LiveRamp (RAMP) - 2025 Q4 - Annual Report

Customer Base and Market Position - LiveRamp serves a global customer base with over 840 direct customers and thousands of additional customers through reseller partnerships[38] - The company works with more than 500 of the largest brands and agencies, enhancing their ability to execute people-based marketing across various digital platforms[38] - As of March 31, 2025, the company had 840 direct customers, with 128 customers having subscription contracts exceeding $1 million in annual revenue[49][50] - The company’s ten largest customers accounted for approximately 25% of total revenues during the twelve months ended March 31, 2025[51] - The company received approximately 5% of its revenues from business outside the United States during the twelve months ended March 31, 2025[91] Revenue and Financial Performance - Approximately 76% of the company's revenue is derived from subscription-based arrangements sold on an annual or multi-year basis[59] - Services revenue accounts for less than 5% of total company revenue, primarily generated from project fees paid by subscribers[41] - LiveRamp generated revenue primarily from subscription fees, marketplace revenue-sharing fees, and professional services fees[212] - The company’s ten largest customers accounted for approximately 25% of revenues for the twelve months ended March 31, 2025[80] - The report indicates a significant increase in total revenue compared to the previous fiscal year, with specific figures detailed in the financial statements[193] Technology and Data Solutions - LiveRamp's Data Marketplace connects over 200 data providers, enabling seamless monetization of audience data across hundreds of marketing platforms[39] - LiveRamp's identity resolution technology offers unparalleled accuracy, enabling organizations to create a single view of the customer while protecting consumer privacy[34] - The platform supports advanced measurement and analytics through clean room technology, enhancing insight-driven innovation[35] - LiveRamp's technology helps reduce marketing waste by improving consumer identification and enabling better attribution of marketing spend[29] - LiveRamp's platform enables organizations to unify customer data across 500 partners, enhancing marketing effectiveness[213] Subscription and Pricing Model - The platform's subscription pricing is primarily based on data volume, which includes data input records and connection points[37] - Usage-based subscription revenue represented 15% of total subscription revenue for the twelve months ended March 31, 2025, consistent with the previous year[56] Growth Strategy and Market Expansion - The company aims to expand its global footprint, investing in select regions in Europe and APAC to serve existing customers[48] - The company is focused on increasing the density of its collaboration network by adding more data owner nodes to enhance advertising effectiveness measurement[43] - Future outlook suggests continued market expansion and potential acquisitions to drive growth in the upcoming fiscal year[204] Regulatory and Compliance Challenges - The company is positioned to address heightened privacy and security concerns, complying with regulations like GDPR and CCPA[30] - The regulatory framework for data privacy is evolving, with potential federal data privacy laws being discussed in the U.S.[112] - The proposed ePrivacy Regulation in the EU may require "opt-in" consent for cookie data, with significant fines for non-compliance[108] - Increased scrutiny on interest-based advertising practices may lead to regulatory changes that could impact data collection and usage[113] - The company must monitor ongoing developments in data privacy regulations to adapt its business practices accordingly[113] Competition and Market Risks - The company faces substantial competition, which could lead to decreased market share and necessitate price reductions, adversely affecting revenues and operating margins[82] - The company relies on third-party data suppliers, and any withdrawal or limitation of data could materially impact its ability to provide products and services, resulting in decreased revenues[81] Internal Governance and Management - The company’s growth strategy is contingent upon maintaining its corporate culture, which is essential for innovation and employee retention[85] - The company’s Chief Financial Officer has been in position since April 2023, overseeing finance and investor relations functions[70] - The Chief Technology Officer has extensive experience in engineering leadership and product innovation, crucial for the company’s technological advancements[72] Financial Management and Shareholder Returns - The company has not paid dividends on its common stock in the twelve months ended March 31, 2025, and has no short-term plans to do so[144] - LiveRamp's cumulative total shareholder return was 79.40% as of March 31, 2025, compared to 186.46% for the Russell 2000 index over the same period[148] - The board of directors adopted a modified common stock repurchase program allowing for up to $1.3 billion in repurchases through December 31, 2026[151] Cybersecurity and Risk Management - The company maintains a security program aligned with industry standards such as NIST CSF and ISO 27001 to mitigate cybersecurity risks[128] - LiveRamp's security program is overseen by the Board, with annual reports on enterprise risks, including cybersecurity[129] - The company engages external auditors annually to assess its security posture and compliance with standards like SOC 2 and ISO 27001[136] - The company has a third-party risk management program to evaluate the security controls of third parties with access to sensitive data[137] Operational Challenges - The company relies on third-party data center providers, and any interruptions in their services could impair the delivery of products and services, resulting in customer dissatisfaction and revenue loss[101] - The company incurs significant costs with third-party data hosting services, and any increase in these costs could negatively impact operating results[103] - Public health emergencies, such as the COVID-19 pandemic, could lead to economic uncertainty and significantly disrupt the company's operations and financial condition[94] Employee and Talent Management - The company must attract and retain qualified personnel to execute its business strategy, with competition for skilled employees increasing in the technology sector[83] - The company has made strategic amendments to its equity compensation plans, enhancing employee incentives and retention strategies[198] Financial Reporting and Internal Controls - The company assessed the effectiveness of its internal control over financial reporting as of March 31, 2025, and determined it was effective[167] - There were no changes in internal control over financial reporting that materially affected the company during the three months ended March 31, 2025[168]