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Dec 31, 2021

LiveRamp Q3 2022 Earnings Report

Reported strong third quarter results and raised full year outlook.

Key Takeaways

LiveRamp's Q3 2022 earnings showcased a 17% increase in total revenue, reaching $141 million, and a 19% rise in subscription revenue. The company's GAAP gross margin expanded to 73%, with non-GAAP gross margin at 77%. Operating cash flow was $25 million, and the company now has 86 customers with over $1 million in annual revenue.

Total revenue was $141 million, up 17% compared to the prior year period.

Subscription revenue was $111 million, up 19% compared to the prior year period and contributed 79% of total revenue.

GAAP gross margin of 73% expanded 4 percentage points, and Non-GAAP gross margin of 77% expanded 3 percentage points.

Net cash provided by operating activities was $25 million compared to $15 million in the prior year period.

Total Revenue
$141M
Previous year: $120M
+17.4%
EPS
$0.14
Previous year: $0.14
+0.0%
Subscription Net Retention
110%
Previous year: 105%
+4.8%
Platform Net Retention
109%
Previous year: 110%
-0.9%
Gross Profit
$102M
Previous year: $82.7M
+23.4%
Cash and Equivalents
$553M
Previous year: $663M
-16.6%
Free Cash Flow
$24.2M
Previous year: $14M
+72.4%
Total Assets
$1.34B
Previous year: $1.26B
+6.6%

LiveRamp

LiveRamp

LiveRamp Revenue by Segment

Forward Guidance

LiveRamp has increased its outlook and now expects to report revenue of approximately $526 million, an increase of 19% year-over-year. GAAP operating loss of approximately $69 million and Non-GAAP operating income of approximately $41 million.

Positive Outlook

  • Revenue of approximately $139 million, an increase of 17% year-over-year for Q4 Fiscal Year 2022
  • Expects to be operating cash flow positive for fiscal 2022
  • Non-GAAP operating income of approximately $2 million for Q4 Fiscal Year 2022
  • Revenue of approximately $526 million, an increase of 19% year-over-year for fiscal year 2022
  • Non-GAAP operating income of approximately $41 million for fiscal year 2022

Challenges Ahead

  • GAAP operating loss of approximately $31 million for Q4 Fiscal Year 2022
  • GAAP operating loss of approximately $69 million for fiscal year 2022
  • Uncertainties related to COVID-19 and the associated impact on our suppliers, customers and partners
  • The Company’s dependence upon customer renewals; new customer additions and upsell within our subscription business
  • Our reliance upon partners, including data suppliers; competition; and attracting and retaining talent

Revenue & Expenses

Visualization of income flow from segment revenue to net income