These are the key contradictions discussed in LiveRamp's latest 2025 Q3 earnings call, specifically including: Sales Momentum and Efficiency, Data Marketplace Growth, and the Impact of AI on Discussions and Transactions:
Revenue and Operating Income Growth:
- LiveRamp Holdings Inc. reported
revenue of
$195 million for Q3 2025, up
12% year-on-year, and
operating income increased by
24%.
- The growth was driven by double-digit revenue growth for the fourth consecutive quarter, strong sales momentum, and improved sales execution.
Sales Momentum and Conversion Rates:
- LiveRamp’s sales momentum rebounded in Q3, with a significant improvement in pipeline conversion rates, swinging from below trend in the prior three quarters to well above trend.
- This was due to an improved IT spending environment, increased recognition of data collaboration’s importance, and strategic product and go-to-market optimizations.
Data Collaboration and Network Expansion:
- LiveRamp’s network continued to expand, with over 350 brand customers, including 20 of the 25 largest US advertisers, and over 200 ad tech platforms.
- The expansion was driven by the need for measurable marketing outcomes, recognition of the value of data collaboration, and the integration of new logos and upsells.
Rule of 40 Progress and Financial Outlook:
- LiveRamp expects to reach or surpass Rule of 30 for FY 2025, based on an updated guidance of
12% to 13% revenue growth and an
18% operating margin.
- This progress aligns with LiveRamp’s strategy to optimize revenue growth with improved customer data use and cost discipline initiatives.
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