LiveRamp's Q1 Earnings Call: Strong Growth, AI Focus, and Conservative Guidance

LiveRamp Holdings reported Q1 earnings that exceeded expectations, with 11% revenue growth to $195 million, a record high in operating margins, and a positive outlook for the remainder of the fiscal year. The company raised its FY '26 revenue guidance by $6 million and secured significant deals with major clients like Walgreens. However, there were challenges acknowledged, including higher dollar churn and conservative guidance for upcoming quarters.

LiveRamp Holdings, Inc. (NYSE: RAMP) has reported its Q1 FY26 earnings, showcasing robust financial performance and growth prospects. The company reported revenue of $195 million, an 11% year-over-year (YoY) increase, driven by a 10% growth in subscription revenue and a 13% boost in marketplace and other revenue streams [1]. GAAP operating income reached $7 million, a notable improvement from a $5 million loss in the previous year [2].

Key highlights from the earnings call include:
1. Revenue Growth: Total revenue increased by 11% YoY, with subscription revenue growing by 10% and marketplace and other revenue streams increasing by 13%.
2. Operating Income: GAAP operating income reached $7 million, a significant turnaround from a $5 million loss in the previous year. This turnaround was attributed to a 34% increase in non-GAAP operating income and a 7-point expansion in GAAP operating margin.
3. Share Repurchases: LiveRamp repurchased approximately 1.1 million shares, totaling $30 million, during the quarter.
4. FY26 Guidance: The company projected FY26 revenue between $798 million and $818 million, representing a 7-10% growth rate. This guidance reflects the company's optimism for the future and its strong sales momentum across various solutions [3].

LiveRamp's earnings call also provided insights into the company's strategic initiatives, including the launch of its Cross-Media Intelligence solution and the modernization of its pricing model. The Cross-Media Intelligence solution has attracted several high-profile customers, while the new pricing model aims to offer greater flexibility and align costs with usage [1].

However, the company acknowledged challenges such as higher dollar churn and provided conservative guidance for upcoming quarters. Despite these challenges, LiveRamp's strategic initiatives and robust sales momentum position the company well for continued success in the digital advertising market.

References:
[1] https://www.ainvest.com/news/liveramp-q1-fy26-earnings-revenue-11-yoy-gaap-operating-income-7mln-2508/
[2] https://www.investing.com/news/company-news/liveramp-q1-fy26-slides-revenue-growth-accelerates-to-11-as-margins-expand-93CH-4174679
[3] https://investors.liveramp.com/news-releases/news-release-details/liveramp-announces-results-first-quarter-fy26