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Industry Overview - The technology services industry is mature with strong demand for services, leading to growth in 2025. The global shift towards digitization presents opportunities in markets such as 5G, blockchain, and artificial intelligence (AI) [1] - Companies are rapidly adopting generative AI, machine learning (ML), blockchain, and data science to gain a competitive edge, driven by elevated demand for enterprise software that enhances productivity and decision-making [2] Current Challenges - The technology services sector has experienced a loss of momentum in 2026 due to macroeconomic concerns and geopolitical conflicts. Despite these challenges, a focus has been placed on three small-sized technology services stocks with favorable Zacks Ranks that have delivered double-digit returns year to date [3] Company Highlights TTEC Holdings Inc. - TTEC Holdings is a customer experience technology and services company, operating through TTEC Digital and TTEC Engage segments, focusing on customer engagement solutions [7][8] - Expected revenue growth rate is -5% and earnings growth rate is 9.1% for the current year, with a 5.3% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [9] Dave Inc. - Dave provides banking apps and personal financial management tools, including budgeting tools and discretionary overdraft services [11][12] - Expected revenue growth rate is 25.4% and earnings growth rate is 9.9% for the current year, with a 3% improvement in the Zacks Consensus Estimate for earnings over the last seven days [12] LiveRamp Holdings Inc. - LiveRamp operates as a marketing technology company, offering data foundation, digital transformation, and consumer engagement services [13][14] - Expected revenue growth rate is 8.6% and earnings growth rate is 31.8% for the next year, with a 0.4% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [14]

Core Insights - LiveRamp (RAMP) is integrating Agentic AI into its infrastructure, allowing agents to make independent decisions and negotiate on behalf of marketers [1] Group 1: Company Developments - The integration of Agentic AI will enhance the capabilities of LiveRamp's services, enabling more autonomous decision-making processes for marketers [1] - The company has launched two primary agents as part of this integration, although specific details about these agents were not provided [1]

Group 1 - LiveRamp Holdings, Inc. (NYSE:RAMP) has announced a partnership with Predactiv to enhance the use of offline data, specifically Personally Identifiable Information (PII) [1][2] - The partnership allows LiveRamp to handle identity resolution, converting sensitive PII into privacy-safe, interoperable identifiers for various applications within Predactiv's Data Platform [2][3] - The integration expands Predactiv's capabilities, enabling users to access features like Lookalike Modeling, which allows data owners to transform PII into privacy-safe products for sale [3][4] Group 2 - LiveRamp is recognized as a technology company focused on providing a privacy-centric data collaboration platform, facilitating the activation, unification, and management of customer data across multiple marketing channels [4]

Core Viewpoint - LiveRamp (RAMP) has shown a significant price increase of 26.6% over the past four weeks, with a mean price target of $38.29 indicating a potential upside of 30.3% from the current trading price of $29.39 [1] Price Targets and Analyst Estimates - The mean estimate consists of seven short-term price targets with a standard deviation of $5.65, where the lowest estimate is $33.00 (12.3% increase) and the highest is $50.00 (70.1% increase) [2] - A low standard deviation suggests a high degree of agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [9] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about RAMP's earnings prospects, with a positive trend in earnings estimate revisions indicating potential upside [11] - Over the last 30 days, two earnings estimates have been revised higher, leading to a 2.4% increase in the Zacks Consensus Estimate for the current year [12] Zacks Rank and Investment Potential - RAMP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential for upside in the near term [13] - While the consensus price target may not be a reliable indicator of the extent of potential gains, it does imply a positive direction for price movement [14]

Core Insights - Predactiv has launched a new integration with LiveRamp that allows organizations to onboard and translate PII into secure identifiers, enhancing data enablement capabilities within The Predactiv Data Platform [1][1][1] Data Enablement Capabilities - The integration enables brands to utilize offline PII data elements such as name, address, email, and phone in a privacy-safe manner for modeling and audience activation [1][1] - Organizations can now leverage features like Lookalike Modeling without being restricted by PII, allowing for broader data utilization [1][1] - The platform supports the translation of PII into privacy-compliant identifiers, including Hashed Email Addresses, Mobile Advertising IDs, and IP-based identifiers [1][1] Revenue Generation Opportunities - Data providers and organizations with PII-rich datasets can create new revenue streams by converting PII assets into monetizable audience products through secure identity resolution and automated modeling [1][1] - This integration is seen as a natural extension of Predactiv's Lookalike Modeling feature, aligning with the company's vision of privacy-safe and performance-driven data enablement [1][1] Platform Evolution - The Predactiv Data Platform is evolving into a comprehensive infrastructure for data enablement, integrating first-party data, identity resolution, modeling, insights, and audience activation [1][1] - The platform's core is built on a proprietary AI-driven system that analyzes vast amounts of online data to optimize marketing strategies [1][1]

Core Insights - LiveRamp has launched new AI capabilities aimed at transforming marketing campaign planning, execution, measurement, and optimization [1] Group 1: AI Capabilities - The new features include agent-powered access to the LiveRamp platform, allowing specialized AI agents to autonomously collaborate with partners [1] - This development is intended to shift the marketing ecosystem from manual and fragmented workflows to intelligent and governed processes [1]

PresentationLucas CerisolaMorgan Stanley, Research Division Good morning, and thank you, everybody, for joining us at the TMT Conference. My name is Lucas Cerisola. I'm on the U.S. software equity research team here at Morgan Stanley. I'm here on behalf of Elizabeth Porter. Today, I have the pleasure of hosting LiveRamp's CEO, Scott Howe; and CFO, Lauren Dillard, Welcome, guys. And before we get started, just a few disclosures for more disclosures, please see the Morgan Stanley research disclosure website a ...

LiveRamp Conference Call Summary Company Overview - **Company**: LiveRamp (NYSE:RAMP) - **Revenue**: Approximately $800 million - **Business Focus**: Data collaboration platform, working with major clients like Meta, Google, and Trade Desk, with a growing emphasis on AI applications [6][12][22] Key Themes and Insights AI Integration - **AI Impact**: AI is significantly influencing consumer behavior and marketing practices, shifting interactions from traditional search engines to AI-driven platforms like ChatGPT [10][11] - **Data Requirement**: Effective AI applications require robust data, particularly first-party and second-party data, which LiveRamp specializes in providing [12] - **AI Partnerships**: LiveRamp has over 20 active AI partners, with a third being new AI companies, indicating a shift towards AI-driven decision-making in advertising [18][19] Data Marketplace Expansion - **Marketplace Growth**: The Data Marketplace has been growing in the high teens and now represents about 20% of total revenue [22] - **AI Models and Training Data**: LiveRamp is expanding its Data Marketplace to include AI model licensing and training data, positioning it as a central hub for AI-enabled marketing [23][24] Clean Room Adoption - **Importance of Clean Rooms**: Clean rooms are essential for data collaboration, especially in AI, as they protect sensitive data and facilitate partnerships [25][26] - **Market Demand**: The demand for clean rooms has increased due to concerns over data security and privacy, particularly in AI applications [25][26] CTV and Cross-Media Intelligence - **CTV Growth**: Connected TV (CTV) is becoming a significant revenue driver, with TV data sales representing 20%-25% of data volume in the Data Marketplace [28] - **Cross-Media Intelligence**: This capability is gaining traction as it allows marketers to measure and optimize their advertising efforts across multiple platforms [30][31] Pricing Strategy - **Shift to Usage-Based Model**: LiveRamp is transitioning from fixed subscriptions to a usage-based pricing model, which is expected to reduce friction for existing customers and attract new clients [33][34] - **Customer Acquisition**: The new pricing model has led to an increase in net new customers, particularly among mid-sized brands and media platforms [35][36] Market Potential - **Total Addressable Market (TAM)**: LiveRamp estimates a current TAM of $13 billion in data collaboration for advertising, with potential growth to $35 billion as AI usage increases [37] - **Growth Drivers**: The company anticipates that AI will accelerate data usage, benefiting its usage-based pricing model and overall growth trajectory [37] Operational Efficiency - **Margin Expansion**: LiveRamp aims for four points of margin expansion in the current year, driven by cost efficiencies and AI integration [40][43] - **Rule of 40 Goal**: The company is targeting a return to the Rule of 40 by fiscal 2028, focusing on subscription revenue growth and customer acquisition [39][43] Strategic Partnerships - **Publicis Partnership**: LiveRamp is expanding its partnership with Publicis to enhance platform integration, which could lead to further growth through partner-driven sales [47][50] Industry Challenges and Resilience - **Execution Challenges**: As LiveRamp expands into new verticals like healthcare, it faces challenges related to data governance and regulatory compliance [52] - **Resilience Factors**: The company's ability to simplify complex data challenges has been a key factor in its resilience amid industry disruptions [54][55] This summary encapsulates the critical insights and strategic directions discussed during the LiveRamp conference call, highlighting the company's focus on AI integration, marketplace expansion, and operational efficiency.

LiveRamp Holdings (NYSE:RAMP) is one of the 9 small-cap software infrastructure stocks with the highest upside potential. On February 6, the price target on LiveRamp Holdings (NYSE:RAMP) was reduced from $45 to $35 by DA Davidson analyst Clark Wright, who maintained a Buy rating on the stock. Despite this downward revision, the forecast yields an upside potential of almost 43%. Wright reflected on the company’s quarterly performance, which exceeded forecasts at both revenue and earnings levels. However, ...