LiveRamp Increases Share Repurchase Authorization and Extends Program to December 31, 2026

Rhea-AI Summary

LiveRamp (NYSE: RAMP), a leading data collaboration platform, has announced a significant expansion of its share repurchase program. The company's Board of Directors has increased the repurchase authorization by $200 million to $1.3 billion and extended the program's expiration to December 31, 2026. Year-to-date, LiveRamp has already repurchased $35 million in stock, with $19 million repurchased during the current fiscal second quarter through August 14, 2024. The company now has approximately $322 million available for share repurchases through the end of 2026. CEO Scott Howe emphasized the attractiveness of accelerating the repurchase program at the current share price, citing ample financial resources to capitalize on the recent share price dislocation.

Positive

• Increased share repurchase authorization by $200 million to $1.3 billion
• Extended repurchase program expiration by two years to December 31, 2026
• $322 million currently available for share repurchases
• Strong cash position and expected free cash flow generation

Negative

• None.

Insights

Financial Analyst

LiveRamp's decision to increase its share repurchase authorization by $200 million to $1.3 billion and extend the program through 2026 signals strong confidence in the company's financial health and future prospects. This move is particularly noteworthy given the current market conditions. The accelerated repurchase strategy at the current share price suggests management believes the stock is undervalued, potentially creating value for long-term shareholders.

With $322 million now available for buybacks, LiveRamp has significant firepower to support its stock price. The company's ability to fund this program through its current cash balance and expected free cash flow indicates robust financial performance. However, investors should monitor how this capital allocation strategy impacts LiveRamp's ability to invest in growth initiatives and potential acquisitions in the competitive data collaboration space.

Market Research Analyst

LiveRamp's share repurchase expansion reflects a broader trend among tech companies to leverage buybacks as a means of returning value to shareholders, especially in a challenging market environment. This move could be seen as a defensive strategy, potentially aimed at stabilizing the stock price and boosting investor confidence.

The company's focus on "data collaboration" positions it well in an increasingly data-driven business landscape. However, the aggressive buyback approach raises questions about LiveRamp's growth prospects. Investors should scrutinize whether this capital allocation decision stems from a lack of attractive growth opportunities or if it truly represents an undervaluation of the company's shares. The market's reaction to this announcement will be important in gauging investor sentiment towards LiveRamp's strategy and overall market position.

Tech Expert

LiveRamp's position as a leading data collaboration platform is important in today's digital ecosystem where data privacy and effective data utilization are paramount. The company's confidence, as demonstrated by this share repurchase program, suggests a strong market position and potential technological advantages.

However, the tech sector is rapidly evolving, with increasing focus on AI and machine learning. Investors should consider whether LiveRamp's substantial buyback program might limit its ability to invest in cutting-edge technologies or strategic acquisitions. The company's future success will depend on its ability to innovate and adapt to changing data privacy regulations and emerging technologies in data management and analytics. While the buyback may provide short-term benefits, long-term technological leadership should remain a priority for sustainable growth in this competitive sector.

SAN FRANCISCO, Aug. 14, 2024 (GLOBE NEWSWIRE) -- LiveRamp^® (NYSE: RAMP), the leading data collaboration platform, today announced that its Board of Directors increased the Company’s share repurchase authorization by $200 million to $1.3 billion and extended the expiration by two years to December 31, 2026.

Fiscal year-to-date the Company has repurchased $35 million in stock, including $19 million repurchased during the ongoing fiscal second quarter through August 14, 2024. With this program expansion, the Company has approximately $322 million currently available for share repurchases through the end of calendar 2026.

Commenting on the announcement, CEO Scott Howe said, “We have a long history of returning capital to shareholders through our share repurchase program. At the current share price, we think accelerating our share repurchase program represents a particularly attractive investment. Between our current cash balance and the free cash flow we expect to generate this fiscal year, we have ample financial resources to take advantage of the recent share price dislocation.”

The timing and amounts of any purchases will be based on market conditions and other factors, including price and capital availability. The Company reserves the right to modify or terminate this program and authorization at any time.

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 consumer privacy, data ethics and foundational identity, LiveRamp offers a connected customer view with clarity and context while protecting brand and consumer trust. Our best-in-class enterprise platform enables data collaboration, where companies can share first-party consumer data with trusted business partners securely and in a privacy conscious manner. 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, including statements regarding how and when the Company may execute repurchases. These statements, which are not statements of historical fact, are based on management’s current estimates, assumptions, projections and/or expectations and are subject to certain risks, uncertainties and other factors, some of which are beyond the Company’s control and are difficult to predict, including, but not limited to, potential changes in the market price of the Company’s common stock and changes in the Company’s operating results, financial condition and cash requirements. 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. For a discussion of these and other risks and uncertainties, please refer to the Company’s Annual Report on Form 10-K for our fiscal year ended March 31, 2024, and the Company’s Quarterly Reports on Form 10-Q issued in fiscal year 2025. The financial information set forth in this press release reflects estimates based on information available at this time. The Company assumes no obligation and does not currently intend to update these forward-looking statements.

For more information, please contact:
Investor.Relations@LiveRamp.com

LiveRamp^® 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.

FAQ

What is the new share repurchase authorization amount for LiveRamp (RAMP)?

LiveRamp (RAMP) has increased its share repurchase authorization by $200 million to a total of $1.3 billion.

When does LiveRamp's (RAMP) extended share repurchase program expire?

LiveRamp's (RAMP) extended share repurchase program now expires on December 31, 2026, a two-year extension from the previous expiration date.

How much stock has LiveRamp (RAMP) repurchased in the current fiscal year?

LiveRamp (RAMP) has repurchased $35 million in stock fiscal year-to-date, including $19 million during the ongoing fiscal second quarter through August 14, 2024.

What is the current amount available for LiveRamp (RAMP) to repurchase shares?

LiveRamp (RAMP) has approximately $322 million currently available for share repurchases through the end of calendar 2026.