Core Viewpoint - LiveRamp (RAMP) reported quarterly earnings of $0.76 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, and showing an increase from $0.55 per share a year ago, indicating a positive earnings surprise of +10.95% [1] Financial Performance - The company achieved revenues of $212.2 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.70% and up from $195.41 million year-over-year [2] - Over the last four quarters, LiveRamp has exceeded consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance - LiveRamp shares have declined approximately 22.3% since the beginning of the year, contrasting with the S&P 500's gain of 0.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $205 million, while for the current fiscal year, the estimate is $2.22 on revenues of $810.38 million [7] - The trend of earnings estimate revisions is mixed ahead of the earnings release, which may influence future stock performance [6] Industry Context - The Technology Services industry, to which LiveRamp belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of LiveRamp may be affected by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Q3 revenue grew by 9%, reaching $212 million, with subscription revenue also increasing by 9% to $158 million [24][4] - Non-GAAP operating income rose by 36%, exceeding expectations, while GAAP operating income more than doubled for the second consecutive quarter [23][24] - Annual Recurring Revenue (ARR) increased by $11 million quarter-over-quarter and 7% year-over-year [4][24] - Free cash flow reached a record $67 million, with $39 million allocated for share repurchases [28][29] Business Line Data and Key Metrics Changes - Subscription revenue growth included an 8% increase in fixed revenue and a 13% increase in usage revenue year-over-year [24] - The total customer count increased by 15, marking the largest quarterly increase in over three and a half years, with million-dollar-plus customers rising to 140 [4][24] - Subscription net retention was 101%, consistent with expectations [25] Market Data and Key Metrics Changes - The Data Marketplace and other revenue increased by 8% to $54 million, although it fell slightly below expectations due to timing-related dynamics [26] - Demand for the Data Marketplace re-accelerated in mid-November, returning to double-digit growth [27] Company Strategy and Development Direction - The company is focused on achieving the "Rule of 40" by FY 2028, targeting revenue growth of 10%-15% and a non-GAAP operating margin of 25%-30% [16][17] - The strategy includes expanding the Data Marketplace to support AI models and applications, and transitioning to a usage-based pricing model [12][14] - Partnerships with major players like Publicis and Uber are being leveraged to enhance service offerings and drive growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's durability and scalability, emphasizing AI as a significant tailwind for future growth [3][6] - The company anticipates achieving double-digit revenue growth in the near future, supported by strong ARR momentum and a pivot to usage-based pricing [17][20] - Management highlighted the importance of a trusted data network for AI applications, positioning the company as a critical enabler in the advertising ecosystem [7][9] Other Important Information - The company has zero debt and a strong balance sheet with approximately $403 million in cash and short-term investments [29] - The upcoming annual customer and partner conference, Ramp Up, is scheduled for March 3rd to 5th, providing an opportunity for investors to engage with the ecosystem [21] Q&A Session Summary Question: Insights on Publicis partnership - The partnership with Publicis is a culmination of years of platform modernization and pricing model changes, allowing for innovative collaboration [36][37] Question: Upsell and cross-sell opportunities - Q3 saw strong sales driven by expansion with existing customers, particularly through the Clean Room offering [39][40] Question: AI partnerships and prioritization - The company prioritizes AI partnerships based on client feedback and existing relationships, focusing on both legacy companies and new startups [44][46] Question: Growth in commerce media networks - Significant growth is expected in travel, food delivery, and finance sectors, with new pricing models facilitating access to smaller clients [50][52] Question: CTV integration performance - CTV continues to grow as a strong component of the business, with expectations for ongoing growth in FY 2027 and beyond [54][55] Question: AI's impact on subscription business model - Management reassured that AI is not disrupting demand for their products, with strong sales performance and increasing deal sizes [61][67]

Financial Data and Key Metrics Changes - Q3 revenue growth was 9%, with subscription revenue also growing by 9%, reflecting a 4-point acceleration [4][24] - ARR increased by $11 million quarter-over-quarter and 7% year-over-year, driven by various use cases [4][24] - Operating income increased by 36%, with GAAP operating income more than doubling for the second consecutive quarter [23][28] - Free cash flow reached a record $67 million, with $39 million used for share repurchases [28][34] Business Line Data and Key Metrics Changes - Total revenue was $212 million, with subscription revenue at $158 million, both up 9% [24] - Fixed subscription revenue grew by 8%, while usage-based revenue increased by 13% year-over-year [24] - Total customer count increased by 15, marking the best performance in the past 12 quarters, with million-dollar-plus customers rising to 140 [24][25] Market Data and Key Metrics Changes - Strong demand was noted across the business, particularly in the reseller channel and Clean Room Insights offering [25] - Marketplace and other revenue increased by 8% to $54 million, although slightly below expectations due to timing-related dynamics [26] - CTV continues to be a strong growth component, with expectations for CTV data purchased off the marketplace to outpace overall data marketplace growth [57] Company Strategy and Development Direction - The company is focused on achieving the Rule of 40 by FY 2028, targeting revenue growth of 10%-15% and a non-GAAP operating margin of 25%-30% [16][20] - The pivot towards a usage-based pricing model is expected to unlock incremental revenue growth and enhance customer engagement [14][20] - The company is actively partnering with over 20 AI partners to expand its data marketplace and support AI training [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's durability and scalability, emphasizing AI as a tailwind for growth [3][6] - The company is not seeing any negative impact from AI on demand for its products, with strong sales momentum and improved deal sizes [70][72] - Management remains committed to achieving double-digit growth, viewing AI as an enabler rather than a disruptor [66][72] Other Important Information - The company has a strong balance sheet with approximately $403 million in cash and short-term investments and zero debt [29] - The upcoming Ramp Up conference is highlighted as an opportunity for investors to engage with key stakeholders in the marketing ecosystem [21] Q&A Session Summary Question: Insights on Publicis partnership - The partnership is a result of years of platform modernization and pricing model changes, allowing for innovative collaboration [38] Question: Upsell and cross-sell progress - Q3 saw strong bookings driven by expansion with existing customers, particularly through Clean Room offerings [41] Question: AI partnerships and prioritization - The company prioritizes AI partnerships based on client feedback and existing relationships, focusing on both legacy and new companies [46] Question: Growth in commerce media networks - Significant growth is expected in travel, food delivery, and finance sectors, with new pricing models facilitating access to smaller clients [51][53] Question: CTV integration performance - CTV continues to grow, with a significant portion of the largest integrations being CTV providers, driving Clean Room adoption [56][57] Question: AI's impact on subscription business model - Management reassured that AI is not negatively impacting demand, with strong sales performance and increased activations related to AI [70][72] Question: Pricing tests and client acquisition - The company is methodically rolling out a new pricing model, focusing on new logo opportunities and expecting modest revenue upside from SMBs [80][81]

Financial Data and Key Metrics Changes - Q3 revenue grew by 9%, reaching $212 million, with subscription revenue also increasing by 9% to $158 million [22][23] - Non-GAAP operating income rose by 36%, totaling $62 million, while GAAP operating income more than doubled to $40 million [22][26] - Annual Recurring Revenue (ARR) increased by $11 million quarter-over-quarter and 7% year-over-year [4][23] - Free cash flow reached a record $67 million, with $39 million allocated for share repurchases [26][29] Business Line Data and Key Metrics Changes - Subscription revenue growth included a fixed revenue increase of 8% and a usage revenue increase of 13% year-over-year [23] - Total customer count increased by 15, marking the largest growth in over three years, with million-dollar-plus customers rising to 140 [4][23] - Subscription net retention was stable at 101%, aligning with expectations [24] Market Data and Key Metrics Changes - Marketplace and other revenue grew by 8% to $54 million, although slightly below expectations due to timing-related dynamics [25] - Demand for data marketplace services re-accelerated in mid-November, returning to double-digit growth [25] Company Strategy and Development Direction - The company aims to achieve the "Rule of 40" by FY 2028, targeting revenue growth of 10%-15% and a non-GAAP operating margin of 25%-30% [16][17] - A shift towards a usage-based pricing model is being implemented to unlock incremental revenue growth, particularly appealing to mid-sized brands [14][19] - The company is expanding its data marketplace to include AI models and applications, positioning itself as a central hub for AI-powered marketing [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's durability and scalability, highlighting AI as a significant tailwind for future growth [3][5] - The company is focused on maintaining strong customer relationships and executing effectively, with expectations for continued revenue growth [18][31] - Management noted that AI adoption is expected to drive more data across the network, enhancing revenue without proportional cost increases [9][19] Other Important Information - The company has signed over 20 AI partners, including both startups and established firms like Google, to enhance its offerings [10][11] - The annual customer and partner conference, Ramp Up, is scheduled for March, providing an opportunity for investors to engage with the ecosystem [20] Q&A Session Summary Question: Insights on Publicis partnership - Management highlighted the readiness for expanding partnerships and the value added through their modular platform, allowing agencies to innovate on top of LiveRamp [34][36] Question: Upsell and cross-sell progress - Management reported strong sales momentum, particularly in expanding existing customer relationships through offerings like Clean Room [37][38] Question: AI partnerships and prioritization - Management emphasized a client-led approach to innovation, prioritizing partnerships based on client feedback and market dynamics [42][44] Question: Growth in commerce media networks - Management noted rapid growth in non-retail commerce networks, particularly in travel and food delivery sectors, which are expected to drive future revenue [48][51] Question: CTV integration and performance - Management confirmed that CTV continues to be a strong growth area, with significant integration and performance improvements [52][55] Question: AI's impact on subscription business model - Management reassured that AI is seen as a tailwind, enhancing the business rather than disrupting it, with strong sales performance observed [61][68]

Financial Performance - Revenues for the three months ended December 31, 2025, were $212,197, representing a 8.6% increase from $195,412 in the same period of 2024[17] - Gross profit for the three months ended December 31, 2025, was $152,541, up from $140,414 in the prior year, indicating a gross margin improvement[17] - Net earnings for the three months ended December 31, 2025, were $39,873, compared to $11,210 in the same period of 2024, reflecting a significant increase in profitability[18] - Basic earnings per share for continuing operations were $0.63 for the three months ended December 31, 2025, compared to $0.15 in the same period of 2024[17] - For the nine months ended December 31, 2025, net earnings reached $75,040,000, up from $5,453,000 in the prior year, indicating a substantial growth[21] - Revenue for the nine months ended December 31, 2025, was $606.8 million, up from $556.9 million in 2024, representing a growth of approximately 9%[41] - The Company’s subscription revenue for the nine months ended December 31, 2025, was $456.8 million, an increase from $423.7 million in 2024, indicating a growth of approximately 8%[41] Assets and Liabilities - Total current assets increased to $679,309 as of December 31, 2025, from $656,189 as of March 31, 2025[14] - Total current liabilities were $250,000 as of December 31, 2025, slightly up from $247,518 as of March 31, 2025[14] - The company reported a total stockholders' equity of $962,270 as of December 31, 2025, compared to $948,859 as of March 31, 2025, indicating growth in shareholder value[14] - Cash flows from operating activities for the nine months ended December 31, 2025, were $108,853,000, compared to $91,385,000 for the same period in 2024, showing improved operational efficiency[28] - The cash, cash equivalents, and restricted cash at the end of the period were $395,888,000, a decrease from $413,926,000 at the beginning of the period[30] - Other current assets increased to $46,770 thousand as of December 31, 2025, from $38,886 thousand on March 31, 2025, reflecting a growth of 20%[68] - Property and equipment, net of accumulated depreciation, decreased to $5,506 thousand as of December 31, 2025, compared to $6,184 thousand on March 31, 2025, indicating a decline of approximately 11%[69] - Goodwill increased slightly to $502,174 thousand as of December 31, 2025, from $501,756 thousand on March 31, 2025, showing a marginal increase of 0.08%[70] - Total intangible assets, net, decreased to $11,917 thousand as of December 31, 2025, from $20,167 thousand on March 31, 2025, representing a decline of 41%[71] Expenses and Cost Management - Research and development expenses for the three months ended December 31, 2025, were $33,823, down from $42,735 in the same period of 2024, suggesting a focus on cost management[17] - Employee-related expenses for the three months ended December 31, 2025, were $100.7 million, down from $113.1 million in the same period of 2024[98] - Non-cash stock compensation expense for the nine months ended December 31, 2025, was $64,058,000, down from $83,813,000 in the previous year[28] - The Company’s operating lease costs for the nine months ended December 31, 2025, were $5.7 million, compared to $6.1 million in 2024, showing a decrease of about 6%[44] - Total non-cash stock-based compensation for the nine months ended December 31, 2025, was $64.058 million, a decrease of 23.7% from $83.813 million in 2024[47] Shareholder Activities - The company reported a net cash used in financing activities of $123,273,000 for the nine months ended December 31, 2025, compared to $76,425,000 in the previous year, reflecting increased stock repurchases[28] - The Company repurchased 4.3 million shares for $118.8 million during the nine months ended December 31, 2025, with a total of 45.8 million shares repurchased for $1.2 billion under the program[39] - The remaining capacity for share repurchases as of December 31, 2025, is $137.4 million, following the board's approval of an additional $200.0 million in repurchases[38] - The company acquired treasury stock amounting to $118,930,000 during the nine months ended December 31, 2025[28] Future Outlook and Strategic Initiatives - The company anticipates continued growth opportunities despite potential risks related to macroeconomic conditions and regulatory changes[7] - The company is actively pursuing strategies to enhance its competitive position and improve operational efficiencies[7] - The Company expects to adopt ASU 2023-09, which requires greater disaggregated information about the effective tax rate reconciliation, beginning with the fourth quarter ending March 31, 2026[36] - The Company maintained a full valuation allowance on its net deferred tax assets, with a potential release of this allowance expected within the next 12 months due to recent profitability[93] Tax and Regulatory Considerations - The provision for income taxes was influenced by nondeductible stock-based compensation and the 2025 Tax Act, which is expected to materially decrease the Company's estimated annual effective tax rate (AETR) for fiscal 2026[94] Miscellaneous - Comprehensive income for the three months ended December 31, 2025, included foreign currency translation adjustments of $132,000[20] - The total number of common shares outstanding increased to 161,551,922 as of December 31, 2025, from 158,530,487 a year earlier[21] - The Company operates as a single segment, focusing on its data collaboration platform, with revenue generated from subscription fees and transactional usage-based fees[95] - The Company held $6.2 million in strategic investments without readily determinable fair values as of December 31, 2025, with a recorded impairment charge of $0.1 million during the nine months ended December 31, 2025[105]

Q3 FY26 Earnings Presentation Feb 5, 2026 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 ...

LIVERAMP ANNOUNCES RESULTS FOR THIRD QUARTER FY26 Revenue up 9% year-over-year Record Quarterly Operating Margin and Operating Cash Flow Share Repurchases totaled $119 million fiscal YTD SAN FRANCISCO, Calif., February 5, 2026—LiveRamp (NYSE: RAMP), a leading data collaboration platform, today announced its financial results for the quarter ended December 31, 2025. ® Q3 Financial Highlights Unless otherwise indicated, all comparisons are to the prior year period. A reconciliation between GAAP and non-GAAP r ...

Core Insights - LiveRamp reported a 9% year-over-year increase in total revenue for the quarter ended December 31, 2025, reaching $212 million [7][6] - The company achieved record quarterly operating margin and operating cash flow, with operating income rising to $40 million from $15 million in the prior year [5][7] - Share repurchases totaled $119 million fiscal year-to-date, with 1.4 million shares repurchased in the third quarter [7][6] Financial Performance - Subscription revenue was $158 million, up 9% year-over-year, while Marketplace & Other revenue increased by 8% to $54 million [7][6] - GAAP gross profit was $153 million, reflecting a 9% increase, with a gross margin of 72% [7][6] - Non-GAAP operating income rose by 36% to $62 million, with a non-GAAP operating margin of 29% [7][6] Earnings and Cash Flow - Net earnings for the quarter were $40 million, compared to $11 million in the prior year, resulting in diluted earnings per share of $0.62 [7][6] - Operating cash flow increased to $67 million from $45 million year-over-year [7][6] - Free cash flow for the quarter was also reported at $67 million, up from $45 million [8] Business Developments - The company launched new AI tools in its Data Marketplace and expanded partnerships, notably with Publicis [5][12] - LiveRamp ended the quarter with 140 customers generating over $1 million in annualized subscription revenue, an increase from 125 in the previous year [12][7] - Annualized recurring revenue (ARR) reached $527 million, up 7% compared to the prior year [12][7]

Core Viewpoint - LiveRamp is set to release its fiscal 2026 third quarter financial results on February 5, 2026, after market close, followed by a conference call to discuss the results [1] Group 1: Financial Results Announcement - The financial results will be released on February 5, 2026, after the financial markets close [1] - A conference call to discuss the results will take place on the same day at 1:30 p.m. PT [1] - The conference call can be accessed via telephone or through a live webcast on the investor relations website [2] Group 2: Company Overview - LiveRamp is a leading data collaboration technology company that empowers marketers and media owners to enhance marketing performance [3] - The company's data collaboration network integrates data across various stakeholders, providing insights and driving growth [3][4] - LiveRamp is recognized for its commitment to neutrality, interoperability, and global scale, helping organizations maximize data value [4]

Core Insights - Corporate demand for business services is evolving and accelerating, viewed as strategic enablers of growth and efficiency [1] - Service providers embedding technology are becoming essential partners for enterprises navigating complex environments [2] - The essential nature of services like payroll and AI-driven tools creates sticky relationships and recurring revenues [3] Company Highlights - **Dave**: Achieved over 60% year-over-year revenue growth in Q3 2025, with adjusted EBITDA more than doubling for four consecutive quarters, reflecting scalability [5][6] - **Coherent**: Reported $1.58 billion in revenues with a 19% year-over-year pro forma growth, driven by AI-related data center demand [10][12] - **GigaCloud**: Total revenues increased by 10% year-over-year, with a strong operating cash flow of $78 million, supported by a diversified business model [13] - **LiveRamp**: Surpassed revenue guidance with strong adoption of its Data Collaboration Network, indicating increasing demand for data collaboration services [16][18] Future Outlook - Dave is projected to achieve revenues of $544 - $547 million for the full year 2025, indicating a 57.3% year-over-year growth [7] - Coherent is expected to see around 15% year-over-year revenue growth in fiscal 2026, benefiting from sustained corporate technology spending [12] - GigaCloud anticipates around 9% year-over-year revenue growth in 2025, driven by its channel-agnostic marketplace model [15] - LiveRamp expects around 9% year-over-year revenue growth in fiscal 2026, as demand for data collaboration intensifies [18] Investment Considerations - Each highlighted company addresses critical corporate needs, suggesting they are well-positioned to benefit from structural shifts in business operations [20]