LiveRamp's Q1 2026 Earnings Call: Contradictions on Revenue Growth, Sales Momentum, and Oracle's Impact

Revenue growth and market dynamics, Cross-Media Intelligence and growth strategy, sales momentum and customer count, impact of Oracle exit, and revenue growth expectations are the key contradictions discussed in LiveRamp Holdings' latest 2026Q1 earnings call.



Revenue Growth and Earnings Surpass Expectations:
- LiveRamp Holdings, Inc. reported a 11% increase in total revenue for Q1 2026, exceeding guidance by $4 million.
- Non-GAAP operating income increased by 34%, driven by a 3 point expansion in operating margin to a record first-quarter high of 18%.
- The growth was attributed to strong execution amidst a favorable macro and selling environment, as well as robust sales momentum across several solutions.

Sales Momentum and Cross-Media Intelligence:
- The company's data collaboration network saw strong sales momentum with an above-average conversion of pipeline into signings, reducing sales cycle length, and increasing average deal size.
- The Cross-Media Intelligence solution, launched in the first quarter, attracted several high-profile customers, indicating significant early traction.
- This momentum is driven by the solution's ability to address outdated measurement tools and provide a seamless collaboration network, enhancing effectiveness across media platforms.

Commerce Media Networks and Partnership Expansion:
- Commerce Media Networks remained a significant growth driver, with notable wins like a multiyear multimillion-dollar ACV upsell with a major U.S. department store and a partnership with Western Union.
- The company expanded its presence beyond retail, working with industries like airlines, casinos, automotive, and real estate, highlighting the breadth of its network.
- This expansion is attributed to the increasing recognition of the value LiveRamp brings to commerce platforms by enhancing ad personalization and data transparency.

Gross Margin and Operating Expense Management:
- Gross margin was 72%, in line with guidance, with operating expenses up only 2% year-on-year, leading to a record first-quarter operating margin expansion of 3 points.
- Cost discipline and leverage from offshoring initiatives contributed to this margin expansion, enabling investment in growth areas while maintaining operational efficiency.

New Pricing Model and Pilot Program:
- A pilot program for a new pricing model was launched with up to 40 customers, aiming to offer greater flexibility and align costs with usage.
- Early results show increased new customer interest, with several customers adopting the new model, Such as the world's largest quick-serve restaurant.
- This initiative is expected to reduce customer usage barriers and improve operational efficiency, supporting future revenue growth.