LiveRamp’s first quarter performance was met with a significant positive reaction from the market, reflecting investor optimism around the company’s results. Management credited the quarter’s momentum to ongoing strength in large customer renewals and the successful upsell of its data collaboration and Clean Room solutions. CEO Scott Howe highlighted a record quarter for contract renewals, including major financial services wins and expanded partnerships with top-tier clients. He also pointed to enhancements in the company’s platform—such as interface upgrades and backend modernization—as drivers of reduced churn and improved operational efficiency.
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LiveRamp (RAMP) Q1 CY2025 Highlights:
- Revenue: $188.7 million vs analyst estimates of $186.2 million (9.8% year-on-year growth, 1.3% beat)
- Adjusted EPS: $0.30 vs analyst estimates of $0.28 (7.1% beat)
- Adjusted Operating Income: $23.03 million vs analyst estimates of $22 million (12.2% margin, 4.7% beat)
- Revenue Guidance for Q2 CY2025 is $191 million at the midpoint, above analyst estimates of $189.3 million
- Operating Margin: -6.1%, up from -8.3% in the same quarter last year
- Customers: 840, down from 865 in the previous quarter
- Net Revenue Retention Rate: 104%, down from 108% in the previous quarter
- Annual Recurring Revenue: $504 million at quarter end, up 7.9% year on year
- Market Capitalization: $2.18 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions LiveRamp’s Q1 Earnings Call
- Shyam Patil (Susquehanna): Asked CEO Scott Howe about customer reaction to Cross-Media Intelligence and its impact on growth. Howe stated early feedback is strong and bookings are up, but emphasized it is still early in the rollout.
- Elizabeth Porter (Morgan Stanley): Inquired about new customer acquisition and drivers behind the recent decline in customer count. CFO Lauren Dillard explained the decline was mainly due to migration of international clients to reseller channels and churn among smaller, low-value accounts.
- Jason Kreyer (Craig-Hallum Capital Group): Questioned management about sales pipeline hesitation and its effect on guidance. Howe acknowledged some deal delays due to macro uncertainty but noted these deals closed early in the next quarter.
- Peter Burkly (Evercore ISI): Asked about the adoption potential of Clean Room solutions across the existing customer base. Howe emphasized ongoing efforts to drive standardization and usability, predicting broader adoption as data security and AI needs increase.
- Mark Zgutowicz (Benchmark): Sought details on large contract renewals’ impact on future revenue and the role of Data Marketplace and CTV partnerships. Dillard cited multiyear renewals and new CTV partnerships as key growth contributors.
Catalysts in Upcoming Quarters
In the next few quarters, the StockStory team will be monitoring (1) the pace of Cross-Media Intelligence adoption and its impact on new bookings, (2) stabilization of customer count through new Clean Room use cases and pricing pilots, and (3) expansion in Data Marketplace revenues, particularly from connected TV and international markets. Continued progress in AI integration and platform usability will also be critical signposts.
LiveRamp currently trades at $33.04, up from $28.07 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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