Did LiveRamp beat or miss consensus estimates last quarter?

What factors drove the changes in LiveRamp's revenue and profit?

What is the revenue and EPS growth rate for LiveRamp year over year?

What is LiveRamp's gross profit margin?

What is the market's earnings forecast for LiveRamp next quarter?

What does LiveRamp do and what are its main business segments?

What were the key takeaways from LiveRamp's earnings call?

What guidance did LiveRamp's management provide for the next earnings period?

- **Revenue Growth**: Q2 revenue up 8% to $200M, driven by 18% Marketplace growth and $14M ARR increase. Subscription customers reached 132, a 5% Q/Q rise.
- **AI and Pricing Model Success**: New AI tools (e.g., Agentic orchestration) and usage-based pricing pilot yield 20% upsell, with FY '26 revenue guidance raised to $804M-$818M.
- **Financial Strength**: Operating income +10% to $45M, free cash flow $57M, and $80M share buybacks YTD. Target Rule of 40 by FY '28 with 10%+ revenue growth and margin expansion.

**【CEO Summary Section】**
- Q2 revenue grew 8% to $200M, driven by 18% growth in Marketplace and other revenue. Subscription revenue increased 5% to $150M, with ARR up 7% year-over-year.
- Net new ARR reached $14M, the highest in 7 quarters, supported by 5% sequential growth in million-dollar-plus subscription customers to 132.
- Signed a multimillion-dollar contract with a global auto manufacturer and a 20% upsell with a leading social media platform. Non-GAAP operating income rose 10% to $45M, with GAAP operating margin doubling to 22%.
- Strategic focus on AI enhancements (e.g., AI-powered audience segment builder), new usage-based pricing model pilot, and achieving Rule of 40 by FY '28.

**【CFO Financial Commentary】**
- Total revenue: $200M (8% YoY), with Marketplace and other revenue at $50M (18% YoY). Subscription gross margin: 72%, down 3pts YoY due to cloud costs.
- Operating expenses: $100M (flat YoY), driven by cost efficiencies. Free cash flow: $57M, with $80M repurchased YTD.
- Updated FY '26 guidance: Revenue $804M-$818M (8%-10% growth), non-GAAP operating income $178M-$182M. Gross margin expected to remain ~72% due to platform migration delays.

**【Q&A Key Highlights】**
- **ARR Growth Drivers**: Clean room solutions for CTV and commerce media, new logo activity (+14M ARR), and lower churn. Pricing model pilot expanded beyond initial targets, with 20% upsell example.
- **AI Impact**: Minimal exposure to open web; focus on first/second-party data for AI models. New AI tools (e.g., Agentic orchestration) enhance customer value.
- **Platform Investments**: $377M cash on hand; investments in AI, platform modernization, and pricing model to fuel future growth. FY '26 operating income +30%, margin +4pts to 22%.
- **Customer Trends**: Subscription customer count stabilizing; new logo pipeline strong, with focus on mid-sized brands and data providers.

LiveRamp Holdings, Inc. (RAMP) Q2 2026 Earnings Call Transcript

- **Q1 Revenue Beat**: 11% YoY growth to $195M, driven by 40% surge in subscription usage revenue.
- **Cross-Media Breakthrough**: New solution signed 40+ clients in Q1, including top social media platform and CPG giant.
- **CTV Scaling**: Netflix integration reached dozens of brands in 4 months, with plans to expand to hundreds.
- **Pricing Model Success**: Pilot program landed $4M+ in new logos, including world's largest QSR.
- **AI Enabler Position**: Partnered with Perplexity and Chalice to integrate AI into data activation, positioning as critical infrastructure for AI-driven advertising.

**【CEO Summary Section】**
- **Q1 Financial Highlights**: Total revenue grew 11% YoY to $195M, exceeding expectations. Non-GAAP operating income rose 34% to $36M, with a record 18% operating margin. Free cash flow guidance was raised due to tax legislation benefits.
- **Product Momentum**: 
  - **Cross-Media Intelligence**: Launched with high-profile clients including the largest social media platform and a leading CPG, achieving 40% YoY growth in subscription usage revenue.
  - **Commerce Media Networks**: Secured a multiyear upsell with a U.S. department store and expanded partnerships with Western Union and Lyft, driving 13% growth in Marketplace revenue.
  - **CTV Integration**: Netflix integration scaled to dozens of brands in 4 months, with plans to expand to hundreds.
- **New Pricing Model**: Launched a 6-month pilot with 40 customers, including the world's largest QSR, offering flexible tokens across products to reduce upfront costs and improve scalability.
- **AI Strategy**: Positioned as an AI enabler through clean room technology, enabling clients to combine first-party data with AI models. Announced partnerships with Perplexity and Chalice to integrate AI capabilities.

**【CFO Financial Commentary】**
- **Revenue Breakdown**: 
  - Subscription revenue: $148M (+10% YoY), with fixed subscription up 6% and usage revenue surging 40%.
  - Marketplace & Other: $46M (+13% YoY), driven by data marketplace growth despite temporary integration issues.
- **Margin Expansion**: Gross margin held steady at 72%, while operating expenses rose 2% YoY due to platform modernization. GAAP operating margin expanded 7pts to 10%.
- **Guidance Update**: FY26 revenue raised to $798-818M (+7-10% YoY), with free cash flow expected to grow due to $85M stock buybacks and reduced stock-based comp.
- **Sales Pipeline**: Q1 saw 9-month average deal cycle, with Q2 already booking multi-million ACV deals. ARR growth expected to accelerate post-Q2.

**【Q&A Key Highlights】**
- **Q2 Assumptions**: Subscription usage growth guided flat YoY after 40% Q1 surge, but CFO expressed confidence in back-half acceleration due to Cross-Media momentum.
- **Commerce Media Flywheel**: CEO highlighted expansion into automotive, real estate, and QSRs via food delivery partnerships, with WAG's 101M loyalty members as a key data source.
- **CTV Growth**: CFO noted Marketplace rebound post-resolution of integration issues, with CTV integrations driving long-term flywheel effects.
- **Pricing Model Impact**: CFO reported $4M+ in new logos from pilot, with potential to reduce churn and improve land-and-expand efficiency. No FY26 guidance baked in from pricing yet.
- **AI Differentiation**: CEO emphasized LiveRamp's role as a neutral data collaborator, enabling clients to fuel AI models with proprietary data while maintaining control.


LiveRamp Holdings, Inc. (RAMP) Q1 2026 Earnings Call Transcript

- **Q4 Beat with Strong Margins**: 10% revenue growth, 12% operating margin, $62M record free cash flow.
- **Rule of 31 Achieved**: FY'25 revenue +13%, margin +18%, targeting Rule of 40 by FY'28.
- **Cross-Media Intelligence Momentum**: 30+ customer conversations, ARR uplift potential from 75% untapped Clean Room adoption.
- **FY'26 Growth Drivers**: 10%+ revenue via Marketplace expansion, 22% margin through cost control.
- **Risk Factor**: 30% variable revenue exposed to macro, with FY'26 low-end assuming 2H slowdown.

**【CEO Opening Remarks】**
- **Q4 Strong Performance**: Revenue grew 10% YoY to $189M, beating expectations. Operating income rose 43% to $23M, with a 12% operating margin. Free cash flow hit a record $62M.
- **FY'25 Milestone**: Achieved Rule of 31 (13% revenue growth, 18% operating margin). Cross-Media Intelligence launch aims to drive FY'26 growth through enhanced measurement and collaboration.
- **Customer Wins**: Signed 13 new $1M+ subscription customers, including financial services giants. Renewed 20 multimillion-dollar contracts, reducing churn and boosting RPO to $710M.
- **Platform Modernization**: 50% of workflows migrated to upgraded backend, improving stability and processing speed. Targeting 10%+ revenue growth and 25%+ margin by FY'28.

**【CFO Financial Breakdown】**
- **Revenue Details**: Subscription ($145M, +9%), Marketplace ($44M, +14%). ARR grew 8% YoY to $504M. Net retention rate 104%, stable but pressured by macro.
- **Margins & Costs**: Gross margin 72% (down 3pts YoY due to cloud costs). Operating expenses flat at $113M, driven by disciplined spending. Free cash flow up 51% YoY to $153M.
- **FY'26 Outlook**: Revenue $787M-$817M (6%-10% growth). Operating income $178M-$182M (22% margin). Guidance reflects macro uncertainty, with 70% of revenue contracted but 30% variable.

**【Q&A Highlights】**
- **Cross-Media Intelligence**: 30+ customer conversations, doubled insights pipeline. Early bookings up vs. prior year. 75% of customers could adopt Clean Rooms, driving 4x ARR uplift.
- **Macro Impact**: Q4 saw deal cycle elongation due to macro hesitancy. FY'26 low-end assumes 2H deceleration in Marketplace and usage revenue. High-end hinges on Clean Room adoption.
- **Customer Count**: $1M+ customers grew, but total count declined due to international reseller migration. New pricing model to pilot in Q3 aims to lower mid-market entry barriers.
- **Competitive Landscape**: Competitor acquisitions seen as opportunities, not threats. LiveRamp's network scale and data collaboration model differentiate from emerging measurement platforms.


LiveRamp Holdings, Inc. (RAMP) Q4 2025 Earnings Call Transcript

- **Revenue Beat**: Q3 revenue of $195M (+12% YoY) exceeded guidance, with ARR up 10% YoY to $491M.
- **Margin Expansion**: Operating margin hit 23%, up 200bps YoY, with FY 2025 operating margin guidance of 18% (Rule of 30).
- **Sales Momentum**: CRPO rebounded 16% QoQ, driven by upsells (e.g., $1M+ deals with retailers and QSRs) and improved conversion rates.
- **AI & Data Collaboration**: LiveRamp's clean room network now includes 350+ brands and 30+ retail media networks, with customers increasingly acting as both data owners and consumers.
- **Free Cash Flow**: $91M year-to-date, up 20% YoY, supporting $76M in share buybacks.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue reached $195 million, up 12% YoY, driven by double-digit growth in both subscription and marketplace segments. ARR grew 10% YoY to $491 million, marking the fourth consecutive quarter of double-digit growth.
- **Sales Momentum**: Conversion rates improved materially, with a 16% QoQ increase in CRPO and $8 million in net new ARR. Upsells and new logo wins included a high six-figure contract with a leading retailer and a seven-figure deal with a quick-service restaurant.
- **Rule of 40 Progress**: FY 2025 guidance targets Rule of 30 (12-13% revenue growth + 18% operating margin), with a long-term goal of 20-25% operating margin by FY 2026. Q3 operating margin hit a record 23%.
- **Network Scale**: Over 350 brand customers, 200+ ad tech platforms, and 30+ retail media networks participate in the data collaboration network, with customers increasingly acting as both data consumers and owners.

**【CFO Financial Commentary】**
- **Top Line**: Q3 GAAP net income was $45 million, up 25% YoY. Non-GAAP EPS of $1.08 exceeded expectations, driven by 24% operating income growth to $45 million.
- **Margin Expansion**: Gross margin held steady at 74%, while operating expenses grew 6% YoY due to strategic investments. Free cash flow year-to-date reached $91 million, up 20% YoY.
- **FY 2025 Guidance Update**: Revenue raised to $741-743 million (12-13% growth), with operating income of $135 million (18% margin). Q4 revenue expected at $184-186 million, reflecting seasonal expenses and Habu lapping.
- **Marketplace Strength**: Data marketplace revenue grew 18% YoY, with CTV now accounting for 20% of marketplace revenue.

**【Q&A Highlights】**
- **Sales Drivers**: Improved IT spending environment, recognition of data collaboration's value in CTV/social, and product simplification (e.g., clean room usability improvements) fueled Q3 pipeline conversion.
- **Oracle Impact**: Oracle's data marketplace added ~3-4% growth to Q3 data marketplace revenue, with momentum expected to continue.
- **AI Integration**: LiveRamp is partnering with AI platforms like Perplexity and Chalice to enable enterprise-grade data access for AI models, creating new use cases for clients.
- **Customer Upsell**: Subscription net retention rate hit 108%, driven by higher usage (16% of subscription revenue) and multi-year renewals.


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