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RAMP NYSE· LiveRamp Holdings Inc
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RAMP NYSE· LiveRamp Holdings Inc
Earnings report Q4 2023

LiveRamp Holdings Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

LiveRamp Holdings, Inc. generates revenue from two main sources. The first is Subscription revenue, which primarily consists of subscription fees from customers accessing their platform. The second is Marketplace and Other revenue, which includes revenue-sharing fees from data transactions through the LiveRamp Data Marketplace, transactional usage-based revenue from arrangements with certain publishers and addressable TV providers, and professional services.

Strengths

LiveRamp Holdings demonstrated strong revenue growth in the latest quarter. Total revenues for the quarter ended December 31, 2023, were $165.2 million, an increase of $33.6 million or 25.5% compared to the same quarter a year ago. This growth was primarily driven by robust performance in both Subscription revenue and Marketplace and Other revenue segments. The company's best-in-class enterprise platform for data collaboration continues to attract customers, enabling them to access and leverage data more effectively. LiveRamp's focus on consumer privacy, data ethics, and foundational identity has also contributed to building enduring brand and business value.

Challenges

While LiveRamp Holdings experienced strong revenue growth, it is important to note that research and development (R&D) expenses decreased by $5.4 million or 12.5% compared to the same quarter a year ago. This decrease was primarily due to lower stock-based compensation expense, hosting and software expenses, and professional services. While cost reductions can be beneficial in the short term, it is essential for the company to continue investing in R&D to drive innovation and maintain a competitive edge in the market.

Noteworthy

LiveRamp Holdings' revenue growth is particularly noteworthy considering the challenging economic environment. The company's ability to adapt and provide value-added services to its customers has contributed to its strong performance. Additionally, LiveRamp's focus on data collaboration and privacy-conscious practices positions it well in an era where data protection and consumer trust are paramount.

Summary

LiveRamp Holdings, Inc. delivered a strong financial performance in the latest quarter, with revenue increasing by 25.5% compared to the same quarter a year ago. The company's revenue growth was driven by both its Subscription and Marketplace and Other revenue segments. LiveRamp's best-in-class enterprise platform for data collaboration, coupled with its commitment to consumer privacy and data ethics, has positioned it as a leader in the industry. However, the company should continue to invest in research and development to ensure long-term innovation and competitiveness. Overall, LiveRamp's ability to navigate the challenging economic environment and deliver strong revenue growth showcases its resilience and market strength.

Source documents

Form 10-Q  filed on Feb 08, 2024
129 pages scanned

Reference data

Company financials Q4 revenue 174M
Analyst estimates Q4 EPS beat by 18.21%
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