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 ...

Financial Performance - Total revenue for Q2 FY26 was $200 million, representing an 8% increase year-over-year[5]. - Annualized recurring revenue (ARR) increased by $14 million quarter-over-quarter to $516 million, up 7% compared to the prior year[5][8]. - Subscription revenue was $150 million, up 5% year-over-year, while Marketplace & Other revenue was $50 million, up 18%[5][6]. - GAAP operating income was $21 million, compared to $7 million in the prior year, with a GAAP operating margin of 11%, expanding by 7 percentage points[5][6]. - Non-GAAP diluted earnings per share was $0.55, compared to $0.51 in the prior year[5][6]. - Revenues for the six months ended September 30, 2025, increased to $394,651,000, a growth of 9.2% compared to $361,444,000 in the same period of 2024[26]. - Net earnings for the six months reached $35,167,000, a turnaround from a loss of $5,757,000 in 2024[26]. - Basic earnings per share improved to $0.54, compared to a loss of $0.09 per share in the same period last year[26]. - Net earnings for the three months ended September 30, 2025, were $27,420,000, a significant increase from $1,732,000 in the same period of 2024, representing a growth of 1,483.1%[49]. - Total revenues for the fiscal year 2025 were $745,580,000, with a gross profit margin of 71.0%[49]. Operational Efficiency - Current remaining performance obligations (CRPO) were $430 million, up 15% compared to the prior year[8]. - Gross profit for the same period was $276,738,000, with a gross margin of 70.1%, down from 71.5% in 2024[26]. - Income from operations surged to $28,649,000, representing a significant increase of 1,179.5% from $2,239,000 in the prior year[26]. - Total operating expenses decreased by 3.2% to $248,089,000, with notable reductions in research and development expenses by 13.0%[26]. - Adjusted EBITDA for the six months was $81,750,000, up from $68,899,000 in 2024, reflecting a strong operational performance[34]. - Trade accounts receivable increased by 16.4% to $216,791,000, indicating improved sales and collection efficiency[36]. - Cash and cash equivalents decreased by 10.6% to $369,446,000, reflecting changes in working capital[36]. - Total stockholders' equity slightly decreased by 0.5% to $943,807,000, indicating stable financial health despite fluctuations in cash[36]. Shareholder Returns - Share repurchases totaled 1.8 million shares for $50 million in Q2 FY26, with a fiscal year-to-date total of 2.9 million shares for $80 million[5]. - The company repurchased treasury stock amounting to $49,890,000 during the three months ended September 30, 2025, slightly up from $49,868,000 in the same period of 2024[39]. Future Projections - LiveRamp expects Q3 FY26 revenue to be between $209 million and $213 million, an increase of 7% to 9%[14]. - The company anticipates continued growth in gross profit margins, projecting a gross margin of 72.3% for Q3 FY2026[55]. - GAAP income from operations for the quarter ending December 31, 2025, is projected to be between $33,000 and $35,000 thousand, while for the year ending March 31, 2026, it is expected to be between $83,000 and $87,000 thousand[62]. - Non-GAAP income from operations for the quarter ending December 31, 2025, is projected to be between $55,000 and $57,000 thousand, and for the year ending March 31, 2026, it is expected to be between $178,000 and $182,000 thousand[62]. Research and Development - Research and development expenses decreased by 15.8% to $36,952,000 for the three months ended September 30, 2025, compared to $43,889,000 in the same period of 2024[49]. - Research and development expenses for FY2025 totaled $176,668 thousand, with a decrease to $39,608 thousand in Q2 FY2026[53]. Non-GAAP Measures - The company uses non-GAAP measures to provide a clearer understanding of its operational performance and future results[65]. - Adjusted EBITDA is utilized to measure performance across periods and segments, providing useful supplementary information for investors[73]. - Free cash flow is defined as operating cash flow less capital expenditures, representing discretionary spending availability[74]. - The company emphasizes that non-GAAP measures should not be considered in isolation from GAAP measures[65].

Core Insights - LiveRamp reported a total revenue of $200 million for the quarter ended September 30, 2025, representing an 8% increase year-over-year [7] - The company achieved an annual recurring revenue (ARR) of $516 million, up $14 million quarter-over-quarter and a 7% increase year-over-year [5][9] - LiveRamp's share repurchases totaled $80 million fiscal year-to-date, with $50 million spent in the second quarter [7] Financial Performance - Subscription revenue reached $150 million, a 5% increase year-over-year, while Marketplace & Other revenue was $50 million, up 18% [6][7] - GAAP gross profit was $140 million, reflecting a 4% increase, with a gross margin of 70%, down 2 percentage points from the previous year [7] - Operating income under GAAP was $21 million, compared to $7 million in the prior year, with an operating margin of 11%, expanding by 7 percentage points [7][8] Earnings and Cash Flow - GAAP diluted earnings per share were $0.42, while non-GAAP diluted earnings per share were $0.55 [8] - Net cash provided by operating activities was $57 million, slightly up from $56 million in the previous year [7] - Free cash flow for the quarter was $56.8 million, indicating strong cash generation capabilities [46] Business Highlights - The company launched three new AI tools aimed at enhancing its data collaboration platform, focusing on autonomous AI agents, AI-powered segmentation, and AI-powered search capabilities [9] - LiveRamp expanded its first-party data activation capabilities on Netflix to ten new geographic markets, enhancing its service offerings [9] - The company was recognized as a Leader in Data Collaboration in Snowflake's 2026 Modern Marketing Stack Report, underscoring its market position [9] Customer Metrics - LiveRamp ended the quarter with 132 customers whose annualized subscription revenue exceeds $1 million, up from 125 in the prior year [9] - The total number of direct subscription customers decreased to 834 from 885 year-over-year [9] - Subscription net retention was reported at 102%, while platform net retention stood at 105% [9] Future Outlook - LiveRamp expects revenue for the third quarter of fiscal 2026 to be between $209 million and $213 million, reflecting an increase of 7% to 9% [17] - The company anticipates GAAP operating income for the same period to be between $33 million and $35 million [17] - For the full fiscal year 2026, revenue is projected to be between $804 million and $818 million, an increase of 8% to 10% [17]

Core Insights - LiveRamp's CFO Lauren Dillard will present at the Wells Fargo 9th Annual TMT Summit on November 18, 2025 [1] Company Overview - LiveRamp is a leading data collaboration technology company that empowers marketers and media owners to enhance and measure marketing performance [2] - The company's data collaboration network integrates data across various stakeholders, including advertisers, platforms, publishers, and data providers, to unlock insights and drive growth [2][3] - LiveRamp operates on principles of neutrality, interoperability, and global scale, enabling organizations to maximize data value and foster innovation [3] Market Position - LiveRamp is trusted by major brands across various sectors, including retail, financial services, and healthcare, contributing to responsible data collaboration in an AI-driven environment [3]

Core Insights - LiveRamp Holdings, Inc. has expanded its measurement capabilities for retail media networks, enhancing attribution insights from Meta Platforms, Inc. campaigns [1][2] - The new capabilities are delivered through LiveRamp's clean-room infrastructure, allowing privacy-centric collaboration between retailers and brands [2][3] - The enhancements aim to help retailers assess return on ad spend, optimize campaign strategies, and strengthen brand relationships within secure data environments [2] Company Overview - LiveRamp is a San Francisco-based data collaboration platform that enables secure data connection, activation, and measurement across marketing and analytics ecosystems [3] - Its core offerings include identity resolution, clean-room technology, and secure data onboarding for enterprises, publishers, and advertising platforms [3]

Core Insights - LiveRamp has announced expanded measurement capabilities that enhance customer outcomes through its data collaboration network [1] - Retail media networks (RMNs) can now gain new attribution insights from their Meta campaign investments via the LiveRamp Clean Room [1] - By linking Meta campaign results with first-party sales data, RMNs and their partners can analyze how off-property sites, including Meta, contribute to sales and orders [1]

Core Viewpoint - LiveRamp is set to release its fiscal 2026 second quarter financial results on November 5, 2025, after market close, followed by a conference call to discuss the results [1] Company Overview - LiveRamp is a leading data collaboration technology company that empowers marketers and media owners to enhance and measure marketing performance across various platforms [3] - The company’s data collaboration network integrates data from advertisers, platforms, publishers, data providers, and commerce media networks, providing deep insights and driving measurable growth [3][4] - LiveRamp operates on principles of neutrality, interoperability, and global scale, enabling organizations to maximize data value and foster innovation [4] Conference Call Details - The conference call to discuss the financial results will take place at 1:30 p.m. PT on the same day as the results release [1] - Access to the conference call will be available via telephone at (888) 596-4144 or (646) 968-2525, with the conference call ID being 8084681 [2]

Group 1 - LiveRamp Holdings Inc. is recognized as a promising growth stock, particularly following the introduction of new AI capabilities on October 1, which include agentic tools, segmentation, and search functionalities [1][3] - The company is the first to provide autonomous AI agents with governed access to its data collaboration network, facilitating secure and intelligent data collaboration at scale [2] - New agentic orchestration allows marketers to connect their own or partner agents via APIs, enabling faster and more informed decision-making through controlled access to LiveRamp's identity and insights from 900 partners [3] Group 2 - LiveRamp operates a data collaboration platform across the US, Europe, Asia-Pacific, and internationally, indicating its broad market presence [4]

Market Outlook - The Chief Investment Officer at Truist Wealth, Keith Lerner, indicated that fears regarding a government shutdown are currently muted, with investors not overly concerned [1] - Historically, during the 20 past shutdowns, the S&P 500 has remained flat and increased 50% of the time, suggesting that short-term volatility should not prompt drastic portfolio changes [1][2] - The upcoming earnings season, starting in two weeks, is expected to be a significant market driver [1] Economic Impact - Concerns about stagflation are present, with Moody's indicating that each week of shutdown could impact quarterly GDP by approximately 0.1% [2] - Despite the shutdown, the Atlanta GDP estimate for the quarter remains around 3.9%, indicating that the shutdown may not drastically alter economic conditions [2] - The shutdown adds to economic uncertainty in the short term, complicating the overall outlook due to less available data [2] Sector Focus - The primary theme for the firm's bullish market outlook is centered on AI and technology, which are expected to continue strong profit growth despite the government shutdown [3] - The technology sector has seen a 30% increase over the past year, which is not indicative of a bubble, as true bubbles typically exhibit closer to 100% year-over-year growth [3] Growth Stocks - A list of the 12 best growth stocks to buy now has been compiled, focusing on those popular among elite hedge funds and analysts [4][6] - The methodology involved using the Finviz stock screener to identify top growth stocks, ranked by the number of hedge fund holders as of Q2 2025 [6][7] Company Highlights - **Infosys Limited (NYSE:INFY)**: Collaborating with Telenor Shared Services to modernize HR operations through Oracle Fusion Cloud HCM, enhancing employee productivity and experience [9][10][11] - **LiveRamp Holdings Inc. (NYSE:RAMP)**: Launched new AI capabilities, including agentic tools and segmentation, to improve customer outcomes and enable secure data collaboration [12][13][14]

Core Thesis - LiveRamp Holdings, Inc. is positioned for significant growth in the marketing technology ecosystem, driven by its unique data collaboration platform and strong subscription revenue model [1][5]. Company Overview - LiveRamp Holdings, Inc. is a leading data collaboration technology company that connects marketers, media owners, and data providers, facilitating performance measurement across customer journeys [2]. - The company serves a global customer base, including 840 direct clients and thousands indirectly through partners, emphasizing its neutrality and interoperability [2]. Industry Challenges and Solutions - LiveRamp addresses industry challenges such as fragmented identity, marketing inefficiency, and privacy regulations by offering secure, privacy-centric solutions [3]. - Its platform capabilities include deterministic identity resolution, simplified access to third-party data, secure onboarding, and advanced analytics, enabling meaningful measurement and optimization [3]. Growth Strategy - The company's growth strategy leverages network effects, expanding its customer base and strengthening partnerships with Customer Data Platforms (CDPs), cloud providers, and global integrators [4]. - Key initiatives include Cross-Media Intelligence for unified campaign reporting, Commerce Media Networks for monetizing first-party data, and Connected TV solutions for accurate audience targeting [4]. Financial Performance - Subscription revenue constitutes 76% of total revenue, providing strong recurring cash flows and a compelling risk/reward profile for investors [5]. - LiveRamp's patented identity technology and global scale position it well to capture growth opportunities in personalized marketing and omnichannel measurement [5].