• LiveRamp Announces Results for Second Quarter FY25

    Source: Nasdaq GlobeNewswire / 06 Nov 2024 15:05:02   America/Chicago

    Revenue up 16% year-over-year

    Third Consecutive Quarter of Double-Digit Revenue Growth

    $1M+ Customer Count a Record High of 125

    Share Repurchases totaled $50 million in Q2 and $66 million Fiscal YTD

    SAN FRANCISCO, Nov. 06, 2024 (GLOBE NEWSWIRE) --  LiveRamp® (NYSE: RAMP), the leading data collaboration platform, today announced its financial results for the fiscal 2025 second quarter ended September 30, 2024.

    Q2 Financial Highlights1

    • Total revenue was $185 million, up 16%.
    • Subscription revenue was $143 million, up 14%.
    • Marketplace & Other revenue was $42 million, up 23%.
    • GAAP gross profit was $134 million, up 13%. GAAP gross margin compressed by 2 percentage points to 72%. Non-GAAP gross profit was $139 million, up 16%. Non-GAAP gross margin was stable at 75%.
    • GAAP operating income was $7 million compared to $8 million. GAAP operating margin compressed by one percentage point to 4%. Non-GAAP operating income was $41 million compared to $32 million. Non-GAAP operating margin expanded by 2 percentage points to 22%.
    • GAAP diluted earnings per share was $0.03 and non-GAAP diluted earnings per share was $0.51.
    • Net cash provided by operating activities was $56 million, up from $36 million.
    • Second quarter share repurchases totaled approximately 1.9 million shares for $50 million. Fiscal year to date through September 30, 2024 share repurchases totaled approximately 2.4 million shares for $66 million.

    A reconciliation between GAAP and non-GAAP results is provided in the schedules in this press release.

    Commenting on the results, CEO Scott Howe said, “Revenue and operating income exceeded our expectations and revenue grew by double-digits for a third consecutive quarter. We continue to see strong momentum with our Data Collaboration Platform. Our recent platform update makes it faster and easier for customers to activate their first-party data. We continue to scale our clean room network by adding the largest premium publishers and retail media networks that marketers want to engage in data collaboration. These actions – among others – increase the utility of our platform, which will support our future growth.”

    GAAP and Non-GAAP Results
    The following table summarizes the Company’s financial results for the fiscal 2025 second quarter ended September 30, 2024 ($ in millions, except per share amounts):

        
     GAAP Non-GAAP
     Q2 FY25Q2 FY24 Q2 FY25Q2 FY24
    Subscription revenue$143 $126   —  — 
    YoY change % 14% 5%  —  — 
    Marketplace & Other revenue$42 $34   —  — 
    YoY change % 23% 25%  —  — 
    Total revenue$185 $160   —  — 
    YoY change % 16%  9%  —  — 
          
    Gross profit$134 $119  $139 $121 
    % Gross margin 72% 74%  75% 75%
    YoY change, pts (2 pts)  3 pts   0 pts  0 pts 
          
    Operating income$7 $8  $41 $32 
    % Operating margin 4% 5%  22% 20%
    YoY change, pts (1 pt)  25 pts   2 pts  8 pts 
          
    Net earnings$2 $5  $34 $29 
    Diluted earnings per share$0.03 $0.07  $0.51 $0.43 
          
    Shares to calculate diluted EPS 67.3  67.9   67.3  67.9 
    YoY change % (1%) 1%  (1%) 0%
          
    Operating cash flow$56 $36   —  — 
    Free cash flow to equity —  —  $55 $36 
          
    Totals and year-over-year changes may not reconcile due to rounding.

    A detailed discussion of our non-GAAP financial measures and a reconciliation between GAAP and non-GAAP results is provided in the schedules in this press release.

    Additional Business Highlights & Metrics

    • In August 2024 the Board of Directors approved an amendment to the existing share repurchase program to expand the authorization by $200 million to $1.3 billion and extend the expiration by two years to December 31, 2026 (link). As of September 30, 2024, there was approximately $292 million in remaining capacity under the program.
    • In October 2024 we released the semi-annual update to the LiveRamp Data Collaboration Platform that will accelerate our customers’ time to value by making it easier and faster to deliver personalized and relevant marketing experiences to consumers. The updates enable first-party identity graphs with self-service capability, standardized queries to help customers drive immediate insights with clean room measurement, and faster activation and performance (additional information).
    • In October 2024 we announced the first Artificial Intelligence (AI) destinations to our network with Perplexity and Chalice. Through these partnerships, LiveRamp will enable marketers to personalize AI-powered searches on Perplexity and connect AI-powered custom audiences on Meta and YouTube with Chalice, with more social platforms to follow (additional information).
    • LiveRamp ended the quarter with 125 customers whose annualized subscription revenue exceeds $1 million, compared to 99 in the prior year period.
    • LiveRamp ended the quarter with 885 direct subscription customers, compared to 895 in the prior year period.
    • Subscription net retention was 107% and platform net retention was 110%.
    • Annual recurring revenue (ARR), which is the last month of the quarter fixed subscription revenue annualized, was $483 million, up 13% compared to the prior year period.
    • Current remaining performance obligations (CRPO), which is contracted and committed revenue expected to be recognized over the next 12 months, was $374 million, up 10% compared to the prior year period.

    Financial Outlook

    LiveRamp’s non-GAAP operating income guidance excludes the impact of non-cash stock compensation, purchased intangible asset amortization, and restructuring and related charges.

    For the third quarter of fiscal 2025, LiveRamp expects to report:

    • Revenue of $191 million, an increase of 10%
    • GAAP operating income of $8 million
    • Non-GAAP operating income of $39 million

    For fiscal 2025, LiveRamp increases its guidance and expects to report:

    • Revenue of between $737 million and $739 million, an increase of 12%
    • GAAP operating income of between $6 million and $8 million
    • Non-GAAP operating income of between $133 million and $135 million

    Conference Call

    LiveRamp will hold a conference call today at 1:30 p.m. PT (4:30 p.m. ET) to further discuss this information. Interested parties are invited to listen to a webcast of the conference, which can be accessed on LiveRamp’s investor site. A slide presentation will be referenced during the call and is available here.

    About LiveRamp

    LiveRamp is the data collaboration platform of choice for the world’s most innovative companies. A groundbreaking leader in enterprise identity, LiveRamp offers a connected customer view with clarity and context while protecting brand and consumer trust. We offer flexibility to collaborate wherever data lives to support a wide range of data collaboration use cases—within organizations, between brands, and across our global network of premier partners. Global innovators, from iconic consumer brands and tech platforms to retailers, financial services, and healthcare leaders, turn to LiveRamp to deepen customer engagement and loyalty, activate new partnerships, and maximize the value of their first-party data while staying on the forefront of rapidly evolving compliance and privacy requirements. LiveRamp is based in San Francisco, California with offices worldwide. Learn more at LiveRamp.com.

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended (the “PSLRA”). These statements, which are not statements of historical fact, may contain estimates, assumptions, projections and/or expectations regarding the Company’s financial position, results of operations for fiscal 2025 and beyond, market position, product development, growth opportunities, economic conditions, and other similar forecasts and statements of expectation. Forward-looking statements are often identified by words or phrases such as “anticipate,” “estimate,” “plan,” “expect,” “believe,” “intend,” “foresee,” or the negative of these terms or other similar variations thereof.

    These forward-looking statements are not guarantees of future performance and are subject to a number of factors and uncertainties that could cause the Company’s actual results and experiences to differ materially from the anticipated results and expectations expressed in the forward-looking statements.

    Among the factors that may cause actual results and expectations to differ from anticipated results and expectations expressed in forward-looking statements are uncertainties related to high interest rates, cost increases, the possibility of a recession, general inflationary pressure, geo-political circumstances that could result in increased economic uncertainties and the associated impacts of these potential events 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; rapidly changing technology’s impact on our products and services; the risk that we fail to realize the potential benefits of or have difficulty integrating acquired businesses (including Habu); and attracting, motivating and retaining talent. Additional risks include maintaining our culture and our ability to innovate and evolve while operating in a hybrid work environment, with some employees working remotely at least some of the time within a rapidly changing industry, while also avoiding disruption from reductions in our current workforce as well as disruptions resulting from acquisition, divestiture and other activities affecting our workforce. Our global workforce strategy could possibly encounter difficulty and not be as beneficial as planned. Our international operations are also subject to risks, including the performance of third parties as well as impacts from war and civil unrest, that may harm the Company’s business. The risk of a significant breach of the confidentiality of the information or the security of our or our customers’, suppliers’, or other partners’ data and/or computer systems, or the risk that our current insurance coverage may not be adequate for such a breach, that an insurer might deny coverage for a claim or that such insurance will continue to be available to us on commercially reasonable terms, or at all, could be detrimental to our business, reputation and results of operations. Other business risks include unfavorable publicity and negative public perception about our industry; interruptions or delays in service from data center or cloud hosting vendors we rely upon; and our dependence on the continued availability of third-party data hosting and transmission services. Our clients’ ability to use data on our platform could be restricted if the industry’s use of third-party cookies and tracking technology declines due to technology platform changes, regulation or increased user controls. Changes in regulations and legislation relating to information collection and use represents a risk, as well as changes in tax laws and regulations that are applied to our customers which could cause enterprise software budget tightening. In addition, third parties may claim that we are infringing their intellectual property or may infringe our intellectual property which could result in competitive injury and / or the incurrence of significant costs and draining of our resources.

    For a discussion of these and other risks and uncertainties that could affect LiveRamp’s business, reputation, results of operation, financial condition and stock price, please refer to LiveRamp’s filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of LiveRamp’s most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings.

    The financial information set forth in this press release reflects estimates based on information available at this time.

    LiveRamp assumes no obligation and does not currently intend to update these forward-looking statements.

    To automatically receive LiveRamp financial news by email, please visit www.LiveRamp.com and subscribe to email alerts.

    For more information, contact:

    LiveRamp Investor Relations
    Investor.Relations@LiveRamp.com

    LiveRampⓇ and RampIDTM and all other LiveRamp marks contained herein are trademarks or service marks of LiveRamp, Inc. All other marks are the property of their respective owners.

    1 Unless otherwise indicated, all comparisons are to the prior year period.







            
    LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
    (Dollars in thousands, except per share amounts)
            
      For the three months ended September 30,
          $%
      2024  2023  VarianceVariance
            
    Revenues 185,483  159,871  25,612 16.0%
    Cost of revenue 51,234  41,212  10,022 24.3%
    Gross profit 134,249  118,659  15,590 13.1%
    % Gross margin 72.4 % 74.2 %   
            
    Operating expenses       
    Research and development 43,889  33,733  10,156 30.1%
    Sales and marketing 51,107  44,135  6,972 15.8%
    General and administrative 31,369  26,009  5,360 20.6%
    Gains, losses and other items, net 397  6,574  (6,177)(94.0)%
    Total operating expenses 126,762  110,451  16,311 14.8%
            
    Income from operations 7,487  8,208  (721)(8.8)%
    % Margin 4.0 % 5.1 %   
            
    Total other income, net 4,197  6,431  (2,234)(34.7)%
            
    Income from continuing operations before income taxes 11,684  14,639  (2,955)(20.2)%
    Income tax expense 9,952  10,163  (211)(2.1)%
    Net earnings from continuing operations 1,732  4,476  (2,744)(61.3)%
            
    Earnings from discontinued operations, net of tax -  387  (387)(100.0)%
            
    Net earnings 1,732  4,863  (3,131)(64.4)%
            
    Basic earnings per share:       
    Continuing operations 0.03  0.07  (0.04)(61.3)%
    Discontinued operations 0.00  0.01  (0.01)(100.0)%
    Basic earnings per share 0.03  0.07  (0.05)(64.4)%
            
    Diluted earnings per share:       
    Continuing operations 0.03  0.07  (0.04)(61.0)%
    Discontinued operations 0.00  0.01  (0.01)(100.0)%
    Diluted earnings per share 0.03  0.07  (0.05)(64.1)%
            
    Basic weighted average shares 66,294  66,284    
    Diluted weighted average shares 67,309  67,868    
            
            
    Some totals may not sum due to rounding.       
            



            
    LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
    (Dollars in thousands, except per share amounts)
            
      For the six months ended September 30,
          $%
      2024  2023  VarianceVariance
            
    Revenues 361,444  313,940  47,504 15.1%
    Cost of revenue 102,983  86,833  16,150 18.6%
    Gross profit 258,461  227,107  31,354 13.8%
    % Gross margin 71.5 % 72.3 %   
            
    Operating expenses       
    Research and development 88,007  68,252  19,755 28.9%
    Sales and marketing 105,282  89,014  16,268 18.3%
    General and administrative 62,330  52,673  9,657 18.3%
    Gains, losses and other items, net 603  6,690  (6,087)(91.0)%
    Total operating expenses 256,222  216,629  39,593 18.3%
            
    Income from operations 2,239  10,478  (8,239)(78.6)%
    % Margin 0.6 % 3.3 %   
            
    Total other income, net 8,641  11,280  (2,639)(23.4)%
            
    Income from continuing operations before income taxes 10,880  21,758  (10,878)(50.0)%
    Income tax expense 16,637  18,868  (2,231)(11.8)%
    Net earnings (loss) from continuing operations (5,757) 2,890  (8,647)(299.2)%
            
    Earnings from discontinued operations, net of tax -  387  (387)(100.0)%
            
    Net earnings (loss) (5,757) 3,277  (9,034)(275.7)%
            
    Basic earnings (loss) per share:       
    Continuing operations (0.09) 0.04  (0.13)(299.0)%
    Discontinued operations 0.00  0.01  (0.01)(100.0)%
    Basic earnings (loss) per share (0.09) 0.05  (0.14)(275.5)%
            
    Diluted earnings (loss) per share:       
    Continuing operations (0.08) 0.04  (0.13)(298.5)%
    Discontinued operations 0.00  0.01  (0.01)(100.0)%
    Diluted earnings (loss) per share (0.08) 0.05  (0.13)(275.0)%
            
    Basic weighted average shares 66,458  66,391    
    Diluted weighted average shares 67,886  67,628    
            
            
    Some totals may not sum due to rounding.       
            



             
    LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
    RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
    (Unaudited)
    (Dollars in thousands, except per share amounts)
             
      For the three months ended September 30, For the six months ended September 30,
      2024 2023 2024  2023
             
    Income from continuing operations before income taxes 11,684 14,639 10,880  21,758
    Income tax expense 9,952 10,163 16,637  18,868
    Net earnings (loss) from continuing operations 1,732 4,476 (5,757) 2,890
    Earnings from discontinued operations, net of tax - 387 -  387
    Net earnings (loss) 1,732 4,863 (5,757) 3,277
             
    Basic earnings (loss) per share 0.03 0.07 (0.09) 0.05
    Diluted earnings (loss) per share 0.03 0.07 (0.09) 0.05
             
    Excluded items:        
    Purchased intangible asset amortization (cost of revenue) 3,748 1,217 7,594  4,507
    Non-cash stock compensation (cost of revenue and operating expenses) 29,068 15,735 57,053  29,027
    Restructuring and merger charges (gains, losses, and other) 397 6,574 603  6,690
     Total excluded items from continuing operations 33,213 23,526 65,250  42,099
             
    Income from continuing operations before income taxes and excluding items 44,897 38,165 76,130  63,857
    Income tax expense (2) 10,745 9,036 18,116  15,203
    Non-GAAP net earnings from continuing operations 34,152 29,129 58,014  48,654
             
    Non-GAAP earnings per share from continuing operations:        
    Basic 0.52 0.44 0.87  0.73
    Diluted 0.51 0.43 0.85  0.72
             
    Basic weighted average shares 66,294 66,284 66,458  66,391
    Diluted weighted average shares, Non-GAAP 67,309 67,868 67,886  67,628
             
             
    (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.
             
    (2) Non-GAAP income taxes were calculated by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusting for discrete tax items in the period. The differences between our GAAP and non-GAAP effective tax rates were primarily due to the net tax effects of the excluded items, coupled with the valuation allowance and smaller pre-tax income for GAAP purposes.
             



             
             
    LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
    RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS (1)
    (Unaudited)
    (Dollars in thousands)
             
      For the three months ended September 30, For the six months ended September 30,
      2024  2023  2024  2023 
             
    Income from operations 7,487  8,208  2,239  10,478 
             
    Excluded items:        
    Purchased intangible asset amortization (cost of revenue) 3,748  1,217  7,594  4,507 
    Non-cash stock compensation (cost of revenue and operating expenses) 29,068  15,735  57,053  29,027 
    Restructuring and merger charges (gains, losses, and other) 397  6,574  603  6,690 
    Transformation costs (general and administrative) -  -  -  1,875 
    Total excluded items 33,213  23,526  65,250  42,099 
             
    Income from continuing operations before excluded items 40,700  31,734  67,489  52,577 
      21.9% 19.8% 18.7% 16.7%
             
             
    (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.
             



            
    LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands)
            
      September 30 March 31 $%
      2024  2024  VarianceVariance
    Assets       
    Current assets:       
    Cash and cash equivalents 338,946  336,867  2,079 0.6%
    Restricted cash 2,631  2,604  27 1.0%
    Short-term investments 9,494  32,045  (22,551)(70.4)%
    Trade accounts receivable, net 192,067  190,313  1,754 0.9%
    Refundable income taxes, net 4,195  8,521  (4,326)(50.8)%
    Other current assets 34,787  31,682  3,105 9.8%
    Total current assets 582,120  602,032  (19,912)(3.3)%
            
    Property and equipment 25,678  25,394  284 1.1%
    Less - accumulated depreciation and amortization 18,304  17,213  1,091 6.3%
    Property and equipment, net 7,374  8,181  (807)(9.9)%
            
    Intangible assets, net 26,989  34,583  (7,594)(22.0)%
    Goodwill 501,924  501,756  168 0.0%
    Deferred commissions, net 43,456  48,143  (4,687)(9.7)%
    Other assets, net 33,025  36,748  (3,723)(10.1)%
      1,194,888  1,231,443  (36,555)(3.0)%
            
    Liabilities and Stockholders' Equity       
    Current liabilities:       
    Trade accounts payable 91,457  81,202  10,255 12.6%
    Accrued payroll and related expenses 27,340  61,575  (34,235)(55.6)%
    Other accrued expenses 44,515  42,857  1,658 3.9%
    Deferred revenue 36,156  30,942  5,214 16.9%
    Total current liabilities 199,468  216,576  (17,108)(7.9)%
            
    Other liabilities 63,363  65,732  (2,369)(3.6)%
            
    Stockholders' equity:       
    Preferred stock -  -  - n/a
    Common stock 15,782  15,594  188 1.2%
    Additional paid-in capital 1,994,541  1,933,776  60,765 3.1%
    Retained earnings 1,308,415  1,314,172  (5,757)(0.4)%
    Accumulated other comprehensive income 5,083  3,964  1,119 28.2%
    Treasury stock, at cost (2,391,764) (2,318,371) (73,393)3.2%
    Total stockholders' equity 932,057  949,135  (17,078)(1.8)%
      1,194,888  1,231,443  (36,555)(3.0)%
            
            



          
    LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
    (Dollars in thousands)
       For the three months ended September 30,
       2024  2023 
     Cash flows from operating activities:    
     Net earnings 1,732  4,863 
     Earnings from discontinued operations, net of tax —  (387)
     Non-cash operating activities:    
     Depreciation and amortization 4,450  1,864 
     Loss (gain) on disposal or impairment of assets 15  (6)
     Lease-related impairment and restructuring charges —  2,315 
     Provision for doubtful accounts 695  (18)
     Impairment of goodwill —  2,875 
     Deferred income taxes 10  40 
     Non-cash stock compensation expense 29,068  15,735 
     Changes in operating assets and liabilities:    
     Accounts receivable, net 13,955  (1,867)
     Deferred commissions 1,946  (2,993)
     Other assets 331  735 
     Accounts payable and other liabilities 7,052  12,340 
     Income taxes (1,222) 6,463 
     Deferred revenue (2,436) (6,195)
     Net cash provided by operating activities 55,596  35,764 
     Cash flows from investing activities:    
     Capital expenditures (241) (200)
     Purchases of investments —  (24,385)
     Proceeds from sales of investments 22,995  25,750 
     Purchases of strategic investments —  (500)
     Net cash provided by investing activities 22,754  665 
     Cash flows from financing activities:    
     Proceeds related to the issuance of common stock under stock and employee benefit plans 160  2 
     Shares repurchased for tax withholdings upon vesting of stock-based awards (893) (677)
     Acquisition of treasury stock (49,868) (15,122)
     Net cash used in financing activities (50,601) (15,797)
     Cash flows from discontinued operations:    
     From operating activities —  387 
     Net cash provided by discontinued operations —  387 
     Effect of exchange rate changes on cash 814  377 
          
     Net change in cash, cash equivalents and restricted cash 28,563  21,396 
     Cash, cash equivalents and restricted cash at beginning of period 313,014  470,773 
     Cash, cash equivalents and restricted cash at end of period 341,577  492,169 
          
     Supplemental cash flow information:    
     Cash paid for income taxes, net from continuing operations 11,131  3,514 
     Cash received for income taxes, net from discontinued operations —  (595)
     Cash received for tenant improvement allowances (1,758) — 
     Cash paid for operating lease liabilities 2,539  2,689 
     Operating lease assets obtained in exchange for operating lease liabilities 193  1,112 
     Purchases of property, plant and equipment remaining unpaid at period end 238  211 
          



      
    LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES 
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
    (Unaudited) 
    (Dollars in thousands) 
       For the six months ended September 30, 
       2024  2023  
     Cash flows from operating activities:     
     Net earnings (loss) (5,757) 3,277  
     Earnings from discontinued operations, net of tax —  (387) 
     Non-cash operating activities:     
     Depreciation and amortization 9,004  5,903  
     Gain on disposal or impairment of assets 20  302  
     Lease-related impairment and restructuring charges (36) 2,315  
     Provision for doubtful accounts 1,245  (237) 
     Impairment of goodwill —  2,875  
     Deferred income taxes 38  87  
     Non-cash stock compensation expense 57,053  29,027  
     Changes in operating assets and liabilities:     
     Accounts receivable, net (2,627) (16,258) 
     Deferred commissions 4,687  (2,907) 
     Other assets 3,998  5,743  
     Accounts payable and other liabilities (31,994) (12,885) 
     Income taxes 5,570  43,699  
     Deferred revenue 5,067  903  
     Net cash provided by operating activities 46,268  61,457  
     Cash flows from investing activities:     
     Capital expenditures (467) (253) 
     Purchases of investments (1,967) (24,385) 
     Proceeds from sales of investments 24,995  25,750  
     Purchases of strategic investments (400) (1,000) 
     Net cash provided by investing activities 22,161  112  
     Cash flows from financing activities:     
     Proceeds related to the issuance of common stock under stock and employee benefit plans 6,327  5,575  
     Shares repurchased for tax withholdings upon vesting of stock-based awards (7,740) (4,569) 
     Acquisition of treasury stock (65,653) (35,325) 
     Net cash used in financing activities (67,066) (34,319) 
     Cash flows from discontinued operations:     
     From operating activities —  387  
     Net cash provided by discontinued operations —  387  
     Effect of exchange rate changes on cash 743  84  
           
     Net change in cash, cash equivalents and restricted cash 2,106  27,721  
     Cash, cash equivalents and restricted cash at beginning of period 339,471  464,448  
     Cash, cash equivalents and restricted cash at end of period 341,577  492,169  
           
     Supplemental cash flow information:     
     Cash paid (received) for income taxes, net from continuing operations 11,000  (25,139) 
     Cash received for income taxes, net from discontinued operations —  (595) 
     Cash received for tenant improvement allowances (1,758) —  
     Cash paid for operating lease liabilities 4,877  5,148  
     Operating lease assets obtained in exchange for operating lease liabilities 1,043  11,677  
     Operating lease assets, and related lease liabilities, relinquished in lease terminations (555) (4,486) 
     Purchases of property, plant and equipment remaining unpaid at period end 238  211  
           



                
    LIVERAMP HOLDINGS, INC AND SUBSIDIARIES
    CALCULATION OF FREE CASH FLOW TO EQUITY (1)
    (Unaudited)
    (Dollars in thousands)
                
                
       6/30/20239/30/202312/31/20233/31/2024FY2024 6/30/20249/30/2024FY2025
                
    Net Cash Provided by (Used in) Operating Activities $25,693 $35,764 $16,556 $27,643 $105,656  $(9,328)$55,596 $46,268 
                
    Less:          
     Capital expenditures  (53) (200) (2,211) (1,791) (4,255)  (226) (241) (467)
                
    Free Cash Flow to Equity $25,640 $35,564 $14,345 $25,852 $101,401  $(9,554)$55,355 $45,801 
                
                
    (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.
                


                  
    LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
    (Dollars in thousands, except per share amounts)
                Qtr-to-Qtr
      FY2024 FY2025 FY2025 to FY2024
      6/30/20239/30/202312/31/20233/31/2024FY2024 6/30/20249/30/2024FY2025 %$
                  
    Revenues  154,069  159,871  173,869  171,852  659,661   175,961  185,483  361,444  16.0%25,612 
    Cost of revenue  45,621  41,212  44,934  47,722  179,489   51,749  51,234  102,983  24.3%10,022 
    Gross profit  108,448  118,659  128,935  124,130  480,172   124,212  134,249  258,461  13.1%15,590 
    % Gross margin  70.4 % 74.2 % 74.2 % 72.2 % 72.8 %  70.6 % 72.4 % 71.5 %   
                  
    Operating expenses             
    Research and development  34,519  33,733  37,788  45,161  151,201   44,118  43,889  88,007  30.1%10,156 
    Sales and marketing  44,879  44,135  46,203  60,476  195,693   54,175  51,107  105,282  15.8%6,972 
    General and administrative  26,664  26,009  27,241  30,252  110,166   30,961  31,369  62,330  20.6%5,360 
    Gains, losses and other items, net  116  6,574  2,502  2,516  11,708   206  397  603  (94.0)%(6,177)
    Total operating expenses  106,178  110,451  113,734  138,405  468,768   129,460  126,762  256,222  14.8%16,311 
                  
    Income (loss) from operations  2,270  8,208  15,201  (14,275) 11,404   (5,248) 7,487  2,239  (8.8)%(721)
    % Margin  5.0 % 24.3 % 40.2 % (31.6)% 1.7 %  (3.0)% 4.0 % 0.6 %   
                  
    Total other income, net  4,849  6,431  6,607  5,070  22,957   4,444  4,197  8,641  (34.7)%(2,234)
                  
    Income (loss) from continuing operations before income taxes  7,119  14,639  21,808  (9,205) 34,361   (804) 11,684  10,880  (20.2)%(2,955)
    Income tax expense (benefit)  8,705  10,163  8,429  (3,027) 24,270   6,685  9,952  16,637  (2.1)%(211)
    Net earnings (loss) from continuing operations  (1,586) 4,476  13,379  (6,178) 10,091   (7,489) 1,732  (5,757) (61.3)%(2,744)
                  
    Earnings from discontinued operations, net of tax  -  387  598  805  1,790   -  -  -  (100.0)%(387)
                  
    Net earnings (loss) $(1,586)$4,863 $13,977 $(5,373)$11,881  $(7,489)$1,732 $(5,757) (64.4)%(3,131)
                  
    Basic earnings (loss) per share:             
    Continuing operations  (0.02) 0.07  0.20  (0.09) 0.15   (0.11) 0.03  (0.09) (61.3)%(0.04)
    Discontinued operations  0.00  0.01  0.01  0.01  0.03   0.00  0.00  0.00  (100.0)%(0.01)
    Basic earnings (loss) per share  (0.02) 0.07  0.21  (0.08) 0.18   (0.11) 0.03  (0.09) (64.4)%(0.05)
                  
    Diluted earnings (loss) per share:             
    Continuing operations  (0.02) 0.07  0.20  (0.09) 0.15   (0.11) 0.03  (0.09) (61.0)%(0.04)
    Discontinued operations  0.00  0.01  0.01  0.01  0.03   0.00  0.00  0.00  (100.0)%(0.01)
    Diluted earnings (loss) per share  (0.02) 0.07  0.21  (0.08) 0.17   (0.11) 0.03  (0.09) (64.1)%(0.05)
                  
                  
    Some earnings (loss) per share amounts may not add due to rounding.           
                  
                  
    Basic weighted average shares  66,497  66,284  65,961  66,323  66,266   66,621  66,294  66,458    
    Diluted weighted average shares  66,497  67,868  67,943  66,323  67,918   66,621  67,309  66,458    
                  

     



               
    LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
    RECONCILIATION OF GAAP TO NON-GAAP EXPENSES (1)
    (Unaudited)
    (Dollars in thousands)
      FY2024 FY2025
      6/30/239/30/2312/31/233/31/24FY2024 6/30/249/30/24FY2025
    Expenses:          
    Cost of revenue 45,621 41,212 44,934 47,722 179,489  51,749 51,234 102,983 
    Research and development 34,519 33,733 37,788 45,161 151,201  44,118 43,889 88,007 
    Sales and marketing 44,879 44,135 46,203 60,476 195,693  54,175 51,107 105,282 
    General and administrative 26,664 26,009 27,241 30,252 110,166  30,961 31,369 62,330 
    Gains, losses and other items, net 116 6,574 2,502 2,516 11,708  206 397 603 
               
    Gross profit, continuing operations: 108,448 118,659 128,935 124,130 480,172  124,212 134,249 258,461 
    % Gross margin 70.4%74.2%74.2%72.2%72.8% 70.6%72.4%71.5%
               
    Excluded items:          
    Purchased intangible asset amortization (cost of revenue) 3,290 1,217 1,181 3,097 8,785  3,846 3,748 7,594 
    Non-cash stock compensation (cost of revenue) 629 629 817 1,478 3,553  1,596 1,499 3,095 
    Non-cash stock compensation (research and development) 5,077 5,293 6,960 9,859 27,189  10,205 10,920 21,125 
    Non-cash stock compensation (sales and marketing) 3,736 4,786 4,089 6,337 18,948  7,093 7,383 14,476 
    Non-cash stock compensation (general and administrative) 3,850 5,027 5,631 7,106 21,614  9,091 9,266 18,357 
    Restructuring charges (gains, losses, and other) 116 6,574 2,502 2,516 11,708  206 397 603 
    Transformation costs (general and administrative) 1,875 — — — 1,875  — — — 
    Total excluded items 18,573 23,526 21,180 30,393 93,672  32,037 33,213 65,250 
               
    Expenses, excluding items:          
    Cost of revenue 41,702 39,366 42,936 43,147 167,151  46,307 45,987 92,294 
    Research and development 29,442 28,440 30,828 35,302 124,012  33,913 32,969 66,882 
    Sales and marketing 41,143 39,349 42,114 54,139 176,745  47,082 43,724 90,806 
    General and administrative 20,939 20,982 21,610 23,146 86,677  21,870 22,103 43,973 
    Gains, losses and other items, net — — — — —  — — — 
               
    Gross profit, excluding items: 112,367 120,505 130,933 128,705 492,510  129,654 139,496 269,150 
    % Gross margin 72.9%75.4%75.3%74.9%74.7% 73.7%75.2%74.5%
               
    (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
               



               
    LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
    RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
    (Unaudited)
    (Dollars in thousands, except per share amounts)
      FY2024 FY2025
      6/30/20239/30/202312/31/20233/31/2024FY2024 6/30/20249/30/2024FY2025
               
    Income (loss) from continuing operations before income taxes 7,119 14,63921,808(9,205)34,361 (804)11,68410,880 
    Income tax expense (benefit) 8,705 10,1638,429(3,027)24,270 6,685 9,95216,637 
    Net earnings (loss) from continuing operations (1,586)4,47613,379(6,178)10,091 (7,489)1,732(5,757)
               
    Earnings from discontinued operations, net of tax - 387598805 1,790 - -- 
               
    Net earnings (loss) (1,586)4,86313,977(5,373)11,881 (7,489)1,732(5,757)
               
    Earnings (loss) per share:          
    Basic (0.02)0.070.21(0.08)0.18 (0.11)0.03(0.09)
    Diluted (0.02)0.070.21(0.08)0.17 (0.11)0.03(0.09)
               
    Excluded items:          
    Purchased intangible asset amortization (cost of revenue) 3,290 1,2171,1813,097 8,785 3,846 3,7487,594 
    Non-cash stock compensation (cost of revenue and operating expenses) 13,292 15,73517,49724,780 71,304 27,985 29,06857,053 
    Restructuring and merger charges (gains, losses, and other) 116 6,5742,5022,516 11,708 206 397603 
    Transformation costs (general and administrative) 1,875 --- 1,875 - -- 
     Total excluded items from continuing operations 18,573 23,52621,18030,393 93,672 32,037 33,21365,250 
               
    Income from continuing operations before income taxes and excluding items 25,692 38,16542,98821,188 128,033 31,233 44,89776,130 
    Income tax expense 6,167 9,03610,7323,947 29,882 7,371 10,74518,116 
    Non-GAAP net earnings from continuing operations 19,525 29,12932,25617,241 98,151 23,862 34,15258,014 
               
    Non-GAAP earnings per share from continuing operations:          
    Basic 0.29 0.440.490.26 1.48 0.36 0.520.87 
    Diluted 0.29 0.430.470.25 1.45 0.35 0.510.85 
               
    Basic weighted average shares 66,497 66,28465,96166,323 66,266 66,621 66,29466,458 
    Diluted weighted average shares, Non-GAAP 67,388 67,86867,94368,471 67,918 68,463 67,30967,886 
               
               
    Some totals may not add due to rounding          
               
    (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.
               



          
    LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
    RECONCILIATION OF GAAP TO NON-GAAP OPERATING INCOME GUIDANCE (1)
    (Unaudited)
    (Dollars in thousands)
          
       For the quarter ending For the year ending
      December 31, 2024 March 31, 2025
          
        LowHigh
          
    GAAP income from operations $8,000 $6,000$8,000
          
    Excluded items:     
    Purchased intangible asset amortization  4,000  15,000 15,000
    Non-cash stock compensation  27,000  111,000 111,000
    Restructuring costs  -  1,000 1,000
    Total excluded items  31,000  127,000 127,000
          
    Non-GAAP income from operations $39,000 $133,000$135,000
          
          
    (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
          



    APPENDIX A
    LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
    Q2 FISCAL 2025 FINANCIAL RESULTS
    EXPLANATION OF NON-GAAP MEASURES AND OTHER KEY METRICS
     
    To supplement our financial results, we use non-GAAP measures which exclude certain acquisition related expenses, non-cash stock compensation and restructuring charges. We believe these measures are helpful in understanding our past performance and our future results. Our non-GAAP financial measures and schedules are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated GAAP financial statements. Our management regularly uses these non-GAAP financial measures internally to understand, manage and evaluate our business and to make operating decisions. These measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is also based in part on the performance of our business based on these non-GAAP measures.
     
    Our non-GAAP financial measures, including non-GAAP earnings (loss) per share, income (loss) from operations and adjusted EBITDA reflect adjustments based on the following items, as well as the related income tax effects when applicable:
     
    Purchased intangible asset amortization: We incur amortization of purchased intangibles in connection with our acquisitions. Purchased intangibles include (i) developed technology, (ii) customer and publisher relationships, and (iii) trade names. We expect to amortize for accounting purposes the fair value of the purchased intangibles based on the pattern in which the economic benefits of the intangible assets will be consumed as revenue is generated. Although the intangible assets generate revenue for us, we exclude this item because this expense is non-cash in nature and because we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our operational performance.
     
    Non-cash stock compensation: Non-cash stock compensation consists of charges for associate restricted stock units, performance shares and stock options in accordance with current GAAP related to stock-based compensation including expense associated with stock-based compensation related to unvested options assumed in connection with our acquisitions. As we apply stock-based compensation standards, we believe that it is useful to investors to understand the impact of the application of these standards to our operational performance. Although stock-based compensation expense is calculated in accordance with current GAAP and constitutes an ongoing and recurring expense, such expense is excluded from non-GAAP results because it is not an expense that typically requires or will require cash settlement by us and because such expense is not used by us to assess the core profitability of our business operations.
     
    Restructuring charges: During the past several years, we have initiated certain restructuring activities in order to align our costs in connection with both our operating plans and our business strategies based on then-current economic conditions. As a result, we recognized costs related to termination benefits for employees whose positions were eliminated, lease and other contract termination charges, and asset impairments. These items, as well as third party expenses associated with business acquisitions in the current year, reported as gains, losses, and other items, net, are excluded from non-GAAP results because such amounts are not used by us to assess the core profitability of our business operations.
     
    Transformation costs: In previous years, we incurred significant expenses to separate the financial statements of our operating segments, with particular focus on segment-level balance sheets, and to evaluate portfolio priorities. Our criteria for excluding transformation expenses from our non-GAAP measures is as follows: 1) projects are discrete in nature; 2) excluded expenses consist only of third-party consulting fees that we would not incur otherwise; and 3) we do not exclude employee related expenses or other costs associated with the ongoing operations of our business. We substantially completed those projects during the third quarter of fiscal year 2018. Beginning in the fourth quarter of fiscal 2018, and through most of fiscal 2019, we incurred transaction support expenses and system separation costs related to the Company's announced evaluation of strategic options for its Marketing Solutions (AMS) business. In the first and second quarters of fiscal 2021 in response to the potential COVID-19 pandemic impact on our business and again during fiscal 2023 in response to macroeconomic conditions, we incurred significant costs associated with the assessment of strategic and operating plans, including our long-term location strategy, and assistance in implementing the restructuring activities as a result of this assessment.  Our criteria for excluding these costs are the same. We believe excluding these items from our non-GAAP financial measures is useful for investors and provides meaningful supplemental information.
     
    Our non-GAAP financial schedules are:
     
    Non-GAAP EPS, Non-GAAP Income from Operations, and Non-GAAP expenses: Our Non-GAAP earnings per share, Non-GAAP income from operations, and Non-GAAP expenses reflect adjustments as described above, as well as the related tax effects where applicable.
     
    Adjusted EBITDA: Adjusted EBITDA is defined as net income from continuing operations before income taxes, other expenses, depreciation and amortization, and including adjustments as described above. We use Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as within our operating segments and to compare our results to those of our competitors. We believe that the inclusion of Adjusted EBITDA provides useful supplementary information to and facilitates analysis by investors in evaluating the Company's performance and trends. The presentation of Adjusted EBITDA is not meant to be considered in isolation or as an alternative to net earnings as an indicator of our performance.
     
    Free Cash Flow to Equity: To supplement our statement of cash flows, we use a non-GAAP measure of cash flow to analyze cash flows generated from operations. Free cash flow to equity is defined as operating cash flow less cash used by investing activities (excluding the impact of cash paid in acquisitions), less required payments of debt, and excluding the impact of discontinued operations. Management believes that this measure of cash flow is meaningful since it represents the amount of money available from continuing operations for the Company's discretionary spending after funding all required obligations including scheduled debt payments. The presentation of non-GAAP free cash flow to equity is not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.
     


    LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES 
    RECONCILIATION OF ADJUSTED EBITDA (1) 
    (Unaudited) 
    (Dollars in thousands) 
              
      For the three months ended September 30, For the six months ended September 30, 
      2024  2023  2024  2023  
              
    Net earnings (loss) from continuing operations 1,732  4,476  (5,757) 2,890  
    Income tax expense 9,952  10,163  16,637  18,868  
    Total other income, net (4,197) (6,431) (8,641) (11,280) 
              
    Income from operations 7,487  8,208  2,239  10,478  
    Depreciation and amortization 4,450  1,864  9,004  5,903  
              
    EBITDA 11,937  10,072  11,243  16,381  
              
    Other adjustments:         
    Non-cash stock compensation (cost of revenue and operating expenses) 29,068  15,735  57,053  29,027  
    Restructuring and merger charges (gains, losses, and other) 397  6,574  603  6,690  
    Transformation costs (general and administrative) -  -  -  1,875  
              
    Other adjustments 29,465  22,309  57,656  37,592  
              
    Adjusted EBITDA 41,402  32,381  68,899  53,973  
              
              
              
    (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.





    		 
     
     
     

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