Revenue up 10% year-over-year
GAAP Operating Margin of 9% and Non-GAAP
Operating Margin of 21%
Operating Cash Flow Fiscal YTD of $78
million versus $4 million a year-ago
Closed Habu Acquisition on January 31 to
Accelerate the Company’s Data Collaboration Strategy
LiveRamp® (NYSE: RAMP), the leading data collaboration platform,
today announced its financial results for the fiscal 2024 third
quarter ended December 31, 2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240208650365/en/
Q3 Financial Highlights1
- Total revenue was $174 million, up 10%.
- Subscription revenue was $132 million, up 5%.
- Marketplace & Other revenue was $42 million, up 29%.
- GAAP gross profit was $129 million, up 12%. GAAP gross margin
of 74% expanded by 1 percentage point. Non-GAAP gross profit was
$131 million, up 8%. Non-GAAP gross margin of 75% contracted by 1
percentage point.
- GAAP operating income was $15 million compared to a loss of $24
million. GAAP operating margin was 9% compared to negative 15%.
Non-GAAP operating income was $36 million compared to $26 million.
Non-GAAP operating margin of 21% expanded by 5 percentage
points.
- GAAP diluted earnings per share was $0.21 and non-GAAP diluted
earnings per share was $0.47.
- Net cash provided by operating activities was $17 million
compared to $16 million.
- Share repurchases in the third quarter totaled approximately
347,000 shares for $10 million, bringing the fiscal year-to-date
total to 1.7 million shares for $45 million.
A reconciliation between GAAP and non-GAAP results is provided
in the schedules to this press release.
"We outperformed again this quarter, with revenue and operating
income ahead of our expectations,” said LiveRamp CEO Scott
Howe. “Our forward sales momentum also continued in the
quarter, including another strong new logo quarter, demonstrating
healthy customer demand and good sales execution. We are moving
quickly to integrate the recently closed Habu acquisition, and the
initial customer response reinforces our confidence in the power of
this combination.”
__________________________ 1Unless otherwise indicated, all
comparisons are to the prior year period.
GAAP and Non-GAAP Results
The following table summarizes the Company’s financial results
for the fiscal 2024 third quarter ended December 31, 2023 ($ in
millions, except per share amounts):
GAAP
Non-GAAP
Q3 FY24
Q3 FY23
Q3 FY24
Q3 FY23
Subscription revenue
$132
$126
—
—
YoY change %
5%
14%
—
—
Marketplace & Other revenue
$42
$32
—
—
YoY change %
29%
9%
—
—
Total revenue
$174
$159
—
—
YoY change %
10%
13%
—
—
Gross profit
$129
$115
$131
$121
% Gross margin
74%
73%
75%
76%
YoY change, pts
1 pt
0 pts
(1 pt)
(1 pt)
Operating income (loss)
$15
($24)
$36
$26
% Operating margin
9%
(15%)
21%
16%
YoY change, pts
24 pts
(5 pts)
5 pts
6 pts
Net earnings (loss)
$14
($30)
$32
$19
Diluted earnings (loss) per
share
$0.21
($0.46)
$0.47
$0.28
Shares to calculate diluted EPS
67.9
64.8
67.9
65.4
YoY change %
5%
(5%)
4%
(7%)
Net operating cash flow
$17
$16
—
—
Free cash flow to equity
—
—
$14
$16
Totals may not sum 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 attached to this press release.
Additional Business Highlights & Metrics
- On January 31, 2024, we closed the acquisition of Habu, a
leading data clean room software provider. The acquisition will
further accelerate LiveRamp’s ability to offer global data
collaboration at scale, across all clouds and walled gardens,
unlocking powerful measurement and analytics use cases that will
bolster our growth and create value for shareholders (additional
information).
- During the quarter we announced the promotion of four senior
leaders to accelerate our recent momentum: Lauren Dillard to Chief
Financial Officer, Vihan Sharma to Chief Revenue Officer, Kimberly
Bloomston to Chief Product Officer, and Travis Clinger to Chief
Connectivity & Ecosystem Officer (additional information here
and here).
- In November 2023 we were selected as a 2023 Amazon Web Services
(AWS) Global Industry Partner of the Year for playing a key role
helping customers drive innovation and build solutions on AWS
(additional information). Similarly, in August 2023 we were
selected as a 2023 Google Cloud Platform (GCP) Partner of the
Year.
- In January 2024 Google deprecated third-party cookies for 1% of
Chrome users globally – the next milestone in Google’s previously
announced plan to phase out third-party cookies for all Chrome
users globally in the second half of 2024. LiveRamp’s Authenticated
Traffic Solution (ATS) for global addressability is a fully scaled
solution to help marketers deal with third-party cookie deprecation
by connecting publisher and marketer data to better personalize and
measure advertising on authenticated inventory.
- ATS has more than 165 supply-side platforms (SSPs) and
demand-side platforms (DSPs) live or committed to bid on RampID™
and ATS, including The Trade Desk, Xandr, Yahoo, Amobee, Criteo,
Adobe Ad Cloud, and Roku Oneview.
- To date, over 18,000 publisher domains and 70% of the comScore
100 publishers, have adopted ATS, including Amazon Publisher
Services, Microsoft, Hearst, CafeMedia, Leaf Group, Prisma Media
and Burda. Through these integrations, LiveRamp is now connected to
over 92% of consumer time spent online in the US.
- LiveRamp ended the quarter with 105 customers whose
subscription contracts exceed $1 million in annual revenue,
compared to 94 in the prior year period.
- LiveRamp ended the quarter with 895 direct subscription
customers, compared to 910 in the prior year period.
- Third quarter subscription net retention was 101% and platform
net retention was 105%.
- Current remaining performance obligations (CRPO), which is
contracted and committed revenue expected to be recognized over the
next 12 months, was $382 million, up 18% 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 fourth quarter of fiscal 2024, LiveRamp expects to
report:
- Revenue of between $158 million and $162 million, an increase
of between 6% and 9%
- GAAP operating loss of between $18 million and $17 million
- Non-GAAP operating income of between $13 million and $14
million
For fiscal 2024, LiveRamp updates its guidance and expects to
report:
- Revenue of between $646 million and $650 million, an increase
of between 8% and 9%
- GAAP operating income of between $8 million and $9 million
- Non-GAAP operating income of between $102 million and $103
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.
RampUp 2024 Conference
RampUp is the Company’s annual customer and partner conference
that brings together leaders across marketing, media, technology
and more to discuss data collaboration. This year’s conference is
being held on February 27-29 in San Francisco. For additional
information please visit the RampUp 2024 website. Members of the
financial community who are interested in attending, please contact
investor relations.
About LiveRamp
LiveRamp is the data collaboration platform of choice for the
world’s most innovative companies. A groundbreaking leader in
consumer privacy, data ethics, and foundational identity, LiveRamp
is setting the new standard for building a connected customer view
with unmatched clarity and context while protecting precious brand
and consumer trust. LiveRamp offers complete flexibility to
collaborate wherever data lives to support the widest range of data
collaboration use cases—within organizations, between brands, and
across its premier global network of top-quality partners. Hundreds
of global innovators, from iconic consumer brands and tech giants
to banks, retailers, and healthcare leaders, turn to LiveRamp to
build enduring brand and business value by deepening customer
engagement and loyalty, activating new partnerships, and maximizing
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 2024 and beyond, the
integration and expected benefits from the acquisition of Habu,
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 rising
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 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 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,
please refer to LiveRamp’s Annual Report on Form 10-K for our
fiscal year 2023 ended March 31, 2023, and LiveRamp's Quarterly
Reports on Form 10-Q issued in fiscal year 2024.
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.
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.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in
thousands, except per share amounts) For the Three Months
Ended December 31, $ %
2023
2022
Variance Variance Revenues
173,869
158,615
15,254
9.6
%
Cost of revenue
44,934
43,287
1,647
3.8
%
Gross profit
128,935
115,328
13,607
11.8
%
% Gross margin
74.2
%
72.7
%
Operating expenses: Research and development
37,788
43,175
(5,387
)
(12.5
%)
Sales and marketing
46,203
47,702
(1,499
)
(3.1
%)
General and administrative
27,241
36,657
(9,416
)
(25.7
%)
Gains, losses and other items, net
2,502
11,743
(9,241
)
(78.7
%)
Total operating expenses
113,734
139,277
(25,543
)
(18.3
%)
Income (loss) from operations
15,201
(23,949
)
39,150
163.5
%
%
Margin
8.7
%
-15.1
%
Total other income (expense), net
6,607
(736
)
7,343
997.7
%
Income (loss) from continuing operations before income taxes
21,808
(24,685
)
46,493
188.3
%
Income tax expense
8,429
5,835
2,594
44.5
%
Net earnings (loss) from continuing operations
13,379
(30,520
)
43,899
143.8
%
Earnings from discontinued operations, net of tax
598
836
(238
)
(28.5
%)
Net earnings (loss)
13,977
(29,684
)
43,661
147.1
%
Basic earnings (loss) per share: Continuing operations
0.20
(0.47
)
0.67
143.1
%
Discontinued operations
0.01
0.01
(0.00
)
n/a
Basic earnings (loss) per share
0.21
(0.46
)
0.67
146.2
%
Diluted earnings (loss) per share: Continuing operations
0.20
(0.47
)
0.67
141.8
%
Discontinued operations
0.01
0.01
(0.00
)
n/a
Diluted earnings (loss) per share:
0.21
(0.46
)
0.66
144.9
%
Basic weighted average shares
65,961
64,784
Diluted weighted average shares
67,943
64,784
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 Nine Months Ended December 31, $ %
2023
2022
Variance Variance Revenues
487,809
447,957
39,852
8.9
%
Cost of revenue
131,767
126,612
5,155
4.1
%
Gross profit
356,042
321,345
34,697
10.8
%
% Gross margin
73.0
%
71.7
%
Operating expenses: Research and development
106,040
136,975
(30,935
)
(22.6
%)
Sales and marketing
135,217
144,931
(9,714
)
(6.7
%)
General and administrative
79,914
92,519
(12,605
)
(13.6
%)
Gains, losses and other items, net
9,192
25,593
(16,401
)
(64.1
%)
Total operating expenses
330,363
400,018
(69,655
)
(17.4
%)
Income (loss) from operations
25,679
(78,673
)
104,352
132.6
%
%
Margin
5.3
%
-17.6
%
Total other income, net
17,887
2,211
15,676
709.0
%
Income (loss) from continuing operations before income taxes
43,566
(76,462
)
120,028
157.0
%
Income tax expense
27,297
11,712
15,585
133.1
%
Net earnings (loss) from continuing operations
16,269
(88,174
)
104,443
118.5
%
Earnings from discontinued operations, net of tax
985
836
149
17.8
%
Net earnings (loss)
17,254
(87,338
)
104,592
119.8
%
Basic earnings (loss) per share: Continuing operations
0.25
(1.32
)
1.57
118.6
%
Discontinued operations
0.01
0.01
0.00
18.7
%
Basic earnings (loss) per share
0.26
(1.31
)
1.57
119.9
%
Diluted earnings (loss) per share: Continuing operations
0.24
(1.32
)
1.56
118.2
%
Discontinued operations
0.01
0.01
0.00
16.1
%
Diluted earnings (loss) per share:
0.25
(1.31
)
1.56
119.5
%
Basic weighted average shares
66,247
66,761
Diluted weighted average shares
67,733
66,761
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 For the Nine Months Ended December 31,
December 31,
2023
2022
2023
2022
Income (loss) from continuing operations before income taxes
21,808
(24,685
)
43,566
(76,462
)
Income tax expense
8,429
5,835
27,297
11,712
Net earnings (loss) from continuing operations
13,379
(30,520
)
16,269
(88,174
)
Earnings from discontinued operations, net of tax
598
836
985
836
Net earnings (loss)
13,977
(29,684
)
17,254
(87,338
)
Earnings (loss) per share: Basic
0.21
(0.46
)
0.26
(1.31
)
Diluted
0.21
(0.46
)
0.25
(1.31
)
Excluded items: Purchased intangible asset amortization
(cost of revenue)
1,181
4,209
5,688
13,489
Non-cash stock compensation (cost of revenue and operating
expenses)
17,497
29,624
46,524
81,142
Transformation costs (general and administrative)
-
4,112
1,875
5,362
Restructuring charges (gains, losses, and other)
2,502
11,743
9,192
25,593
Total excluded items, continuing operations
21,180
49,688
63,279
125,586
Income from continuing operations before income taxes and
excluding items
42,988
25,003
106,845
49,124
Income tax expense (2)
10,732
6,468
25,935
12,262
Non-GAAP net earnings from continuing operations
32,256
18,535
80,910
36,862
Non-GAAP earnings per share from continuing operations:
Basic
0.49
0.29
1.22
0.55
Diluted
0.47
0.28
1.19
0.55
Basic weighted average shares
65,961
64,784
66,247
66,761
Diluted weighted average shares
67,943
65,356
67,733
67,373
(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.
(2) 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 larger pre-tax losses for GAAP purposes versus
smaller pre-tax losses or income for non-GAAP purposes.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INCOME (LOSS) FROM
OPERATIONS (1) (Unaudited) (Dollars in thousands) For
the Three Months Ended For the Nine Months Ended December 31,
December 31,
2023
2022
2023
2022
Income (loss) from continuing operations
15,201
(23,949
)
25,679
(78,673
)
Excluded items: Purchased intangible asset amortization
(cost of revenue)
1,181
4,209
5,688
13,489
Non-cash stock compensation (cost of revenue and operating
expenses)
17,497
29,624
46,524
81,142
Transformation costs (general and administrative)
-
4,112
1,875
5,362
Restructuring charges (gains, losses, and other)
2,502
11,743
9,192
25,593
Total excluded items
21,180
49,688
63,279
125,586
Income from continuing operations before excluded items
36,381
25,739
88,958
46,913
(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 ADJUSTED
EBITDA (1) (Unaudited) (Dollars in thousands) For the Three
Months Ended For the Nine Months Ended December 31, December 31,
2023
2022
2023
2022
Net earnings (loss) from continuing operations
13,379
(30,520
)
16,269
(88,174
)
Income tax expense
8,429
5,835
27,297
11,712
Other income
(6,607
)
736
(17,887
)
(2,211
)
Income (loss) from operations
15,201
(23,949
)
25,679
(78,673
)
Depreciation and amortization
1,782
5,131
7,685
16,561
EBITDA
16,983
(18,818
)
33,364
(62,112
)
Other adjustments: Non-cash stock compensation (cost of
revenue and operating expenses)
17,497
29,624
46,524
81,142
Transformation costs (general and administrative)
-
4,112
1,875
5,362
Restructuring charges (gains, losses, and other)
2,502
11,743
9,192
25,593
Other adjustments
19,999
45,479
57,591
112,097
Adjusted EBITDA
36,982
26,661
90,955
49,985
(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.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
BALANCE SHEETS (Dollars in thousands) December 31, March 31,
$ %
2023
2023
Variance Variance
Assets
Current assets: Cash and cash equivalents
498,946
464,448
34,498
7.4
%
Short-term investments
32,264
32,807
(543
)
(1.7
%)
Trade accounts receivable, net
199,383
157,379
42,004
26.7
%
Refundable income taxes, net
1,143
28,897
(27,754
)
(96.0
%)
Other current assets
37,926
31,028
6,898
22.2
%
Total current assets
769,662
714,559
55,103
7.7
%
Property and equipment
35,125
39,393
(4,268
)
(10.8
%)
Less - accumulated depreciation and amortization
26,923
32,308
(5,385
)
(16.7
%)
Property and equipment, net
8,202
7,085
1,117
15.8
%
Intangible assets, net
4,180
9,868
(5,688
)
(57.6
%)
Goodwill
360,227
363,116
(2,889
)
(0.8
%)
Deferred commissions, net
44,172
37,030
7,142
19.3
%
Other assets, net
38,298
41,045
(2,747
)
(6.7
%)
1,224,741
1,172,703
52,038
4.4
%
Liabilities and Stockholders'
Equity Current liabilities: Trade accounts payable
88,797
86,568
2,229
2.6
%
Accrued payroll and related expenses
47,398
33,434
13,964
41.8
%
Other accrued expenses
42,600
35,736
6,864
19.2
%
Deferred revenue
29,957
19,091
10,866
56.9
%
Total current liabilities
208,752
174,829
33,923
19.4
%
Other liabilities
69,499
71,798
(2,299
)
(3.2
%)
Stockholders' equity: Preferred stock
-
-
-
n/a
Common stock
15,542
15,399
143
0.9
%
Additional paid-in capital
1,909,370
1,855,916
53,454
2.9
%
Retained earnings
1,319,545
1,302,291
17,254
1.3
%
Accumulated other comprehensive income
4,508
4,504
4
0.1
%
Treasury stock, at cost
(2,302,475
)
(2,252,034
)
(50,441
)
2.2
%
Total stockholders' equity
946,490
926,076
20,414
2.2
%
1,224,741
1,172,703
52,038
4.4
%
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in
thousands) For the Three Months Ended December 31,
2023
2022
Cash flows from operating activities: Net earnings (loss)
13,977
(29,684
)
Earnings from discontinued operations, net of tax
(598
)
(836
)
Non-cash operating activities: Depreciation and amortization
1,782
5,131
Loss on disposal or impairment of assets
911
4,124
Lease impairments
-
5,940
Provision for doubtful accounts
544
613
Deferred income taxes
(47
)
(14
)
Non-cash stock compensation expense
17,497
29,624
Changes in operating assets and liabilities: Accounts receivable
(24,778
)
(15,722
)
Deferred commissions
(4,235
)
(1,203
)
Other assets
(4,831
)
(7,372
)
Accounts payable and other liabilities
21,639
20,168
Income taxes
(14,139
)
5,454
Deferred revenue
8,834
(453
)
Net cash provided by operating activities
16,556
15,770
Cash flows from investing activities: Capital expenditures
(2,211
)
(179
)
Purchases of investments
-
(3,000
)
Proceeds from sale of investments
-
3,000
Purchases of strategic investments
-
(500
)
Net cash used in investing activities
(2,211
)
(679
)
Cash flows from financing activities: Proceeds related to the
issuance of common stock under stock and employee benefit plans
1,646
1,664
Shares repurchased for tax withholdings upon vesting of stock-based
awards
(547
)
(764
)
Acquisition of treasury stock
(10,000
)
(49,906
)
Net cash used in financing activities
(8,901
)
(49,006
)
Cash flows from discontinued operations: From operating activities
598
836
Net cash provided by discontinued operations
598
836
Effect of exchange rate changes on cash
735
993
Net change in cash and cash equivalents
6,777
(32,086
)
Cash and cash equivalents at beginning of period
492,169
485,602
Cash and cash equivalents at end of period
498,946
453,516
Supplemental cash flow information: Cash paid for
income taxes, net - continuing operations
22,699
556
Cash (received) for income taxes, net - discontinued operations
(912
)
(1,307
)
Cash paid for operating lease liabilities
2,551
2,472
Operating lease assets obtained in exchange for operating lease
liabilities
-
69
Purchases of property, plant, & equipment, net remaining unpaid
at end of period
1,218
77
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in
thousands) For the Nine Months Ended December 31,
2023
2022
Cash flows from operating activities: Net earnings (loss)
17,254
(87,338
)
Earnings from discontinued operations, net of tax
(985
)
(836
)
Non-cash operating activities: Depreciation and amortization
7,685
16,561
Loss on disposal or impairment of assets
3,528
4,121
Gain on sale of strategic investment
-
(194
)
Lease impairments
-
18,165
Provision for doubtful accounts
307
1,728
Impairment of goodwill
2,875
-
Deferred income taxes
40
204
Non-cash stock compensation expense
46,524
81,142
Changes in operating assets and liabilities: Accounts receivable
(41,036
)
(27,171
)
Deferred commissions
(7,142
)
(2,123
)
Other assets
912
1,588
Accounts payable and other liabilities
8,754
(9,309
)
Income taxes
29,560
6,967
Deferred revenue
9,737
271
Net cash provided by operating activities
78,013
3,776
Cash flows from investing activities: Capital expenditures
(2,464
)
(4,593
)
Purchases of investments
(24,385
)
(3,000
)
Proceeds from sales of investments
25,750
3,000
Purchases of strategic investments
(1,000
)
(500
)
Proceeds from sales of strategic investments
-
400
Net cash used in investing activities
(2,099
)
(4,693
)
Cash flows from financing activities: Proceeds related to the
issuance of common stock under stock and employee benefit plans
7,221
6,255
Shares repurchased for tax withholdings upon vesting of stock-based
awards
(5,116
)
(2,054
)
Acquisition of treasury stock
(45,325
)
(149,997
)
Net cash used in financing activities
(43,220
)
(145,796
)
Cash flows from discontinued operations: From operating activities
985
836
Net cash provided by discontinued operations
985
836
Effect of exchange rate changes on cash
819
(769
)
Net change in cash and cash equivalents
34,498
(146,646
)
Cash and cash equivalents at beginning of period
464,448
600,162
Cash and cash equivalents at end of period
498,946
453,516
Supplemental cash flow information: Cash (received)
paid for income taxes, net - continuing operations
(2,440
)
4,725
Cash (received) for income taxes, net - discontinued operations
(1,507
)
(1,307
)
Cash paid for operating lease liabilities
7,699
5,733
Operating lease assets obtained in exchange for operating lease
liabilities
11,677
69
Operating lease assets relinquished in exchange for operating lease
liabilities
(4,486
)
(6,781
)
Purchases of property, plant, & equipment, net remaining unpaid
at end of period
1,218
77
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CALCULATION OF FREE
CASH FLOW TO EQUITY (1) (Unaudited) (Dollars in thousands)
06/30/22 09/30/22 12/31/22 03/31/23 FY2023 06/30/23 09/30/23
12/31/23 Net Cash Provided by (Used in) Operating
Activities-Continuing Operations
(33,369
)
21,375
15,770
30,665
34,441
25,693
35,764
16,556
Less: Capital expenditures
(1,741
)
(2,673
)
(179
)
(103
)
(4,696
)
(53
)
(200
)
(2,211
)
Free Cash Flow to Equity
(35,110
)
18,702
15,591
30,562
29,745
25,640
35,564
14,345
(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
STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except
per share amounts) FY24 to FY23 06/30/22 09/30/22 12/31/22
03/31/23 FY2023 06/30/23 09/30/23 12/31/23 FY2024 % $ Revenues
142,243
147,099
158,615
148,626
596,583
154,069
159,871
173,869
487,809
9.6
%
15,254
Cost of revenue
41,021
42,304
43,287
43,472
170,084
45,621
41,212
44,934
131,767
3.8
%
1,647
Gross profit
101,222
104,795
115,328
105,154
426,499
108,448
118,659
128,935
356,042
11.8
%
13,607
% Gross margin
71.2
%
71.2
%
72.7
%
70.8
%
71.5
%
70.4
%
74.2
%
74.2
%
73.0
%
Operating expenses Research and development
47,661
46,139
43,175
52,220
189,195
34,519
33,733
37,788
106,040
(12.5
%)
(5,387
)
Sales and marketing
51,280
45,949
47,702
57,506
202,437
44,879
44,135
46,203
135,217
(3.1
%)
(1,499
)
General and administrative
27,144
28,718
36,657
32,832
125,351
26,664
26,009
27,241
79,914
(25.7
%)
(9,416
)
Gains, losses and other items, net
739
13,111
11,743
9,723
35,316
116
6,574
2,502
9,192
(78.7
%)
(9,241
)
Total operating expenses
126,824
133,917
139,277
152,281
552,299
106,178
110,451
113,734
330,363
(18.3
%)
(25,543
)
Income (loss) from operations
(25,602
)
(29,122
)
(23,949
)
(47,127
)
(125,800
)
2,270
8,208
15,201
25,679
163.5
%
39,150
% Margin
-18.0
%
-19.8
%
-15.1
%
-31.7
%
-21.1
%
1.5
%
5.1
%
8.7
%
5.3
%
Total other income (expense), net
699
2,248
(736
)
4,735
6,946
4,849
6,431
6,607
17,887
997.7
%
7,343
Income (loss) from continuing operations before income taxes
(24,903
)
(26,874
)
(24,685
)
(42,392
)
(118,854
)
7,119
14,639
21,808
43,566
188.3
%
46,493
Income taxes expense (benefit)
2,315
3,562
5,835
(6,460
)
5,252
8,705
10,163
8,429
27,297
44.5
%
2,594
Net loss from continuing operations
(27,218
)
(30,436
)
(30,520
)
(35,932
)
(124,106
)
(1,586
)
4,476
13,379
16,269
143.8
%
43,899
Earnings from discontinued operations, net of tax
-
-
836
4,568
5,404
-
387
598
985
(28.5
%)
(238
)
Net earnings (loss)
(27,218
)
(30,436
)
(29,684
)
(31,364
)
(118,702
)
(1,586
)
4,863
13,977
17,254
147.1
%
43,661
Diluted earnings (loss) per share
(0.40
)
(0.45
)
(0.46
)
(0.48
)
(1.79
)
(0.02
)
0.07
0.21
0.25
n/a
0.66
Some earnings (loss) per share amounts may not add due to
rounding. Basic shares
68,403
67,096
64,784
65,126
66,352
66,497
66,284
65,961
66,247
Diluted shares
69,195
67,568
65,356
66,268
67,097
67,388
67,868
67,943
67,733
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF
GAAP TO NON-GAAP EXPENSES (1) (Unaudited) (Dollars in thousands)
06/30/22 09/30/22 12/31/22 03/31/23 FY2023 06/30/23 09/30/23
12/31/23 FY2024 Expenses, continuing operations: Cost of
revenue
41,021
42,304
43,287
43,472
170,084
45,621
41,212
44,934
131,767
Research and development
47,661
46,139
43,175
52,220
189,195
34,519
33,733
37,788
106,040
Sales and marketing
51,280
45,949
47,702
57,506
202,437
44,879
44,135
46,203
135,217
General and administrative
27,144
28,718
36,657
32,832
125,351
26,664
26,009
27,241
79,914
Gains, losses and other items, net
739
13,111
11,743.00
9,723
35,316
116
6,574
2,502
9,192
Gross profit, continuing operations:
101,222
104,795
115,328
105,154
426,499
108,448
118,659
128,935
356,042
% Gross margin
71.2
%
71.2
%
72.7
%
70.8
%
71.5
%
70.4
%
74.2
%
74.2
%
73.0
%
Excluded items: Purchased intangible asset amortization
(cost of revenue)
4,643
4,637
4,209
3,336
16,825
3,290
1,217
1,181
5,688
Non-cash stock compensation (cost of revenue)
1,163
1,293
1,208
2,653
6,317
629
629
817
2,075
Non-cash stock compensation (research and development)
11,656
12,360
10,654
20,737
55,407
5,077
5,293
6,960
17,330
Non-cash stock compensation (sales and marketing)
5,884
6,116
5,871
11,558
29,429
3,736
4,786
4,089
12,611
Non-cash stock compensation (general and administrative)
5,522
7,524
11,891
9,710
34,647
3,850
5,027
5,631
14,508
Restructuring charges (gains, losses, and other)
739
13,111
11,743
9,723
35,316
116
6,574
2,502
9,192
Transformation costs (general and administrative)
-
1,250
4,112
3,663
9,025
1,875
-
-
1,875
Total excluded items
29,607
46,291
49,688
61,380
186,966
18,573
23,526
21,180
63,279
Expenses, continuing operations excluding items: Cost of
revenue
35,215
36,374
37,870
37,483
146,942
41,702
39,366
42,936
124,004
Research and development
36,005
33,779
32,521
31,483
133,788
29,442
28,440
30,828
88,710
Sales and marketing
45,396
39,833
41,831
45,948
173,008
41,143
39,349
42,114
122,606
General and administrative
21,622
19,944
20,654
19,459
81,679
20,939
20,982
21,610
63,531
Gains, losses and other items, net
-
-
-
-
-
-
-
-
-
Gross profit, continuing operations excluding items:
107,028
110,725
120,745
111,143
449,641
112,367
120,505
130,933
363,805
% Gross margin
75.2
%
75.3
%
76.1
%
74.8
%
75.4
%
72.9
%
75.4
%
75.3
%
74.6
%
(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) 06/30/22 09/30/22 12/31/22 03/31/23 FY 2023
06/30/23 09/30/23 12/31/23 FY 2024 Income (loss) from
continuing operations before income taxes
(24,903
)
(26,874
)
(24,685
)
(42,392
)
(118,854
)
7,119
14,639
21,808
43,566
Income taxes (benefit)
2,315
3,562
5,835
(6,460
)
5,252
8,705
10,163
8,429
27,297
Net earnings (loss) from continuing operations
(27,218
)
(30,436
)
(30,520
)
(35,932
)
(124,106
)
(1,586
)
4,476
13,379
16,269
Earnings from discontinued operations, net of tax
-
-
836
4,568
5,404
-
387
598
985
Net earnings (loss)
(27,218
)
(30,436
)
(29,684
)
(31,364
)
(118,702
)
(1,586
)
4,863
13,977
17,254
Earnings (loss) per share: Basic
(0.40
)
(0.45
)
(0.46
)
(0.48
)
(1.79
)
(0.02
)
0.07
0.21
0.26
Diluted
(0.40
)
(0.45
)
(0.46
)
(0.48
)
(1.79
)
(0.02
)
0.07
0.21
0.26
Excluded items: Purchased intangible asset amortization
(cost of revenue)
4,643
4,637
4,209
3,336
16,825
3,290
1,217
1,181
5,688
Non-cash stock compensation (cost of revenue and operating
expenses)
24,225
27,293
29,624
44,658
125,800
13,292
15,735
17,497
46,524
Restructuring charges (gains, losses, and other)
739
13,111
11,743
9,723
35,316
116
6,574
2,502
9,192
Transformation costs (general and administrative)
-
1,250
4,112
3,663
9,025
1,875
-
-
1,875
Total excluded items from continuing operations
29,607
46,291
49,688
61,380
186,966
18,573
23,526
21,180
63,279
Income from continuing operations before income taxes and
excluding items
4,704
19,417
25,003
18,988
68,112
25,692
38,165
42,988
106,845
Income taxes expense (benefit)
1,237
4,557
6,468
(2,141
)
10,121
6,167
9,036
10,732
25,935
Non-GAAP net earnings from continuing operations
3,467
14,860
18,535
21,129
57,991
19,525
29,129
32,256
80,910
Non-GAAP earnings per share from continuing operations:
Basic
0.05
0.22
0.29
0.32
0.87
0.29
0.44
0.49
1.22
Diluted
0.05
0.22
0.28
0.32
0.86
0.29
0.43
0.47
1.19
Basic weighted average shares
68,403
67,096
64,784
65,126
66,352
66,497
66,284
65,961
66,247
Diluted weighted average shares
69,195
67,568
65,356
66,268
67,097
67,388
67,868
67,943
67,733
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 March 31, 2024 March 31,
2024 Low High Low High GAAP income (loss) from operations
(18,000
)
(17,000
)
8,000
9,000
Excluded items: Purchased intangible asset amortization
3,000
3,000
9,000
9,000
Non-cash stock compensation
25,000
25,000
71,000
71,000
Restructuring charges
3,000
3,000
12,000
12,000
Transformation costs
-
-
2,000
2,000
Total excluded items
31,000
31,000
94,000
94,000
Non-GAAP income from operations
$
13,000
$
14,000
$
102,000
$
103,000
(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 Q3 FISCAL 2024 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240208650365/en/
LiveRamp Investor Relations Investor.Relations@LiveRamp.com
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