LiveRamp (NYSE:RAMP) FY Conference Transcript

LiveRamp (NYSE:RAMP) FY Conference Summary Company Overview - Company: LiveRamp - Industry: Digital Advertising and Data Connectivity Key Points and Arguments Long-term Strategy and Market Positioning - LiveRamp maintains a strong conviction in its long-term strategy, emphasizing the importance of first-party data for marketing [4][3] - The company enables seamless integration of first, second, and third-party data across a vast network of digital publishers and media platforms [4][3] Areas of Increased Demand 1. Commerce Media: LiveRamp has evolved its retail media success into commerce media, collaborating with companies like Uber and PayPal to enhance media buying [5][4] 2. Connected TV (CTV): The company is expanding partnerships, notably with Netflix, to leverage first-party data for targeted advertising [6][5] 3. Artificial Intelligence (AI): LiveRamp is focusing on integrating AI tools to enhance advertising and marketing capabilities [6][7] Sales Performance and Product Development - The sales cycle has improved, decreasing from 10 months to 9 months, indicating a healthier selling environment [17][8] - Annualized recurring revenue (ARR) grew by 7% year-on-year, with expectations for continued growth [18][17] - The launch of the Cross Media Intelligence product has received positive customer feedback and is expected to drive revenue growth in fiscal 2027 [12][11] Customer Base and New Pricing Model - Customer count has stabilized after a period of decline, aided by a shift from direct to reseller relationships in international markets [20][19] - A new pricing model is being piloted, designed to lower upfront commitments and allow for usage-based pricing, which is expected to attract mid-market customers [21][20] Infrastructure Migration and Cost Management - LiveRamp is migrating to a modern backend, which is currently increasing costs but is expected to improve speed, reliability, and scalability in the long term [35][34] - Gross margins are projected to return to the mid-70% range post-migration, with ongoing operational efficiencies being realized through offshoring and cost management [37][36] Financial Outlook and Capital Allocation - The company aims for a revenue growth target of over 10% for fiscal 2027, with a strong pipeline and positive momentum [31][30] - LiveRamp prioritizes organic investment for growth, strategic M&A opportunities, and returning excess cash flow to shareholders through buybacks [41][40] Market Sensitivity and Growth Segments - LiveRamp's Data Marketplace business grew by 14%, with expectations to outpace overall US digital ad spend growth due to exposure to faster-growing segments like retail and commerce media [32][31] - The company is well-positioned to leverage its customer base of larger enterprises, which tend to maintain spending during economic downturns [34][33] Additional Important Insights - The integration of AI into the platform aims to simplify usage for less technical users, enhancing the overall customer experience [28][27] - LiveRamp's strategy includes expanding its reach into the mid-market, which has historically been underserved [26][25] This summary encapsulates the key insights from LiveRamp's FY conference, highlighting the company's strategic focus, market dynamics, and financial outlook.