Q4 Revenue up 16% year-over-year Q4 Subscription Revenue up 11% year-over-year FY24 Operating Margin of 2% and Non-GAAP Operating Margin of 16% FY24 Operating Cash Flow of $106 million versus $34 million a year ago SAN FRANCISCO, Calif., May 22, 2024 (GLOBE NEWSWIRE) -- LiveRamp® (NYSE:RAMP), the leading data collaboration platform, today announced its financial results for the quarter and fiscal year ended March 31, 2024. Q4 Financial Highlights1 Total revenue was $172 million, up 16%. Subscription revenue was $134 million, up 11%. Marketplace & Other revenue was $38 million, up 38%. GAAP gross profit was $124 million, up 18%. GAAP gross margin of 72% expanded by 1 percentage point. Non-GAAP gross profit was $129 million, up 16%. Non-GAAP gross margin of 75% was unchanged. GAAP operating loss was $14 million compared to $47 million. GAAP operating margin of negative 8% expanded by 23 points. Non-GAAP operating income was $16 million compared to $14 million. Non-GAAP operating margin of 9% was unchanged. GAAP diluted loss per share was $0.08 and non-GAAP diluted earnings per share was $0.25. Net cash provided by operating activities was $28 million compared to $31 million. Share repurchases in the fourth quarter totaled approximately 405,000 shares for $15 million. Fiscal Year Financial Highlights1 Total revenue was $660 million, up 11%. Subscription revenue was $514 million, up 6%, and represented 78% of total revenue. Marketplace & Other revenue was $146 million, up 28%. GAAP gross profit was $480 million, up 13%, and GAAP gross margin of 73% expanded by 1 percentage point. Non-GAAP gross profit was $493 million, up 10%, and non-GAAP gross margin of 75% contracted by 1 point. GAAP operating income was $11 million compared to a loss of $126 million. GAAP operating margin of 2% expanded by 23 points. Non-GAAP operating income was $105 million compared to $61 million. Non-GAAP operating margin of 16% expanded by 6 points. GAAP diluted EPS was $0.17, and non-GAAP diluted EPS was $1.45. Net cash provided by operating activities was $106 million compared to $34 million. Share repurchases in fiscal 2024 totaled approximately 2.1 million shares for $61 million. As of March 31, 2024, there was $157 million in remaining capacity under the share repurchase authorization that expires on December 31, 2024. A reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release. Commenting on the results, CEO Scott Howe said: "We ended fiscal 2024 on a high note, with fourth quarter revenue and operating income exceeding our expectations, and a positive inflection in several key performance indicators, including annual recurring revenue and $1 million plus customer additions. As we look ahead to FY25, our Data Collaboration Platform is the solution to help advertisers and publishers continue delivering addressable advertising in a world of cookie deprecation and rapidly evolving technology." GAAP and Non-GAAP ResultsThe following table summarizes the Company's financial results for the fiscal 2024 fourth quarter and full year ended March 31, 2024 ($ in millions, except per share amounts):   GAAP   Non-GAAP   Q4 FY24   FY24   Q4 FY24   FY24 Subscription revenue $134   $514   —   — YoY change 11%   6%   —   — Marketplace & Other revenue $38   $146   —   — YoY change 38%   28%   —   — Total revenue $172   $660   —   — YoY change 16%   11%   —   —                 Gross profit $124   $480   $129   $493 % Gross margin 72%   73%   75%   75%      YoY change 1 pt   1 pt   0 pts   (1 pt)                 Operating income (loss) ($14)   $11   $16   $105 % Operating margin (8%)   2%   9%   16%      YoY change 23 pts   23 pts   0 pts   6 pts                 Net earnings (loss) ($5   $12   $17   $98 Diluted earnings (loss) per share ($0.08)   $0.17   $0.25   $1.45                 Shares to calculate diluted EPS 66.3   67.9   68.5   67.9      YoY change 2%   2%   3%   1%                 Net operating cash flow $28   $106   —   — Free cash flow to equity —   —   $26   $101                 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 In February 2024 we unveiled the next generation of the LiveRamp Data Collaboration Platform, which brings together solutions for the end-to-end marketing lifecycle onto a single platform. The unified offering introduces new capabilities such as a simplified user interface, composable technology for cross-cloud interoperability, and a partner marketplace where innovative third-party developers can build applications showcasing their trusted expertise (additional information). In February 2024 we launched enhanced capabilities that help customers optimize addressability, connectivity and measurement across Amazon Marketing Cloud (AMC) and Amazon Demand-Side Platform (DSP). Brand marketers, advertisers, and agencies can now leverage LiveRamp's integrations with these services to unlock insights and analytics with an industry-leading, privacy-enhancing approach (additional information). In April 2024 we were selected as a Google Cloud Partner of the Year for "Industry Solution - Technology: Retail." LiveRamp was recognized for delivering solutions that help retailers and brands unlock the value of marketing data and analytics in Google Cloud (additional information). This accolade follows LiveRamp's recognition as Google Cloud's "Global Industry Technology Partner of the Year" in 2023 and Habu's recognition in 2023 as Databricks' Partner of the Year for "Communications, Media and Entertainment." In April 2024 Google announced that it will delay the full deprecation of third-party cookies in Chrome from the second half of 2024 until early 2025. This delay does not change our strategy or market approach. We have been preparing for the deprecation of third-party cookies for some time with the build out of our Authenticated Traffic Solution (ATS) and our investment in clean room technology to enable secure first-party data collaboration. ATS is a fully scaled solution that connects publisher and marketer data to better personalize and measure advertising on authenticated inventory. ATS has been adopted by over 21,000 publisher domains and 75% of the comScore 100 publishers. In addition, it is integrated with all major demand-side platforms (DSPs) and supply-side platforms (SSPs). Through these integrations, LiveRamp connects to over 92% of US consumer time spent online. LiveRamp ended the quarter with 115 customers whose annualized subscription revenue exceeds $1 million, compared to 95 in the prior year period. LiveRamp ended the quarter with 900 direct subscription customers, compared to 920 in the prior year period. Fourth quarter subscription net retention was 103% and platform net retention was 108%. Fourth quarter annual recurring revenue (ARR), which is the last month of the quarter fixed subscription revenue annualized, was $467 million, up 10% 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 $414 million, up 23% 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 first quarter of fiscal 2025, LiveRamp expects to report: Revenue of $172 million, an increase of 12% GAAP operating loss of $8 million Non-GAAP operating income of $25 million For fiscal 2025, LiveRamp expects to report: Revenue of between $710 million and $730 million, an increase of between 8% and 11% GAAP operating loss of between $8 million and $4 million Non-GAAP operating income of between $125 million and $129 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 consumer privacy, data ethics, and foundational 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, 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 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 in 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 LiveRampⓇ and RampID™ 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per share amounts)                   For the Three Months Ended   March 31,           $ %   2024   2023   Variance Variance               Revenues 171,852     148,626     23,226   15.6 %               Cost of revenue 47,722     43,472     4,250   9.8 %      Gross profit 124,130     105,154     18,976   18.0 %      % Gross margin 72.2 %   70.8 %                     Operating expenses:                 Research and development 45,161     52,220     (7,059 ) (13.5 %)     Sales and marketing 60,476     57,506     2,970   5.2 %     General and administrative 30,252     32,832     (2,580 ) (7.9 %)     Gains, losses and other items, net 2,516     9,723     (7,207 ) (74.1 %) Total operating expenses 138,405     152,281     (13,876 ) (9.1 %)                   Loss from operations (14,275 )   (47,127 )   32,852   69.7 % % Margin -8.3 %   -31.7 %                        Total other income, net 5,070     4,735     335   7.1 %                  Loss from continuing operations before income taxes (9,205 )   (42,392 )   33,187   78.3 %                  Income tax benefit (3,027 )   (6,460 )   3,433   53.1 %                  Net loss from continuing operations (6,178 )   (35,932 )   29,754   82.8 %                  Earnings from discontinued operations, net of tax 805     4,568     (3,763 ) (82.4 %)                  Net loss (5,373 )   (31,364 )   25,991   82.9 %               Basic earnings (loss) per share:                Continuing operations (0.09 )   (0.55 )   0.46   83.1 %    Discontinued operations 0.01     0.07     (0.06 ) (82.7 %) Basic earnings (loss) per share (0.08 )   (0.48 )   0.40   83.2 %               Diluted earnings (loss) per share:                Continuing operations (0.09 )   (0.55 )   0.46   83.1 %    Discontinued operations 0.01     0.07     (0.06 ) (82.7 %) Diluted earnings (loss) per share: (0.08 )   (0.48 )   0.40   83.2 %               Basic weighted average shares 66,323     65,126         Diluted weighted average shares 66,323     65,126                       Some totals may not sum due to rounding.                           LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per share amounts)                   For the Twelve Months Ended   March 31,           $ %   2024   2023   Variance Variance               Revenues 659,661     596,583     63,078   10.6 %               Cost of revenue 179,489     170,084     9,405   5.5 %      Gross profit 480,172     426,499     53,673   12.6 %      % Gross margin 72.8 %   71.5 %                     Operating expenses:                 Research and development 151,201     189,195     (37,994 ) (20.1 %)     Sales and marketing 195,693     202,437     (6,744 ) (3.3 %)     General and administrative 110,166     125,351     (15,185 ) (12.1 %)     Gains, losses and other items, net 11,708     35,316     (23,608 ) (66.8 %) Total operating expenses 468,768     552,299     (83,531 ) (15.1 %)                   Income (loss) from operations 11,404     (125,800 )   137,204   109.1 % % Margin 1.7 %   -21.1 %                        Total other income, net 22,957     6,946     16,011   230.5 %                  Income (loss) from continuing operations before income taxes 34,361     (118,854 )   153,215   128.9 %                  Income tax expense 24,270     5,252     19,018   362.1 %                  Net earnings (loss) from continuing operations 10,091     (124,106 )   134,197   108.1 %                  Earnings from discontinued operations, net of tax 1,790     5,404     (3,614 ) (66.9 %)                  Net earnings (loss) 11,881     (118,702 )   130,583   110.0 %               Basic earnings (loss) per share:                Continuing operations 0.15     (1.87 )   2.02   108.1 %    Discontinued operations 0.03     0.08     (0.05 ) (66.8 %) Basic earnings (loss) per share 0.18     (1.79 )   1.97   110.0 %               Diluted earnings (loss) per share:                Continuing operations 0.15     (1.87 )   2.02   107.9 %    Discontinued operations 0.03     0.08     (0.06 ) (67.6 %) Diluted earnings (loss) per share: 0.17     (1.79 )   1.96   109.8 %               Basic weighted average shares 66,266     66,352         Diluted weighted average shares 67,918     66,352                       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 Twelve Months Ended   March 31,   March 31,   2024   2023   2024   2023                    Income (loss) from continuing operations before income taxes (9,205 )   (42,392 )   34,361   (118,854 )                    Income tax expense (benefit) (3,027 )   (6,460 )   24,270   5,252                      Net earnings (loss) from continuing operations (6,178 )   (35,932 )   10,091   (124,106 )                    Earnings from discontinued operations, net of tax 805     4,568     1,790   5,404                      Net earnings (loss) (5,373 )   (31,364 )   11,881   (118,702 )                 Earnings (loss) per share:                   Basic (0.08 )   (0.48 )   0.18   (1.79 )     Diluted (0.08 )   (0.48 )   0.17   (1.79 )                 Excluded items:                 Purchased intangible asset amortization (cost of revenue) 3,097     3,336     8,785   16,825     Non-cash stock compensation (cost of revenue and operating expenses) 24,780     44,658     71,304   125,800     Transformation costs (general and administrative) -     3,663     1,875   9,025     Restructuring charges (gains, losses, and other) 2,516     9,723     11,708   35,316                    Total excluded items, continuing operations 30,393     61,380     93,672   186,966                     Income from continuing operations before income taxes and excluding items 21,188     18,988     128,033   68,112                      Income tax expense (benefit) (2) 3,947     (2,141 )   29,882   10,121                      Non-GAAP net earnings from continuing operations 17,241     21,129     98,151   57,991                   Non-GAAP earnings per share from continuing operations:                   Basic 0.26     0.32     1.48   0.87       Diluted 0.25     0.32     1.45   0.86                   Basic weighted average shares 66,323     65,126     66,266   66,352   Diluted weighted average shares 68,471     66,268     67,918   67,097                   (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 Twelve Months Ended     March 31,   March 31,     2024   2023   2024   2023                      Income (loss) from continuing operations (14,275 )   (47,127 )   11,404