LiveRamp (US:RAMP)2026-02-05 21:58Financial 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]