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Sep 30, 2022

LiveRamp Q2 2023 Earnings Report

Announced second quarter results with total revenue up 16% and subscription revenue up 14%.

Key Takeaways

LiveRamp reported healthy second quarter results with 16% revenue growth and strong free cash flow, despite challenging macroeconomic conditions. The company is raising its FY23 non-GAAP operating income guidance to approximately $60 million, representing growth of more than 40% year-on-year.

Total revenue was $147 million, up 16%.

Subscription revenue was $120 million, up 14%, and accounted for 81% of total revenue.

Marketplace & Other revenue was $27 million, up 25%.

GAAP loss per share was $0.45, and non-GAAP earnings per share were $0.22.

Total Revenue
$147M
Previous year: $127M
+15.6%
EPS
$0.22
Previous year: $0.26
-15.4%
Subscription Net Retention
106%
Previous year: 108%
-1.9%
Platform Net Retention
108%
Previous year: 109%
-0.9%
Gross Profit
$105M
Previous year: $92.2M
+13.6%
Cash and Equivalents
$486M
Previous year: $536M
-9.3%
Free Cash Flow
$18.7M
Previous year: $10M
+86.6%
Total Assets
$1.19B
Previous year: $1.28B
-7.3%

LiveRamp

LiveRamp

LiveRamp Revenue by Segment

Forward Guidance

For the third quarter of fiscal 2023, LiveRamp expects to report revenue of approximately $158 million, an increase of 12% year-over-year. For fiscal 2023, LiveRamp raises its guidance and now expects to report revenue of between $595 million and $600 million, an increase of 13% year-over-year and non-GAAP operating income of approximately $60 million.

Positive Outlook

  • Revenue of approximately $158 million, an increase of 12% year-over-year
  • Non-GAAP operating income of approximately $22 million
  • Revenue of between $595 million and $600 million, an increase of 13% year-over-year
  • Non-GAAP operating income of approximately $60 million
  • Increased FY23 non-GAAP operating income guidance to approximately $60 million, representing growth of more than 40% year-on-year.

Challenges Ahead

  • GAAP operating loss of approximately $27 million for Q3 2023
  • GAAP operating loss of approximately $102 million for fiscal year 2023
  • Uncertainties related to the ongoing COVID-19 pandemic
  • Rising interest rates, cost increases and general inflationary pressure and the associated impacts on our suppliers, customers and partners
  • The Company’s dependence upon customer renewals; new customer additions and upsell within our subscription business

Revenue & Expenses

Visualization of income flow from segment revenue to net income