | (28,197 | ) | |
| Proceeds from sales of investments | 50,750 | 3,000 | |||
| Purchases of strategic investments | (1,000 | ) | (500 | ) | |
| Proceeds from sales of strategic investments | - | 1,394 | |||
| Net cash paid in acquisition | (170,281 | ) | - | ||
| Net cash used in investing activities | (173,680 | ) | (28,999 | ) | |
| Cash flows from financing activities: | |||||
| Proceeds related to the issuance of common stock under stock and employee benefit plans | 7,222 | 6,259 | |||
| Shares repurchased for tax withholdings upon vesting of stock-based awards | (5,835 | ) | (2,272 | ) | |
| Acquisition of treasury stock | (60,502 | ) | (149,997 | ) | |
| Net cash used in financing activities | (59,115 | ) | (146,010 | ) | |
| Cash flows from discontinued operations: | |||||
| From operating activities | 1,790 | 5,404 | |||
| Net cash provided by discontinued operations | 1,790 | 5,404 | |||
| Effect of exchange rate changes on cash | 372 | (550 | ) | ||
| Net change in cash and cash equivalents | (124,977 | ) | (135,714 | ) | |
| Cash, cash equivalents, and restricted cash at beginning of period | 464,448 | 600,162 | |||
| Cash, cash equivalents, and restricted cash at end of period | 339,471 | 464,448 | |||
| Supplemental cash flow information: | |||||
| Cash (received) paid for income taxes, net - continuing operations | 2,465 | 5,801 | |||
| Cash (received) for income taxes, net - discontinued operations | (2,765 | ) | (8,332 | ) | |
| Cash paid for operating lease liabilities | 10,293 | 8,243 | |||
| Operating lease assets obtained in exchange for operating lease liabilities | 11,825 | 69 | |||
| Operating lease assets relinquished in exchange for operating lease liabilities | (4,486 | ) | (6,781 | ) | |
| Purchases of property, plant, & equipment, net remaining unpaid at end of period | 104 | 47 | |||
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||
| CALCULATION OF FREE CASH FLOW TO EQUITY (1) | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| 06/30/22 | 09/30/22 | 12/31/22 | 03/31/23 | FY2023 | 06/30/23 | 09/30/23 | 12/31/23 | 03/31/24 | FY2024 | |||||||||||||
| Net Cash Provided by (Used in) Operating Activities-Continuing Operations | (33,369 | ) | 21,375 | 15,770 | 30,665 | 34,441 | 25,693 | 35,764 | 16,556 | 27,643 | 105,656 | |||||||||||
| Less: | ||||||||||||||||||||||
| Capital expenditures | (1,741 | ) | (2,673 | ) | (179 | ) | (103 | ) | (4,696 | ) | (53 | ) | (200 | ) | (2,211 | ) | (1,791 | ) | (4,255 | ) | ||
| Free Cash Flow to Equity | (35,110 | ) | 18,702 | 15,591 | 30,562 | 29,745 | 25,640 | 35,564 | 14,345 | 25,852 | 101,401 | |||||||||||
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||||||||||
| FY24 to FY23 | |||||||||||||||||||||||||||
| 06/30/22 | 09/30/22 | 12/31/22 | 03/31/23 | FY2023 | 06/30/23 | 09/30/23 | 12/31/23 | 03/31/24 | FY2024 | % | $ | ||||||||||||||||
| Revenues | 142,243 | 147,099 | 158,615 | 148,626 | 596,583 | 154,069 | 159,871 | 173,869 | 171,852 | 659,661 | 10.6 | % | 63,078 | ||||||||||||||
| Cost of revenue | 41,021 | 42,304 | 43,287 | 43,472 | 170,084 | 45,621 | 41,212 | 44,934 | 47,722 | 179,489 | 5.5 | % | 9,405 | ||||||||||||||
| Gross profit | 101,222 | 104,795 | 115,328 | 105,154 | 426,499 | 108,448 | 118,659 | 128,935 | 124,130 | 480,172 | 12.6 | % | 53,673 | ||||||||||||||
| % Gross margin | 71.2 | % | 71.2 | % | 72.7 | % | 70.8 | % | 71.5 | % | 70.4 | % | 74.2 | % | 74.2 | % | 72.2 | % | 72.8 | % | |||||||
| Operating expenses | |||||||||||||||||||||||||||
| Research and development | 47,661 | 46,139 | 43,175 | 52,220 | 189,195 | 34,519 | 33,733 | 37,788 | 45,161 | 151,201 | (20.1 | %) | (37,994 | ) | |||||||||||||
| Sales and marketing | 51,280 | 45,949 | 47,702 | 57,506 | 202,437 | 44,879 | 44,135 | 46,203 | 60,476 | 195,693 | (3.3 | %) | (6,744 | ) | |||||||||||||
| General and administrative | 27,144 | 28,718 | 36,657 | 32,832 | 125,351 | 26,664 | 26,009 | 27,241 | 30,252 | 110,166 | (12.1 | %) | (15,185 | ) | |||||||||||||
| Gains, losses and other items, net | 739 | 13,111 | 11,743 | 9,723 | 35,316 | 116 | 6,574 | 2,502 | 2,516 | 11,708 | (66.8 | %) | (23,608 | ) | |||||||||||||
| Total operating expenses | 126,824 | 133,917 | 139,277 | 152,281 | 552,299 | 106,178 | 110,451 | 113,734 | 138,405 | 468,768 | (15.1 | %) | (83,531 | ) | |||||||||||||
| Income (loss) from operations | (25,602 | ) | (29,122 | ) | (23,949 | ) | (47,127 | ) | (125,800 | ) | 2,270 | 8,208 | 15,201 | (14,275 | ) | 11,404 | 109.1 | % | 137,204 | ||||||||
| % Margin | -18.0 | % | -19.8 | % | -15.1 | % | -31.7 | % | -21.1 | % | 1.5 | % | 5.1 | % | 8.7 | % | -8.3 | % | 1.7 | % | |||||||
| Total other income (expense), net | 699 | 2,248 | (736 | ) | 4,735 | 6,946 | 4,849 | 6,431 | 6,607 | 5,070 | 22,957 | 230.5 | % | 16,011 | |||||||||||||
| Income (loss) from continuing operations before income taxes | (24,903 | ) | (26,874 | ) | (24,685 | ) | (42,392 | ) | (118,854 | ) | 7,119 | 14,639 | 21,808 | (9,205 | ) | 34,361 | 128.9 | % | 153,215 | ||||||||
| Income taxes expense (benefit) | 2,315 | 3,562 | 5,835 | (6,460 | ) | 5,252 | 8,705 | 10,163 | 8,429 | (3,027 | ) | 24,270 | 362.1 | % | 19,018 | ||||||||||||
| Net loss from continuing operations | (27,218 | ) | (30,436 | ) | (30,520 | ) | (35,932 | ) | (124,106 | ) | (1,586 | ) | 4,476 | 13,379 | (6,178 | ) | 10,091 | 108.1 | % | 134,197 | |||||||
| Earnings from discontinued operations, net of tax | - | - | 836 | 4,568 | 5,404 | - | 387 | 598 | 805 | 1,790 | (66.9 | %) | (3,614 | ) | |||||||||||||
| Net earnings (loss) | (27,218 | ) | (30,436 | ) | (29,684 | ) | (31,364 | ) | (118,702 | ) | (1,586 | ) | 4,863 | 13,977 | (5,373 | ) | 11,881 | 110.0 | % | 130,583 | |||||||
| Diluted earnings (loss) per share | (0.40 | ) | (0.45 | ) | (0.46 | ) | (0.48 | ) | (1.79 | ) | (0.02 | ) | 0.07 | 0.21 | (0.08 | ) | 0.17 | n/a | 1.96 | ||||||||
| Some earnings (loss) per share amounts may not add due to rounding. | |||||||||||||||||||||||||||
| Basic shares | 68,403 | 67,096 | 64,784 | 65,126 | 66,352 | 66,497 | 66,284 | 65,961 | 66,323 | 66,266 | |||||||||||||||||
| Diluted shares | 69,195 | 67,568 | 65,356 | 66,268 | 67,097 | 67,388 | 67,868 | 67,943 | 68,471 | 67,918 | |||||||||||||||||
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP EXPENSES (1) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| 06/30/22 | 09/30/22 | 12/31/22 | 03/31/23 | FY2023 | 06/30/23 | 09/30/23 | 12/31/23 | 03/31/24 | FY2024 | ||||||||||||||
| Expenses, continuing operations: | |||||||||||||||||||||||
| Cost of revenue | 41,021 | 42,304 | 43,287 | 43,472 | 170,084 | 45,621 | 41,212 | 44,934 | 47,722 | 179,489 | |||||||||||||
| Research and development | 47,661 | 46,139 | 43,175 | 52,220 | 189,195 | 34,519 | 33,733 | 37,788 | 45,161 | 151,201 | |||||||||||||
| Sales and marketing | 51,280 | 45,949 | 47,702 | 57,506 | 202,437 | 44,879 | 44,135 | 46,203 | 60,476 | 195,693 | |||||||||||||
| General and administrative | 27,144 | 28,718 | 36,657 | 32,832 | 125,351 | 26,664 | 26,009 | 27,241 | 30,252 | 110,166 | |||||||||||||
| Gains, losses and other items, net | 739 | 13,111 | 11,743.00 | 9,723 | 35,316 | 116 | 6,574 | 2,502 | 2,516 | 11,708 | |||||||||||||
| Gross profit, continuing operations: | 101,222 | 104,795 | 115,328 | 105,154 | 426,499 | 108,448 | 118,659 | 128,935 | 124,130 | 480,172 | |||||||||||||
| % Gross margin | 71.2 | % | 71.2 | % | 72.7 | % | 70.8 | % | 71.5 | % | 70.4 | % | 74.2 | % | 74.2 | % | 72.2 | % | 72.8 | % | |||
| Excluded items: | |||||||||||||||||||||||
| Purchased intangible asset amortization (cost of revenue) | 4,643 | 4,637 | 4,209 | 3,336 | 16,825 | 3,290 | 1,217 | 1,181 | 3,097 | 8,785 | |||||||||||||
| Non-cash stock compensation (cost of revenue) | 1,163 | 1,293 | 1,208 | 2,653 | 6,317 | 629 | 629 | 817 | 1,478 | 3,553 | |||||||||||||
| Non-cash stock compensation (research and development) | 11,656 | 12,360 | 10,654 | 20,737 | 55,407 | 5,077 | 5,293 | 6,960 | 9,859 | 27,189 | |||||||||||||
| Non-cash stock compensation (sales and marketing) | 5,884 | 6,116 | 5,871 | 11,558 | 29,429 | 3,736 | 4,786 | 4,089 | 6,337 | 18,948 | |||||||||||||
| Non-cash stock compensation (general and administrative) | 5,522 | 7,524 | 11,891 | 9,710 | 34,647 | 3,850 | 5,027 | 5,631 | 7,106 | 21,614 | |||||||||||||
| Restructuring charges (gains, losses, and other) | 739 | 13,111 | 11,743 | 9,723 | 35,316 | 116 | 6,574 | 2,502 | 2,516 | 11,708 | |||||||||||||
| Transformation costs (general and administrative) | - | 1,250 | 4,112 | 3,663 | 9,025 | 1,875 | - | - | - | 1,875 | |||||||||||||
| Total excluded items | 29,607 | 46,291 | 49,688 | 61,380 | 186,966 | 18,573 | 23,526 | 21,180 | 30,393 | 93,672 | |||||||||||||
| Expenses, continuing operations excluding items: | |||||||||||||||||||||||
| Cost of revenue | 35,215 | 36,374 | 37,870 | 37,483 | 146,942 | 41,702 | 39,366 | 42,936 | 43,147 | 167,151 | |||||||||||||
| Research and development | 36,005 | 33,779 | 32,521 | 31,483 | 133,788 | 29,442 | 28,440 | 30,828 | 35,302 | 124,012 | |||||||||||||
| Sales and marketing | 45,396 | 39,833 | 41,831 | 45,948 | 173,008 | 41,143 | 39,349 | 42,114 | 54,139 | 176,745 | |||||||||||||
| General and administrative | 21,622 | 19,944 | 20,654 | 19,459 | 81,679 | 20,939 | 20,982 | 21,610 | 23,146 | 86,677 | |||||||||||||
| Gains, losses and other items, net | - | - | - | - | - | - | - | - | - | - | |||||||||||||
| Gross profit, continuing operations excluding items: | 107,028 | 110,725 | 120,745 | 111,143 | 449,641 | 112,367 | 120,505 | 130,933 | 128,705 | 492,510 | |||||||||||||
| % Gross margin | 75.2 | % | 75.3 | % | 76.1 | % | 74.8 | % | 75.4 | % | 72.9 | % | 75.4 | % | 75.3 | % | 74.9 | % | 74.7 | % | |||
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | ||||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP EPS (1) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||
| 06/30/22 | 09/30/22 | 12/31/22 | 03/31/23 | FY 2023 | 06/30/23 | 09/30/23 | 12/31/23 | 03/31/24 | FY 2024 | |||||||||
| Income (loss) from continuing operations before income taxes | (24,903 | ) | (26,874 | ) | (24,685 | ) | (42,392 | ) | (118,854 | ) | 7,119 | 14,639 | 21,808 | (9,205 | ) | 34,361 | ||
| Income taxes (benefit) | 2,315 | 3,562 | 5,835 | (6,460 | ) | 5,252 | 8,705 | 10,163 | 8,429 | (3,027 | ) | 24,270 | ||||||
| Net earnings (loss) from continuing operations | (27,218 | ) | (30,436 | ) | (30,520 | ) | (35,932 | ) | (124,106 | ) | (1,586 | ) | 4,476 | 13,379 | (6,178 | ) | 10,091 | |
| Earnings from discontinued operations, net of tax | - | - | 836 | 4,568 | 5,404 | - | 387 | 598 | 805 | 1,790 | ||||||||
| Net earnings (loss) | (27,218 | ) | (30,436 | ) | (29,684 | ) | (31,364 | ) | (118,702 | ) | (1,586 | ) | 4,863 | 13,977 | (5,373 | ) | 11,881 | |
| Earnings (loss) per share: | ||||||||||||||||||
| Basic | (0.40 | ) | (0.45 | ) | (0.46 | ) | (0.48 | ) | (1.79 | ) | (0.02 | ) | 0.07 | 0.21 | (0.08 | ) | 0.18 | |
| Diluted | (0.40 | ) | (0.45 | ) | (0.46 | ) | (0.48 | ) | (1.79 | ) | (0.02 | ) | 0.07 | 0.21 | (0.08 | ) | 0.17 | |
| Excluded items: | ||||||||||||||||||
| Purchased intangible asset amortization (cost of revenue) | 4,643 | 4,637 | 4,209 | 3,336 | 16,825 | 3,290 | 1,217 | 1,181 | 3,097 | 8,785 | ||||||||
| Non-cash stock compensation (cost of revenue and operating expenses) | 24,225 | 27,293 | 29,624 | 44,658 | 125,800 | 13,292 | 15,735 | 17,497 | 24,780 | 71,304 | ||||||||
| Restructuring charges (gains, losses, and other) | 739 | 13,111 | 11,743 | 9,723 | 35,316 | 116 | 6,574 | 2,502 | 2,516 | 11,708 | ||||||||
| Transformation costs (general and administrative) | - | 1,250 | 4,112 | 3,663 | 9,025 | 1,875 | - | - | - | 1,875 | ||||||||
| Total excluded items from continuing operations | 29,607 | 46,291 | 49,688 | 61,380 | 186,966 | 18,573 | 23,526 | 21,180 | 30,393 | 93,672 | ||||||||
| Income from continuing operations before income taxes and excluding items | 4,704 | 19,417 | 25,003 | 18,988 | 68,112 | 25,692 | 38,165 | 42,988 | 21,188 | 128,033 | ||||||||
| Income taxes expense (benefit) | 1,237 | 4,557 | 6,468 | (2,141 | ) | 10,121 | 6,167 | 9,036 | 10,732 | 3,947 | 29,882 | |||||||
| Non-GAAP net earnings from continuing operations | 3,467 | 14,860 | 18,535 | 21,129 | 57,991 | 19,525 | 29,129 | 32,256 | 17,241 | 98,151 | ||||||||
| Non-GAAP earnings per share from continuing operations: | ||||||||||||||||||
| Basic | 0.05 | 0.22 | 0.29 | 0.32 | 0.87 | 0.29 | 0.44 | 0.49 | 0.26 | 1.48 | ||||||||
| Diluted | 0.05 | 0.22 | 0.28 | 0.32 | 0.86 | 0.29 | 0.43 | 0.47 | 0.25 | 1.45 | ||||||||
| Basic weighted average shares | 68,403 | 67,096 | 64,784 | 65,126 | 66,352 | 66,497 | 66,284 | 65,961 | 66,323 | 66,266 | ||||||||
| Diluted weighted average shares | 69,195 | 67,568 | 65,356 | 66,268 | 67,097 | 67,388 | 67,868 | 67,943 | 68,471 | 67,918 | ||||||||
| Some totals may not add due to rounding | ||||||||||||||||||
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | |||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP OPERATING INCOME GUIDANCE (1) | |||||||||||
| (Unaudited) | |||||||||||
| (Dollars in thousands) | |||||||||||
| For the quarter ending | For the year ending | ||||||||||
| June 30, 2024 | March 31, 2025 | ||||||||||
| Low | High | ||||||||||
| GAAP loss from operations | (8,000 | ) | (8,000 | ) | (4,000 | ) | |||||
| Excluded items: | |||||||||||
| Purchased intangible asset amortization | 4,000 | 14,000 | 14,000 | ||||||||
| Non-cash stock compensation | 29,000 | 116,000 | 116,000 | ||||||||
| Restructuring charges | - | 3,000 | 3,000 | ||||||||
| Total excluded items | 33,000 | 133,000 | 133,000 | ||||||||
| Non-GAAP income from operations | $ | 25,000 | $ | 125,000 | $ | 129,000 | |||||
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
| APPENDIX A | |||||||||||
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | |||||||||||
| Q4 FISCAL 2024 FINANCIAL RESULTS | |||||||||||
| EXPLANATION OF NON-GAAP MEASURES AND OTHER KEY METRICS | |||||||||||
To supplement our financial results, we use non-GAAP measures which exclude certain acquisition related expenses, non-cash stock compensation and restructuring charges. We believe these measures are helpful in understanding our past performance and our future results. Our non-GAAP financial measures and schedules are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated GAAP financial statements. Our management regularly uses these non-GAAP financial measures internally to understand, manage and evaluate our business and to make operating decisions. These measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is also based in part on the performance of our business based on these non-GAAP measures.
Our non-GAAP financial measures, including non-GAAP earnings (loss) per share, income (loss) from operations and adjusted EBITDA reflect adjustments based on the following items, as well as the related income tax effects when applicable:
Purchased intangible asset amortization: We incur amortization of purchased intangibles in connection with our acquisitions. Purchased intangibles include (i) developed technology, (ii) customer and publisher relationships, and (iii) trade names. We expect to amortize for accounting purposes the fair value of the purchased intangibles based on the pattern in which the economic benefits of the intangible assets will be consumed as revenue is generated. Although the intangible assets generate revenue for us, we exclude this item because this expense is non-cash in nature and because we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our operational performance.
Non-cash stock compensation: Non-cash stock compensation consists of charges for associate restricted stock units, performance shares and stock options in accordance with current GAAP related to stock-based compensation including expense associated with stock-based compensation related to unvested options assumed in connection with our acquisitions. As we apply stock-based compensation standards, we believe that it is useful to investors to understand the impact of the application of these standards to our operational performance. Although stock-based compensation expense is calculated in accordance with current GAAP and constitutes an ongoing and recurring expense, such expense is excluded from non-GAAP results because it is not an expense that typically requires or will require cash settlement by us and because such expense is not used by us to assess the core profitability of our business operations.
Restructuring charges: During the past several years, we have initiated certain restructuring activities in order to align our costs in connection with both our operating plans and our business strategies based on then-current economic conditions. As a result, we recognized costs related to termination benefits for employees whose positions were eliminated, lease and other contract termination charges, and asset impairments. These items, as well as third party expenses associated with business acquisitions in the current year, reported as gains, losses, and other items, net, are excluded from non-GAAP results because such amounts are not used by us to assess the core profitability of our business operations.
Transformation costs: In previous years, we incurred significant expenses to separate the financial statements of our operating segments, with particular focus on segment-level balance sheets, and to evaluate portfolio priorities. Our criteria for excluding transformation expenses from our non-GAAP measures is as follows: 1) projects are discrete in nature; 2) excluded expenses consist only of third-party consulting fees that we would not incur otherwise; and 3) we do not exclude employee related expenses or other costs associated with the ongoing operations of our business. We substantially completed those projects during the third quarter of fiscal year 2018. Beginning in the fourth quarter of fiscal 2018, and through most of fiscal 2019, we incurred transaction support expenses and system separation costs related to the Company's announced evaluation of strategic options for its Marketing Solutions (AMS) business. In the first and second quarters of fiscal 2021 in response to the potential COVID-19 pandemic impact on our business and again during fiscal 2023 in response to macroeconomic conditions, we incurred significant costs associated with the assessment of strategic and operating plans, including our long-term location strategy, and assistance in implementing the restructuring activities as a result of this assessment. Our criteria for excluding these costs are the same. We believe excluding these items from our non-GAAP financial measures is useful for investors and provides meaningful supplemental information.
Our non-GAAP financial schedules are:
Non-GAAP EPS, Non-GAAP Income from Operations, and Non-GAAP expenses: Our Non-GAAP earnings per share, Non-GAAP income from operations, and Non-GAAP expenses reflect adjustments as described above, as well as the related tax effects where applicable.
Adjusted EBITDA: Adjusted EBITDA is defined as net income from continuing operations before income taxes, other expenses, depreciation and amortization, and including adjustments as described above. We use Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as within our operating segments and to compare our results to those of our competitors. We believe that the inclusion of Adjusted EBITDA provides useful supplementary information to and facilitates analysis by investors in evaluating the Company's performance and trends. The presentation of Adjusted EBITDA is not meant to be considered in isolation or as an alternative to net earnings as an indicator of our performance.
Free Cash Flow to Equity: To supplement our statement of cash flows, we use a non-GAAP measure of cash flow to analyze cash flows generated from operations. Free cash flow to equity is defined as operating cash flow less cash used by investing activities (excluding the impact of cash paid in acquisitions), less required payments of debt, and excluding the impact of discontinued operations. Management believes that this measure of cash flow is meaningful since it represents the amount of money available from continuing operations for the Company's discretionary spending after funding all required obligations including scheduled debt payments. The presentation of non-GAAP free cash flow to equity is not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.
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1 Unless otherwise indicated, all comparisons are to the prior year period.
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