LiveRamp Announces Strong Third Quarter Results and Raises Full Year Outlook

Rhea-AI Summary

LiveRamp (NYSE: RAMP) reported a strong financial performance for Q3 fiscal 2022, with total revenue reaching $141 million, a 17% increase year-over-year. Subscription revenue also rose 19% to $111 million, comprising 79% of total revenue. GAAP gross margin improved to 73%, while non-GAAP gross margin reached 77%. The company achieved an operating cash flow of $25 million, up from $15 million in the previous year. LiveRamp ended the quarter with 86 customers generating over $1 million each annually, reflecting a 32% increase. The company anticipates continued growth, projecting $526 million in revenue for fiscal 2022.

Positive

• Total revenue increased by 17% year-over-year to $141 million.
• Subscription revenue rose by 19% to $111 million, representing 79% of total revenue.
• GAAP gross margin improved by 4 percentage points to 73%.
• Non-GAAP gross margin increased by 3 percentage points to 77%.
• Operating cash flow reached $25 million, a 67% increase from the previous year.
• Customer count increased to 890, up from 810 year-over-year.
• 86 customers now generate over $1 million in annual revenue, a 32% increase.

Negative

• GAAP operating loss for the quarter was $14 million, although it improved from a $16 million loss last year.
• GAAP loss per share was $0.23, compared to a loss of $0.18 per share in the previous year.

Total Revenue Up 17% and Subscription Revenue Up 19%

GAAP Gross Margin of 73% and Non-GAAP Gross Margin of 77%

$25 Million of Operating Cash Flow

86 $1 Million+ Customers

SAN FRANCISCO--(BUSINESS WIRE)-- LiveRamp^® (NYSE: RAMP), the leading global data connectivity platform, today announced its financial results for the quarter ended December 31, 2021.

Third Quarter Financial Highlights

• Total revenue was $141 million, up 17% compared to the prior year period.

• Subscription revenue was $111 million, up 19% compared to the prior year period and contributed 79% of total revenue.

• Marketplace & Other revenue was $29 million, up 12% compared to the prior year period.

• GAAP gross profit was $102 million, up 23% compared to the prior year period. GAAP gross margin of 73% expanded 4 percentage points. Non-GAAP gross profit was $108 million, up 23% compared to the prior year period. Non-GAAP gross margin of 77% expanded 3 percentage points.

• GAAP operating loss was $14 million compared to a GAAP operating loss of $16 million in the prior year period. Non-GAAP operating income was $15 million compared to non-GAAP operating income of $12 million in the prior year period.

• GAAP loss per share was $0.23, and non-GAAP earnings per share were $0.14.

• Net cash provided by operating activities was $25 million compared to $15 million in the prior year period.

• During the quarter, LiveRamp repurchased approximately 115,000 shares for $5 million under the Company’s current share repurchase program. Since inception of the program in August 2011, the Company has returned approximately $1.2 billion in capital to shareholders.

A reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release.

“LiveRamp is fast becoming critical data infrastructure for global brands,” said LiveRamp CEO Scott Howe. “Adoption of Safe Haven®, our enterprise platform, is accelerating. We ended the quarter with 86 million dollar plus customers and approximately 20% of our ARR is now driven by Safe Haven®.”

“Our operating trends remain strong,” added LiveRamp President and CFO Warren Jenson. “Our revenue growth was robust, gross margin was 77%, ahead of our stated long-term target, and we were profitable on a non-GAAP operating income basis for the seventh quarter in a row. In addition, we expect to be operating cash flow positive for fiscal 2022.”

GAAP and Non-GAAP Results

The following table summarizes the Company’s financial results for its third fiscal quarter ($ in millions):

		Q3 Fiscal 2022				Q3 Fiscal 2021
		Results				Results
		GAAP		Non-GAAP		GAAP		Non-GAAP
Subscription revenue		$111		—		$93		—
YoY change %		19%				15%
Marketplace & other revenue		$29		—		$26		—
YoY change %		12%				27%
Total revenue		$141		—		$120		—
YoY change %		17%				17%
Gross profit		$102		$108		$83		$88
% Gross margin		73%		77%		69%		73%
YoY change, pts		4 pts		3 pts		6 pts		4 pts
Operating income (loss)		($14)		$15		($16)		$12
% Operating margin		(10%)		10%		(13%)		10%
YoY change, pts		3 pts		—		27 pts		15 pts
Net earnings (loss)		($15)		$10		($12)		$10
Earnings (loss) per share		($0.23)		$0.14		($0.18)		$0.14
Shares to Calculate EPS		68.2		69.9		66.5		69.8
YoY change %		3%		0%		(1%)		0%
Net operating cash flow		$25		—		$15		—
Free cash flow to equity		—		$24		—		$14
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 to this press release.

Additional Business Highlights & Metrics

• The Company’s Authenticated Traffic Solution (ATS) has reached global scale. There are currently more than 125 supply-side platforms (SSPs) and demand-side platforms (DSPs) live or committed to bid on RampID™ and ATS, including The Trade Desk, Amobee, Criteo, dataxu, and MediaMath.

• During the third quarter, LiveRamp extended its global reach and announced the integration of ATS into Amazon Publisher Services (APS). Thousands of publishers using APS now have a better way to connect authenticated inventory to advertiser demand globally.

• To date, over 500 publishers, representing more than 11,000 deployed domains, have integrated ATS worldwide, including Amazon, Microsoft, CafeMedia, Leaf Group, Prisma Media and Burda. Through these integrations, LiveRamp is now connected to over 70% of time spent online in the U.S.

• Safe Haven® now serves more than 60% of big box retail in the U.S. and is the clear enterprise choice for enabling the global growth of retail media networks and data collaboration. In the quarter, LiveRamp entered into a new Safe Haven® agreement with JD.com, the second largest ecommerce platform in the world.

• LiveRamp added 20 net new direct subscription customers in the third quarter. Customer count at quarter end was 890, up from 810 a year ago.

• LiveRamp has 86 customers whose subscription contracts exceed $1 million in annual revenue, up 32% compared to the prior year period.

• During the third quarter, subscription net retention was 110% and platform net retention was 109%.

• Current remaining performance obligations (CRPO), which is contracted and committed revenue expected to be recognized over the next 12 months, was $289 million, up 25% compared to the prior year period.

Financial Outlook

LiveRamp’s non-GAAP guidance excludes the impact of non-cash stock compensation, purchased intangible asset amortization, and restructuring charges.

For the fourth quarter of fiscal 2022, LiveRamp expects to report:

• Revenue of approximately $139 million, an increase of 17% year-over-year

• GAAP operating loss of approximately $31 million

• Non-GAAP operating income of approximately $2 million

For fiscal 2022, LiveRamp has increased its outlook and now expects to report:

• Revenue of approximately $526 million, an increase of 19% year-over-year

• GAAP operating loss of approximately $69 million

• Non-GAAP operating income of approximately $41 million

• In addition, the Company expects to be operating cash flow positive for the year

Conference Call

LiveRamp will hold a conference call at 1:30 p.m. PT today to further discuss this information. Interested parties are invited to listen to the call which will be broadcast via the Internet and can be found on LiveRamp’s investor site. A slide presentation will be referenced during the call and can be accessed here.

About LiveRamp

LiveRamp is the leading data connectivity platform for the safe and effective use of data. Powered by core identity capabilities and an unparalleled network, LiveRamp enables companies and their partners to better connect, control, and activate data to transform customer experiences and generate more valuable business outcomes. LiveRamp’s fully interoperable and neutral infrastructure delivers end-to-end addressability for the world’s top brands, agencies, and publishers. For more information, visit www.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, 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 COVID-19 and the associated impact 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; and attracting and retaining talent. Additional risks include maintaining our culture and our ability to innovate and evolve while working remotely and within a rapidly changing industry, while also avoiding disruption from acquisition and divestiture activities. Our international operations are also subject to risks 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’ computer systems 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 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 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, please refer to LiveRamp’s Annual Report on Form 10-K for our fiscal year 2021 ended March 31, 2021, and LiveRamp's Quarterly Reports on Form 10-Q issued in fiscal year 2022.

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.

LiveRamp^Ⓡ, RampID™, Abilitec^Ⓡ, Safe Haven^Ⓡ 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,
								$			%
		2021			2020			Variance			Variance
Revenues		140,604			119,753			20,851			17.4	%
Cost of revenue		38,557			37,085			1,472			4.0	%
Gross profit		102,047			82,668			19,379			23.4	%
% Gross margin		72.6	%		69.0	%
Operating expenses:
Research and development		41,870			30,608			11,262			36.8	%
Sales and marketing		46,324			43,904			2,420			5.5	%
General and administrative		27,639			23,943			3,696			15.4	%
Gains, losses and other items, net		-			(6	)		6			100.0	%
Total operating expenses		115,833			98,449			17,384			17.7	%
Loss from operations		(13,786	)		(15,781	)		1,995			12.6	%
% Margin		-9.8	%		-13.2	%
Total other expense, net		(241	)		(86	)		(155	)		(180.2	%)
Loss before income taxes		(14,027	)		(15,867	)		1,840			11.6	%
Income tax expense (benefit)		1,348			(4,142	)		5,490			132.5	%
Net loss		(15,375	)		(11,725	)		(3,650	)		(31.1	%)
Basic loss per share		(0.23	)		(0.18	)		(0.05	)		(27.9	%)
Diluted loss per share:		(0.23	)		(0.18	)		(0.05	)		(27.9	%)
Basic weighted average shares		68,190			66,523
Diluted weighted average shares		68,190			66,523

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,
								$			%
		2021			2020			Variance			Variance
Revenues		386,932			323,851			63,081			19.5	%
Cost of revenue		107,951			106,447			1,504			1.4	%
Gross profit		278,981			217,404			61,577			28.3	%
% Gross margin		72.1	%		67.1	%
Operating expenses:
Research and development		112,434			88,632			23,802			26.9	%
Sales and marketing		127,812			124,236			3,576			2.9	%
General and administrative		75,008			71,806			3,202			4.5	%
Gains, losses and other items, net		1,296			1,370			(74	)		(5.4	%)
Total operating expenses		316,550			286,044			30,506			10.7	%
Loss from operations		(37,569	)		(68,640	)		31,071			45.3	%
% Margin		-9.7	%		-21.2	%
Total other income, net		30,510			152			30,358			n/a
Loss before income taxes		(7,059	)		(68,488	)		61,429			89.7	%
Income tax benefit		(2,618	)		(11,067	)		8,449			76.3	%
Net loss		(4,441	)		(57,421	)		52,980			92.3	%
Basic loss per share		(0.07	)		(0.87	)		0.80			92.5	%
Diluted loss per share:		(0.07	)		(0.87	)		0.80			92.5	%
Basic weighted average shares		68,187			66,034
Diluted weighted average shares		68,187			66,034

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 Nine Months Ended
		December 31,						December 31,
		2021			2020			2021			2020
Loss before income taxes		(14,027	)		(15,867	)		(7,059	)		(68,488	)
Income tax expense (benefit)		1,348			(4,142	)		(2,618	)		(11,067	)
Net loss		(15,375	)		(11,725	)		(4,441	)		(57,421	)
Loss per share:
Basic		(0.23	)		(0.18	)		(0.07	)		(0.87	)
Diluted		(0.23	)		(0.18	)		(0.07	)		(0.87	)
Excluded items:
Purchased intangible asset amortization (cost of revenue)		4,647			4,213			13,904			13,869
Non-cash stock compensation (cost of revenue and operating expenses)		23,758			23,894			61,475			64,583
Transformation costs (general and administrative)		-			-			-			3,863
Restructuring and merger charges (gains, losses, and other)		-			(6	)		1,296			1,370
Gain on retained profits interest (other income)		(183	)		-			(30,235	)		-
Total excluded items		28,222			28,101			46,440			83,685
Income before income taxes and excluding items		14,195			12,234			39,381			15,197
Income taxes (2)		4,271			2,347			5,124			1,990
Non-GAAP net earnings		9,924			9,887			34,257			13,207
Non-GAAP earnings per share:
Basic		0.15			0.15			0.50			0.20
Diluted		0.14			0.14			0.49			0.19
Basic weighted average shares		68,190			66,523			68,187			66,034
Diluted weighted average shares		69,938			69,775			69,626			68,639

(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)		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 Nine Months Ended
		December 31,						December 31,
		2021			2020			2021			2020
Loss from operations		(13,786	)		(15,781	)		(37,569	)		(68,640	)
Excluded items:
Purchased intangible asset amortization (cost of revenue)		4,647			4,213			13,904			13,869
Non-cash stock compensation (cost of revenue and operating expenses)		23,758			23,894			61,475			64,583
Transformation costs (general and administrative)		-			-			-			3,863
Restructuring and merger charges (gains, losses, and other)		-			(6	)		1,296			1,370
Total excluded items		28,405			28,101			76,675			83,685
Income from operations before excluded items		14,619			12,320			39,106			15,045

(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						For the Nine Months Ended
		December 31,						December 31,
		2021			2020			2021			2020
Net loss		(15,375	)		(11,725	)		(4,441	)		(57,421	)
Income tax expense (benefit)		1,348			(4,142	)		(2,618	)		(11,067	)
Total other income (expense), net		(241	)		(86	)		30,510			152
Loss from operations		(13,786	)		(15,781	)		(37,569	)		(68,640	)
Depreciation and amortization		5,827			6,509			18,231			21,464
EBITDA		(7,959	)		(9,272	)		(19,338	)		(47,176	)
Other adjustments:
Non-cash stock compensation (cost of revenue and operating expenses)		23,758			23,894			61,475			64,583
Transformation costs (general and administrative)		-			-			-			3,863
Restructuring and merger charges (gains, losses, and other)		-			(6	)		1,296			1,370
Other adjustments		23,758			23,888			62,771			69,816
Adjusted EBITDA		15,799			14,616			43,433			22,640

(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
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
		December 31,			March 31,			$			%
		2021			2021			Variance			Variance
Assets
Current assets:
Cash and cash equivalents		552,959			572,787			(19,828	)		(3.5	%)
Restricted cash		8,731			8,900			(169	)		(1.9	%)
Trade accounts receivable, net		156,827			114,284			42,543			37.2	%
Refundable income taxes		62,679			65,692			(3,013	)		(4.6	%)
Other current assets		40,584			64,052			(23,468	)		(36.6	%)
Total current assets		821,780			825,715			(3,935	)		(0.5	%)
Property and equipment		46,666			44,284			2,382			5.4	%
Less - accumulated depreciation and amortization		36,080			32,327			3,753			11.6	%
Property and equipment, net		10,586			11,957			(1,371	)		(11.5	%)
Intangible assets, net		31,536			39,730			(8,194	)		(20.6	%)
Goodwill		363,789			357,446			6,343			1.8	%
Deferred commissions, net		29,483			22,619			6,864			30.3	%
Other assets, net		85,361			30,854			54,507			176.7	%
		1,342,535			1,288,321			54,214			4.2	%
Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable		71,655			39,955			31,700			79.3	%
Accrued payroll and related expenses		32,496			46,438			(13,942	)		(30.0	%)
Other accrued expenses		56,221			58,353			(2,132	)		(3.7	%)
Acquisition escrow payable		8,731			8,900			(169.00	)		(1.9	%)
Deferred revenue		14,933			11,603			3,330			28.7	%
Total current liabilities		184,036			165,249			18,787			11.4	%
Other liabilities		88,085			42,389			45,696			107.8	%
Stockholders' equity:
Preferred stock		-			-			-			n/a
Common stock		14,925			14,781			144			1.0	%
Additional paid-in capital		1,689,172			1,630,072			59,100			3.6	%
Retained earnings		1,450,385			1,454,826			(4,441	)		(0.3	%)
Accumulated other comprehensive income		5,890			7,522			(1,632	)		(21.7	%)
Treasury stock, at cost		(2,089,958	)		(2,026,518	)		(63,440	)		(3.1	%)
Total stockholders' equity		1,070,414			1,080,683			(10,269	)		(1.0	%)
		1,342,535			1,288,321			54,214			4.2	%

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
		For the Three Months Ended
		December 31,
		2021			2020
Cash flows from operating activities:
Net loss		(15,375	)		(11,725	)
Non-cash operating activities:
Depreciation and amortization		5,827			6,509
Loss on disposal or impairment of assets		-			1
Gain on distribution from retained profits interest		(183	)		-
Provision for doubtful accounts		1,845			824
Deferred income taxes		315			485
Non-cash stock compensation expense		23,758			23,894
Changes in operating assets and liabilities:
Accounts receivable		(27,803	)		(17,062	)
Deferred commissions		(1,495	)		(1,637	)
Other assets		(1,331	)		(192	)
Accounts payable and other liabilities		34,358			13,824
Income taxes		1,630			(5,399	)
Deferred revenue		3,927			5,168
Net cash provided by operating activities		25,473			14,690
Cash flows from investing activities:
Capital expenditures		(1,316	)		(678	)
Purchases of investments		-			(3,000	)
Purchases of strategic investments		-			(327	)
Distribution from retained profits interest		184			-
Cash paid in acquisition, net of cash received		(2,008	)		(14,815	)
Net cash used in investing activities		(3,140	)		(18,820	)
Cash flows from financing activities:
Proceeds related to the issuance of common stock under stock and employee benefit plans		1,905			5,115
Shares repurchased for tax withholdings upon vesting of stock-based awards		(1,674	)		(3,627	)
Acquisition of treasury stock		(5,147	)		-
Net cash provided by (used in) financing activities		(4,916	)		1,488
Effect of exchange rate changes on cash		(48	)		537
Net change in cash and cash equivalents		17,369			(2,105	)
Cash and cash equivalents at beginning of period		544,321			665,506
Cash and cash equivalents at end of period		561,690			663,401
Supplemental cash flow information:
Cash (received) during the period for:
Income taxes		(246	)		(771	)
Operating lease assets obtained in exchange for operating lease liabilities		17,211			-

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
		For the Nine Months Ended
		December 31,
		2021			2020
Cash flows from operating activities:
Net loss		(4,441	)		(57,421	)
Non-cash operating activities:
Depreciation and amortization		18,231			21,464
Loss on disposal or impairment of assets		142			334
Gain on distribution from retained profits interest		(30,235	)		-
Provision for doubtful accounts		3,127			3,346
Deferred income taxes		(456	)		-
Non-cash stock compensation expense		61,475			64,583
Changes in operating assets and liabilities:
Accounts receivable		(45,876	)		(26,646	)
Deferred commissions		(6,864	)		(5,082	)
Other assets		22,077			7,511
Accounts payable and other liabilities		(2,471	)		(6,847	)
Income taxes		998			(8,982	)
Deferred revenue		3,426			5,067
Net cash provided by (used in) operating activities		19,133			(2,673	)
Cash flows from investing activities:
Capital expenditures		(2,619	)		(1,806	)
Purchases of investments		-			(3,000	)
Purchases of strategic investments		-			(2,200	)
Distribution from retained profits interest		31,184			-
Cash paid in acquisition, net of cash received		(10,376	)		(17,748	)
Net cash provided by (used in) investing activities		18,189			(24,754	)
Cash flows from financing activities:
Proceeds related to the issuance of common stock under stock and employee benefit plans		6,183			8,676
Shares repurchased for tax withholdings upon vesting of stock-based awards		(14,216	)		(9,382	)
Acquisition of treasury stock		(49,224	)		(42,312	)
Net cash used in financing activities		(57,257	)		(43,018	)
Effect of exchange rate changes on cash		(62	)		1,220
Net change in cash and cash equivalents		(19,997	)		(69,225	)
Cash and cash equivalents at beginning of period		581,687			732,626
Cash and cash equivalents at end of period		561,690			663,401
Supplemental cash flow information:
Cash (received) during the period for:
Income taxes		(2,815	)		(2,092	)
Operating lease assets obtained in exchange for operating lease liabilities		52,902			-

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW TO EQUITY (1)
(Unaudited)
(Dollars in thousands)
		06/30/20			09/30/20			12/31/20			03/31/21			FY2021			06/30/21			09/30/21			12/31/21			FY2022
Net Cash Provided by (Used in) Operating Activities		(23,612	)		6,249			14,690			(17,887	)		(20,560	)		(17,241	)		10,901			25,473			19,133
Less:
Capital expenditures		(832	)		(296	)		(678	)		(376	)		(2,182	)		(427	)		(876	)		(1,316	)		(2,619	)
Free Cash Flow to Equity		(24,444	)		5,953			14,012			(18,263	)		(22,742	)		(17,668	)		10,025			24,157			16,514

(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)
																													Q3 FY22 to Q3 FY21
		06/30/20			09/30/20			12/31/20			03/31/21			FY2021			06/30/21			09/30/21			12/31/21			FY2022			%			$
Revenues		99,437			104,661			119,753			119,175			443,026			119,038			127,290			140,604			386,932			19.9	%		20,851
Cost of revenue		34,465			34,897			37,085			37,557			144,004			34,315			35,079			38,557			107,951			4.2	%		1,472
Gross profit		64,972			69,764			82,668			81,618			299,022			84,723			92,211			102,047			278,981			27.8	%		19,379
% Gross margin		65.3	%		66.7	%		69.0	%		68.5	%		67.5	%		71.2	%		72.4	%		72.6	%		72.1	%
Operating expenses
Research and development		26,989			31,035			30,608			46,479			135,111			34,776			35,788			41,870			112,434			36.3	%		11,262
Sales and marketing		38,627			41,705			43,904			53,307			177,543			41,979			39,509			46,324			127,812			5.8	%		2,420
General and administrative		23,368			24,495			23,943			32,395			104,201			24,291			23,078			27,639			75,008			15.1	%		3,696
Gains, losses and other items, net		1,995			(619	)		(6	)		1,345			2,715			1,278			18			-			1,296			1.0	%		6
Total operating expenses		90,979			96,616			98,449			133,526			419,570			102,324			98,393			115,833			316,550			18.0	%		17,384
Loss from operations		(26,007	)		(26,852	)		(15,781	)		(51,908	)		(120,548	)		(17,601	)		(6,182	)		(13,786	)		(37,569	)		7.4	%		1,995
% Margin		-26.2	%		-25.7	%		-13.2	%		-43.6	%		-27.2	%		-14.8	%		-4.9	%		-9.8	%		-9.7	%
Total other income (expense), net		463			(225	)		(86	)		(404	)		(252	)		30,601			150			(241	)		30,510			(68.9	%)		(155	)
Loss before income taxes		(25,544	)		(27,077	)		(15,867	)		(52,312	)		(120,800	)		13,000			(6,032	)		(14,027	)		(7,059	)		6.8	%		1,840
Income taxes expense (benefit)		(3,816	)		(3,109	)		(4,142	)		(19,465	)		(30,532	)		(4,365	)		399			1,348			(2,618	)		176.6	%		5,490
Net earnings (loss)		(21,728	)		(23,968	)		(11,725	)		(32,847	)		(90,268	)		17,365			(6,431	)		(15,375	)		(4,441	)		(15.2	%)		(3,650	)
Diluted earnings (loss) per share		(0.33	)		(0.36	)		(0.18	)		(0.49	)		(1.36	)		0.25			(0.09	)		(0.23	)		(0.07	)		(13.6	%)		(0.05	)
Some earnings (loss) per share amounts may not add due to rounding.
Basic shares		65,570			66,010			66,523			67,111			66,304			68,328			68,042			68,190			68,187
Diluted shares		65,570			66,010			66,523			67,111			66,304			69,605			69,333			69,938			69,626

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
(Unaudited)
(Dollars in thousands, except per share amounts)
		06/30/20			09/30/20			12/31/20			03/31/21			FY2021			06/30/21			09/30/21			12/31/21			FY 2022
Income (loss) before income taxes		(25,544	)		(27,077	)		(15,867	)		(52,312	)		(120,800	)		13,000			(6,032	)		(14,027	)		(7,059	)
Income taxes (benefit)		(3,816	)		(3,109	)		(4,142	)		(19,465	)		(30,532	)		(4,365	)		399			1,348			(2,618	)
Net earnings (loss)		(21,728	)		(23,968	)		(11,725	)		(32,847	)		(90,268	)		17,365			(6,431	)		(15,375	)		(4,441	)
Earnings (loss) per share:
Basic		(0.33	)		(0.36	)		(0.18	)		(0.49	)		(1.36	)		0.25			(0.09	)		(0.23	)		(0.07	)
Diluted		(0.33	)		(0.36	)		(0.18	)		(0.49	)		(1.36	)		0.25			(0.09	)		(0.23	)		(0.07	)
Excluded items:
Purchased intangible asset amortization (cost of revenue)		5,306			4,350			4,213			4,177			18,046			4,645			4,612			4,647			13,904
Non-cash stock compensation (cost of revenue and operating expenses)		16,485			24,204			23,894			47,124			111,707			18,496			19,221			23,758			61,475
Restructuring and merger charges (gains, losses, and other)		1,995			(619	)		(6	)		1,345			2,715			1,278			18			-			1,296
Transformation costs (general and administrative)		3,605			258			-			-			3,863			-			-			-			-
Gain on retained profits interest (other income)		-			-			-			-			-			(30,052	)		-			(183	)		(30,235	)
Total excluded items		27,391			28,193			28,101			52,646			136,331			(5,633	)		23,851			28,222			46,440
Income before income taxes and excluding items		1,847			1,116			12,234			334			15,531			7,367			17,819			14,195			39,381
Income taxes expense (benefit)		934			(1,291	)		2,347			(2,628	)		(638	)		865			(12	)		4,271			5,124
Non-GAAP net earnings		913			2,407			9,887			2,962			16,169			6,502			17,831			9,924			34,257
Non-GAAP earnings per share:
Basic		0.01			0.04			0.15			0.04			0.24			0.10			0.26			0.15			0.50
Diluted		0.01			0.03			0.14			0.04			0.23			0.09			0.26			0.14			0.49
Basic weighted average shares		65,570			66,010			66,523			67,111			66,304			68,328			68,042			68,190			68,187
Diluted weighted average shares		67,337			68,804			69,775			69,935			68,963			69,605			69,333			69,938			69,626
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 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 GAAP TO NON-GAAP EXPENSES (1)
(Unaudited)
(Dollars in thousands)
		06/30/20			09/30/20			12/31/20			03/31/21			FY2021			06/30/21			09/30/21			12/31/21			FY2022
Expenses:
Cost of revenue		34,465			34,897			37,085			37,557			144,004			34,315			35,079			38,557			107,951
Research and development		26,989			31,035			30,608			46,479			135,111			34,776			35,788			41,870			112,434
Sales and marketing		38,627			41,705			43,904			53,307			177,543			41,979			39,509			46,324			127,812
General and administrative		23,368			24,495			23,943			32,395			104,201			24,291			23,078			27,639			75,008
Gains, losses and other items, net		1,995			(619	)		(6	)		1,345			2,715			1,278			18			-			1,296
Gross profit:		64,972			69,764			82,668			81,618			299,022			84,723			92,211			102,047			278,981
% Gross margin		65.3	%		66.7	%		69.0	%		68.5	%		67.5	%		71.2	%		72.4	%		72.6	%		72.1	%
Excluded items:
Purchased intangible asset amortization (cost of revenue)		5,306			4,350			4,213			4,177			18,046			4,645			4,612			4,647			13,904
Non-cash stock compensation (cost of revenue)		775			913			988			2,624			5,300			790			948			1,168			2,906
Non-cash stock compensation (research and development)		5,886			7,713			7,376			17,985			38,960			5,348			7,184			9,264			21,796
Non-cash stock compensation (sales and marketing)		7,123			9,233			9,212			14,833			40,401			6,793			6,749			7,329			20,871
Non-cash stock compensation (general and administrative)		2,701			6,345			6,318			11,682			27,046			5,565			4,340			5,997			15,902
Restructuring and merger charges (gains, losses, and other)		1,995			(619	)		(6	)		1,345			2,715			1,278			18			-			1,296
Transformation costs (general and administrative)		3,605			258			-			-			3,863			-			-			-			-
Gain on retained profits interest (other income)		-			-			-			-			-			(30,052	)		-			(183	)		(30,235	)
Total excluded items		27,391			28,193			28,101			52,646			136,331			(5,633	)		23,851			28,222			46,440
Expenses, excluding items:
Cost of revenue		28,384			29,634			31,884			30,756			120,658			28,880			29,519			32,742			91,141
Research and development		21,103			23,322			23,232			28,494			96,151			29,428			28,604			32,606			90,638
Sales and marketing		31,504			32,472			34,692			38,474			137,142			35,186			32,760			38,995			106,941
General and administrative		17,062			17,892			17,625			20,713			73,292			18,726			18,738			21,642			59,106
Gains, losses and other items, net		-			-			-			-			-			-			-			-			-
Gross profit, excluding items:		71,053			75,027			87,869			88,419			322,368			90,158			97,771			107,862			295,791
% Gross margin		71.5	%		71.7	%		73.4	%		74.2	%		72.8	%		75.7	%		76.8	%		76.7	%		76.4	%

(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
RECONCILIATION OF GAAP TO NON-GAAP OPERATING INCOME (LOSS) GUIDANCE (1)
(Unaudited)
(Dollars in thousands)
		For the quarter ending				For the year ending
		March 31, 2022				March 31, 2022
GAAP loss from operations			(31,000	)			(69,000	)
Excluded items:
Purchased intangible asset amortization			5,000				19,000
Non-cash stock compensation			28,000				90,000
Restructuring and transformation costs			-				1,000
Total excluded items			33,000				110,000
Non-GAAP income from operations		$	2,000			$	41,000

(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 2022 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 associates whose positions were eliminated, lease and other contract termination charges, and leasehold improvement write offs. These items, 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, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220209005439/en/

Lauren Dillard

LiveRamp Investor Relations

Investor.Relations@LiveRamp.com

ERAMP

Source: LiveRamp

FAQ

What were LiveRamp's total revenues for Q3 fiscal 2022?

LiveRamp reported total revenues of $141 million for Q3 fiscal 2022, up 17% year-over-year.

How much did LiveRamp's subscription revenue grow in Q3 fiscal 2022?

Subscription revenue grew by 19%, reaching $111 million in Q3 fiscal 2022.

What is LiveRamp's GAAP operating loss for Q3 fiscal 2022?

LiveRamp's GAAP operating loss for Q3 fiscal 2022 was $14 million.

What is LiveRamp's projected revenue for fiscal 2022?

LiveRamp projects total revenue of approximately $526 million for fiscal 2022.

How many customers does LiveRamp have generating over $1 million in annual revenue?

LiveRamp has 86 customers whose contracts exceed $1 million in annual revenue.