LiveRamp (US:RAMP)2023-02-06 16:00Financial Performance - Revenues for the three months ended December 31, 2022, were $158.6 million, a 12.8% increase from $140.6 million in the same period of 2021[20] - Gross profit for the three months ended December 31, 2022, was $115.3 million, compared to $102.0 million for the same period in 2021, reflecting a gross margin improvement[20] - The net loss for the three months ended December 31, 2022, was $29.7 million, compared to a net loss of $15.4 million in the same period of 2021, indicating increased operational challenges[20] - The company reported a basic loss per share of $0.46 for the three months ended December 31, 2022, compared to a loss of $0.23 in the same period of 2021[20] - For the nine months ended December 31, 2022, the net loss was $87.34 million, compared to a net loss of $4.44 million for the same period in 2021[34] - The company reported a net cash provided by operating activities of $3.78 million for the nine months ended December 31, 2022, compared to $19.13 million in 2021[34] - The company reported a loss on disposal or impairment of assets of $4.12 million for the nine months ended December 31, 2022[34] - The company reported a net loss of $29.684 million for the three months ended December 31, 2022, compared to a net loss of $15.375 million for the same period in 2021, reflecting an increase in losses of 93.5%[43] Expenses and Investments - Research and development expenses for the three months ended December 31, 2022, were $43.2 million, up from $41.9 million in the same period of 2021, highlighting ongoing investment in innovation[20] - Operating expenses for the three months ended December 31, 2022, totaled $139.3 million, compared to $115.8 million in the same period of 2021, indicating rising costs[20] - Non-cash stock compensation expense for the nine months ended December 31, 2022, was $81.14 million, an increase from $61.48 million in 2021[34] - Stock-based compensation expense for the nine months ended December 31, 2022, totaled $81.142 million, an increase of 32% from $61.475 million in the same period of 2021[58] - The company recognized $4.8 million in stock-based compensation expense related to the Acuity performance earnout plan as of December 31, 2022[79] - A total of $11.3 million was recognized as stock-based compensation expense related to the DataFleets consideration holdback[80] - Stock-based compensation expense associated with the ESPP was $1.5 million for the nine months ended December 31, 2022[83] Assets and Equity - Total current assets decreased to $696.2 million as of December 31, 2022, from $815.8 million as of March 31, 2022, indicating a reduction in liquidity[17] - Total stockholders' equity decreased to $911.6 million as of December 31, 2022, from $1,063.1 million as of March 31, 2022, reflecting a decline in overall financial health[17] - The company’s total equity at December 31, 2022, was $911.61 million, reflecting a decrease from the previous period[27] - Cash and cash equivalents at the end of the period were $453.52 million, down from $561.69 million at the end of the same period in 2021[36] - Other current assets increased to $42,172 thousand as of December 31, 2022, compared to $36,975 thousand on March 31, 2022, reflecting a growth of approximately 14%[84] - The net property and equipment decreased to $8,809 thousand as of December 31, 2022, down from $11,531 thousand on March 31, 2022, representing a decline of about 23.5%[86] - Goodwill decreased slightly to $363,129 thousand as of December 31, 2022, from $363,845 thousand on March 31, 2022, indicating a reduction of approximately 0.2%[87] - Total intangible assets, net, dropped to $13,203 thousand as of December 31, 2022, from $26,718 thousand on March 31, 2022, a decrease of about 50.6%[89] Shareholder Actions - The company acquired treasury stock amounting to $149.99 million during the nine months ended December 31, 2022[34] - The company repurchased 6.1 million shares of its common stock for $150 million during the nine months ended December 31, 2022, with a total of 35.6 million shares repurchased for $882.2 million under the program[48] - The total number of common shares outstanding increased from 149,840,925 at March 31, 2022, to 152,052,376 at December 31, 2022[27] - Employee stock awards and other issuances for the nine months ended December 31, 2022, totaled 396,093 shares[27] Future Outlook - The company anticipates continued challenges due to macroeconomic factors, including inflation and the ongoing impact of the COVID-19 pandemic[15] - Future performance may be influenced by the integration of acquired businesses and the ability to attract and retain qualified employees[11] - The company expects to recognize revenue on substantially all remaining performance obligations by March 31, 2026[51] Impairments and Restructuring - The company recorded a $4.0 million impairment related to a strategic investment during the three months ended December 31, 2022[84] - Restructuring charges and adjustments totaled $10,086 thousand for the nine months ended December 31, 2022, compared to no charges in the same period of the previous year[103] - The company recognized $15.5 million in impairment charges related to right-of-use asset groups due to lease exits during the quarter ended December 31, 2022[101] - The allowance for credit losses increased to $10,041 thousand at the end of the nine months ended December 31, 2022, up from $9,961 thousand at the beginning of the period[95] Tax and Valuation - The company maintains a full valuation allowance on its net deferred tax assets, except in certain foreign jurisdictions, reflecting a cautious approach to future taxable income generation[106] - The estimated annual effective income tax rate for the current fiscal year is primarily driven by nondeductible stock-based compensation and the valuation allowance[106] Market and Risk Factors - There have been no material changes in the company's market risk exposures for the nine months ended December 31, 2022, compared to the previous annual report[183] - The company does not expect the excise tax on share repurchases, effective after December 31, 2022, to have a material impact on its financial statements[107]