LiveRamp Holdings Inc (RAMP, Financial), a leading data collaboration platform, released its earnings report for the second quarter of fiscal 2024 on November 8, 2023, showcasing a robust financial performance with significant improvements in revenue and operating margins. The company's strategic initiatives and customer growth have contributed to this positive outcome, leading to an increase in fiscal 2024 guidance.
Financial Performance Overview
LiveRamp reported a total revenue of $160 million, marking a 9% increase compared to the same period last year. This growth was driven by a 5% increase in subscription revenue, which totaled $126 million and constituted 79% of the total revenue. Additionally, Marketplace & Other revenue surged by 25%, reaching $34 million.
The company's GAAP gross profit rose by 13% to $119 million, with a gross margin expansion of 3 percentage points to 74%. On a non-GAAP basis, the gross profit was $121 million, up 9%, and the gross margin remained stable at 75% year-on-year.
LiveRamp's GAAP operating income demonstrated a significant turnaround, posting an $8 million profit compared to a $29 million loss in the prior year. The GAAP operating margin improved to 5%, a substantial increase from the negative 20% reported previously. Non-GAAP operating income saw a remarkable increase to $32 million from $17 million, with the non-GAAP operating margin expanding by 8 percentage points to 20%.
Diluted earnings per share (EPS) on a GAAP basis were $0.07, while non-GAAP diluted EPS stood at $0.43. The company's operating cash flow was strong at $36 million, compared to $21 million in the prior year, and share repurchases in the second quarter amounted to approximately 490,000 shares for $15 million.
Strategic Achievements and Customer Growth
LiveRamp CEO Scott Howe commented on the company's performance, stating,
We posted strong second quarter results, with both revenue and operating income exceeding our expectations; operating margin was a record high and operating cash flow was positive for a fifth consecutive quarter. We had our best new logo quarter in two years, including the addition of multiple Fortune 500 customers, demonstrating the traction our Data Collaboration Platform has with marketers looking to more fully leverage their first-party customer data across the digital advertising ecosystem."
The company highlighted several business achievements, including being selected as a 2023 Google Cloud Partner of the Year and expanding its reach in the Mar Tech space through a partnership with Sendbird. LiveRamp also reported a net retention rate of 101% for subscriptions and 104% for the platform.
Updated Fiscal 2024 Guidance
Reflecting confidence in its ongoing performance, LiveRamp has raised its guidance for fiscal 2024. The company now expects revenue to be between $632 million and $637 million, representing a 6% to 7% increase. GAAP operating income is projected to be between $8 million and $11 million, with non-GAAP operating income anticipated to be between $97 million and $100 million.
For more detailed information on LiveRamp's financial performance, including reconciliations between GAAP and non-GAAP results, readers are encouraged to visit the full earnings release and financial statements available on LiveRamp's investor site.
LiveRamp's strong quarterly performance and optimistic outlook for the fiscal year underscore the company's strategic positioning and operational efficiency, making it a noteworthy company for value investors to consider.
Explore the complete 8-K earnings release (here) from LiveRamp Holdings Inc for further details.
