LiveRamp (RAMP) closed the last trading session at $30.3, gaining 1.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $42.14 indicates a 39.1% upside potential.The mean estimate comprises seven short-term price targets with a standard deviation of $7.8. While the lowest estimate of $33.00 indicates an 8.9% increase from the current price level, the most optimistic analyst expects ...

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Core Viewpoint - LiveRamp (RAMP) shares have seen a 1% increase over the past four weeks, closing at $28.78, with a potential upside of 46.4% based on Wall Street analysts' mean price target of $42.14 [1][11]. Price Targets - The average price target consists of seven estimates ranging from a low of $33.00 to a high of $53.00, with a standard deviation of $7.8, indicating variability among analysts [2]. - The lowest estimate suggests a 14.7% increase from the current price, while the highest indicates an 84.2% upside [2]. Analyst Sentiment - There is strong agreement among analysts regarding RAMP's ability to report better earnings than previously predicted, which supports the potential for stock upside [4][11]. - The Zacks Consensus Estimate for the current year has increased by 3.3%, with one estimate moving higher in the last 30 days and no negative revisions [12]. Zacks Rank - RAMP holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential upside [13]. Caution on Price Targets - While price targets are a common metric for investors, relying solely on them can be misleading, as analysts may set overly optimistic targets due to business incentives [3][8][10].

LiveRamp (NYSE:RAMP) FY Conference Summary Company Overview - **Company**: LiveRamp - **Industry**: Digital Advertising and Data Connectivity Key Points and Arguments Long-term Strategy and Market Positioning - LiveRamp maintains a strong conviction in its long-term strategy, emphasizing the importance of first-party data for marketing [4][3] - The company enables seamless integration of first, second, and third-party data across a vast network of digital publishers and media platforms [4][3] Areas of Increased Demand 1. **Commerce Media**: LiveRamp has evolved its retail media success into commerce media, collaborating with companies like Uber and PayPal to enhance media buying [5][4] 2. **Connected TV (CTV)**: The company is expanding partnerships, notably with Netflix, to leverage first-party data for targeted advertising [6][5] 3. **Artificial Intelligence (AI)**: LiveRamp is focusing on integrating AI tools to enhance advertising and marketing capabilities [6][7] Sales Performance and Product Development - The sales cycle has improved, decreasing from 10 months to 9 months, indicating a healthier selling environment [17][8] - Annualized recurring revenue (ARR) grew by 7% year-on-year, with expectations for continued growth [18][17] - The launch of the Cross Media Intelligence product has received positive customer feedback and is expected to drive revenue growth in fiscal 2027 [12][11] Customer Base and New Pricing Model - Customer count has stabilized after a period of decline, aided by a shift from direct to reseller relationships in international markets [20][19] - A new pricing model is being piloted, designed to lower upfront commitments and allow for usage-based pricing, which is expected to attract mid-market customers [21][20] Infrastructure Migration and Cost Management - LiveRamp is migrating to a modern backend, which is currently increasing costs but is expected to improve speed, reliability, and scalability in the long term [35][34] - Gross margins are projected to return to the mid-70% range post-migration, with ongoing operational efficiencies being realized through offshoring and cost management [37][36] Financial Outlook and Capital Allocation - The company aims for a revenue growth target of over 10% for fiscal 2027, with a strong pipeline and positive momentum [31][30] - LiveRamp prioritizes organic investment for growth, strategic M&A opportunities, and returning excess cash flow to shareholders through buybacks [41][40] Market Sensitivity and Growth Segments - LiveRamp's Data Marketplace business grew by 14%, with expectations to outpace overall US digital ad spend growth due to exposure to faster-growing segments like retail and commerce media [32][31] - The company is well-positioned to leverage its customer base of larger enterprises, which tend to maintain spending during economic downturns [34][33] Additional Important Insights - The integration of AI into the platform aims to simplify usage for less technical users, enhancing the overall customer experience [28][27] - LiveRamp's strategy includes expanding its reach into the mid-market, which has historically been underserved [26][25] This summary encapsulates the key insights from LiveRamp's FY conference, highlighting the company's strategic focus, market dynamics, and financial outlook.

Core Insights - LiveRamp's shares increased by 8.3% following the release of strong third-quarter financial results that exceeded analyst expectations and an upward revision of its full-year revenue forecast [1] - The company's total revenue for the quarter rose by 7.7% year-over-year to $199.8 million, surpassing Wall Street projections [1] - LiveRamp reported an adjusted earnings per share of $0.55, which was 13.6% higher than analysts had anticipated [1] - The full-year revenue guidance was slightly raised to a midpoint of $811 million from a previous $808 million, indicating confidence in future performance [1] Financial Performance - Total revenue for the third quarter was $199.8 million, reflecting a year-over-year growth of 7.7% [1] - Adjusted earnings per share reached $0.55, exceeding analyst expectations by 13.6% [1] - The full-year revenue forecast was increased to $811 million, up from $808 million [1] Market Reaction - LiveRamp's stock has shown volatility, with 11 moves greater than 5% over the past year, indicating that the market views the recent news as significant but not fundamentally altering its perception of the company [3] - The stock is currently down 2.6% year-to-date and is trading 17.2% below its 52-week high of $35.61 [5]

Core Insights - LiveRamp (RAMP) reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, and showing an increase from $0.51 per share a year ago, resulting in an earnings surprise of +14.58% [1] - The company achieved revenues of $199.83 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.83% and up from $185.48 million year-over-year [2] - LiveRamp has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.71 on revenues of $209.97 million, and for the current fiscal year, it is $2.21 on revenues of $807.67 million [7] - The estimate revisions trend for LiveRamp was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Technology Services industry, to which LiveRamp belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Q2 revenue increased by 8% to $200 million, surpassing guidance by $3 million [17] - Non-GAAP operating income rose by 10% to $45 million, exceeding guidance by $6 million [17] - GAAP operating income more than doubled, with a margin expansion of seven percentage points to a record high [3][21] - Net new ARR was $14 million, marking the largest organic increase in the past seven quarters, with year-on-year growth of 7% [3][18] Business Line Data and Key Metrics Changes - Subscription revenue grew by 5% to $150 million, with fixed subscription revenue up 6% [17][21] - Marketplace and other revenue increased by 18% to $50 million, driven by a stable ad spending environment and new CTV integrations [20] - Million-dollar-plus subscription customers rose by five to a new high of 132 [4][18] Market Data and Key Metrics Changes - Total RPO (contracted backlog) increased by 29% to $652 million, while current RPO was up 15% to $430 million [18] - Subscription net retention was 102%, aligning with the near-term expectation of 100-105% [18] Company Strategy and Development Direction - The company is focusing on AI product enhancements and a new usage-based pricing model to drive growth [3][11] - Investments are being made in platform upgrades, AI capabilities, and the new pricing model to capture emerging opportunities [40][42] - The long-term goal is to achieve Rule of 40 by FY2028, with a current projection of Rule of 31 for this fiscal year [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth of over 10% in the future, driven by AI and ongoing cost efficiencies [15][25] - The company is optimistic about the upcoming renewal periods in Q3 and Q4, with a robust pipeline and sustained sales momentum [27][46] Other Important Information - Free cash flow for the quarter was $57 million, with $50 million allocated for share repurchases [21] - The balance sheet remains strong with $377 million in cash and short-term investments and zero debt [21] Q&A Session Summary Question: Drivers of improvement in ARR - Key drivers included strong gross new ARR from cross-sell and upsell of Clean Room solutions, new logo activity, and lower customer churn [29][30] Question: Upsell opportunities in the second half - Management feels optimistic about upsell opportunities due to various growth levers, including Cross Media Intelligence and commerce media networks [31] Question: Implications of AI on business - The company has low exposure to the open web and sees high upside from AI, leveraging first and second-party data to enhance model effectiveness [33][34] Question: Macro-conservatism in revenue guidance - The guidance includes conservatism, particularly in variable revenue sources, with expectations of consistent macro conditions [35][36] Question: Mix of retail and CPG versus non-retail in incremental ARR - Growth is being seen in both retail and commerce media, with a focus on expanding partnerships beyond traditional retail [37][38]

Financial Performance - Revenues for the three months ended September 30, 2025, increased to $199.829 million, up 7.2% from $185.483 million in the same period of 2024[17]. - Gross profit for the six months ended September 30, 2025, was $276.738 million, compared to $258.461 million for the same period in 2024, reflecting a growth of 7.1%[17]. - Net earnings for the three months ended September 30, 2025, were $27.420 million, significantly higher than $1.732 million in the same period of 2024[18]. - Basic earnings per share for the three months ended September 30, 2025, were $0.42, compared to $0.03 for the same period in 2024[17]. - For the six months ended September 30, 2025, the company reported net earnings of $35.2 million, compared to a net loss of $5.8 million for the same period in 2024, resulting in basic earnings per share of $0.54[38]. - Total revenue for the six months ended September 30, 2025, was $394.7 million, an increase of 9.2% from $361.4 million in the same period of 2024[43]. Cash Flow and Assets - Cash provided by operating activities for the six months ended September 30, 2025, was $41,587,000, compared to $46,268,000 for the same period in 2024, showing a slight decrease[29]. - The cash, cash equivalents, and restricted cash at the end of the period on September 30, 2025, were $369,446,000, down from $341,577,000 at the end of September 2024[31]. - Total current assets as of September 30, 2025, were $646.690 million, slightly down from $656.189 million as of March 31, 2025[14]. - Long-lived assets in the United States were valued at $587.962 million as of September 30, 2025, down from $596.396 million as of March 31, 2025[104]. Liabilities and Equity - Total current liabilities decreased to $237.029 million as of September 30, 2025, from $247.518 million as of March 31, 2025[14]. - The total equity as of September 30, 2025, was $943,807,000, reflecting an increase from $932,057,000 as of September 30, 2024[22][25]. - The allowance for credit losses increased to $9,244 thousand at the end of September 30, 2025, up from $7,698 thousand at the beginning of the period, representing a rise of 20.1%[79]. Expenses - Research and development expenses for the three months ended September 30, 2025, were $36.952 million, down from $43.889 million in the same period of 2024[17]. - Sales and marketing expenses for the three months ended September 30, 2025, were $48.685 million, a decrease from $51.107 million in the same period of 2024[17]. - Employee-related expenses were $106.662 million for the three months ended September 30, 2025, a decrease from $116.825 million in the same period of 2024[100]. Stock and Shareholder Activities - The company acquired treasury stock amounting to $79,762,000 during the six months ended September 30, 2025, compared to $65,653,000 in the same period of 2024[29]. - The total number of common shares outstanding increased from 157,822,130 as of September 30, 2024, to 161,167,204 as of September 30, 2025[22][25]. - The company repurchased 2.9 million shares for $79.6 million during the six months ended September 30, 2025, with a total of 44.4 million shares repurchased for $1.1 billion under the program[41]. - The company’s stock repurchase program was amended to authorize an additional $200 million, increasing the total authorized amount to $1.3 billion, extended through December 31, 2026[40]. Future Outlook - The company anticipates continued growth opportunities despite potential risks related to macroeconomic conditions and regulatory changes[7]. - The company expects to recognize revenue on substantially all remaining performance obligations by December 31, 2032[44]. Other Financial Metrics - The company reported a comprehensive income of $27.249 million for the three months ended September 30, 2025, compared to $2.923 million in the same period of 2024[18]. - Total other income, net for the three months ended September 30, 2025, was $3.544 million, compared to $4.197 million in the same period of 2024[102]. - The estimated annual effective tax rate (AETR) decreased significantly due to the 2025 Tax Act, impacting expected cash tax payments for fiscal 2026[96]. - The company maintained a full valuation allowance on its net deferred tax assets, with a potential release depending on future taxable income generation[95].

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article highlights that users may face access issues if they have an ad-blocker enabled, suggesting the need to disable it for uninterrupted service [1]

Q2 FY26 Earnings Presentation Nov 5, 2025 Cautionary Statement This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, regarding LiveRamp's (the "Company") future business prospects. These statements involve risks and uncertainties that could cause the Company's actual results to differ materially, including, but not limited to competit ...