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LiveRamp Announces Fourth Quarter and Fiscal Year Results

LiveRamp, Inc.
LiveRamp, Inc.

Q4 Revenue up 16% year-over-year

Q4 Subscription Revenue up 11% year-over-year

FY24 Operating Margin of 2% and Non-GAAP Operating Margin of 16%

FY24 Operating Cash Flow of $106 million versus $34 million a year ago

SAN FRANCISCO, Calif., May 22, 2024 (GLOBE NEWSWIRE) -- LiveRamp® (NYSE: RAMP), the leading data collaboration platform, today announced its financial results for the quarter and fiscal year ended March 31, 2024.

Q4 Financial Highlights1

  • Total revenue was $172 million, up 16%.

  • Subscription revenue was $134 million, up 11%.

  • Marketplace & Other revenue was $38 million, up 38%.

  • GAAP gross profit was $124 million, up 18%. GAAP gross margin of 72% expanded by 1 percentage point. Non-GAAP gross profit was $129 million, up 16%. Non-GAAP gross margin of 75% was unchanged.

  • GAAP operating loss was $14 million compared to $47 million. GAAP operating margin of negative 8% expanded by 23 points. Non-GAAP operating income was $16 million compared to $14 million. Non-GAAP operating margin of 9% was unchanged.

  • GAAP diluted loss per share was $0.08 and non-GAAP diluted earnings per share was $0.25.

  • Net cash provided by operating activities was $28 million compared to $31 million.

  • Share repurchases in the fourth quarter totaled approximately 405,000 shares for $15 million.

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Fiscal Year Financial Highlights1

  • Total revenue was $660 million, up 11%.

  • Subscription revenue was $514 million, up 6%, and represented 78% of total revenue.

  • Marketplace & Other revenue was $146 million, up 28%.

  • GAAP gross profit was $480 million, up 13%, and GAAP gross margin of 73% expanded by 1 percentage point. Non-GAAP gross profit was $493 million, up 10%, and non-GAAP gross margin of 75% contracted by 1 point.

  • GAAP operating income was $11 million compared to a loss of $126 million. GAAP operating margin of 2% expanded by 23 points. Non-GAAP operating income was $105 million compared to $61 million. Non-GAAP operating margin of 16% expanded by 6 points.

  • GAAP diluted EPS was $0.17, and non-GAAP diluted EPS was $1.45.

  • Net cash provided by operating activities was $106 million compared to $34 million.

  • Share repurchases in fiscal 2024 totaled approximately 2.1 million shares for $61 million. As of March 31, 2024, there was $157 million in remaining capacity under the share repurchase authorization that expires on December 31, 2024.

A reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release.

Commenting on the results, CEO Scott Howe said: "We ended fiscal 2024 on a high note, with fourth quarter revenue and operating income exceeding our expectations, and a positive inflection in several key performance indicators, including annual recurring revenue and $1 million plus customer additions. As we look ahead to FY25, our Data Collaboration Platform is the solution to help advertisers and publishers continue delivering addressable advertising in a world of cookie deprecation and rapidly evolving technology.”

GAAP and Non-GAAP Results
The following table summarizes the Company’s financial results for the fiscal 2024 fourth quarter and full year ended March 31, 2024 ($ in millions, except per share amounts):

 

GAAP

 

Non-GAAP

 

Q4 FY24

 

FY24

 

Q4 FY24

 

FY24

Subscription revenue

$134

 

$514

 

 

YoY change

11%

 

6%

 

 

Marketplace & Other revenue

$38

 

$146

 

 

YoY change

38%

 

28%

 

 

Total revenue

$172

 

$660

 

 

YoY change

16%

 

11%

 

 

 

 

 

 

 

 

 

 

Gross profit

$124

 

$480

 

$129

 

$493

% Gross margin

72%

 

73%

 

75%

 

75%

YoY change

1 pt

 

1 pt

 

0 pts

 

(1 pt)

 

 

 

 

 

 

 

 

Operating income (loss)

($14)

 

$11

 

$16

 

$105

% Operating margin

(8%)

 

2%

 

9%

 

16%

YoY change

23 pts

 

23 pts

 

0 pts

 

6 pts

 

 

 

 

 

 

 

 

Net earnings (loss)

($5

 

$12

 

$17

 

$98

Diluted earnings (loss) per share

($0.08)

 

$0.17

 

$0.25

 

$1.45

 

 

 

 

 

 

 

 

Shares to calculate diluted EPS

66.3

 

67.9

 

68.5

 

67.9

YoY change

2%

 

2%

 

3%

 

1%

 

 

 

 

 

 

 

 

Net operating cash flow

$28

 

$106

 

 

Free cash flow to equity

 

 

$26

 

$101

 

 

 

 

 

 

 

 

Totals may not sum due to rounding.

 

A detailed discussion of our non-GAAP financial measures and a reconciliation between GAAP and non-GAAP results is provided in the schedules attached to this press release.

Additional Business Highlights & Metrics

  • In February 2024 we unveiled the next generation of the LiveRamp Data Collaboration Platform, which brings together solutions for the end-to-end marketing lifecycle onto a single platform. The unified offering introduces new capabilities such as a simplified user interface, composable technology for cross-cloud interoperability, and a partner marketplace where innovative third-party developers can build applications showcasing their trusted expertise (additional information).

  • In February 2024 we launched enhanced capabilities that help customers optimize addressability, connectivity and measurement across Amazon Marketing Cloud (AMC) and Amazon Demand-Side Platform (DSP). Brand marketers, advertisers, and agencies can now leverage LiveRamp’s integrations with these services to unlock insights and analytics with an industry-leading, privacy-enhancing approach (additional information).

  • In April 2024 we were selected as a Google Cloud Partner of the Year for “Industry Solution - Technology: Retail.” LiveRamp was recognized for delivering solutions that help retailers and brands unlock the value of marketing data and analytics in Google Cloud (additional information). This accolade follows LiveRamp’s recognition as Google Cloud’s “Global Industry Technology Partner of the Year” in 2023 and Habu’s recognition in 2023 as Databricks’ Partner of the Year for “Communications, Media and Entertainment.”

  • In April 2024 Google announced that it will delay the full deprecation of third-party cookies in Chrome from the second half of 2024 until early 2025. This delay does not change our strategy or market approach. We have been preparing for the deprecation of third-party cookies for some time with the build out of our Authenticated Traffic Solution (ATS) and our investment in clean room technology to enable secure first-party data collaboration.

  • ATS is a fully scaled solution that connects publisher and marketer data to better personalize and measure advertising on authenticated inventory. ATS has been adopted by over 21,000 publisher domains and 75% of the comScore 100 publishers. In addition, it is integrated with all major demand-side platforms (DSPs) and supply-side platforms (SSPs). Through these integrations, LiveRamp connects to over 92% of US consumer time spent online.

  • LiveRamp ended the quarter with 115 customers whose annualized subscription revenue exceeds $1 million, compared to 95 in the prior year period.

  • LiveRamp ended the quarter with 900 direct subscription customers, compared to 920 in the prior year period.

  • Fourth quarter subscription net retention was 103% and platform net retention was 108%.

  • Fourth quarter annual recurring revenue (ARR), which is the last month of the quarter fixed subscription revenue annualized, was $467 million, up 10% compared to the prior year period.

  • Current remaining performance obligations (CRPO), which is contracted and committed revenue expected to be recognized over the next 12 months, was $414 million, up 23% compared to the prior year period.

Financial Outlook

LiveRamp’s non-GAAP operating income guidance excludes the impact of non-cash stock compensation, purchased intangible asset amortization, and restructuring and related charges.

For the first quarter of fiscal 2025, LiveRamp expects to report:

  • Revenue of $172 million, an increase of 12%

  • GAAP operating loss of $8 million

  • Non-GAAP operating income of $25 million

For fiscal 2025, LiveRamp expects to report:

  • Revenue of between $710 million and $730 million, an increase of between 8% and 11%

  • GAAP operating loss of between $8 million and $4 million

  • Non-GAAP operating income of between $125 million and $129 million

Conference Call

LiveRamp will hold a conference call today at 1:30 p.m. PT (4:30 p.m. ET) to further discuss this information. Interested parties are invited to listen to a webcast of the conference, which can be accessed on LiveRamp’s investor site. A slide presentation will be referenced during the call and is available here.

About LiveRamp

LiveRamp is the data collaboration platform of choice for the world’s most innovative companies. A groundbreaking leader in consumer privacy, data ethics, and foundational identity, LiveRamp offers a connected customer view with clarity and context while protecting brand and consumer trust. We offer flexibility to collaborate wherever data lives to support a wide range of data collaboration use cases—within organizations, between brands, and across our global network of premier partners. Global innovators, from iconic consumer brands and tech platforms to retailers, financial services, and healthcare leaders, turn to LiveRamp to deepen customer engagement and loyalty, activate new partnerships, and maximize the value of their first-party data while staying on the forefront of rapidly evolving compliance and privacy requirements. LiveRamp is based in San Francisco, California with offices worldwide. Learn more at LiveRamp.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended (the “PSLRA”). These statements, which are not statements of historical fact, may contain estimates, assumptions, projections and/or expectations regarding the Company’s financial position, results of operations for fiscal 2025 and beyond, the integration and expected benefits from the acquisition of Habu, market position, product development, growth opportunities, economic conditions, and other similar forecasts and statements of expectation. Forward-looking statements are often identified by words or phrases such as “anticipate,” “estimate,” “plan,” “expect,” “believe,” “intend,” “foresee,” or the negative of these terms or other similar variations thereof.

These forward-looking statements are not guarantees of future performance and are subject to a number of factors and uncertainties that could cause the Company’s actual results and experiences to differ materially from the anticipated results and expectations expressed in the forward-looking statements.

Among the factors that may cause actual results and expectations to differ from anticipated results and expectations expressed in forward-looking statements are uncertainties related to rising interest rates, cost increases, the possibility of a recession, general inflationary pressure, geo-political circumstances that could result in increased economic uncertainties and the associated impacts of these potential events on our suppliers, customers and partners; the Company’s dependence upon customer renewals; new customer additions and upsell within our subscription business; our reliance upon partners, including data suppliers; competition; rapidly changing technology’s impact on our products and services; the risk that we fail to realize the potential benefits of or have difficulty integrating Habu; and attracting, motivating and retaining talent. Additional risks include maintaining our culture and our ability to innovate and evolve while operating in a hybrid work environment, with some employees working remotely at least some of the time within a rapidly changing industry, while also avoiding disruption from reductions in our current workforce as well as disruptions resulting from acquisition, divestiture and other activities affecting our workforce. Our global workforce strategy could possibly encounter difficulty and not be as beneficial as planned. Our international operations are also subject to risks, including the performance of third parties as well as impacts from war and civil unrest, that may harm the Company’s business. The risk of a significant breach of the confidentiality of the information or the security of our or our customers’, suppliers’, or other partners’ data and/or computer systems, or the risk that our current insurance coverage may not be adequate for such a breach, that an insurer might deny coverage for a claim or that such insurance will continue to be available to us on commercially reasonable terms, or at all, could be detrimental to our business, reputation and results of operations. Other business risks include unfavorable publicity and negative public perception about our industry; interruptions or delays in service from data center or cloud hosting vendors we rely upon; and our dependence on the continued availability of third-party data hosting and transmission services. Our clients’ ability to use data on our platform could be restricted if the industry’s use of third-party cookies and tracking technology declines due to technology platform changes, regulation or increased user controls. Changes in regulations and legislation relating to information collection and use represents a risk, as well as changes in tax laws and regulations that are applied to our customers which could cause enterprise software budget tightening. In addition, third parties may claim that we are infringing their intellectual property or may infringe our intellectual property which could result in competitive injury and / or the incurrence of significant costs and draining of our resources.

For a discussion of these and other risks and uncertainties that could affect LiveRamp’s business, reputation, results of operation, financial condition and stock price, please refer to LiveRamp’s filings with the U.S. Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of LiveRamp’s most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings.

The financial information set forth in this press release reflects estimates based on information available at this time.

LiveRamp assumes no obligation and does not currently intend to update these forward-looking statements.

To automatically receive LiveRamp financial news by email, please visit www.LiveRamp.com and subscribe to email alerts.

For more information, contact:

LiveRamp Investor Relations
Investor.Relations@LiveRamp.com

LiveRampand RampID™ and all other LiveRamp marks contained herein are trademarks or service marks of LiveRamp, Inc. All other marks are the property of their respective owners.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

For the Three Months Ended

 

March 31,

 

 

 

 

 

$

%

 

2024

 

2023

 

Variance

Variance

 

 

 

 

 

 

 

Revenues

171,852

 

 

148,626

 

 

23,226

 

15.6

%

 

 

 

 

 

 

 

Cost of revenue

47,722

 

 

43,472

 

 

4,250

 

9.8

%

Gross profit

124,130

 

 

105,154

 

 

18,976

 

18.0

%

     % Gross margin

72.2

%

 

70.8

%

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

Research and development

45,161

 

 

52,220

 

 

(7,059

)

(13.5

%)

Sales and marketing

60,476

 

 

57,506

 

 

2,970

 

5.2

%

General and administrative

30,252

 

 

32,832

 

 

(2,580

)

(7.9

%)

Gains, losses and other items, net

2,516

 

 

9,723

 

 

(7,207

)

(74.1

%)

Total operating expenses

138,405

 

 

152,281

 

 

(13,876

)

(9.1

%)

 

 

 

 

 

 

 

Loss from operations

(14,275

)

 

(47,127

)

 

32,852

 

69.7

%

% Margin

-8.3

%

 

-31.7

%

 

 

 

 

 

 

 

 

 

 

Total other income, net

5,070

 

 

4,735

 

 

335

 

7.1

%

 

 

 

 

 

 

 

Loss from continuing operations before income taxes

(9,205

)

 

(42,392

)

 

33,187

 

78.3

%

 

 

 

 

 

 

 

Income tax benefit

(3,027

)

 

(6,460

)

 

3,433

 

53.1

%

 

 

 

 

 

 

 

Net loss from continuing operations

(6,178

)

 

(35,932

)

 

29,754

 

82.8

%

 

 

 

 

 

 

 

Earnings from discontinued operations, net of tax

805

 

 

4,568

 

 

(3,763

)

(82.4

%)

 

 

 

 

 

 

 

Net loss

(5,373

)

 

(31,364

)

 

25,991

 

82.9

%

 

 

 

 

 

 

 

Basic earnings (loss) per share:

 

 

 

 

 

 

Continuing operations

(0.09

)

 

(0.55

)

 

0.46

 

83.1

%

Discontinued operations

0.01

 

 

0.07

 

 

(0.06

)

(82.7

%)

Basic earnings (loss) per share

(0.08

)

 

(0.48

)

 

0.40

 

83.2

%

 

 

 

 

 

 

 

Diluted earnings (loss) per share:

 

 

 

 

 

 

Continuing operations

(0.09

)

 

(0.55

)

 

0.46

 

83.1

%

Discontinued operations

0.01

 

 

0.07

 

 

(0.06

)

(82.7

%)

Diluted earnings (loss) per share:

(0.08

)

 

(0.48

)

 

0.40

 

83.2

%

 

 

 

 

 

 

 

Basic weighted average shares

66,323

 

 

65,126

 

 

 

 

Diluted weighted average shares

66,323

 

 

65,126

 

 

 

 

 

 

 

 

 

 

 

Some totals may not sum due to rounding.

 

 

 

 

 

 

 

 

 

 

 

 

 


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

For the Twelve Months Ended

 

March 31,

 

 

 

 

 

$

%

 

2024

 

2023

 

Variance

Variance

 

 

 

 

 

 

 

Revenues

659,661

 

 

596,583

 

 

63,078

 

10.6

%

 

 

 

 

 

 

 

Cost of revenue

179,489

 

 

170,084

 

 

9,405

 

5.5

%

Gross profit

480,172

 

 

426,499

 

 

53,673

 

12.6

%

     % Gross margin

72.8

%

 

71.5

%

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

Research and development

151,201

 

 

189,195

 

 

(37,994

)

(20.1

%)

Sales and marketing

195,693

 

 

202,437

 

 

(6,744

)

(3.3

%)

General and administrative

110,166

 

 

125,351

 

 

(15,185

)

(12.1

%)

Gains, losses and other items, net

11,708

 

 

35,316

 

 

(23,608

)

(66.8

%)

Total operating expenses

468,768

 

 

552,299

 

 

(83,531

)

(15.1

%)

 

 

 

 

 

 

 

Income (loss) from operations

11,404

 

 

(125,800

)

 

137,204

 

109.1

%

% Margin

1.7

%

 

-21.1

%

 

 

 

 

 

 

 

 

 

 

Total other income, net

22,957

 

 

6,946

 

 

16,011

 

230.5

%

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

34,361

 

 

(118,854

)

 

153,215

 

128.9

%

 

 

 

 

 

 

 

Income tax expense

24,270

 

 

5,252

 

 

19,018

 

362.1

%

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

10,091

 

 

(124,106

)

 

134,197

 

108.1

%

 

 

 

 

 

 

 

Earnings from discontinued operations, net of tax

1,790

 

 

5,404

 

 

(3,614

)

(66.9

%)

 

 

 

 

 

 

 

Net earnings (loss)

11,881

 

 

(118,702

)

 

130,583

 

110.0

%

 

 

 

 

 

 

 

Basic earnings (loss) per share:

 

 

 

 

 

 

Continuing operations

0.15

 

 

(1.87

)

 

2.02

 

108.1

%

Discontinued operations

0.03

 

 

0.08

 

 

(0.05

)

(66.8

%)

Basic earnings (loss) per share

0.18

 

 

(1.79

)

 

1.97

 

110.0

%

 

 

 

 

 

 

 

Diluted earnings (loss) per share:

 

 

 

 

 

 

Continuing operations

0.15

 

 

(1.87

)

 

2.02

 

107.9

%

Discontinued operations

0.03

 

 

0.08

 

 

(0.06

)

(67.6

%)

Diluted earnings (loss) per share:

0.17

 

 

(1.79

)

 

1.96

 

109.8

%

 

 

 

 

 

 

 

Basic weighted average shares

66,266

 

 

66,352

 

 

 

 

Diluted weighted average shares

67,918

 

 

66,352

 

 

 

 

 

 

 

 

 

 

 

Some totals may not sum due to rounding.

 

 

 

 

 

 

 

 

 

 

 

 

 


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP EPS (1)

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Twelve Months Ended

 

March 31,

 

March 31,

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

(9,205

)

 

(42,392

)

 

34,361

 

(118,854

)

 

 

 

 

 

 

 

 

Income tax expense (benefit)

(3,027

)

 

(6,460

)

 

24,270

 

5,252

 

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

(6,178

)

 

(35,932

)

 

10,091

 

(124,106

)

 

 

 

 

 

 

 

 

Earnings from discontinued operations, net of tax

805

 

 

4,568

 

 

1,790

 

5,404

 

 

 

 

 

 

 

 

 

Net earnings (loss)

(5,373

)

 

(31,364

)

 

11,881

 

(118,702

)

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

Basic

(0.08

)

 

(0.48

)

 

0.18

 

(1.79

)

Diluted

(0.08

)

 

(0.48

)

 

0.17

 

(1.79

)

 

 

 

 

 

 

 

 

Excluded items:

 

 

 

 

 

 

 

Purchased intangible asset amortization (cost of revenue)

3,097

 

 

3,336

 

 

8,785

 

16,825

 

Non-cash stock compensation (cost of revenue and operating expenses)

24,780

 

 

44,658

 

 

71,304

 

125,800

 

Transformation costs (general and administrative)

-

 

 

3,663

 

 

1,875

 

9,025

 

Restructuring charges (gains, losses, and other)

2,516

 

 

9,723

 

 

11,708

 

35,316

 

 

 

 

 

 

 

 

 

Total excluded items, continuing operations

30,393

 

 

61,380

 

 

93,672

 

186,966

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes and excluding items

21,188

 

 

18,988

 

 

128,033

 

68,112

 

 

 

 

 

 

 

 

 

Income tax expense (benefit) (2)

3,947

 

 

(2,141

)

 

29,882

 

10,121

 

 

 

 

 

 

 

 

 

Non-GAAP net earnings from continuing operations

17,241

 

 

21,129

 

 

98,151

 

57,991

 

 

 

 

 

 

 

 

 

Non-GAAP earnings per share from continuing operations:

 

 

 

 

 

 

 

Basic

0.26

 

 

0.32

 

 

1.48

 

0.87

 

Diluted

0.25

 

 

0.32

 

 

1.45

 

0.86

 

 

 

 

 

 

 

 

 

Basic weighted average shares

66,323

 

 

65,126

 

 

66,266

 

66,352

 

Diluted weighted average shares

68,471

 

 

66,268

 

 

67,918

 

67,097

 

 

 

 

 

 

 

 

 

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.

(2) Income taxes were calculated by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusting for discrete tax items in the period. The differences between our GAAP and non-GAAP effective tax rates were primarily due to the net tax effects of the excluded items, coupled with larger pre-tax losses for GAAP purposes versus smaller pre-tax losses or income for non-GAAP purposes.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP INCOME (LOSS) FROM OPERATIONS (1)

(Unaudited)

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Twelve Months Ended

 

 

March 31,

 

March 31,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

(14,275

)

 

(47,127

)

 

11,404

 

(125,800

)

 

 

 

 

 

 

 

 

 

Excluded items:

 

 

 

 

 

 

 

Purchased intangible asset amortization (cost of revenue)

3,097

 

 

3,336

 

 

8,785

 

16,825

 

Non-cash stock compensation (cost of revenue and operating expenses)

24,780

 

 

44,658

 

 

71,304

 

125,800

 

Transformation costs (general and administrative)

-

 

 

3,663

 

 

1,875

 

9,025

 

Restructuring charges (gains, losses, and other)

2,516

 

 

9,723

 

 

11,708

 

35,316

 

 

 

 

 

 

 

 

 

 

Total excluded items

30,393

 

 

61,380

 

 

93,672

 

186,966

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before excluded items

16,118

 

 

14,253

 

 

105,076

 

61,166

 

 

 

 

 

 

 

 

 

 

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED EBITDA (1)

(Unaudited)

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Twelve Months Ended

 

 

March 31,

 

March 31,

 

 

2024

 

2023

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

(6,178

)

 

(35,932

)

 

10,091

 

 

(124,106

)

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

(3,027

)

 

(6,460

)

 

24,270

 

 

5,252

 

 

 

 

 

 

 

 

 

 

Other income, net

(5,070

)

 

(4,735

)

 

(22,957

)

 

(6,946

)

 

 

 

 

 

 

 

 

 

Income (loss) from operations

(14,275

)

 

(47,127

)

 

11,404

 

 

(125,800

)

 

 

 

 

 

 

 

 

 

Depreciation and amortization

3,823

 

 

4,226

 

 

11,508

 

 

20,787

 

 

 

 

 

 

 

 

 

 

EBITDA

(10,452

)

 

(42,901

)

 

22,912

 

 

(105,013

)

 

 

 

 

 

 

 

 

 

Other adjustments:

 

 

 

 

 

 

 

Non-cash stock compensation (cost of revenue and operating expenses)

24,780

 

 

44,658

 

 

71,304

 

 

125,800

 

Transformation costs (general and administrative)

-

 

 

3,663

 

 

1,875

 

 

9,025

 

Restructuring charges (gains, losses, and other)

2,516

 

 

9,723

 

 

11,708

 

 

35,316

 

 

 

 

 

 

 

 

 

 

Other adjustments

27,296

 

 

58,044

 

 

84,887

 

 

170,141

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

16,844

 

 

15,143

 

 

107,799

 

 

65,128

 

 

 

 

 

 

 

 

 

 

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

 

 

 

 

 

 

 

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

 

 

 

 

 

 

 

 

March 31,

 

March 31,

 

$

%

 

2024

 

2023

 

Variance

Variance

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

336,867

 

 

464,448

 

 

(127,581

)

(27.5

%)

Restricted cash

2,604

 

 

-

 

 

2,604

 

n/a

Short-term investments

32,045

 

 

32,807

 

 

(762

)

(2.3

%)

Trade accounts receivable, net

190,313

 

 

157,379

 

 

32,934

 

20.9

%

Refundable income taxes, net

8,521

 

 

28,897

 

 

(20,376

)

(70.5

%)

Other current assets

31,682

 

 

31,028

 

 

654

 

2.1

%

 

 

 

 

 

 

 

Total current assets

602,032

 

 

714,559

 

 

(112,527

)

(15.7

%)

 

 

 

 

 

 

 

Property and equipment

25,394

 

 

39,393

 

 

(13,999

)

(35.5

%)

Less - accumulated depreciation and amortization

17,213

 

 

32,308

 

 

(15,095

)

(46.7

%)

 

 

 

 

 

 

 

Property and equipment, net

8,181

 

 

7,085

 

 

1,096

 

15.5

%

 

 

 

 

 

 

 

Intangible assets, net

34,583

 

 

9,868

 

 

24,715

 

250.5

%

Goodwill

501,756

 

 

363,116

 

 

138,640

 

38.2

%

Deferred commissions, net

48,143

 

 

37,030

 

 

11,113

 

30.0

%

Other assets, net

36,748

 

 

41,045

 

 

(4,297

)

(10.5

%)

 

 

 

 

 

 

 

 

1,231,443

 

 

1,172,703

 

 

58,740

 

5.0

%

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Trade accounts payable

81,202

 

 

86,568

 

 

(5,366

)

(6.2

%)

Accrued payroll and related expenses

61,575

 

 

33,434

 

 

28,141

 

84.2

%

Other accrued expenses

42,857

 

 

35,736

 

 

7,121

 

19.9

%

Deferred revenue

30,942

 

 

19,091

 

 

11,851

 

62.1

%

 

 

 

 

 

 

 

Total current liabilities

216,576

 

 

174,829

 

 

41,747

 

23.9

%

 

 

 

 

 

 

 

Other liabilities

65,732

 

 

71,798

 

 

(6,066

)

(8.4

%)

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock

-

 

 

-

 

 

-

 

n/a

Common stock

15,594

 

 

15,399

 

 

195

 

1.3

%

Additional paid-in capital

1,933,776

 

 

1,855,916

 

 

77,860

 

4.2

%

Retained earnings

1,314,172

 

 

1,302,291

 

 

11,881

 

0.9

%

Accumulated other comprehensive income

3,964

 

 

4,504

 

 

(540

)

(12.0

%)

Treasury stock, at cost

(2,318,371

)

 

(2,252,034

)

 

(66,337

)

2.9

%

Total stockholders' equity

949,135

 

 

926,076

 

 

23,059

 

2.5

%

 

 

 

 

 

 

 

 

1,231,443

 

 

1,172,703

 

 

58,740

 

5.0

%

 

 

 

 

 

 

 


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)

 

 

 

 

 

For the Three Months Ended

 

March 31,

 

2024

 

2023

 

 

 

 

Cash flows from operating activities:

 

 

 

Net loss

(5,373

)

 

(31,364

)

Earnings from discontinued operations, net of tax

(805

)

 

(4,568

)

Non-cash operating activities:

 

 

 

Depreciation and amortization

3,823

 

 

4,226

 

Loss on disposal or impairment of assets

6

 

 

16

 

Lease impairments

(546

)

 

9,380

 

Provision for doubtful accounts

1,947

 

 

48

 

Deferred income taxes

(498

)

 

(89

)

Non-cash stock compensation expense

24,780

 

 

44,658

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

8,700

 

 

15,048

 

Deferred commissions

(3,971

)

 

(4,313

)

Other assets

8,514

 

 

6,117

 

Accounts payable and other liabilities

(246

)

 

(6,060

)

Income taxes

(7,285

)

 

(6,371

)

Deferred revenue

(1,403

)

 

3,937

 

Net cash provided by operating activities

27,643

 

 

30,665

 

Cash flows from investing activities:

 

 

 

Capital expenditures

(1,791

)

 

(103

)

Purchases of investments

(24,509

)

 

(25,197

)

Proceeds from sale of investments

25,000

 

 

-

 

Proceeds from sale of strategic investments

-

 

 

994

 

Net cash paid in acquisition

(170,281

)

 

-

 

Net cash used in investing activities

(171,581

)

 

(24,306

)

Cash flows from financing activities:

 

 

 

Proceeds related to the issuance of common stock under stock and employee benefit plans

1

 

 

4

 

Shares repurchased for tax withholdings upon vesting of stock-based awards

(719

)

 

(218

)

Acquisition of treasury stock

(15,177

)

 

-

 

Net cash used in financing activities

(15,895

)

 

(214

)

Cash flows from discontinued operations:

 

 

 

From operating activities

805

 

 

4,568

 

Net cash provided by discontinued operations

805

 

 

4,568

 

Effect of exchange rate changes on cash

(447

)

 

219

 

 

 

 

 

Net change in cash and cash equivalents

(159,475

)

 

10,932

 

Cash, cash equivalents, and restricted cash at beginning of period

498,946

 

 

453,516

 

Cash, cash equivalents, and restricted cash at end of period

339,471

 

 

464,448

 

 

 

 

 

   Supplemental cash flow information:

 

 

 

Cash paid for income taxes, net - continuing operations

4,905

 

 

1,076

 

Cash (received) for income taxes, net - discontinued operations

(1,258

)

 

(7,025

)

Cash paid for operating lease liabilities

2,594

 

 

2,510

 

Operating lease assets obtained in exchange for operating lease liabilities

148

 

 

-

 

Purchases of property, plant, & equipment, net remaining unpaid at end of period

104

 

 

47

 

 

 

 

 


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)

 

 

 

 

 

For the Twelve Months Ended

 

March 31,

 

2024

 

2023

 

 

 

 

Cash flows from operating activities:

 

 

 

Net earnings (loss)

11,881

 

 

(118,702

)

Earnings from discontinued operations, net of tax

(1,790

)

 

(5,404

)

Non-cash operating activities:

 

 

 

Depreciation and amortization

11,508

 

 

20,787

 

Loss on disposal or impairment of assets

1,219

 

 

4,137

 

Gain on sale of strategic investment

-

 

 

(194

)

Lease impairments

1,769

 

 

27,545

 

Provision for doubtful accounts

2,254

 

 

1,776

 

Impairment of goodwill

2,875

 

 

-

 

Deferred income taxes

(458

)

 

115

 

Non-cash stock compensation expense

71,304

 

 

125,800

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

(32,336

)

 

(12,123

)

Deferred commissions

(11,113

)

 

(6,436

)

Other assets

9,426

 

 

7,705

 

Accounts payable and other liabilities

8,508

 

 

(15,369

)

Income taxes

22,275

 

 

596

 

Deferred revenue

8,334

 

 

4,208

 

Net cash provided by operating activities

105,656

 

 

34,441

 

Cash flows from investing activities:

 

 

 

Capital expenditures

(4,255

)

 

(4,696

)

Purchases of investments

(48,894

)

 

(28,197

)

Proceeds from sales of investments

50,750

 

 

3,000

 

Purchases of strategic investments

(1,000

)

 

(500

)

Proceeds from sales of strategic investments

-

 

 

1,394

 

Net cash paid in acquisition

(170,281

)

 

-

 

Net cash used in investing activities

(173,680

)

 

(28,999

)

Cash flows from financing activities:

 

 

 

Proceeds related to the issuance of common stock under stock and employee benefit plans

7,222

 

 

6,259

 

Shares repurchased for tax withholdings upon vesting of stock-based awards

(5,835

)

 

(2,272

)

Acquisition of treasury stock

(60,502

)

 

(149,997

)

Net cash used in financing activities

(59,115

)

 

(146,010

)

Cash flows from discontinued operations:

 

 

 

From operating activities

1,790

 

 

5,404

 

Net cash provided by discontinued operations

1,790

 

 

5,404

 

Effect of exchange rate changes on cash

372

 

 

(550

)

 

 

 

 

Net change in cash and cash equivalents

(124,977

)

 

(135,714

)

Cash, cash equivalents, and restricted cash at beginning of period

464,448

 

 

600,162

 

Cash, cash equivalents, and restricted cash at end of period

339,471

 

 

464,448

 

 

 

 

 

   Supplemental cash flow information:

 

 

 

Cash (received) paid for income taxes, net - continuing operations

2,465

 

 

5,801

 

Cash (received) for income taxes, net - discontinued operations

(2,765

)

 

(8,332

)

Cash paid for operating lease liabilities

10,293

 

 

8,243

 

Operating lease assets obtained in exchange for operating lease liabilities

11,825

 

 

69

 

Operating lease assets relinquished in exchange for operating lease liabilities

(4,486

)

 

(6,781

)

Purchases of property, plant, & equipment, net remaining unpaid at end of period

104

 

 

47

 

 

 

 

 



LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

 

 

 

 

CALCULATION OF FREE CASH FLOW TO EQUITY (1)

 

 

 

 

(Unaudited)

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

06/30/22

09/30/22

12/31/22

03/31/23

FY2023

 

06/30/23

09/30/23

12/31/23

03/31/24

FY2024

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Provided by (Used in) Operating Activities-Continuing Operations

(33,369

)

21,375

 

15,770

 

30,665

 

34,441

 

 

25,693

 

35,764

 

16,556

 

27,643

 

105,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

(1,741

)

(2,673

)

(179

)

(103

)

(4,696

)

 

(53

)

(200

)

(2,211

)

(1,791

)

(4,255

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Free Cash Flow to Equity

(35,110

)

18,702

 

15,591

 

30,562

 

29,745

 

 

25,640

 

35,564

 

14,345

 

25,852

 

101,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY24 to FY23

 

 

06/30/22

09/30/22

12/31/22

03/31/23

FY2023

 

06/30/23

09/30/23

12/31/23

03/31/24

FY2024

 

%

$

 

Revenues

142,243

 

147,099

 

158,615

 

148,626

 

596,583

 

 

154,069

 

159,871

 

173,869

 

171,852

 

659,661

 

 

10.6

%

63,078

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

41,021

 

42,304

 

43,287

 

43,472

 

170,084

 

 

45,621

 

41,212

 

44,934

 

47,722

 

179,489

 

 

5.5

%

9,405

 

 

Gross profit

101,222

 

104,795

 

115,328

 

105,154

 

426,499

 

 

108,448

 

118,659

 

128,935

 

124,130

 

480,172

 

 

12.6

%

53,673

 

 

     % Gross margin

71.2

%

71.2

%

72.7

%

70.8

%

71.5

%

 

70.4

%

74.2

%

74.2

%

72.2

%

72.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

47,661

 

46,139

 

43,175

 

52,220

 

189,195

 

 

34,519

 

33,733

 

37,788

 

45,161

 

151,201

 

 

(20.1

%)

(37,994

)

 

Sales and marketing

51,280

 

45,949

 

47,702

 

57,506

 

202,437

 

 

44,879

 

44,135

 

46,203

 

60,476

 

195,693

 

 

(3.3

%)

(6,744

)

 

General and administrative

27,144

 

28,718

 

36,657

 

32,832

 

125,351

 

 

26,664

 

26,009

 

27,241

 

30,252

 

110,166

 

 

(12.1

%)

(15,185

)

 

Gains, losses and other items, net

739

 

13,111

 

11,743

 

9,723

 

35,316

 

 

116

 

6,574

 

2,502

 

2,516

 

11,708

 

 

(66.8

%)

(23,608

)

 

Total operating expenses

126,824

 

133,917

 

139,277

 

152,281

 

552,299

 

 

106,178

 

110,451

 

113,734

 

138,405

 

468,768

 

 

(15.1

%)

(83,531

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

(25,602

)

(29,122

)

(23,949

)

(47,127

)

(125,800

)

 

2,270

 

8,208

 

15,201

 

(14,275

)

11,404

 

 

109.1

%

137,204

 

 

  % Margin

-18.0

%

-19.8

%

-15.1

%

-31.7

%

-21.1

%

 

1.5

%

5.1

%

8.7

%

-8.3

%

1.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expense), net

699

 

2,248

 

(736

)

4,735

 

6,946

 

 

4,849

 

6,431

 

6,607

 

5,070

 

22,957

 

 

230.5

%

16,011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

(24,903

)

(26,874

)

(24,685

)

(42,392

)

(118,854

)

 

7,119

 

14,639

 

21,808

 

(9,205

)

34,361

 

 

128.9

%

153,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes expense (benefit)

2,315

 

3,562

 

5,835

 

(6,460

)

5,252

 

 

8,705

 

10,163

 

8,429

 

(3,027

)

24,270

 

 

362.1

%

19,018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from continuing operations

(27,218

)

(30,436

)

(30,520

)

(35,932

)

(124,106

)

 

(1,586

)

4,476

 

13,379

 

(6,178

)

10,091

 

 

108.1

%

134,197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from discontinued operations, net of tax

-

 

-

 

836

 

4,568

 

5,404

 

 

-

 

387

 

598

 

805

 

1,790

 

 

(66.9

%)

(3,614

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

(27,218

)

(30,436

)

(29,684

)

(31,364

)

(118,702

)

 

(1,586

)

4,863

 

13,977

 

(5,373

)

11,881

 

 

110.0

%

130,583

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share

(0.40

)

(0.45

)

(0.46

)

(0.48

)

(1.79

)

 

(0.02

)

0.07

 

0.21

 

(0.08

)

0.17

 

 

n/a

1.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Some earnings (loss) per share amounts may not add due to rounding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares

68,403

 

67,096

 

64,784

 

65,126

 

66,352

 

 

66,497

 

66,284

 

65,961

 

66,323

 

66,266

 

 

 

 

 

Diluted shares

69,195

 

67,568

 

65,356

 

66,268

 

67,097

 

 

67,388

 

67,868

 

67,943

 

68,471

 

67,918

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP EXPENSES (1)

(Unaudited)

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

06/30/22

09/30/22

12/31/22

03/31/23

FY2023

 

06/30/23

09/30/23

12/31/23

03/31/24

FY2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses, continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

41,021

 

42,304

 

43,287

 

43,472

 

170,084

 

 

45,621

 

41,212

 

44,934

 

47,722

 

179,489

 

Research and development

 

 

47,661

 

46,139

 

43,175

 

52,220

 

189,195

 

 

34,519

 

33,733

 

37,788

 

45,161

 

151,201

 

Sales and marketing

 

 

51,280

 

45,949

 

47,702

 

57,506

 

202,437

 

 

44,879

 

44,135

 

46,203

 

60,476

 

195,693

 

General and administrative

 

 

27,144

 

28,718

 

36,657

 

32,832

 

125,351

 

 

26,664

 

26,009

 

27,241

 

30,252

 

110,166

 

Gains, losses and other items, net

 

 

739

 

13,111

 

11,743.00

 

9,723

 

35,316

 

 

116

 

6,574

 

2,502

 

2,516

 

11,708

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit, continuing operations:

 

 

101,222

 

104,795

 

115,328

 

105,154

 

426,499

 

 

108,448

 

118,659

 

128,935

 

124,130

 

480,172

 

% Gross margin

 

 

71.2

%

71.2

%

72.7

%

70.8

%

71.5

%

 

70.4

%

74.2

%

74.2

%

72.2

%

72.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excluded items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased intangible asset amortization (cost of revenue)

 

4,643

 

4,637

 

4,209

 

3,336

 

16,825

 

 

3,290

 

1,217

 

1,181

 

3,097

 

8,785

 

Non-cash stock compensation (cost of revenue)

 

1,163

 

1,293

 

1,208

 

2,653

 

6,317

 

 

629

 

629

 

817

 

1,478

 

3,553

 

Non-cash stock compensation (research and development)

 

11,656

 

12,360

 

10,654

 

20,737

 

55,407

 

 

5,077

 

5,293

 

6,960

 

9,859

 

27,189

 

Non-cash stock compensation (sales and marketing)

 

5,884

 

6,116

 

5,871

 

11,558

 

29,429

 

 

3,736

 

4,786

 

4,089

 

6,337

 

18,948

 

Non-cash stock compensation (general and administrative)

 

5,522

 

7,524

 

11,891

 

9,710

 

34,647

 

 

3,850

 

5,027

 

5,631

 

7,106

 

21,614

 

Restructuring charges (gains, losses, and other)

 

739

 

13,111

 

11,743

 

9,723

 

35,316

 

 

116

 

6,574

 

2,502

 

2,516

 

11,708

 

Transformation costs (general and administrative)

 

-

 

1,250

 

4,112

 

3,663

 

9,025

 

 

1,875

 

-

 

-

 

-

 

1,875

 

Total excluded items

 

 

29,607

 

46,291

 

49,688

 

61,380

 

186,966

 

 

18,573

 

23,526

 

21,180

 

30,393

 

93,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses, continuing operations excluding items:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

35,215

 

36,374

 

37,870

 

37,483

 

146,942

 

 

41,702

 

39,366

 

42,936

 

43,147

 

167,151

 

Research and development

 

 

36,005

 

33,779

 

32,521

 

31,483

 

133,788

 

 

29,442

 

28,440

 

30,828

 

35,302

 

124,012

 

Sales and marketing

 

 

45,396

 

39,833

 

41,831

 

45,948

 

173,008

 

 

41,143

 

39,349

 

42,114

 

54,139

 

176,745

 

General and administrative

 

 

21,622

 

19,944

 

20,654

 

19,459

 

81,679

 

 

20,939

 

20,982

 

21,610

 

23,146

 

86,677

 

Gains, losses and other items, net

 

 

-

 

-

 

-

 

-

 

-

 

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit, continuing operations excluding items:

 

107,028

 

110,725

 

120,745

 

111,143

 

449,641

 

 

112,367

 

120,505

 

130,933

 

128,705

 

492,510

 

% Gross margin

 

 

75.2

%

75.3

%

76.1

%

74.8

%

75.4

%

 

72.9

%

75.4

%

75.3

%

74.9

%

74.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP EPS (1)

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

06/30/22

09/30/22

12/31/22

03/31/23

FY 2023

 

06/30/23

09/30/23

12/31/23

03/31/24

FY 2024

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

(24,903

)

(26,874

)

(24,685

)

(42,392

)

(118,854

)

 

7,119

 

14,639

21,808

(9,205

)

34,361

Income taxes (benefit)

2,315

 

3,562

 

5,835

 

(6,460

)

5,252

 

 

8,705

 

10,163

8,429

(3,027

)

24,270

Net earnings (loss) from continuing operations

(27,218

)

(30,436

)

(30,520

)

(35,932

)

(124,106

)

 

(1,586

)

4,476

13,379

(6,178

)

10,091

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from discontinued operations, net of tax

-

 

-

 

836

 

4,568

 

5,404

 

 

-

 

387

598

805

 

1,790

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

(27,218

)

(30,436

)

(29,684

)

(31,364

)

(118,702

)

 

(1,586

)

4,863

13,977

(5,373

)

11,881

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

(0.40

)

(0.45

)

(0.46

)

(0.48

)

(1.79

)

 

(0.02

)

0.07

0.21

(0.08

)

0.18

Diluted

(0.40

)

(0.45

)

(0.46

)

(0.48

)

(1.79

)

 

(0.02

)

0.07

0.21

(0.08

)

0.17

 

 

 

 

 

 

 

 

 

 

 

 

Excluded items:

 

 

 

 

 

 

 

 

 

 

 

Purchased intangible asset amortization (cost of revenue)

4,643

 

4,637

 

4,209

 

3,336

 

16,825

 

 

3,290

 

1,217

1,181

3,097

 

8,785

Non-cash stock compensation (cost of revenue and operating expenses)

24,225

 

27,293

 

29,624

 

44,658

 

125,800

 

 

13,292

 

15,735

17,497

24,780

 

71,304

Restructuring charges (gains, losses, and other)

739

 

13,111

 

11,743

 

9,723

 

35,316

 

 

116

 

6,574

2,502

2,516

 

11,708

Transformation costs (general and administrative)

-

 

1,250

 

4,112

 

3,663

 

9,025

 

 

1,875

 

-

-

-

 

1,875

Total excluded items from continuing operations

29,607

 

46,291

 

49,688

 

61,380

 

186,966

 

 

18,573

 

23,526

21,180

30,393

 

93,672

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes and excluding items

4,704

 

19,417

 

25,003

 

18,988

 

68,112

 

 

25,692

 

38,165

42,988

21,188

 

128,033

Income taxes expense (benefit)

1,237

 

4,557

 

6,468

 

(2,141

)

10,121

 

 

6,167

 

9,036

10,732

3,947

 

29,882

Non-GAAP net earnings from continuing operations

3,467

 

14,860

 

18,535

 

21,129

 

57,991

 

 

19,525

 

29,129

32,256

17,241

 

98,151

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP earnings per share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

Basic

0.05

 

0.22

 

0.29

 

0.32

 

0.87

 

 

0.29

 

0.44

0.49

0.26

 

1.48

Diluted

0.05

 

0.22

 

0.28

 

0.32

 

0.86

 

 

0.29

 

0.43

0.47

0.25

 

1.45

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares

68,403

 

67,096

 

64,784

 

65,126

 

66,352

 

 

66,497

 

66,284

65,961

66,323

 

66,266

Diluted weighted average shares

69,195

 

67,568

 

65,356

 

66,268

 

67,097

 

 

67,388

 

67,868

67,943

68,471

 

67,918

 

 

 

 

 

 

 

 

 

 

 

 

Some totals may not add due to rounding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP OPERATING INCOME GUIDANCE (1)

(Unaudited)

(Dollars in thousands)

 

 

For the quarter ending

For the year ending

 

 

June 30, 2024

 

March 31, 2025

 

 

 

 

 

 

 

 

 

 

Low

High

GAAP loss from operations

 

(8,000

)

 

 

(8,000

)

 

(4,000

)

 

 

 

 

 

 

Excluded items:

 

 

 

 

Purchased intangible asset amortization

 

4,000

 

 

 

14,000

 

 

14,000

 

Non-cash stock compensation

 

29,000

 

 

 

116,000

 

 

116,000

 

Restructuring charges

 

-

 

 

 

3,000

 

 

3,000

 

Total excluded items

 

33,000

 

 

 

133,000

 

 

133,000

 

 

 

 

 

 

 

Non-GAAP income from operations

$

25,000

 

 

$

125,000

 

$

129,000

 

 

 

 

 

 

 

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

APPENDIX A

 

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES

 

Q4 FISCAL 2024 FINANCIAL RESULTS

 

EXPLANATION OF NON-GAAP MEASURES AND OTHER KEY METRICS

 

 

 

 

 

 

 

 

 

 

 

 

 

To supplement our financial results, we use non-GAAP measures which exclude certain acquisition related expenses, non-cash stock compensation and restructuring charges. We believe these measures are helpful in understanding our past performance and our future results. Our non-GAAP financial measures and schedules are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated GAAP financial statements. Our management regularly uses these non-GAAP financial measures internally to understand, manage and evaluate our business and to make operating decisions. These measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is also based in part on the performance of our business based on these non-GAAP measures.

Our non-GAAP financial measures, including non-GAAP earnings (loss) per share, income (loss) from operations and adjusted EBITDA reflect adjustments based on the following items, as well as the related income tax effects when applicable:

Purchased intangible asset amortization: We incur amortization of purchased intangibles in connection with our acquisitions. Purchased intangibles include (i) developed technology, (ii) customer and publisher relationships, and (iii) trade names. We expect to amortize for accounting purposes the fair value of the purchased intangibles based on the pattern in which the economic benefits of the intangible assets will be consumed as revenue is generated. Although the intangible assets generate revenue for us, we exclude this item because this expense is non-cash in nature and because we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our operational performance.

Non-cash stock compensation: Non-cash stock compensation consists of charges for associate restricted stock units, performance shares and stock options in accordance with current GAAP related to stock-based compensation including expense associated with stock-based compensation related to unvested options assumed in connection with our acquisitions. As we apply stock-based compensation standards, we believe that it is useful to investors to understand the impact of the application of these standards to our operational performance. Although stock-based compensation expense is calculated in accordance with current GAAP and constitutes an ongoing and recurring expense, such expense is excluded from non-GAAP results because it is not an expense that typically requires or will require cash settlement by us and because such expense is not used by us to assess the core profitability of our business operations.

Restructuring charges: During the past several years, we have initiated certain restructuring activities in order to align our costs in connection with both our operating plans and our business strategies based on then-current economic conditions. As a result, we recognized costs related to termination benefits for employees whose positions were eliminated, lease and other contract termination charges, and asset impairments. These items, as well as third party expenses associated with business acquisitions in the current year, reported as gains, losses, and other items, net, are excluded from non-GAAP results because such amounts are not used by us to assess the core profitability of our business operations.

Transformation costs: In previous years, we incurred significant expenses to separate the financial statements of our operating segments, with particular focus on segment-level balance sheets, and to evaluate portfolio priorities. Our criteria for excluding transformation expenses from our non-GAAP measures is as follows: 1) projects are discrete in nature; 2) excluded expenses consist only of third-party consulting fees that we would not incur otherwise; and 3) we do not exclude employee related expenses or other costs associated with the ongoing operations of our business. We substantially completed those projects during the third quarter of fiscal year 2018. Beginning in the fourth quarter of fiscal 2018, and through most of fiscal 2019, we incurred transaction support expenses and system separation costs related to the Company's announced evaluation of strategic options for its Marketing Solutions (AMS) business. In the first and second quarters of fiscal 2021 in response to the potential COVID-19 pandemic impact on our business and again during fiscal 2023 in response to macroeconomic conditions, we incurred significant costs associated with the assessment of strategic and operating plans, including our long-term location strategy, and assistance in implementing the restructuring activities as a result of this assessment. Our criteria for excluding these costs are the same. We believe excluding these items from our non-GAAP financial measures is useful for investors and provides meaningful supplemental information.

Our non-GAAP financial schedules are:

Non-GAAP EPS, Non-GAAP Income from Operations, and Non-GAAP expenses: Our Non-GAAP earnings per share, Non-GAAP income from operations, and Non-GAAP expenses reflect adjustments as described above, as well as the related tax effects where applicable.

Adjusted EBITDA: Adjusted EBITDA is defined as net income from continuing operations before income taxes, other expenses, depreciation and amortization, and including adjustments as described above. We use Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as within our operating segments and to compare our results to those of our competitors. We believe that the inclusion of Adjusted EBITDA provides useful supplementary information to and facilitates analysis by investors in evaluating the Company's performance and trends. The presentation of Adjusted EBITDA is not meant to be considered in isolation or as an alternative to net earnings as an indicator of our performance.

Free Cash Flow to Equity: To supplement our statement of cash flows, we use a non-GAAP measure of cash flow to analyze cash flows generated from operations. Free cash flow to equity is defined as operating cash flow less cash used by investing activities (excluding the impact of cash paid in acquisitions), less required payments of debt, and excluding the impact of discontinued operations. Management believes that this measure of cash flow is meaningful since it represents the amount of money available from continuing operations for the Company's discretionary spending after funding all required obligations including scheduled debt payments. The presentation of non-GAAP free cash flow to equity is not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.

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1 Unless otherwise indicated, all comparisons are to the prior year period.