LiveRamp Holdings, Inc. (RAMP): Business Model Canvas [11-2024 Updated]

In today's data-driven world, LiveRamp Holdings, Inc. (RAMP) stands out with its innovative approach to identity resolution and data connectivity. This blog post delves into the Business Model Canvas of LiveRamp, highlighting its key components such as strategic partnerships, unique value propositions, and diverse revenue streams. Discover how LiveRamp leverages its resources and capabilities to drive marketing efficiency and enhance consumer understanding in an increasingly complex digital landscape.

LiveRamp Holdings, Inc. (RAMP) - Business Model: Key Partnerships

Collaborations with marketing technology providers

LiveRamp collaborates with over 500 of the largest brands and agencies globally, integrating its services with marketing technology providers to enhance audience targeting and measurement capabilities. This collaboration allows for a seamless exchange of data, improving marketing efficiency and effectiveness for clients.

Partnerships with data sellers for marketplace integration

LiveRamp's Data Marketplace generates revenue primarily through revenue-sharing agreements with data sellers. As of September 30, 2024, the Data Marketplace revenue contributed significantly to the total revenues, with Marketplace and Other revenues reported at $83.4 million for the six months ended September 30, 2024, reflecting a 26% increase from the previous year.

Data Marketplace Revenue (in thousands)	Growth Rate	Revenue Share for Data Sellers
$83,362	26%	Variable based on agreements

Alliances with publishers for audience access

LiveRamp enables publishers of all sizes to offer people-based marketing solutions, thereby granting brands direct access to their customer bases. This partnership model enhances the effectiveness of marketing campaigns and supports revenue generation for both publishers and LiveRamp.

Strategic acquisitions like Habu to enhance capabilities

In fiscal 2024, LiveRamp acquired Habu, which added approximately $6.8 million to subscription revenue for the six months ended September 30, 2024. This acquisition aimed to bolster LiveRamp's capabilities in data collaboration and privacy-centric marketing solutions.

Acquisition Details	Impact on Revenue (in thousands)	Acquisition Date
Habu	$6,800	Fiscal 2024

LiveRamp Holdings, Inc. (RAMP) - Business Model: Key Activities

Development of identity resolution technologies

LiveRamp focuses on developing advanced identity resolution technologies that enable businesses to connect and utilize customer data across various platforms securely. In the six months ended September 30, 2024, the company allocated approximately $88.0 million to research and development, which represented a 29% increase compared to the same period in the previous year.

Providing data connectivity solutions

LiveRamp's data connectivity solutions facilitate seamless integration between brands and data platforms. For the quarter ended September 30, 2024, total revenues reached $185.5 million, marking a 16% increase year-over-year. Subscription revenues specifically contributed $143.3 million, a 14% increase from the prior year.

Enhancing customer support and professional services

The company emphasizes enhancing customer support and providing professional services to ensure clients can effectively leverage its technologies. Professional services revenue, which constitutes about 4% of total company revenue, is driven by project fees from subscribers. In the first half of 2024, total operating expenses for customer support and services reached $256.2 million, reflecting an 18% increase from the previous year.

Managing the Data Marketplace for data monetization

LiveRamp operates a Data Marketplace that allows data sellers to monetize their assets. In the six months ended September 30, 2024, Marketplace and Other revenues increased by 26%, totaling $83.4 million. The company’s gross profit for the same period was $258.5 million, achieving a gross margin of 71.5%.

Key Activity	Financial Data	Year-over-Year Change
R&D Investment	$88.0 million	+29%
Total Revenues	$185.5 million	+16%
Subscription Revenues	$143.3 million	+14%
Marketplace Revenues	$83.4 million	+26%
Gross Profit	$258.5 million	+14%
Gross Margin	71.5%	-0.8%

LiveRamp Holdings, Inc. (RAMP) - Business Model: Key Resources

Proprietary identity graph and data infrastructure

LiveRamp’s proprietary identity graph serves as a core asset, enabling the company to connect and manage data across various platforms. This identity graph encompasses over 1.2 billion unique consumer identities, facilitating accurate audience targeting and measurement for marketing campaigns.

Experienced technical and leadership teams

LiveRamp has assembled a skilled workforce, with approximately 1,000 employees as of September 30, 2024. The leadership team includes seasoned professionals with extensive backgrounds in technology, data analytics, and marketing, contributing to the company’s strategic vision and operational execution.

Strong customer base of over 885 direct clients

As of September 30, 2024, LiveRamp serves over 885 direct clients, including more than 500 of the largest brands and agencies globally. This robust customer base underscores the company's market position and the trust that major enterprises place in its data solutions.

Customer Type	Number of Clients
Brands and Agencies	500+
Marketing Technology Providers	Various
Publishers	Various
Data Sellers	Various

Advanced technology platforms for data analytics

LiveRamp’s technology stack includes advanced platforms for data analytics, enabling clients to leverage big data for marketing insights. The company reported total revenues of $361.4 million for the six months ended September 30, 2024, with Subscription revenues accounting for $278.1 million and Marketplace revenues at $83.4 million.

Financial Data	Q2 2024	Q2 2023	Change (%)
Total Revenues	$185.5 million	$159.9 million	16.0%
Cost of Revenue	$51.2 million	$41.2 million	24.3%
Gross Profit	$134.2 million	$118.7 million	13.0%
Operating Expenses	$126.8 million	$110.5 million	14.8%
Net Earnings (Loss)	$1.7 million	$4.9 million	(61.0%)

LiveRamp Holdings, Inc. (RAMP) - Business Model: Value Propositions

People-based marketing solutions for brands

LiveRamp provides comprehensive people-based marketing solutions, allowing brands to create a unified view of their consumers. This capability is critical for executing effective marketing strategies across various channels. As of September 30, 2024, LiveRamp reported revenues of $185.5 million, which included significant contributions from their subscription services aimed at brands and agencies. The company serves over 500 of the largest brands globally, enhancing their marketing efforts through tailored solutions that leverage identity resolution and audience insights.

Enhanced consumer understanding through data integration

Through robust data integration capabilities, LiveRamp enhances consumer understanding for its clients. This integration process involves connecting disparate data sources to create actionable insights. As of September 30, 2024, the company reported an annualized recurring revenue (ARR) of $483 million, up 13% from the previous year, which illustrates the growing demand for integrated data solutions.

Increased marketing efficiency and effectiveness

LiveRamp’s platform enables marketers to improve their campaign efficiency and effectiveness. The subscription model, which generated $143.3 million in revenue for the quarter ended September 30, 2024, reflects a 14% increase year-over-year, driven by upselling existing customers and acquiring new clients. This growth demonstrates the value brands place on enhanced marketing strategies that leverage LiveRamp’s technology.

Scalable data connectivity across multiple platforms

LiveRamp's infrastructure allows for scalable data connectivity across various platforms, facilitating seamless integration for clients. The company’s Data Marketplace, which accounted for $42.2 million in revenue for the same quarter, provides brands with access to third-party data, enhancing their marketing capabilities. As of September 30, 2024, LiveRamp had established connections across hundreds of marketing platforms, underscoring its position as a leader in data connectivity solutions.

Metric	Value (September 30, 2024)	Year-over-Year Change
Total Revenues	$185.5 million	+16%
Subscription Revenue	$143.3 million	+14%
Marketplace Revenue	$42.2 million	+23%
Annualized Recurring Revenue (ARR)	$483 million	+13%
Subscription Net Retention Rate	107%	+6%

LiveRamp Holdings, Inc. (RAMP) - Business Model: Customer Relationships

Dedicated account management for enterprise clients

LiveRamp emphasizes strong customer relationships by providing dedicated account management for its enterprise clients. This approach is designed to ensure personalized service, addressing specific needs while enhancing customer satisfaction and retention.

Ongoing support and training services

The company offers ongoing support and training services, which are crucial for helping clients maximize the use of LiveRamp’s platform. This includes tailored training sessions and resources to facilitate effective implementation and operation of their services.

Community engagement through user forums and events

LiveRamp fosters community engagement through user forums and events. These platforms allow clients to share experiences, best practices, and challenges, thereby enhancing the overall customer experience. Such engagement initiatives contribute to building a loyal customer base.

Regular updates and communication on product enhancements

LiveRamp maintains regular communication with its clients regarding product enhancements and updates. This proactive approach ensures that users are informed about new features and improvements, which can lead to increased utilization of the platform.

Customer Relationship Aspect	Description	Financial Impact
Dedicated Account Management	Personalized service for enterprise clients to ensure satisfaction and retention.	Contributed to a 14% increase in Subscription revenues, reaching $143.3 million for Q2 2024.
Ongoing Support and Training	Training programs tailored to client needs to enhance platform utilization.	Part of the overall revenue growth; professional services revenue approximates 4% of total revenue.
Community Engagement	User forums and events to foster communication and loyalty among clients.	Helped achieve a Subscription Net Retention rate of 107% as of September 30, 2024.
Regular Updates	Consistent client communication regarding product enhancements and updates.	Facilitated a growth in Annualized Recurring Revenue (ARR) of $483 million, up 13% year-over-year.

LiveRamp Holdings, Inc. (RAMP) - Business Model: Channels

Direct sales to enterprise marketers and agencies

LiveRamp primarily sells its services directly to enterprise marketers and agencies. As of September 30, 2024, the company reported a total of 885 direct customers worldwide, including over 500 of the largest brands and agencies in the marketing sector. The annualized recurring revenue (ARR) from these customers reached $483 million, reflecting a 13% increase compared to the previous year. Subscription revenues for the quarter ending September 30, 2024, were $143.3 million, marking a 14% increase from the same quarter in 2023.

Online platform for accessing data services

LiveRamp provides an online platform that allows clients to access a variety of data services. The platform facilitates people-based marketing by creating an omni-channel understanding of consumers. As of the latest reports, the company’s Data Marketplace has become a significant revenue source, contributing approximately $42.2 million in marketplace and other revenues for the quarter ended September 30, 2024, an increase of 23% year-over-year. Additionally, the company has seen an increase in gross profit margins, which stood at 72.4% for the quarter.

Partnerships with marketing technology providers

LiveRamp has established partnerships with various marketing technology providers to enhance its service offerings. These partnerships enable providers to leverage LiveRamp's identity foundation for people-based targeting and measurement. The revenue generated through these partnerships is integral to the company’s business model. As of September 30, 2024, the company reported an increase in subscription net retention of 107%, indicating strong performance and growth from existing customers.

Reseller agreements to reach additional customers

Through reseller agreements, LiveRamp extends its market reach to additional customers. These arrangements have allowed the company to serve thousands of indirect customers in addition to its direct clientele. The revenue from these reseller partnerships contributes to a broader customer base, enhancing overall revenue streams. The company reported total revenues of $185.5 million for the quarter ended September 30, 2024, representing a 16% increase from the same quarter in the previous year.

Channel	Customer Base	Revenue (Q3 2024)	Year-over-Year Growth
Direct Sales	885 Direct Customers	$143.3 million	14%
Online Platform	Thousands of Users	$42.2 million	23%
Partnerships	Marketing Tech Providers	Included in Subscription Revenue	107% Net Retention
Reseller Agreements	Thousands of Indirect Customers	Part of Total Revenue	16%

LiveRamp Holdings, Inc. (RAMP) - Business Model: Customer Segments

Large brands and advertising agencies

LiveRamp serves over 500 of the largest brands and agencies globally, providing them with capabilities to execute people-based marketing. This segment is crucial for fostering an omni-channel understanding of consumers, enabling brands to activate their marketing strategies across various digital platforms.

Marketing technology providers

Marketing technology providers utilize LiveRamp’s identity solutions to enhance their platforms. This integration allows these providers to offer people-based targeting, measurement, and personalization. As of September 30, 2024, LiveRamp reported an Annualized Recurring Revenue (ARR) of $483 million, reflecting a 13% growth from the previous year.

Publishers seeking audience engagement

LiveRamp collaborates with publishers of all sizes, enabling them to implement people-based marketing strategies. This partnership enhances publishers' ability to provide direct access to their audiences, thereby increasing engagement rates. The revenue from the Data Marketplace, which facilitates these connections, was approximately $83.4 million for the six months ending September 30, 2024, showcasing a 25.6% growth from the prior year.

Data sellers looking to monetize their data

Data sellers leverage LiveRamp’s platform to monetize their data assets. The Data Marketplace allows them to distribute their audience data across numerous marketing platforms seamlessly. For the six months ending September 30, 2024, LiveRamp’s Marketplace and Other revenues reached $83.4 million, driven by increased transaction volumes.

Customer Segment	Key Metrics	Revenue Contribution (2024)
Large Brands and Advertising Agencies	500+ brands served	$278 million (Subscription Revenue)
Marketing Technology Providers	Annualized Recurring Revenue: $483 million	N/A
Publishers	Transaction Volume Growth: 25.6%	$83.4 million (Marketplace Revenue)
Data Sellers	Revenue Sharing Arrangements	$83.4 million (Marketplace Revenue)

LiveRamp Holdings, Inc. (RAMP) - Business Model: Cost Structure

Operational costs related to technology infrastructure

For the six months ended September 30, 2024, LiveRamp's cost of revenue was $103.0 million, reflecting an 18.6% increase compared to the same period in 2023. This includes significant expenses related to cloud infrastructure, which increased by $5.8 million, and other service costs that rose by $8.8 million due to higher service revenues.

Employee salaries and benefits

Employee-related expenses are substantial in LiveRamp's cost structure. For the quarter ended September 30, 2024, research and development (R&D) expenses totaled $43.9 million, a 30.1% increase from the prior year. Similarly, sales and marketing expenses amounted to $51.1 million, showing a 15.8% increase year-over-year. General and administrative (G&A) expenses were $31.4 million, up 20.6% from the previous year.

Expense Category	Q3 2024 (in millions)	Q3 2023 (in millions)	Percentage Change
Research and Development	$43.9	$33.7	30.1%
Sales and Marketing	$51.1	$44.1	15.8%
General and Administrative	$31.4	$26.0	20.6%

Marketing and sales expenses

Sales and marketing expenses for the six months ended September 30, 2024, were reported at $105.3 million, which represents an 18.3% increase compared to the prior year. This increase is attributable to higher stock-based compensation expenses, which rose by $6.0 million, along with increased headcount-related and professional services expenses.

Costs associated with data acquisition and maintenance

Costs associated with data acquisition are included in the cost of revenue, which totaled $102.9 million for the six months ended September 30, 2024, marking a 19% increase from the previous year. This cost encompasses third-party direct costs, including identity graph data, cloud-based hosting costs, and amortization of acquisition-related intangibles.

Cost Component	Six Months Ended September 30, 2024 (in millions)	Six Months Ended September 30, 2023 (in millions)	Percentage Change
Cost of Revenue	$102.9	$86.8	19%
Cloud Infrastructure Costs	$5.8	N/A	N/A
Intangible Asset Amortization	$3.7	$1.2	208.3%

LiveRamp Holdings, Inc. (RAMP) - Business Model: Revenue Streams

Subscription fees from platform services

LiveRamp generates a significant portion of its revenue through subscription fees for its platform services. For the quarter ended September 30, 2024, subscription revenue was $143.3 million, representing a 14% increase from $125.7 million in the same quarter of the previous year. For the six months ended September 30, 2024, subscription revenue totaled $278.1 million, up 12.3% from $247.6 million year-over-year. This growth is attributed to upselling to existing customers and new client acquisitions, alongside revenue from the recent acquisition of Habu, which contributed approximately $3.5 million to subscription revenue.

Revenue from the Data Marketplace

The Data Marketplace is another key revenue stream for LiveRamp. In the quarter ended September 30, 2024, revenue from the Marketplace and other services was $42.2 million, marking a 23% increase from $34.2 million in the prior year. For the six months ending September 30, 2024, this revenue reached $83.4 million, a 26% increase from $66.4 million in the same period the previous year. This increase is primarily driven by growth in Data Marketplace transactions and service volumes.

Professional services and consultancy fees

LiveRamp offers professional services and consultancy, which contribute around 4% of total revenue. These services include product implementation, data science analytics, and audience measurement. The revenue generated from these services is structured through project fees charged to subscribers. For the six months ended September 30, 2024, the contribution from professional services aligns with the overall growth of the company, although specific figures for professional services revenue were not disclosed.

Variable revenue from upselling and new customer acquisition

Variable revenue plays a crucial role in LiveRamp's overall revenue strategy. The company reported a subscription net retention rate of 107% as of September 30, 2024, up from 101% a year earlier, indicating effective upselling and customer retention strategies. The Annualized Recurring Revenue (ARR) for the same period was approximately $483 million, reflecting a 13% growth from $428 million in the previous year.

Revenue Stream	Q2 2024 Revenue (in millions)	Q2 2023 Revenue (in millions)	Growth (%)
Subscription Fees	$143.3	$125.7	14%
Marketplace Revenue	$42.2	$34.2	23%
Total Revenue	$185.5	$159.9	16%

The above data indicates the diverse revenue streams LiveRamp employs to enhance its financial performance, showcasing significant growth across all segments, particularly in subscription and marketplace revenues.

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.