Financial Results Announcement - LiveRamp will release its fiscal 2026 first quarter financial results on August 6, 2025, after market close [1] - A conference call to discuss the results is scheduled for the same day at 1:30 p.m. PT [1] Conference Call Access - The conference call can be accessed via telephone at (800) 715-9871 or (646) 307-1963, with the conference call ID being 5883383 [2] - A live webcast of the conference call will be available on the LiveRamp Investor Relations website [1][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 and foster innovation [4]

Core Insights - Bell Media has adopted LiveRamp's Authenticated Traffic Solution (ATS) to enhance identity and addressability in the Canadian media ecosystem [1][2] - The implementation of ATS on Connected TV will allow Bell Media to deliver tailored ads across its premium content, improving programmatic TV buying with privacy-first signals [2][6] - LiveRamp's ATS utilizes RampID, enabling advertisers to connect their first-party data to publishers' authenticated inventory in a privacy-forward manner [3][5] Company Overview - Bell Media is Canada's leading media and entertainment company, with a diverse portfolio including CTV, Crave, and various specialty channels [9][10] - The company provides advanced technology and analytics support through the Bell Marketing Platform, which includes tools for audience management and advertising solutions [10] - Environics Analytics (EA) is a premier marketing and analytical services company in Canada, specializing in data collaboration and analytics [12]

Core Insights - LiveRamp reported a strong financial performance for Q4 FY25, with total revenue of $189 million, representing a 10% year-over-year increase [7] - The company achieved a fiscal year 2025 total revenue of $746 million, up 13% from the previous year [7] - LiveRamp's operating cash flow for FY25 increased by 46% year-over-year, totaling $154 million [7] Q4 Financial Highlights - Subscription revenue for Q4 FY25 was $145 million, up 9% year-over-year, while Marketplace & Other revenue reached $44 million, up 14% [6][7] - GAAP gross profit for Q4 was $131 million, with a gross margin of 69%, down 3 percentage points from the previous year [6][7] - Non-GAAP operating income for Q4 was $23 million, with a non-GAAP operating margin of 12%, an increase of 3 percentage points year-over-year [6][7] Fiscal Year Financial Highlights - For FY25, subscription revenue totaled $569 million, representing 76% of total revenue and an 11% increase year-over-year [7] - GAAP operating income for FY25 was $5 million, while non-GAAP operating income was $136 million, reflecting a 30% increase from the previous year [6][7] - The company repurchased approximately 3.8 million shares for $101 million during FY25 [7] Business Strategy and Outlook - CEO Scott Howe emphasized the focus on enhancing the platform's usability and functionality, including the rollout of the new Cross Media Intelligence measurement solution [5] - LiveRamp aims to optimize ad spending for customers through its Data Collaboration Network while managing costs and growth investments prudently [5] - The company remains confident in its long-term growth potential despite near-term macroeconomic uncertainties [5] Additional Metrics - LiveRamp ended FY25 with 128 customers whose annualized subscription revenue exceeds $1 million, up from 115 in the prior year [16] - The fourth quarter subscription net retention rate was 104%, and platform net retention was 106% [16] - Current remaining performance obligations (CRPO) were $471 million, up 14% compared to the prior year [16]

Financial Performance - The company reported strong financial performance in Q4, beating expectations on both revenue and operating income, with revenue of $189 million, up 10% year-over-year [28][29] - Operating income was $23 million, reflecting a 43% increase, and operating margin expanded by three points to 12% [28][11] - For FY 2025, the company achieved 13% revenue growth, marking the third consecutive year of hitting the 10% to 15% growth target [6][7] - Free cash flow reached a record $153 million, a 51% year-over-year increase, demonstrating improved working capital management [11][37] Business Line Performance - Subscription revenue grew by 9% to $145 million, while marketplace and other revenue increased by 14% to $44 million [29][33] - The company added 13,100 subscription customers during the year, with significant growth in the $1 million plus customer cohort [7][9] - The reduction in contraction rate contributed to revenue growth, achieving the lowest level of dollar churn and downsell ever [10] Market Performance - The data marketplace, which accounted for 77% of marketplace revenue, grew by 13%, reflecting continued strength in U.S. digital ad spending [33] - The company did not detect any change in customer behavior due to macroeconomic conditions in Q4 or April [33] Strategic Direction and Industry Competition - The company aims to achieve the "Rule of 40" by FY 2028, targeting 10% to 15% revenue growth and 25% to 30% operating margin [12][25] - Key initiatives include enhancing the data collaboration network and launching cross media intelligence solutions to improve advertising measurement [14][18] - The company is focused on expanding its clean room solutions, which have shown to significantly increase annual recurring revenue (ARR) for customers [23][89] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about FY 2026, highlighting strong demand signals and a robust sales pipeline despite macroeconomic uncertainties [32][39] - The company anticipates revenue for FY 2026 to be between $787 million and $817 million, reflecting growth of 6% to 10% [39] - Management noted that the macro environment is a key swing factor in revenue guidance, with a stable economy assumed for the high end of the range [39][41] Other Important Information - The company successfully renewed 20 multimillion-dollar annual contract value (ACV) contracts, with over half being multi-year contracts [9][100] - The balance sheet remains strong with zero debt and cash and short-term investments totaling $421 million [37] Q&A Session Summary Question: Customer reaction to cross media intelligence - Management expressed optimism about the cross media intelligence solution, noting strong early feedback and increased customer conversations [52][54] Question: Key factors impacting revenue guidance - Management indicated that the macro environment is the primary swing factor between the low and high ends of the revenue guidance range [57][59] Question: New customer acquisition strategies - Management highlighted that the decline in customer count was primarily due to smaller customers, while the million-dollar plus customer count continued to grow [66][68] Question: Impact of Google’s cookie announcement - Management stated that the announcement was largely a non-event for customers, as the industry has been moving away from cookies for years [71][72] Question: Sales pipeline and customer hesitation - Management noted some customer hesitation in Q4 but reported that many deals that slipped have already closed in early Q1 [76][78] Question: Clean room adoption and customer segmentation - Management indicated that clean room adoption is primarily a function of time and execution, with larger companies leading the way [86][88] Question: Net retention rate outlook - Management expects net retention to stabilize between 100% and 105% in the near term, with potential for improvement as new strategies are executed [93][94]

Core Insights - LiveRamp reported a strong financial performance for Q4 FY25, with total revenue increasing by 10% year-over-year to $189 million, and operating cash flow rising by 46% year-over-year [1][8][6] - The company achieved a total revenue of $746 million for FY25, reflecting a 13% increase compared to the previous fiscal year [1][8][6] - LiveRamp's CEO emphasized the focus on enhancing platform usability and managing costs while navigating an uncertain macro environment [6] Q4 Financial Highlights - Subscription revenue reached $145 million, up 9% year-over-year, while Marketplace & Other revenue was $44 million, up 14% [7][8] - GAAP gross profit for Q4 was $131 million, with a gross margin of 69%, down 3 percentage points from the previous year [7][8] - Non-GAAP operating income was $23 million, with a non-GAAP operating margin of 12%, an increase of 3 percentage points year-over-year [7][8] Fiscal Year Financial Highlights - For FY25, subscription revenue totaled $569 million, up 11%, accounting for 76% of total revenue [8] - GAAP gross profit for the fiscal year was $530 million, with a gross margin of 71%, down 2 percentage points [8] - The company repurchased approximately 3.8 million shares for $101 million during FY25, with $256 million remaining under the share repurchase authorization [8][6] Additional Business Highlights - LiveRamp ended FY25 with 128 customers generating over $1 million in annualized subscription revenue, an increase from 115 in the prior year [18] - The company launched a new Cross-Media Intelligence measurement solution aimed at optimizing ad spend [18] - Current remaining performance obligations (CRPO) were $471 million, up 14% year-over-year, indicating strong future revenue visibility [18]