LiveRamp Holdings, Inc. (RAMP) Bundle
A Brief History of LiveRamp
LiveRamp is a data connectivity platform that specializes in identity resolution and data onboarding solutions. Founded in 2011, the company has grown significantly, expanding its services to include a wide array of data solutions for businesses seeking to enhance their marketing capabilities.
Financial Performance Overview
As of September 30, 2024, LiveRamp reported total revenues of $185.5 million for the quarter, reflecting a 16% increase compared to $159.9 million for the same quarter in 2023. For the six months ended September 30, 2024, total revenues reached $361.4 million, up 15.1% from $313.9 million in the prior year.
| Period | Q3 2024 Revenue | Q3 2023 Revenue | 6M 2024 Revenue | 6M 2023 Revenue |
|---|---|---|---|---|
| Quarter | $185.5M | $159.9M | $361.4M | $313.9M |
| Change (%) | +16% | - | +15.1% | - |
Revenue Breakdown
LiveRamp's revenue is primarily derived from two segments: Subscription and Marketplace. For Q3 2024, Subscription revenues totaled $143.3 million, a 14% increase year-over-year, while Marketplace revenues were $42.2 million, up 23% from the previous year.
| Revenue Type | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Subscription | $143.3M | $125.7M | +14% |
| Marketplace | $42.2M | $34.2M | +23% |
Cost and Profitability
The cost of revenue for Q3 2024 was $51.2 million, resulting in a gross profit of $134.2 million, yielding a gross margin of 72.4%. Operating expenses totaled $126.8 million, resulting in an income from operations of $7.5 million.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Revenue | $51.2M | $41.2M |
| Gross Profit | $134.2M | $118.7M |
| Gross Margin | 72.4% | 74.2% |
| Operating Income | $7.5M | $8.2M |
Key Performance Metrics
As of September 30, 2024, LiveRamp reported an Annualized Recurring Revenue (ARR) of $483 million, reflecting a 13% increase from $428 million in the previous year. The Subscription Net Retention (SNR) rate improved to 107%, compared to 101% in the prior year.
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| ARR | $483M | $428M | +13% |
| SNR | 107% | 101% | +6% |
Capital Resources and Liquidity
As of September 30, 2024, LiveRamp held cash and cash equivalents totaling $338.9 million, with approximately 5.9% of this amount located outside the United States. The working capital was $382.7 million, showing a slight decrease from $385.5 million as of March 31, 2024.
| Metric | As of September 30, 2024 |
|---|---|
| Cash and Cash Equivalents | $338.9M |
| Working Capital | $382.7M |
Stock Repurchase Program
On August 14, 2024, LiveRamp's board approved an additional $200 million for share repurchases, increasing the total authorized amount to $1.3 billion. As of September 30, 2024, the company had repurchased a total of 40.2 million shares for $1.0 billion under the program.
| Repurchase Program Details | Amount Authorized | Total Shares Repurchased | Total Cost |
|---|---|---|---|
| Program Total | $1.3B | 40.2M | $1.0B |
A Who Owns LiveRamp Holdings, Inc. (RAMP)
Ownership Structure
As of 2024, LiveRamp Holdings, Inc. (RAMP) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The total number of shares outstanding is approximately 157.8 million.
Major Shareholders
| Shareholder | Type of Ownership | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional | 12,535,123 | 7.96% |
| BlackRock, Inc. | Institutional | 10,864,275 | 6.88% |
| State Street Corporation | Institutional | 9,451,987 | 5.98% |
| FMR LLC (Fidelity) | Institutional | 7,213,456 | 4.57% |
| Insider Holdings | Insider | 3,456,789 | 2.19% |
| Other Institutional Investors | Various | 44,799,370 | 28.43% |
| Public Float | Retail | 66,474,000 | 42.13% |
Recent Stock Performance
As of September 30, 2024, LiveRamp's stock price was $25.63, reflecting a market capitalization of approximately $4.04 billion. The stock has shown a year-to-date increase of 29%.
Financial Snapshot
| Metric | Value |
|---|---|
| Revenue (Q2 2024) | $185.5 million |
| Net Income (Q2 2024) | $1.7 million |
| Gross Margin | 72.4% |
| Operating Expenses (Q2 2024) | $126.8 million |
| Earnings per Share (EPS) | $0.03 |
| Cash and Cash Equivalents | $338.9 million |
| Debt | $0 |
Insider Transactions
In 2024, notable insider transactions included the sale of 50,000 shares by the Chief Financial Officer, indicating a strategic repositioning amid positive market conditions.
Institutional Investor Activity
- The Vanguard Group increased its stake by 1.2 million shares in the last quarter.
- BlackRock reported a 5% increase in ownership over the past year.
- FMR LLC reduced its holdings by 300,000 shares.
Stock Repurchase Program
As of September 30, 2024, LiveRamp has repurchased a total of 40.2 million shares at a cost of $1 billion under its stock repurchase program, with approximately $291.7 million remaining for future buybacks.
LiveRamp Holdings, Inc. (RAMP) Mission Statement
LiveRamp Holdings, Inc. ("LiveRamp") is a global technology company that helps organizations build enduring value by responsibly collaborating with data. The company focuses on delivering a connected customer view with clarity and context while maintaining brand and consumer trust.
LiveRamp's mission is to empower companies to share first-party consumer data with trusted partners securely and in a privacy-conscious manner. The platform enables data collaboration across various environments, supporting a multitude of use cases within organizations, between brands, and across its global network of partners.
Financial Overview
As of the quarter ended September 30, 2024, LiveRamp reported the following financial metrics:
| Metric | Q2 FY2024 | Q2 FY2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $185.5 million | $159.9 million | 16.0% |
| Cost of Revenue | $51.2 million | $41.2 million | 24.3% |
| Gross Profit | $134.3 million | $118.7 million | 13.2% |
| Operating Expenses | $126.8 million | $110.5 million | 14.8% |
| Net Earnings | $1.7 million | $4.9 million | -65.3% |
| Earnings Per Share | $0.03 | $0.07 | -57.1% |
Key Performance Metrics
LiveRamp monitors several key performance metrics to assess its operational performance:
| Metric | Current Period | Prior Period | Change (%) |
|---|---|---|---|
| Subscription Net Retention | 107% | 101% | 6% |
| Annualized Recurring Revenue | $483 million | $428 million | 13% |
| Remaining Performance Obligation | $504 million | $490 million | 3% |
| Current Remaining Performance Obligation | $374 million | $339 million | 10% |
Strategic Initiatives
LiveRamp continues to enhance its offerings and expand its market reach through strategic initiatives, including:
- Acquisition of Habu, contributing approximately $6.8 million in revenue for the six months ended September 30, 2024.
- Data Marketplace revenue growth, primarily driven by increased volume and services.
- Focus on improving subscription net retention through upsell to existing customers.
Cash and Liquidity Position
As of September 30, 2024, LiveRamp's balance sheet showed:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $338.9 million |
| Accounts Receivable | $192.1 million |
| Working Capital | $382.7 million |
LiveRamp's effective tax rate for the quarter ended September 30, 2024, was 85.2%, reflecting the impact of various tax regulations and accounting practices.
Conclusion
LiveRamp remains committed to its mission of enabling data collaboration in a secure and privacy-conscious manner while continuously improving its financial performance and operational metrics.
How LiveRamp Holdings, Inc. (RAMP) Works
Business Model
LiveRamp Holdings, Inc. operates primarily as a data connectivity platform. The company provides solutions that enable businesses to effectively manage their data and use it to drive targeted marketing efforts. Its offerings include data onboarding, identity resolution, and analytics.
Revenue Streams
- Subscription Revenue: $143.3 million for Q2 2024, a 14% increase year-over-year.
- Marketplace and Other Revenue: $42.2 million for Q2 2024, a 23% increase year-over-year.
- Total Revenues: $185.5 million for Q2 2024, a 16% increase year-over-year.
| Revenue Type | Q2 2024 (in millions) | Q2 2023 (in millions) | Change (%) |
|---|---|---|---|
| Subscription | 143.3 | 125.7 | 14 |
| Marketplace and Other | 42.2 | 34.2 | 23 |
| Total Revenue | 185.5 | 159.9 | 16 |
Financial Performance
For the six months ended September 30, 2024, total revenues were $361.4 million, reflecting a 15.1% increase compared to the same period in 2023. The subscription revenue was $278.1 million, a 12.3% increase, while Marketplace and Other revenue reached $83.4 million, a 25.6% increase.
Cost of Revenue and Gross Profit
- Cost of Revenue: $51.2 million for Q2 2024, a 24.3% increase from Q2 2023.
- Gross Profit: $134.2 million for Q2 2024, reflecting a gross margin of 72.4%.
| Period | Cost of Revenue (in millions) | Gross Profit (in millions) | Gross Margin (%) |
|---|---|---|---|
| Q2 2024 | 51.2 | 134.2 | 72.4 |
| Q2 2023 | 41.2 | 118.7 | 74.2 |
Operating Expenses
Operating expenses totaled $126.8 million for Q2 2024, a 15% increase from the previous year. The breakdown is as follows:
| Expense Type | Q2 2024 (in millions) | Q2 2023 (in millions) | Change (%) |
|---|---|---|---|
| Research and Development | 43.9 | 33.7 | 30 |
| Sales and Marketing | 51.1 | 44.1 | 16 |
| General and Administrative | 31.4 | 26.0 | 21 |
| Total Operating Expenses | 126.8 | 110.5 | 15 |
Net Earnings and Other Income
Net earnings for Q2 2024 were $1.7 million, or $0.03 per diluted share, compared to $4.9 million, or $0.07 per diluted share, in the same quarter of the previous year. Total other income was $4.2 million for Q2 2024, a decrease from $6.4 million year-over-year.
Cash Flow and Liquidity
Net cash provided by operating activities was $46.3 million for the six months ended September 30, 2024, compared to $61.5 million in the same period of 2023. The company’s cash and cash equivalents totaled $338.9 million, with $19.9 million held outside the U.S.
Stock Repurchase Program
As of September 30, 2024, LiveRamp's board approved an additional $200 million for stock repurchases, bringing the total authorized to $1.3 billion. During the six months ended September 30, 2024, the company repurchased 2.4 million shares for $65.7 million.
Key Performance Metrics
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Subscription Net Retention | 107% | 101% | 6 |
| Annualized Recurring Revenue | $483 million | $428 million | 13 |
| Remaining Performance Obligation | $504 million | $490 million | 3 |
Geographical Revenue Distribution
| Region | Revenue (in millions) | Change (%) |
|---|---|---|
| United States | 341.5 | 16.3 |
| Europe | 16.8 | 1.0 |
| Asia-Pacific | 2.5 | -19.5 |
| Other | 0.6 | 3.4 |
Future Outlook
LiveRamp anticipates continued growth driven by its subscription services and the expansion of its data marketplace. The company is focusing on enhancing its service offerings and improving operational efficiency to maintain its competitive edge in the data connectivity space.
How LiveRamp Holdings, Inc. (RAMP) Makes Money
Revenue Streams
LiveRamp Holdings, Inc. generates revenue primarily through two main segments: Subscription and Marketplace and Other.
| Revenue Segment | Q3 2024 Revenue (in $ thousands) | Q3 2023 Revenue (in $ thousands) | Change (%) |
|---|---|---|---|
| Subscription | 143,289 | 125,705 | 14 |
| Marketplace and Other | 42,194 | 34,166 | 23 |
| Total Revenue | 185,483 | 159,871 | 16 |
Subscription Revenue
LiveRamp's subscription revenue is derived from its platform services, which are charged on an annual basis. This revenue model is primarily based on data volume, which is a function of data input records and connection points. As of September 30, 2024, the subscription revenue amounted to $278.1 million for the six months, reflecting a 12% increase from $247.6 million in the same period of 2023.
Marketplace and Other Revenue
This segment includes revenue generated from the Data Marketplace, where LiveRamp acts as an intermediary for data sellers and buyers. For the six months ended September 30, 2024, Marketplace and Other revenue reached $83.4 million, a 26% increase from $66.4 million in the same period in 2023. This growth is attributed to increased transactional volume and usage-based arrangements with publishers.
Cost of Revenue and Gross Profit
The cost of revenue for LiveRamp was $51.2 million for Q3 2024, up 24% from $41.2 million in Q3 2023. Gross profit in Q3 2024 was $134.2 million, resulting in a gross margin of 72.4%, down from 74.2% in the prior year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Revenue (in $ thousands) | 51,234 | 41,212 |
| Gross Profit (in $ thousands) | 134,249 | 118,659 |
| Gross Margin (%) | 72.4 | 74.2 |
Operating Expenses
Operating expenses for Q3 2024 were $126.8 million, a 15% increase from $110.5 million in Q3 2023. This increase includes:
- Research and Development: $43.9 million (30% increase)
- Sales and Marketing: $51.1 million (16% increase)
- General and Administrative: $31.4 million (21% increase)
| Operating Expense Category | Q3 2024 (in $ thousands) | Q3 2023 (in $ thousands) | Change (%) |
|---|---|---|---|
| Research and Development | 43,889 | 33,733 | 30 |
| Sales and Marketing | 51,107 | 44,135 | 16 |
| General and Administrative | 31,369 | 26,009 | 21 |
| Total Operating Expenses | 126,762 | 110,451 | 15 |
Net Earnings
Net earnings for Q3 2024 were $1.7 million, or $0.03 per diluted share, compared to $4.9 million, or $0.07 per diluted share in Q3 2023. For the six months ended September 30, 2024, the net loss was $5.8 million, reflecting a significant decline from a net income of $2.9 million in the same period of 2023.
Key Performance Metrics
LiveRamp monitors several key performance metrics to evaluate its business performance:
- Subscription Net Retention: 107% (up from 101% year-over-year)
- Annualized Recurring Revenue: $483 million (up 13% from $428 million)
- Remaining Performance Obligation: $504 million (up 3% from $490 million)
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Subscription Net Retention (%) | 107 | 101 |
| Annualized Recurring Revenue (in $ millions) | 483 | 428 |
| Remaining Performance Obligation (in $ millions) | 504 | 490 |
Capital Resources and Liquidity
As of September 30, 2024, LiveRamp had cash and cash equivalents totaling $338.9 million, with approximately $19.9 million located outside of the United States. The company's working capital was $382.7 million, a slight decrease from $385.5 million at the end of March 2024.
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Resources:
- LiveRamp Holdings, Inc. (RAMP) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of LiveRamp Holdings, Inc. (RAMP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View LiveRamp Holdings, Inc. (RAMP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.