LiveRamp Boosts FY26 Revenue Guidance to $818M Amid New Pricing Model and AI-Driven Platform Advancements

LiveRamp raised its FY '26 revenue guidance to $818M, citing a strong Q1 performance with double-digit revenue growth. The company is advancing its new pricing model and AI-driven platform. CEO Scott E. Howe attributed the success to exceeding expectations on both the top and bottom lines.

LiveRamp Holdings, Inc. (NYSE: RAMP) has raised its fiscal year 2026 (FY '26) revenue guidance to $818 million, reflecting strong first-quarter (Q1) performance and double-digit revenue growth. The company attributed its success to exceeding expectations on both the top and bottom lines, with CEO Scott E. Howe attributing the performance to robust sales momentum and the launch of a new pricing model [1].

During the Q1 earnings call, Howe highlighted a 34% increase in non-GAAP operating income and a 11% increase in revenue, with subscription revenue growing by 10% and fixed subscription revenue increasing by 6%. The company also reported a 29% increase in total recurring revenue per user (RPO) and a 13% increase in marketplace and other revenue [1].

The company's new pricing model, which aims to offer greater flexibility and align costs with usage, is expected to attract small and midsized new customers, particularly media platforms and data providers. The model is currently undergoing a six-month pilot program with up to 40 customers [1].

LiveRamp is also positioning itself as critical infrastructure for the AI-driven evolution of digital advertising. The company's AI agents are expected to change how consumers discover products and make purchase decisions, and the company is focusing on integration partnerships to help clients activate data into diverse AI models [1].

The company's CFO, Lauren R. Dillard, noted that revenue increased by $4 million above the guide, and non-GAAP operating income increased by $3 million above the guide. Gross margin was 72%, in line with the guide, but down 1 point year-on-year due to temporarily higher cloud hosting expenses related to platform modernization [1].

LiveRamp's stock-based compensation is forecasted to decline 21% year-on-year to $85 million, and free cash flow for the year is expected to increase, with substantial deployment towards share repurchases. The company's stock repurchases during the quarter totaled $30 million, leaving $226 million under authorization [1].

The company's strategic focus has shifted from platform modernization and foundational product launches in Q4 to accelerating adoption and usage of Cross-Media Intelligence, expanding Commerce Media and CTV, and piloting the new pricing model in Q1. Analysts have expressed confidence in LiveRamp's ability to sustain momentum, supported by disciplined cost management and a focus on enabling clients to capitalize on the rapidly evolving AI landscape in digital advertising [1].

References:
[1] https://seekingalpha.com/article/4810107-liveramp-holdings-inc-ramp-q1-2026-earnings-call-transcript
[2] https://seekingalpha.com/news/4481038-liveramp-raises-fy-26-revenue-guidance-to-818m-while-advancing-new-pricing-model-and-ai