On February 8, 2024, LiveRamp Holdings Inc (RAMP, Financial), a leading data collaboration platform, released its third-quarter financial results for fiscal year 2024, showcasing a year-over-year revenue increase of 10% to $174 million. The company's 8-K filing reveals a significant turnaround in operating income and a robust cash flow performance. LiveRamp's cloud-based software, which is pivotal for businesses in creating comprehensive customer profiles, has continued to drive growth through its subscription model and marketplace offerings.
Financial Performance and Strategic Developments
LiveRamp reported a GAAP gross profit of $129 million, up 12% from the previous year, with a gross margin of 74%. The Non-GAAP gross profit was slightly up by 8% to $131 million, with a Non-GAAP gross margin of 75%. The GAAP operating income was $15 million, a remarkable improvement from a $24 million loss in the prior year, while Non-GAAP operating income increased to $36 million from $26 million. The company's diluted earnings per share (EPS) also reflected positive momentum, with GAAP EPS at $0.21 and Non-GAAP EPS at $0.47.
LiveRamp's strategic initiatives, including the acquisition of Habu, a leading data clean room software provider, are expected to bolster the company's data collaboration capabilities. The company's commitment to innovation was further evidenced by its recognition as a 2023 Amazon Web Services (AWS) Global Industry Partner of the Year and a 2023 Google Cloud Platform (GCP) Partner of the Year.
Challenges and Market Position
Despite the positive results, LiveRamp faces challenges such as the deprecation of third-party cookies and the need to adapt to evolving privacy regulations. However, the company's Authenticated Traffic Solution (ATS) positions it well to navigate these changes. LiveRamp ended the quarter with 105 customers with subscription contracts exceeding $1 million in annual revenue, up from 94 in the prior year, and a subscription net retention rate of 101%.
Outlook and Investor Confidence
For the fourth quarter of fiscal 2024, LiveRamp anticipates revenue between $158 million and $162 million, representing a 6% to 9% increase. The company also projects a GAAP operating loss of $17 million to $18 million and a Non-GAAP operating income of $13 million to $14 million. For the full fiscal year 2024, revenue is expected to be between $646 million and $650 million, an 8% to 9% increase, with GAAP operating income between $8 million and $9 million and Non-GAAP operating income between $102 million and $103 million.
LiveRamp's CEO, Scott Howe, expressed confidence in the company's trajectory, stating,
We outperformed again this quarter, with revenue and operating income ahead of our expectations. Our forward sales momentum also continued in the quarter, including another strong new logo quarter, demonstrating healthy customer demand and good sales execution."The company's financial health and strategic direction suggest a positive outlook for value investors and stakeholders.
For further details on LiveRamp's financial performance and strategic initiatives, interested parties are invited to listen to a webcast of the conference call, accessible on LiveRamp's investor site.
Explore the complete 8-K earnings release (here) from LiveRamp Holdings Inc for further details.
