LiveRamp Announces Results for Third Quarter FY25
LiveRamp (NYSE: RAMP) reported strong Q3 FY25 results with total revenue reaching $195 million, up 12% year-over-year, marking the fourth consecutive quarter of double-digit growth. Subscription revenue increased 10% to $146 million, while Marketplace & Other revenue grew 20% to $50 million.
The company achieved GAAP operating income of $15 million and non-GAAP operating income of $45 million, up 24%. GAAP and non-GAAP diluted earnings per share were $0.17 and $0.55 respectively. Operating cash flow improved significantly to $45 million from $17 million in the prior year.
LiveRamp ended the quarter with 125 customers generating over $1 million in annualized subscription revenue, up from 105 year-over-year. The company's platform net retention rate was 111%, with annual recurring revenue reaching $491 million, up 10%. For FY25, LiveRamp raised guidance, expecting revenue between $741-743 million and non-GAAP operating income of $135 million.
LiveRamp (NYSE: RAMP) ha riportato solidi risultati per il terzo trimestre dell'anno fiscale 25, con ricavi totali che hanno raggiunto 195 milioni di dollari, in aumento del 12% rispetto all'anno precedente, segnando il quarto trimestre consecutivo di crescita a doppia cifra. I ricavi da abbonamento sono aumentati del 10% a 146 milioni di dollari, mentre i ricavi da Marketplace e altri hanno registrato un incremento del 20% raggiungendo 50 milioni di dollari.
L'azienda ha ottenuto un utile operativo GAAP di 15 milioni di dollari e un utile operativo non GAAP di 45 milioni di dollari, in aumento del 24%. L'utile per azione diluito GAAP e non GAAP è stato rispettivamente di 0,17 dollari e 0,55 dollari. Il flusso di cassa operativo è migliorato significativamente, passando da 17 milioni di dollari dell'anno precedente a 45 milioni di dollari.
LiveRamp ha concluso il trimestre con 125 clienti che generano oltre 1 milione di dollari di ricavi da abbonamenti annualizzati, in aumento rispetto ai 105 dell'anno precedente. Il tasso di retention netto della piattaforma dell'azienda è stato dell'111%, con ricavi annuali ricorrenti che hanno raggiunto 491 milioni di dollari, in aumento del 10%. Per il FY25, LiveRamp ha alzato le previsioni, aspettandosi ricavi tra 741 e 743 milioni di dollari e un utile operativo non GAAP di 135 milioni di dollari.
LiveRamp (NYSE: RAMP) reportó sólidos resultados para el tercer trimestre del año fiscal 25, con ingresos totales alcanzando 195 millones de dólares, un aumento del 12% interanual, marcando el cuarto trimestre consecutivo de crecimiento de dos dígitos. Los ingresos por suscripción aumentaron un 10% a 146 millones de dólares, mientras que los ingresos de Marketplace y otros crecieron un 20% a 50 millones de dólares.
La empresa logró un ingreso operativo GAAP de 15 millones de dólares y un ingreso operativo no GAAP de 45 millones de dólares, un aumento del 24%. Las ganancias por acción diluidas GAAP y no GAAP fueron de $0.17 y $0.55 respectivamente. El flujo de caja operativo mejoró significativamente a 45 millones de dólares desde 17 millones de dólares el año anterior.
LiveRamp finalizó el trimestre con 125 clientes que generan más de 1 millón de dólares en ingresos por suscripción anualizados, un aumento desde los 105 interanuales. La tasa de retención neta de la plataforma de la compañía fue del 111%, con ingresos recurrentes anuales alcanzando 491 millones de dólares, un aumento del 10%. Para el FY25, LiveRamp elevó las expectativas, esperando ingresos entre 741 y 743 millones de dólares y un ingreso operativo no GAAP de 135 millones de dólares.
라이브램프 (NYSE: RAMP)가 2025 회계연도 3분기 실적을 발표했으며, 총 수익이 1억 9천 5백만 달러에 도달하여 전년 대비 12% 증가하며, 4분기 연속 두 자리 수 성장률을 기록했습니다. 구독 수익은 10% 증가하여 1억 4천 6백만 달러에 이르렀고, 마켓플레이스 및 기타 수익은 20% 증가하여 5천만 달러에 도달했습니다.
회사는 GAAP 운영 소득 1천 5백만 달러와 비GAAP 운영 소득 4천 5백만 달러를 달성했으며, 이는 24% 증가한 수치입니다. GAAP 및 비GAAP 희석 주당 수익은 각각 0.17달러와 0.55달러였습니다. 운영 현금 흐름은 전년의 1천 7백만 달러에서 4천 5백만 달러로 크게 개선되었습니다.
라이브램프는 125명의 고객으로 분기 종료 시점에 연간 구독 수익이 1백만 달러 이상인 고객이 증가했으며, 이는 전년 대비 105명에서 증가한 수치입니다. 회사의 플랫폼 순 유지율은 111%였으며, 연간 반복 수익은 4억 9천 1백만 달러에 도달하여 10% 증가했습니다. 2025 회계연도를 위해 라이브램프는 수익 전망을 상향 조정하여, 7억 4천 1백만에서 7억 4천 3백만 달러 사이의 수익과 비GAAP 운영 소득 1억 3천 5백만 달러를 예상하고 있습니다.
LiveRamp (NYSE: RAMP) a rapporté de solides résultats pour le troisième trimestre de l'exercice 25, avec un chiffre d'affaires total atteignant 195 millions de dollars, en hausse de 12% par rapport à l'année précédente, marquant le quatrième trimestre consécutif de croissance à deux chiffres. Les revenus d'abonnement ont augmenté de 10% pour atteindre 146 millions de dollars, tandis que les revenus du Marketplace et autres ont crû de 20% pour atteindre 50 millions de dollars.
La société a atteint un résultat d'exploitation GAAP de 15 millions de dollars et un résultat d'exploitation non-GAAP de 45 millions de dollars, en hausse de 24%. Le bénéfice par action dilué GAAP et non-GAAP était respectivement de 0,17 dollar et 0,55 dollar. Le flux de trésorerie opérationnel s'est considérablement amélioré, passant de 17 millions de dollars l'année précédente à 45 millions de dollars.
LiveRamp a terminé le trimestre avec 125 clients générant plus d'un million de dollars de revenus d'abonnement annualisés, en hausse par rapport à 105 l'année précédente. Le taux de rétention net de la plateforme de l'entreprise était de 111%, avec des revenus récurrents annuels atteignant 491 millions de dollars, en hausse de 10%. Pour l'exercice 25, LiveRamp a relevé ses prévisions, s'attendant à un chiffre d'affaires compris entre 741 et 743 millions de dollars et un résultat d'exploitation non-GAAP de 135 millions de dollars.
LiveRamp (NYSE: RAMP) berichtete über starke Ergebnisse für das dritte Quartal des Geschäftsjahres 25, mit einem Gesamtumsatz von 195 Millionen Dollar, was einem Anstieg von 12% im Jahresvergleich entspricht und das vierte aufeinanderfolgende Quartal mit zweistelligem Wachstum markiert. Die Abonnement-Einnahmen stiegen um 10% auf 146 Millionen Dollar, während die Einnahmen aus dem Marktplatz und anderen Bereichen um 20% auf 50 Millionen Dollar wuchsen.
Das Unternehmen erzielte ein GAAP-Betriebsergebnis von 15 Millionen Dollar und ein nicht-GAAP-Betriebsergebnis von 45 Millionen Dollar, was einem Anstieg von 24% entspricht. Die verwässerten GAAP- und nicht-GAAP-Ergebnisse pro Aktie lagen bei 0,17 Dollar bzw. 0,55 Dollar. Der operative Cashflow verbesserte sich erheblich auf 45 Millionen Dollar, von 17 Millionen Dollar im Vorjahr.
LiveRamp schloss das Quartal mit 125 Kunden ab, die über 1 Million Dollar an annualisierten Abonnement-Einnahmen generieren, ein Anstieg von 105 im Jahresvergleich. Die Netto-Kundenbindungsrate der Plattform des Unternehmens betrug 111%, wobei die wiederkehrenden Jahresumsätze 491 Millionen Dollar erreichten, ein Anstieg von 10%. Für das Geschäftsjahr 25 hat LiveRamp die Prognose angehoben und erwartet Einnahmen zwischen 741 und 743 Millionen Dollar sowie ein nicht-GAAP-Betriebsergebnis von 135 Millionen Dollar.
- Revenue growth of 12% YoY to $195 million
- Non-GAAP operating income increased 24% to $45 million
- Operating cash flow improved significantly to $45 million from $17 million
- Customer base with >$1M subscription revenue grew to 125 from 105
- Platform net retention rate strong at 111%
- Raised full-year guidance for FY25
- GAAP gross margin compressed by two percentage points to 72%
- Direct subscription customers decreased to 865 from 895
- GAAP operating margin compressed by one percentage point to 8%
Insights
LiveRamp's Q3 FY25 performance reveals a company executing well on multiple fronts. The fourth consecutive quarter of double-digit revenue growth signals sustainable momentum, particularly impressive in the current tech landscape. The company's strategic evolution is evident in two key metrics: platform net retention at
The growth in customers with
The company's capital allocation strategy shows discipline, with
The expansion into new verticals, exemplified by the Mohegan casino media network partnership, demonstrates LiveRamp's ability to innovate and create new revenue streams while leveraging its core technology infrastructure. This diversification strategy could provide additional growth vectors beyond traditional digital advertising.
Revenue up
Fourth Consecutive Quarter of Double-Digit Revenue Growth
Fiscal YTD Operating Cash Flow up
SAN FRANCISCO, Feb. 05, 2025 (GLOBE NEWSWIRE) -- LiveRamp® (NYSE: RAMP), the leading data collaboration platform, today announced its financial results for the fiscal 2025 third quarter ended December 31, 2024.
Q3 Financial Highlights1
- Total revenue was
$195 million , up12% . - Subscription revenue was
$146 million , up10% . - Marketplace & Other revenue was
$50 million , up20% . - GAAP gross profit was
$140 million , up9% . GAAP gross margin compressed by two percentage points to72% . Non-GAAP gross profit was$146 million , up11% . Non-GAAP gross margin compressed by one percentage point to74% . - GAAP operating income was
$15 million , in-line with the prior year. GAAP operating margin compressed by one percentage point to8% . Non-GAAP operating income was$45 million , up24% . Non-GAAP operating margin expanded by two percentage points to23% . - GAAP and Non-GAAP diluted earnings per share were
$0.17 and$0.55 , respectively. - Net cash provided by operating activities was
$45 million , up from$17 million . - Third quarter share repurchases totaled approximately 368,000 shares for
$10 million . Fiscal year to date through December 31, 2024 share repurchases totaled approximately 2.8 million shares for$76 million .
A reconciliation between GAAP and non-GAAP results is provided in the schedules in this press release.
Commenting on the results, CEO Scott Howe said, “We posted a strong quarter, with revenue and operating income exceeding our expectations, and revenue growing at a double-digit rate for the fourth consecutive quarter. Our sales momentum improved appreciably in the third quarter as our Data Collaboration Platform and clean room solution are resonating with customers. This confirms the substantial market demand for our platform that helps customers efficiently use their first-party data to deliver, measure and optimize their digital advertising.”
GAAP and Non-GAAP Results
The following table summarizes the Company’s financial results for the fiscal 2025 third quarter ended December 31, 2024 ($ in millions, except per share amounts):
_________________________
1 Unless otherwise indicated, all comparisons are to the prior year period.
| GAAP | Non-GAAP | ||||
| Q3 FY25 | Q3 FY24 | Q3 FY25 | Q3 FY24 | ||
| Subscription revenue | — | — | |||
| YoY change % | 10% | 5% | — | — | |
| Marketplace & Other revenue | — | — | |||
| YoY change % | 20% | 29% | — | — | |
| Total revenue | $195 | $174 | — | — | |
| YoY change % | 12% | 10% | — | — | |
| Gross profit | $140 | $129 | $146 | $131 | |
| % Gross margin | |||||
| YoY change, pts | (2 pts) | 1 pt | (1 pt) | (1 pt) | |
| Operating income | $15 | $15 | $45 | $36 | |
| % Operating margin | |||||
| YoY change, pts | (1 pt) | 24 pts | 2 pts | 5 pts | |
| Net earnings | |||||
| Diluted earnings per share | $0.17 | $0.21 | $0.55 | $0.47 | |
| Shares to calculate diluted EPS | 66.7 | 67.9 | 66.7 | 67.9 | |
| YoY change % | (2%) | 5% | (2%) | 4% | |
| Operating cash flow | $45 | $17 | — | — | |
| Free cash flow | — | — | $45 | $14 | |
| Totals and year-over-year changes may not reconcile 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 in this press release.
Additional Business Highlights & Metrics
- On February 25, 2025 we will host an investor day presentation in San Francisco (additional information). The event coincides with RampUp 2025, our annual customer and partner conference on February 25-27, 2025 (additional information).
- In November 2024 we announced an expansion of the Quick Start Insights available on our Data Collaboration Platform to now offer media intelligence across a network of premium publishers. These standardized insights enable our customers to more quickly access and deploy media performance metrics — such as audience overlaps, optimal frequency, and last-touch attribution — from premium publisher and CTV data. As a result, LiveRamp customers now have a simplified way to enhance media buying and planning strategies and increase the time-to-value from clean room partnerships.
- In January 2025 we announced in partnership with Mohegan, a leader in casino and entertainment destinations, the industry’s first casino media network. For the first time, brands can access Mohegan’s rich first-party insights to reach guests and players in addition to the ability to measure campaigns across the casino’s digital channels and on-premise experiences – such as in-app, loyalty programs, slot machines, and kiosks (additional information).
- LiveRamp ended the quarter with 125 customers whose annualized subscription revenue exceeds
$1 million , compared to 105 in the prior year period. - LiveRamp ended the quarter with 865 direct subscription customers, compared to 895 in the prior year period.
- Subscription net retention was
108% and platform net retention was111% for the quarter. - Annual recurring revenue (ARR), which is the last month of the quarter fixed subscription revenue annualized, was
$491 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
$434 million , up13% 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 fourth quarter of fiscal 2025, LiveRamp expects to report:
- Revenue of between
$184 million and$186 million , an increase of between7% and8% - GAAP operating loss of
$8 million - Non-GAAP operating income of
$22 million
For fiscal 2025, LiveRamp increases its guidance and expects to report:
- Revenue of between
$741 million and$743 million , an increase of between12% and13% - GAAP operating income of
$10 million - Non-GAAP operating income of
$135 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 a global technology company that helps companies build enduring brand and business value by collaborating responsibly with data. A groundbreaking leader in 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, 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 high 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 acquired businesses (including 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. Continued changes in the judicial, legislative, regulatory, accounting, cultural and consumer environments affecting our business, including but not limited to litigation, investigations, legislation, regulations and customs at the state, federal and international levels 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 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 | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Unaudited) | ||||||||
| (Dollars in thousands, except per share amounts) | ||||||||
| For the three months ended December 31, | ||||||||
| $ | % | |||||||
| 2024 | 2023 | Variance | Variance | |||||
| Revenues | 195,412 | 173,869 | 21,543 | 12.4 | % | |||
| Cost of revenue | 54,998 | 44,934 | 10,064 | 22.4 | % | |||
| Gross profit | 140,414 | 128,935 | 11,479 | 8.9 | % | |||
| % Gross margin | 71.9% | 74.2% | ||||||
| Operating expenses | ||||||||
| Research and development | 42,735 | 37,788 | 4,947 | 13.1 | % | |||
| Sales and marketing | 50,863 | 46,203 | 4,660 | 10.1 | % | |||
| General and administrative | 31,994 | 27,241 | 4,753 | 17.4 | % | |||
| Gains, losses and other items, net | 149 | 2,502 | (2,353 | ) | (94.0 | )% | ||
| Total operating expenses | 125,741 | 113,734 | 12,007 | 10.6 | % | |||
| Income from operations | 14,673 | 15,201 | (528 | ) | (3.5 | )% | ||
| % Margin | 7.5% | 8.7% | ||||||
| Total other income, net | 4,033 | 6,607 | (2,574 | ) | (39.0 | )% | ||
| Income from continuing operations before income taxes | 18,706 | 21,808 | (3,102 | ) | (14.2 | )% | ||
| Income tax expense | 9,184 | 8,429 | 755 | 9.0 | % | |||
| Net earnings from continuing operations | 9,522 | 13,379 | (3,857 | ) | (28.8 | )% | ||
| Earnings from discontinued operations, net of tax | 1,688 | 598 | 1,090 | 182.3 | % | |||
| Net earnings | 11,210 | 13,977 | (2,767 | ) | (19.8 | )% | ||
| Basic earnings per share: | ||||||||
| Continuing operations | 0.15 | 0.20 | (0.06 | ) | (28.5 | )% | ||
| Discontinued operations | 0.03 | 0.01 | 0.02 | 183.6 | % | |||
| Basic earnings per share | 0.17 | 0.21 | (0.04 | ) | (19.4 | )% | ||
| Diluted earnings per share: | ||||||||
| Continuing operations | 0.14 | 0.20 | (0.05 | ) | (27.5 | )% | ||
| Discontinued operations | 0.03 | 0.01 | 0.02 | 187.4 | % | |||
| Diluted earnings per share | 0.17 | 0.21 | (0.04 | ) | (18.4 | )% | ||
| Basic weighted average shares | 65,631 | 65,961 | ||||||
| Diluted weighted average shares | 66,743 | 67,943 | ||||||
| Some totals may not sum due to rounding. | ||||||||
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Unaudited) | ||||||||
| (Dollars in thousands, except per share amounts) | ||||||||
| For the nine months ended December 31, | ||||||||
| $ | % | |||||||
| 2024 | 2023 | Variance | Variance | |||||
| Revenues | 556,856 | 487,809 | 69,047 | 14.2 | % | |||
| Cost of revenue | 157,981 | 131,767 | 26,214 | 19.9 | % | |||
| Gross profit | 398,875 | 356,042 | 42,833 | 12.0 | % | |||
| % Gross margin | 71.6 % | 73.0 % | ||||||
| Operating expenses | ||||||||
| Research and development | 130,742 | 106,040 | 24,702 | 23.3 | % | |||
| Sales and marketing | 156,145 | 135,217 | 20,928 | 15.5 | % | |||
| General and administrative | 94,324 | 79,914 | 14,410 | 18.0 | % | |||
| Gains, losses and other items, net | 752 | 9,192 | (8,440 | ) | (91.8 | )% | ||
| Total operating expenses | 381,963 | 330,363 | 51,600 | 15.6 | % | |||
| Income from operations | 16,912 | 25,679 | (8,767 | ) | (34.1 | )% | ||
| % Margin | 3.0 % | 5.3 % | ||||||
| Total other income, net | 12,674 | 17,887 | (5,213 | ) | (29.1 | )% | ||
| Income from continuing operations before income taxes | 29,586 | 43,566 | (13,980 | ) | (32.1 | )% | ||
| Income tax expense | 25,821 | 27,297 | (1,476 | ) | (5.4 | )% | ||
| Net earnings from continuing operations | 3,765 | 16,269 | (12,504 | ) | (76.9 | )% | ||
| Earnings from discontinued operations, net of tax | 1,688 | 985 | 703 | 71.4 | % | |||
| Net earnings | 5,453 | 17,254 | (11,801 | ) | (68.4 | )% | ||
| Basic earnings per share: | ||||||||
| Continuing operations | 0.06 | 0.25 | (0.19 | ) | (76.8 | )% | ||
| Discontinued operations | 0.03 | 0.01 | 0.01 | 71.5 | % | |||
| Basic earnings per share | 0.08 | 0.26 | (0.18 | ) | (68.4 | )% | ||
| Diluted earnings per share: | ||||||||
| Continuing operations | 0.06 | 0.24 | (0.18 | ) | (76.8 | )% | ||
| Discontinued operations | 0.03 | 0.01 | 0.01 | 71.9 | % | |||
| Diluted earnings per share | 0.08 | 0.25 | (0.17 | ) | (68.3 | )% | ||
| Basic weighted average shares | 66,182 | 66,247 | ||||||
| Diluted weighted average shares | 67,505 | 67,733 | ||||||
| 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 December 31, | For the nine months ended December 31, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| Income from continuing operations before income taxes | 18,706 | 21,808 | 29,586 | 43,566 | |||
| Income tax expense | 9,184 | 8,429 | 25,821 | 27,297 | |||
| Net earnings from continuing operations | 9,522 | 13,379 | 3,765 | 16,269 | |||
| Earnings from discontinued operations, net of tax | 1,688 | 598 | 1,688 | 985 | |||
| Net earnings | 11,210 | 13,977 | 5,453 | 17,254 | |||
| Basic earnings per share | 0.17 | 0.21 | 0.08 | 0.26 | |||
| Diluted earnings per share | 0.17 | 0.21 | 0.08 | 0.25 | |||
| Excluded items: | |||||||
| Purchased intangible asset amortization (cost of revenue) | 3,686 | 1,181 | 11,280 | 5,688 | |||
| Non-cash stock compensation (cost of revenue and operating expenses) | 26,760 | 17,497 | 83,813 | 46,524 | |||
| Restructuring and merger charges (gains, losses, and other) | 149 | 2,502 | 752 | 9,192 | |||
| Transformation costs (general and administrative) | — | — | — | 1,875 | |||
| Total excluded items from continuing operations | 30,595 | 21,180 | 95,845 | 63,279 | |||
| Income from continuing operations before income taxes and excluding items | 49,301 | 42,988 | 125,431 | 106,845 | |||
| Income tax expense (2) | 12,421 | 10,732 | 30,537 | 25,935 | |||
| Non-GAAP net earnings from continuing operations | 36,880 | 32,256 | 94,894 | 80,910 | |||
| Non-GAAP earnings per share from continuing operations | |||||||
| Basic | 0.56 | 0.49 | 1.43 | 1.22 | |||
| Diluted | 0.55 | 0.47 | 1.41 | 1.19 | |||
| Basic weighted average shares | 65,631 | 65,961 | 66,182 | 66,247 | |||
| Diluted weighted average shares | 66,743 | 67,943 | 67,505 | 67,733 | |||
| (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. | |||||||
| (2) Non-GAAP 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 the valuation allowance and smaller pre-tax income for GAAP purposes. | |||||||
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | |||||||
| RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS (1) | |||||||
| (Unaudited) | |||||||
| (Dollars in thousands) | |||||||
| For the three months ended December 31, | For the nine months ended December 31, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| Income from operations | 14,673 | 15,201 | 16,912 | 25,679 | |||
| Excluded items: | |||||||
| Purchased intangible asset amortization (cost of revenue) | 3,686 | 1,181 | 11,280 | 5,688 | |||
| Non-cash stock compensation (cost of revenue and operating expenses) | 26,760 | 17,497 | 83,813 | 46,524 | |||
| Restructuring and merger charges (gains, losses, and other) | 149 | 2,502 | 752 | 9,192 | |||
| Transformation costs (general and administrative) | - | - | - | 1,875 | |||
| Total excluded items | 30,595 | 21,180 | 95,845 | 63,279 | |||
| Income from operations before excluded items | 45,268 | 36,381 | 112,757 | 88,958 | |||
| (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 | |||||||
| RECONCILIATION OF ADJUSTED EBITDA (1) | |||||||
| (Unaudited) | |||||||
| (Dollars in thousands) | |||||||
| For the three months ended December 31, | For the nine months ended December 31, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| Net earnings from continuing operations | 9,522 | 13,379 | 3,765 | 16,269 | |||
| Income tax expense | 9,184 | 8,429 | 25,821 | 27,297 | |||
| Total other income, net | (4,033) | (6,607) | (12,674) | (17,887) | |||
| Income from operations | 14,673 | 15,201 | 16,912 | 25,679 | |||
| Depreciation and amortization | 4,400 | 1,782 | 13,404 | 7,685 | |||
| EBITDA | 19,073 | 16,983 | 30,316 | 33,364 | |||
| Other adjustments: | |||||||
| Non-cash stock compensation (cost of revenue and operating expenses) | 26,760 | 17,497 | 83,813 | 46,524 | |||
| Restructuring and merger charges (gains, losses, and other) | 149 | 2,502 | 752 | 9,192 | |||
| Transformation costs (general and administrative) | - | - | - | 1,875 | |||
| Other adjustments | 26,909 | 19,999 | 84,565 | 57,591 | |||
| Adjusted EBITDA | 45,982 | 36,982 | 114,881 | 90,955 | |||
| (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. | |||||||
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (Dollars in thousands) | |||||||
| December 31 | March 31 | $ | % | ||||
| 2024 | 2024 | Variance | Variance | ||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | 376,772 | 336,867 | 39,905 | 11.8 | % | ||
| Restricted cash | 593 | 2,604 | (2,011) | (77.2 | )% | ||
| Short-term investments | 7,500 | 32,045 | (24,545) | (76.6 | )% | ||
| Trade accounts receivable, net | 210,565 | 190,313 | 20,252 | 10.6 | % | ||
| Refundable income taxes, net | 6,630 | 8,521 | (1,891) | (22.2 | )% | ||
| Other current assets | 41,747 | 31,682 | 10,065 | 31.8 | % | ||
| Total current assets | 643,807 | 602,032 | 41,775 | 6.9 | % | ||
| Property and equipment | 24,099 | 25,394 | (1,295) | (5.1 | )% | ||
| Less - accumulated depreciation and amortization | 17,440 | 17,213 | 227 | 1.3 | % | ||
| Property and equipment, net | 6,659 | 8,181 | (1,522) | (18.6 | )% | ||
| Intangible assets, net | 23,302 | 34,583 | (11,281) | (32.6 | )% | ||
| Goodwill | 501,559 | 501,756 | (197) | (0.0 | )% | ||
| Deferred commissions, net | 44,497 | 48,143 | (3,646) | (7.6 | )% | ||
| Other assets, net | 33,389 | 36,748 | (3,359) | (9.1 | )% | ||
| 1,253,213 | 1,231,443 | 21,770 | 1.8 | % | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities: | |||||||
| Trade accounts payable | 105,334 | 81,202 | 24,132 | 29.7 | % | ||
| Accrued payroll and related expenses | 35,639 | 61,575 | (25,936) | (42.1 | )% | ||
| Other accrued expenses | 45,856 | 42,857 | 2,999 | 7.0 | % | ||
| Deferred revenue | 44,795 | 30,942 | 13,853 | 44.8 | % | ||
| Total current liabilities | 231,624 | 216,576 | 15,048 | 6.9 | % | ||
| Other liabilities | 63,882 | 65,732 | (1,850) | (2.8 | )% | ||
| Stockholders' equity: | |||||||
| Preferred stock | - | - | - | n/a | |||
| Common stock | 15,853 | 15,594 | 259 | 1.7 | % | ||
| Additional paid-in capital | 2,022,227 | 1,933,776 | 88,451 | 4.6 | % | ||
| Retained earnings | 1,319,625 | 1,314,172 | 5,453 | 0.4 | % | ||
| Accumulated other comprehensive income | 3,493 | 3,964 | (471) | (11.9 | )% | ||
| Treasury stock, at cost | (2,403,491) | (2,318,371) | (85,120) | 3.7 | % | ||
| Total stockholders' equity | 957,707 | 949,135 | 8,572 | 0.9 | % | ||
| 1,253,213 | 1,231,443 | 21,770 | 1.8 | % | |||
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | |||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
| (Unaudited) | |||
| (Dollars in thousands) | |||
| For the three months ended December 31, | |||
| 2024 | 2023 | ||
| Cash flows from operating activities: | |||
| Net earnings | 11,210 | 13,977 | |
| Earnings from discontinued operations, net of tax | (1,688) | (598) | |
| Non-cash operating activities: | |||
| Depreciation and amortization | 4,400 | 1,782 | |
| Loss on disposal or impairment of assets | 99 | 911 | |
| Provision for doubtful accounts | (97) | 544 | |
| Deferred income taxes | 11 | (47) | |
| Non-cash stock compensation expense | 26,760 | 17,497 | |
| Changes in operating assets and liabilities: | |||
| Accounts receivable, net | (19,013) | (24,778) | |
| Deferred commissions | (1,042) | (4,235) | |
| Other assets | (6,596) | (4,831) | |
| Accounts payable and other liabilities | 23,829 | 21,639 | |
| Income taxes | (1,617) | (14,139) | |
| Deferred revenue | 8,861 | 8,834 | |
| Net cash provided by operating activities | 45,117 | 16,556 | |
| Cash flows from investing activities: | |||
| Capital expenditures | (282) | (2,211) | |
| Cash paid in acquisitions, net of cash received | (1,951) | — | |
| Proceeds from sales of investments | 1,994 | — | |
| Purchases of strategic investments | (1,000) | — | |
| Net cash used in investing activities | (1,239) | (2,211) | |
| Cash flows from financing activities: | |||
| Proceeds related to the issuance of common stock under stock and employee benefit plans | 2,304 | 1,646 | |
| Shares repurchased for tax withholdings upon vesting of stock-based awards | (1,565) | (547) | |
| Acquisition of treasury stock | (10,098) | (10,000) | |
| Net cash used in financing activities | (9,359) | (8,901) | |
| Cash flows from discontinued operations: | |||
| From operating activities | 2,486 | 598 | |
| Effect of exchange rate changes on cash | (1,217) | 735 | |
| Net change in cash, cash equivalents and restricted cash | 35,788 | 6,777 | |
| Cash, cash equivalents and restricted cash at beginning of period | 341,577 | 492,169 | |
| Cash, cash equivalents and restricted cash at end of period | 377,365 | 498,946 | |
| Supplemental cash flow information: | |||
| Cash paid for income taxes, net from continuing operations | 10,990 | 22,699 | |
| Cash received for income taxes, net from discontinued operations | (2,486) | (912) | |
| Cash paid for operating lease liabilities | 2,495 | 2,551 | |
| Non-cash investing and financing activities: | |||
| Operating lease assets obtained in exchange for operating lease liabilities | 1,284 | — | |
| Purchases of property, plant and equipment remaining unpaid at period end | 85 | 1,218 | |
| Excise tax payable on net stock repurchases | 64 | — | |
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | |||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
| (Unaudited) | |||
| (Dollars in thousands) | |||
| For the nine months ended December 31, | |||
| 2024 | 2023 | ||
| Cash flows from operating activities: | |||
| Net earnings | 5,453 | 17,254 | |
| Earnings from discontinued operations, net of tax | (1,688) | (985) | |
| Non-cash operating activities: | |||
| Depreciation and amortization | 13,404 | 7,685 | |
| Loss on disposal or impairment of assets | 119 | 1,213 | |
| Lease-related impairment and restructuring charges | (36) | 2,315 | |
| Provision for doubtful accounts | 1,148 | 307 | |
| Impairment of goodwill | — | 2,875 | |
| Deferred income taxes | 49 | 40 | |
| Non-cash stock compensation expense | 83,813 | 46,524 | |
| Changes in operating assets and liabilities: | |||
| Accounts receivable, net | (21,640) | (41,036) | |
| Deferred commissions | 3,645 | (7,142) | |
| Other assets | (2,598) | 912 | |
| Accounts payable and other liabilities | (8,165) | 8,754 | |
| Income taxes | 3,953 | 29,560 | |
| Deferred revenue | 13,928 | 9,737 | |
| Net cash provided by operating activities | 91,385 | 78,013 | |
| Cash flows from investing activities: | |||
| Capital expenditures | (749) | (2,464) | |
| Cash paid in acquisitions, net of cash received | (1,951) | — | |
| Purchases of investments | (1,967) | (24,385) | |
| Proceeds from sales of investments | 26,989 | 25,750 | |
| Purchases of strategic investments | (1,400) | (1,000) | |
| Net cash provided by (used in) investing activities | 20,922 | (2,099) | |
| Cash flows from financing activities: | |||
| Proceeds related to the issuance of common stock under stock and employee benefit plans | 8,631 | 7,221 | |
| Shares repurchased for tax withholdings upon vesting of stock-based awards | (9,305) | (5,116) | |
| Acquisition of treasury stock | (75,751) | (45,325) | |
| Net cash used in financing activities | (76,425) | (43,220) | |
| Cash flows from discontinued operations: | |||
| From operating activities | 2,486 | 985 | |
| Effect of exchange rate changes on cash | (474) | 819 | |
| Net change in cash, cash equivalents and restricted cash | 37,894 | 34,498 | |
| Cash, cash equivalents and restricted cash at beginning of period | 339,471 | 464,448 | |
| Cash, cash equivalents and restricted cash at end of period | 377,365 | 498,946 | |
| Supplemental cash flow information: | |||
| Cash paid (received) for income taxes, net from continuing operations | 21,990 | (2,440) | |
| Cash received for income taxes, net from discontinued operations | (2,486) | (1,507) | |
| Cash received for tenant improvement allowances | (1,758) | — | |
| Cash paid for operating lease liabilities | 7,372 | 7,699 | |
| Non-cash investing and financing activities: | |||
| Operating lease assets obtained in exchange for operating lease liabilities | 2,327 | 11,677 | |
| Operating lease assets, and related lease liabilities, relinquished in lease terminations | (555) | (4,486) | |
| Purchases of property, plant and equipment remaining unpaid at period end | 85 | 1,218 | |
| Excise tax payable on net stock repurchases | 64 | — | |
| LIVERAMP HOLDINGS, INC AND SUBSIDIARIES | |||||||||||||||||||||||||||||
| CALCULATION OF FREE CASH FLOW (1) | |||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| 6/30/2023 | 9/30/2023 | 12/31/2023 | 3/31/2024 | FY2024 | 6/30/2024 | 9/30/2024 | 12/31/2024 | FY2025 | |||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 25,693 | $ | 35,764 | $ | 16,556 | $ | 27,643 | $ | 105,656 | $ | (9,328 | ) | $ | 55,596 | $ | 45,117 | $ | 91,385 | ||||||||||
| Less: | |||||||||||||||||||||||||||||
| Capital expenditures | (53 | ) | (200 | ) | (2,211 | ) | (1,791 | ) | (4,255 | ) | (226 | ) | (241 | ) | (282 | ) | (749 | ) | |||||||||||
| Free Cash Flow | $ | 25,640 | $ | 35,564 | $ | 14,345 | $ | 25,852 | $ | 101,401 | $ | (9,554 | ) | $ | 55,355 | $ | 44,835 | $ | 90,636 | ||||||||||
| (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 | |||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||
| Qtr-to-Qtr | |||||||||||||||||||||||||||||||||
| FY2024 | FY2025 | FY2025 to FY2024 | |||||||||||||||||||||||||||||||
| 6/30/2023 | 9/30/2023 | 12/31/2023 | 3/31/2024 | FY2024 | 6/30/2024 | 9/30/2024 | 12/31/2024 | FY2025 | % | $ | |||||||||||||||||||||||
| Revenues | 154,069 | 159,871 | 173,869 | 171,852 | 659,661 | 175,961 | 185,483 | 195,412 | 556,856 | 21,543 | |||||||||||||||||||||||
| Cost of revenue | 45,621 | 41,212 | 44,934 | 47,722 | 179,489 | 51,749 | 51,234 | 54,998 | 157,981 | 10,064 | |||||||||||||||||||||||
| Gross profit | 108,448 | 118,659 | 128,935 | 124,130 | 480,172 | 124,212 | 134,249 | 140,414 | 398,875 | 11,479 | |||||||||||||||||||||||
| % Gross margin | 70.4 % | 74.2 % | 74.2 % | 72.2 % | 72.8 % | 70.6 % | 72.4 % | 71.9 % | 71.6 % | ||||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||||||
| Research and development | 34,519 | 33,733 | 37,788 | 45,161 | 151,201 | 44,118 | 43,889 | 42,735 | 130,742 | 4,947 | |||||||||||||||||||||||
| Sales and marketing | 44,879 | 44,135 | 46,203 | 60,476 | 195,693 | 54,175 | 51,107 | 50,863 | 156,145 | 4,660 | |||||||||||||||||||||||
| General and administrative | 26,664 | 26,009 | 27,241 | 30,252 | 110,166 | 30,961 | 31,369 | 31,994 | 94,324 | 4,753 | |||||||||||||||||||||||
| Gains, losses and other items, net | 116 | 6,574 | 2,502 | 2,516 | 11,708 | 206 | 397 | 149 | 752 | (94.0)% | (2,353) | ||||||||||||||||||||||
| Total operating expenses | 106,178 | 110,451 | 113,734 | 138,405 | 468,768 | 129,460 | 126,762 | 125,741 | 381,963 | 12,007 | |||||||||||||||||||||||
| Income (loss) from operations | 2,270 | 8,208 | 15,201 | (14,275) | 11,404 | (5,248) | 7,487 | 14,673 | 16,912 | (3.5)% | (528) | ||||||||||||||||||||||
| % Margin | 5.0 % | 24.3 % | 40.2 % | (31.6)% | 1.7 % | (3.0)% | 4.0 % | 7.5 % | 3.0 % | ||||||||||||||||||||||||
| Total other income, net | 4,849 | 6,431 | 6,607 | 5,070 | 22,957 | 4,444 | 4,197 | 4,033 | 12,674 | (39.0)% | (2,574) | ||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 7,119 | 14,639 | 21,808 | (9,205) | 34,361 | (804) | 11,684 | 18,706 | 29,586 | (14.2)% | (3,102) | ||||||||||||||||||||||
| Income tax expense (benefit) | 8,705 | 10,163 | 8,429 | (3,027) | 24,270 | 6,685 | 9,952 | 9,184 | 25,821 | 755 | |||||||||||||||||||||||
| Net earnings (loss) from continuing operations | (1,586) | 4,476 | 13,379 | (6,178) | 10,091 | (7,489) | 1,732 | 9,522 | 3,765 | (28.8)% | (3,857) | ||||||||||||||||||||||
| Earnings from discontinued operations, net of tax | - | 387 | 598 | 805 | 1,790 | - | - | 1,688 | 1,688 | 1,090 | |||||||||||||||||||||||
| Net earnings (loss) | $ | (1,586) | $ | 4,863 | $ | 13,977 | $ | (5,373) | $ | 11,881 | $ | (7,489) | $ | 1,732 | $ | 11,210 | $ | 5,453 | (19.8)% | (2,767) | |||||||||||||
| Basic earnings (loss) per share: | |||||||||||||||||||||||||||||||||
| Continuing Operations | (0.02) | 0.07 | 0.20 | (0.09) | 0.15 | (0.11) | 0.03 | 0.15 | 0.06 | (28.5)% | (0.06) | ||||||||||||||||||||||
| Discontinued Operations | 0.00 | 0.01 | 0.01 | 0.01 | 0.03 | 0.00 | 0.00 | 0.03 | 0.03 | 0.02 | |||||||||||||||||||||||
| Basic earnings (loss) per share | (0.02) | 0.07 | 0.21 | (0.08) | 0.18 | (0.11) | 0.03 | 0.17 | 0.08 | (19.4)% | (0.04) | ||||||||||||||||||||||
| Diluted earnings (loss) per share: | |||||||||||||||||||||||||||||||||
| Continuing Operations | (0.02) | 0.07 | 0.20 | (0.09) | 0.15 | (0.11) | 0.03 | 0.14 | 0.06 | (27.5)% | (0.05) | ||||||||||||||||||||||
| Discontinued Operations | 0.00 | 0.01 | 0.01 | 0.01 | 0.03 | 0.00 | 0.00 | 0.03 | 0.03 | 0.02 | |||||||||||||||||||||||
| Diluted earnings (loss) per share | (0.02) | 0.07 | 0.21 | (0.08) | 0.17 | (0.11) | 0.03 | 0.17 | 0.08 | (18.4)% | (0.04) | ||||||||||||||||||||||
| Basic weighted average shares | 66,497 | 66,284 | 65,961 | 66,323 | 66,266 | 66,621 | 66,294 | 65,631 | 66,182 | ||||||||||||||||||||||||
| Diluted weighted average shares | 66,497 | 67,868 | 67,943 | 66,323 | 67,918 | 66,621 | 67,309 | 66,743 | 67,505 | ||||||||||||||||||||||||
| Some earnings (loss) per share amounts may not add due to rounding. | |||||||||||||||||||||||||||||||||
| LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES | |||||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP EXPENSES (1) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| FY2024 | FY2025 | ||||||||||||||||||
| 6/30/2023 | 9/30/2023 | 12/31/2023 | 3/31/2024 | FY2024 | 6/30/2024 | 9/30/2024 | 12/31/2024 | FY2025 | |||||||||||
| Expenses: | |||||||||||||||||||
| Cost of revenue | 45,621 | 41,212 | 44,934 | 47,722 | 179,489 | 51,749 | 51,234 | 54,998 | 157,981 | ||||||||||
| Research and development | 34,519 | 33,733 | 37,788 | 45,161 | 151,201 | 44,118 | 43,889 | 42,735 | 130,742 | ||||||||||
| Sales and marketing | 44,879 | 44,135 | 46,203 | 60,476 | 195,693 | 54,175 | 51,107 | 50,863 | 156,145 | ||||||||||
| General and administrative | 26,664 | 26,009 | 27,241 | 30,252 | 110,166 | 30,961 | 31,369 | 31,994 | 94,324 | ||||||||||
| Gains, losses and other items, net | 116 | 6,574 | 2,502 | 2,516 | 11,708 | 206 | 397 | 149 | 752 | ||||||||||
| Gross profit, continuing operations: | 108,448 | 118,659 | 128,935 | 124,130 | 480,172 | 124,212 | 134,249 | 140,414 | 398,875 | ||||||||||
| % Gross margin | |||||||||||||||||||
| Excluded items: | |||||||||||||||||||
| Purchased intangible asset amortization (cost of revenue) | 3,290 | 1,217 | 1,181 | 3,097 | 8,785 | 3,846 | 3,748 | 3,686 | 11,280 | ||||||||||
| Non-cash stock compensation (cost of revenue) | 629 | 629 | 817 | 1,478 | 3,553 | 1,596 | 1,499 | 1,455 | 4,550 | ||||||||||
| Non-cash stock compensation (research and development) | 5,077 | 5,293 | 6,960 | 9,859 | 27,189 | 10,205 | 10,920 | 10,085 | 31,210 | ||||||||||
| Non-cash stock compensation (sales and marketing) | 3,736 | 4,786 | 4,089 | 6,337 | 18,948 | 7,093 | 7,383 | 7,278 | 21,754 | ||||||||||
| Non-cash stock compensation (general and administrative) | 3,850 | 5,027 | 5,631 | 7,106 | 21,614 | 9,091 | 9,266 | 7,942 | 26,299 | ||||||||||
| Restructuring charges (gains, losses, and other) | 116 | 6,574 | 2,502 | 2,516 | 11,708 | 206 | 397 | 149 | 752 | ||||||||||
| Transformation costs (general and administrative) | 1,875 | — | — | — | 1,875 | — | — | — | |||||||||||
| Total excluded items | 18,573 | 23,526 | 21,180 | 30,393 | 93,672 | 32,037 | 33,213 | 30,595 | 95,845 | ||||||||||
| Expenses, excluding items: | |||||||||||||||||||
| Cost of revenue | 41,702 | 39,366 | 42,936 | 43,147 | 167,151 | 46,307 | 45,987 | 49,857 | 142,151 | ||||||||||
| Research and development | 29,442 | 28,440 | 30,828 | 35,302 | 124,012 | 33,913 | 32,969 | 32,650 | 99,532 | ||||||||||
| Sales and marketing | 41,143 | 39,349 | 42,114 | 54,139 | 176,745 | 47,082 | 43,724 | 43,585 | 134,391 | ||||||||||
| General and administrative | 20,939 | 20,982 | 21,610 | 23,146 | 86,677 | 21,870 | 22,103 | 24,052 | 68,025 | ||||||||||
| Gross profit, excluding items: | 112,367 | 120,505 | 130,933 | 128,705 | 492,510 | 129,654 | 139,496 | 145,555 | 414,705 | ||||||||||
| % Gross margin | |||||||||||||||||||
| (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) | ||||||||||
| FY2024 | FY2025 | |||||||||
| 6/30/2023 | 9/30/2023 | 12/31/2023 | 3/31/2024 | FY2024 | 6/30/2024 | 9/30/2024 | 12/31/2024 | FY2025 | ||
| Income (loss) from continuing operations before income taxes | 7,119 | 14,639 | 21,808 | (9,205) | 34,361 | (804) | 11,684 | 18,706 | 29,586 | |
| Income tax expense (benefit) | 8,705 | 10,163 | 8,429 | (3,027) | 24,270 | 6,685 | 9,952 | 9,184 | 25,821 | |
| Net earnings (loss) from continuing operations | (1,586) | 4,476 | 13,379 | (6,178) | 10,091 | (7,489) | 1,732 | 9,522 | 3,765 | |
| Earnings from discontinued operations, net of tax | - | 387 | 598 | 805 | 1,790 | - | - | 1,688 | 1,688 | |
| Net earnings (loss) | (1,586) | 4,863 | 13,977 | (5,373) | 11,881 | (7,489) | 1,732 | 11,210 | 5,453 | |
| Earnings (loss) per share: | ||||||||||
| Basic | (0.02) | 0.07 | 0.21 | (0.08) | 0.18 | (0.11) | 0.03 | 0.17 | 0.08 | |
| Diluted | (0.02) | 0.07 | 0.21 | (0.08) | 0.17 | (0.11) | 0.03 | 0.17 | 0.08 | |
| Excluded items: | ||||||||||
| Purchased intangible asset amortization (cost of revenue) | 3,290 | 1,217 | 1,181 | 3,097 | 8,785 | 3,846 | 3,748 | 3,686 | 11,280 | |
| Non-cash stock compensation (cost of revenue and operating expenses) | 13,292 | 15,735 | 17,497 | 24,780 | 71,304 | 27,985 | 29,068 | 26,760 | 83,813 | |
| Restructuring and merger charges (gains, losses, and other) | 116 | 6,574 | 2,502 | 2,516 | 11,708 | 206 | 397 | 149 | 752 | |
| Transformation costs (general and administrative) | 1,875 | - | - | - | 1,875 | - | - | - | - | |
| Total excluded items from continuing operations | 18,573 | 23,526 | 21,180 | 30,393 | 93,672 | 32,037 | 33,213 | 30,595 | 95,845 | |
| Income from continuing operations before income taxes and excluding items | 25,692 | 38,165 | 42,988 | 21,188 | 128,033 | 31,233 | 44,897 | 49,301 | 125,431 | |
| Income tax expense (2) | 6,167 | 9,036 | 10,732 | 3,947 | 29,882 | 7,371 | 10,745 | 12,421 | 30,537 | |
| Non-GAAP net earnings from continuing operations | 19,525 | 29,129 | 32,256 | 17,241 | 98,151 | 23,862 | 34,152 | 36,880 | 94,894 | |
| Non-GAAP earnings per share from continuing operations | ||||||||||
| Basic | 0.29 | 0.44 | 0.49 | 0.26 | 1.48 | 0.36 | 0.52 | 0.56 | 1.43 | |
| Diluted | 0.29 | 0.43 | 0.47 | 0.25 | 1.45 | 0.35 | 0.51 | 0.55 | 1.41 | |
| Basic weighted average shares | 66,497 | 66,284 | 65,961 | 66,323 | 66,266 | 66,621 | 66,294 | 65,631 | 66,182 | |
| Diluted weighted average shares | 67,388 | 67,868 | 67,943 | 68,471 | 67,918 | 68,463 | 67,309 | 66,743 | 67,505 | |
| Some totals may not add due to rounding | ||||||||||
| (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 GAAP TO NON-GAAP OPERATING INCOME GUIDANCE (1) | |||||
| (Unaudited) | |||||
| (Dollars in thousands) | |||||
| For the | For the | ||||
| quarter ending | year ending | ||||
| March 31, 2025 | March 31, 2025 | ||||
| GAAP income (loss) from operations | $ | (8,000) | $ | 10,000 | |
| Excluded items: | |||||
| Purchased intangible asset amortization | 3,000 | 14,000 | |||
| Non-cash stock compensation | 26,000 | 110,000 | |||
| Restructuring costs | 1,000 | 1,000 | |||
| Total excluded items | 30,000 | 125,000 | |||
| Non-GAAP income from operations | $ | 22,000 | $ | 135,000 | |
| (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 |
| Q3 FISCAL 2025 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, non-GAAP 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 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 is defined as operating cash flow less capital expenditures. 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. The presentation of non-GAAP free cash flow 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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