AdOmni and LiveRamp (RAMP, Financial) have formed a strategic alliance aimed at transforming how marketers evaluate the impact of advertising across connected TV (CTV), online video (OLV), and digital out-of-home (DOOH) platforms. This partnership seeks to eliminate the historical challenges of measuring these high-reach channels in isolation from performance-driven strategies.
The collaboration leverages LiveRamp's Clean Room, which facilitates secure first-party data connectivity. This enables AdOmni to provide marketers with cross-media measurement insights, allowing them to plan, activate, and fine-tune their advertising campaigns across CTV, OLV, and DOOH with a precision previously reserved for search and social media. This integration provides a unified and deduplicated reporting system, granting real-time insights into reach, frequency, and conversions.
Through this advanced approach, marketers can now responsibly analyze how consumers engage with advertisements across different screens and environments using their own first-party data. For instance, if a consumer encounters a DOOH billboard near a retail outlet, advertisers can now trace that consumer’s journey across channels, from CTV viewing to mobile interactions. This holistic view allows advertisers to optimize their media strategies and creative content based on actual performance metrics rather than relying on indirect signals.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for LiveRamp Holdings Inc (RAMP, Financial) is $33.57 with a high estimate of $45.00 and a low estimate of $26.00. The average target implies an upside of 30.58% from the current price of $25.71. More detailed estimate data can be found on the LiveRamp Holdings Inc (RAMP) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, LiveRamp Holdings Inc's (RAMP, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for LiveRamp Holdings Inc (RAMP, Financial) in one year is $37.53, suggesting a upside of 45.97% from the current price of $25.71. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the LiveRamp Holdings Inc (RAMP) Summary page.
RAMP Key Business Developments
Release Date: February 05, 2025
- Revenue: $195 million, up 12% year-over-year.
- Operating Income: $45 million, up 24% year-over-year.
- Operating Margin: Expanded by 2 points to a record quarterly high of 23%.
- Free Cash Flow: $91 million fiscal year-to-date, a 20% increase year-over-year.
- Annual Recurring Revenue (ARR): $491 million, up 10% year-over-year.
- Subscription Net Retention Rate: 108%, a 10-quarter high.
- Gross Margin: Approximately 74%, down 0.5 point year-over-year.
- Marketplace and Other Revenue: Increased 20% to $50 million.
- Data Marketplace Revenue: Grew by 18%, with CTV accounting for roughly 20%.
- Operating Cash Flow: $45 million, up from $17 million a year ago.
- Stock Repurchase: $10 million in the fiscal third quarter, $76 million fiscal year-to-date.
- FY 2025 Revenue Guidance: $741 million to $743 million, up 12% to 13% year-over-year.
- FY 2025 Operating Margin Guidance: 18%, up approximately two points year-over-year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- LiveRamp Holdings Inc (RAMP, Financial) exceeded expectations for revenue and operating income, achieving double-digit revenue growth for the fourth consecutive quarter.
- The company reported a 12% increase in revenue and a 24% increase in operating income, with operating margin reaching a record high of 23%.
- Sales momentum rebounded significantly, with improved pipeline conversion rates and strong performance in data marketplace and usage revenue.
- LiveRamp's data collaboration platform is well-positioned to capitalize on the growing demand for enhanced measurement of digital advertising using first-party data.
- The company continues to make progress on its Rule of 40 journey, with expectations to reach or surpass Rule of 30 this fiscal year, driven by revenue growth and operating margin improvements.
Negative Points
- Despite strong sales momentum, the total customer count experienced pressure, particularly from smaller, lower ACV customers and market consolidation.
- The company faces challenges in maintaining consistent sales efficiency and is not yet at historical norms in this area.
- Gross margin slightly decreased by 0.5 points year-on-year, reflecting short-term investments in platform reliability and data processing speed.
- The expected deceleration in revenue growth in Q4 to high-single digits reflects the challenging sales environment experienced in prior quarters.
- Stock-based compensation increased significantly, impacting GAAP operating income, partly due to the Habu acquisition and prior year tax planning benefits.
