LiveRamp (US:RAMP)2025-11-05 21:13Financial 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].