LiveRamp (US:RAMP)2020-08-11 12:10Summary of LiveRamp Holdings, Inc. Fiscal 2021 First Quarter Earnings Conference Call Company Overview - Company: LiveRamp Holdings, Inc. (NYSE:RAMP) - Date of Call: August 10, 2020 - Participants: - Lauren Dillard – Chief Communications Officer - Scott Howe – Chief Executive Officer - Warren Jenson – President and Chief Financial Officer Key Industry Insights - Industry: Digital Advertising and Data Connectivity - Market Context: The call occurred during the COVID-19 pandemic, which has accelerated digital transformation across industries. Core Themes and Financial Performance 1. Durability of SaaS Model: - Total revenue reached $99 million, up 21% year-over-year. - Subscription revenue, which constitutes 80% of total revenue, also increased by 21% due to advanced use cases like measurement and advanced television [7][30]. - The company achieved its first profitable quarter, indicating strong gross margin improvement [9][31]. 2. Client Demand and Digital Transformation: - Clients increasingly rely on LiveRamp for guidance during uncertain times, with a notable shift towards data-driven marketing strategies [11][12]. - Total growth bookings increased by over 50% year-over-year, with annual recurring revenue (ARR) up 28% [13][30]. 3. Strategic Investments for Future Growth: - LiveRamp's investments in products like Safe Haven and ATS (Authenticated Traffic Solution) are expected to drive future growth [17][18]. - The company is positioned to capitalize on the $70 billion U.S. television market, which is undergoing significant transformation towards data-driven advertising [23][25]. Additional Insights - Television and Connected TV (CTV): - Television-related revenues increased over 50%, with CTV revenue up over 100% [30][66]. - The pandemic has accelerated the shift from traditional TV to CTV, with advertisers seeking measurable outcomes [47][66]. - Safe Haven and ATS: - Safe Haven's revenue, bookings, and ARR were all up triple digits, indicating strong market reception [30][72]. - ATS is gaining traction, with over 125 publishers signed, allowing access to 90% of addressable U.S. audiences [53][60]. - Regulatory Environment: - The current regulatory climate is seen as a tailwind for LiveRamp, as clients seek guidance on navigating complex privacy regulations [74][75]. - Market Trends: - The marketplace is benefiting from a secular trend towards performance-based buying, with expectations for growth in both subscription and marketplace revenue for the year [51][38]. Conclusion - LiveRamp is well-positioned for continued growth, leveraging its SaaS model and strategic investments in data solutions to meet the evolving needs of clients in a rapidly changing digital landscape. The company remains optimistic about its trajectory, despite the challenges posed by the pandemic and economic uncertainty [27][34].