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 $66
million.
A reconciliation between GAAP and non-GAAP
results is provided in the schedules in this press release.
Commenting on the results, CEO Scott Howe said,
“Revenue and operating income exceeded our expectations and revenue
grew by double-digits for a third consecutive quarter. We continue
to see strong momentum with our Data Collaboration Platform. Our
recent platform update makes it faster and easier for customers to
activate their first-party data. We continue to scale our clean
room network by adding the largest premium publishers and retail
media networks that marketers want to engage in data collaboration.
These actions – among others – increase the utility of our
platform, which will support our future growth.”
GAAP and Non-GAAP ResultsThe following table
summarizes the Company’s financial results for the fiscal 2025
second quarter ended September 30, 2024 ($ in millions, except per
share amounts):
| |
|
|
|
| |
GAAP |
|
Non-GAAP |
| |
Q2 FY25 |
Q2 FY24 |
|
Q2 FY25 |
Q2 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
RelationsInvestor.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 |
|
|
Variance |
Variance |
| |
|
|
|
|
|
|
|
|
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 |
|
|
Variance |
Variance |
| |
|
|
|
|
|
|
|
|
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 |
|
|
Variance |
Variance |
|
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) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
6/30/2023 |
9/30/2023 |
12/31/2023 |
3/31/2024 |
FY2024 |
|
6/30/2024 |
9/30/2024 |
FY2025 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
| |
|
6/30/2023 |
9/30/2023 |
12/31/2023 |
3/31/2024 |
FY2024 |
|
6/30/2024 |
9/30/2024 |
FY2025 |
|
% |
$ |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
| |
|
6/30/23 |
9/30/23 |
12/31/23 |
3/31/24 |
FY2024 |
|
6/30/24 |
9/30/24 |
FY2025 |
|
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 |
| |
|
6/30/2023 |
9/30/2023 |
12/31/2023 |
3/31/2024 |
FY2024 |
|
6/30/2024 |
9/30/2024 |
FY2025 |
| |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes |
|
7,119 |
|
14,639 |
21,808 |
(9,205 |
) |
34,361 |
|
(804 |
) |
11,684 |
10,880 |
|
|
Income tax expense (benefit) |
|
8,705 |
|
10,163 |
8,429 |
(3,027 |
) |
24,270 |
|
6,685 |
|
9,952 |
16,637 |
|
|
Net earnings (loss) from continuing operations |
|
(1,586 |
) |
4,476 |
13,379 |
(6,178 |
) |
10,091 |
|
(7,489 |
) |
1,732 |
(5,757 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
Earnings from discontinued operations, net of tax |
|
- |
|
387 |
598 |
805 |
|
1,790 |
|
- |
|
- |
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
|
(1,586 |
) |
4,863 |
13,977 |
(5,373 |
) |
11,881 |
|
(7,489 |
) |
1,732 |
(5,757 |
) |
| |
|
|
|
|
|
|
|
|
|
|
| Earnings
(loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
(0.02 |
) |
0.07 |
0.21 |
(0.08 |
) |
0.18 |
|
(0.11 |
) |
0.03 |
(0.09 |
) |
|
Diluted |
|
(0.02 |
) |
0.07 |
0.21 |
(0.08 |
) |
0.17 |
|
(0.11 |
) |
0.03 |
(0.09 |
) |
| |
|
|
|
|
|
|
|
|
|
|
| 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 and operating
expenses) |
|
13,292 |
|
15,735 |
17,497 |
24,780 |
|
71,304 |
|
27,985 |
|
29,068 |
57,053 |
|
|
Restructuring and merger 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 from continuing operations |
|
18,573 |
|
23,526 |
21,180 |
30,393 |
|
93,672 |
|
32,037 |
|
33,213 |
65,250 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes and excluding
items |
|
25,692 |
|
38,165 |
42,988 |
21,188 |
|
128,033 |
|
31,233 |
|
44,897 |
76,130 |
|
|
Income tax expense |
|
6,167 |
|
9,036 |
10,732 |
3,947 |
|
29,882 |
|
7,371 |
|
10,745 |
18,116 |
|
|
Non-GAAP net earnings from continuing operations |
|
19,525 |
|
29,129 |
32,256 |
17,241 |
|
98,151 |
|
23,862 |
|
34,152 |
58,014 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP
earnings per share from continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
0.29 |
|
0.44 |
0.49 |
0.26 |
|
1.48 |
|
0.36 |
|
0.52 |
0.87 |
|
|
Diluted |
|
0.29 |
|
0.43 |
0.47 |
0.25 |
|
1.45 |
|
0.35 |
|
0.51 |
0.85 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Basic
weighted average shares |
|
66,497 |
|
66,284 |
65,961 |
66,323 |
|
66,266 |
|
66,621 |
|
66,294 |
66,458 |
|
| Diluted
weighted average shares, Non-GAAP |
|
67,388 |
|
67,868 |
67,943 |
68,471 |
|
67,918 |
|
68,463 |
|
67,309 |
67,886 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| 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 |
| |
|
|
|
|
|
| |
|
|
|
Low |
High |
| |
|
|
|
|
|
|
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. |
|
| |
| |
| |
PDF available:
http://ml.globenewswire.com/Resource/Download/0fe80ab8-c358-43bc-bb5d-2d18444f1f34
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