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LiveRamp Holdings (RAMP)
NYSE:RAMP
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LiveRamp Holdings
(NYSE:RAMP)
73Outperform
Positive Factors
AI and Technology
AI drives utilization and subsequently revenue, enhancing the effectiveness of marketing strategies.
Diversification
Bookings are diversifying outside core retail/CPG verticals, with nearly 75% of new logo and upsell dollars in sectors like media, travel, healthcare, restaurants, auto, and advertising.
Pricing Strategy
The new pricing scheme allows for a more accessible entry price point for mid-market marketers and less friction with up/cross-sell.
Negative Factors
Customer Metrics
Concerns on muted customer metrics and a slower forward pace of NRR are likely offset by strong demand commentary from management.
LiveRamp Holdings (RAMP) vs. S&P 500 (SPY)
Market Cap
$1.73B
Dividend YieldN/A
Average Volume (3M)631.61K
Price to Earnings (P/E)87800.0
Beta (1Y)1.68
Revenue Growth14.50%
EPS GrowthN/A
CountryUS
Employees1,400
SectorTechnology
Sector Strength45
IndustrySoftware
Share Statistics
EPS (TTM)0.00
Shares Outstanding65,760,690
10 Day Avg. Volume768,025
30 Day Avg. Volume631,606
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.27
Price to Cash Flow (P/CF)9.20
P/FCF Ratio9.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$39.40Price Target Upside48.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
LiveRamp Holdings Business Overview & Revenue Model
Company DescriptionLiveRamp Holdings, Inc. engages in providing identity platform leveraged by brands and partners to deliver innovative products and exceptional experiences. The company's identifyLink connects people, data and devices across the digital and physical world, powering the people-based marketing revolution and allowing consumers to safely connect with brands and products. LiveRamp Holdings was founded in 1969 and is headquartered in San Francisco, CA.
How the Company Makes MoneyLiveRamp Holdings generates revenue primarily through its subscription-based data connectivity services. Its main revenue streams come from providing businesses with access to its identity resolution and data onboarding services, which help clients integrate and activate their customer data across multiple platforms and devices. Additionally, LiveRamp earns money by facilitating data collaborations between companies, enabling them to share and utilize data in a privacy-conscious manner. Key partnerships with major technology and media companies also contribute to its revenue, as these collaborations expand LiveRamp's reach and enhance its service offerings.
LiveRamp Holdings Financial Statement Overview
Summary
LiveRamp Holdings demonstrates strong revenue growth and financial stability with a robust balance sheet. The transition to profitability is a positive indicator, although operational margins suggest room for improvement in efficiency. Cash flow generation is a strong point, supporting overall financial health.Income Statement
LiveRamp Holdings shows strong revenue growth with a significant increase from $380.6 million in 2020 to $728.7 million in TTM. Gross Profit Margin remains robust at 71.7% TTM, indicating efficient cost management. The company has turned profitable with a positive Net Profit Margin of 0.01% TTM, a substantial improvement from previous losses. However, EBIT and EBITDA margins are low, reflecting potential challenges in operational efficiency.75
Positive
Balance Sheet
The company maintains a strong balance sheet with zero total debt in TTM, indicating financial stability. The Debt-to-Equity ratio is 0, which is excellent for mitigating financial risk. The Equity Ratio is strong at 81.5%, reflecting a solid capitalization structure. Return on Equity has improved to 0.008% TTM, highlighting a favorable trend, although still modest in absolute terms.85
Very Positive
Cash Flow
Operating Cash Flow to Net Income Ratio is high, indicating strong cash generation relative to net income. Free Cash Flow has grown consistently, with a Free Cash Flow to Net Income Ratio of 1466.16% TTM, showing efficient cash management. The Free Cash Flow growth rate is positive, reflecting increasing cash flow generation capabilities.80
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 551.86M | 659.66M | 596.58M | 528.66M | 443.03M | 380.57M | Gross Profit |
| 397.73M | 480.17M | 426.50M | 381.23M | 299.02M | 227.87M | EBIT |
| -73.36M | 11.40M | -90.48M | -64.06M | -117.83M | -175.92M | EBITDA |
| -49.59M | 36.51M | -60.70M | -39.81M | -93.90M | -140.02M | Net Income Common Stockholders |
| -78.42M | 11.88M | -124.11M | -33.83M | -90.27M | -125.26M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 384.27M | 368.91M | 497.25M | 600.16M | 572.79M | 717.81M | Total Assets |
| 1.18B | 1.23B | 1.17B | 1.33B | 1.29B | 1.30B | Total Debt |
| 38.15M | 42.22M | 47.17M | 61.23M | 13.77M | 9.64M | Net Debt |
| -338.62M | -294.64M | -417.28M | -538.94M | -559.02M | -708.17M | Total Liabilities |
| 217.62M | 282.31M | 246.63M | 270.68M | 207.64M | 214.38M | Stockholders Equity |
| 957.71M | 949.13M | 926.08M | 1.06B | 1.08B | 1.09B |
| Cash Flow | Free Cash Flow | ||||
| 56.14M | 103.19M | 35.15M | 73.58M | -22.74M | -40.49M | Operating Cash Flow |
| 61.95M | 107.45M | 39.84M | 78.08M | -20.56M | -28.78M | Investing Cash Flow |
| -16.37M | -173.68M | -29.00M | 7.58M | -87.89M | -97.62M | Financing Cash Flow |
| -85.87M | -59.12M | -146.01M | -66.98M | -43.49M | -201.98M |
LiveRamp Holdings Technical Analysis
Negative
26.59
Price Trends
31.57
Negative
30.09
Negative
28.95
Negative
Market Momentum
-1.68
Positive
29.45
Positive
20.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAMP, the sentiment is Negative. The current price of 26.59 is below the 20-day moving average (MA) of 30.21, below the 50-day MA of 31.57, and below the 200-day MA of 28.95, indicating a bearish trend. The MACD of -1.68 indicates Positive momentum. The RSI at 29.45 is Positive, neither overbought nor oversold. The STOCH value of 20.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RAMP.
LiveRamp Holdings Risk Analysis
LiveRamp Holdings disclosed 19 risk factors in its most recent earnings report. LiveRamp Holdings reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LiveRamp Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.73B | 87,800.00 | -0.25% | ― | 14.50% | ― | |
68 Neutral | $29.19B | 77.13 | 15.37% | ― | 25.63% | 118.49% | |
68 Neutral | $1.78B | 89.55 | 3.10% | ― | 7.82% | ― | |
67 Neutral | $468.77M | 41.64 | 4.36% | ― | 9.08% | 43.58% | |
66 Neutral | $302.42M | ― | -101.69% | ― | -15.51% | -54.09% | |
63 Neutral | $10.17B | ― | -5.37% | ― | 18.03% | 82.15% | |
58 Neutral | $21.35B | 9.96 | -19.72% | 2.38% | 5.03% | -22.83% |
* Technology Sector Average
Performance Comparison
RAMP
LiveRamp Holdings
26.59
-7.24
-21.40%
MGNI
Magnite
13.04
1.79
15.91%
APPS
Digital Turbine
3.09
0.29
10.36%
TTD
Trade Desk
60.20
-17.33
-22.35%
ROKU
Roku
70.96
6.30
9.74%
PUBM
PubMatic
9.92
-13.66
-57.93%
LiveRamp Holdings Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -22.95% | Next Earnings Date: May 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record operating margins, sustained revenue growth, and improved sales momentum. While there were some pressures on customer count and a slight decline in gross margin, the overall outlook remains positive, with continued progress on strategic initiatives and a robust pipeline.Highlights
Record-Breaking Operating Margin
Operating margin expanded by over two points to reach a record quarterly high of 23%.
Fourth Consecutive Quarter of Double-Digit Revenue Growth
Revenue increased by 12%, marking the fourth consecutive quarter of double-digit growth.
Strong Sales Momentum
Sales momentum rebounded with pipeline conversion rates materially improving, driven by an improved IT spending environment and strategic focus.
Rule of 40 Progress
LiveRamp is on track to reach or surpass Rule of 30 with an 18% operating margin and 12% to 13% revenue growth for FY 2025.
Growth in Data Marketplace
Marketplace and other revenue increased 20% to $50 million, with CTV accounting for roughly 20% of data marketplace revenue.
High Subscription Net Retention
Subscription net retention improved to a 10-quarter high of 108%.
Lowlights
Pressure on Total Customer Count
Total customer count experienced pressure due to market consolidation and a shift of small international customers from direct to reseller arrangements.
Slight Decline in Gross Margin
Gross margin was approximately 74%, down 0.5 points year-on-year.
Seasonal Increase in Operating Expenses
Operating expenses for Q4 are expected to increase due to seasonality and shifted project spend from Q3.
Company Guidance
During LiveRamp's Fiscal 2025 Third Quarter Earnings Call, significant guidance was provided, highlighting the company's strong performance and strategic outlook. The company reported a 12% revenue increase, marking its fourth consecutive quarter of double-digit growth, while operating income grew by 24%, with operating margins reaching a quarterly high of 23%. Free cash flow generated was $91 million, reflecting a 20% year-over-year increase. The sales momentum was a key highlight, driven by improved IT spending and strategic adjustments, resulting in a 16% quarter-over-quarter increase in current remaining performance obligations (CRPO). LiveRamp's collaboration network expanded, now including over 350 brand customers, 200 ad tech platforms, and 30 retail media networks, among others. The company also outlined its Rule of 40 progress, expecting to reach or surpass Rule of 30 with 12% to 13% revenue growth and an 18% operating margin for FY 2025. Looking ahead, LiveRamp aims for 10% to 15% annual revenue growth, with a 20% to 25% operating margin targeted for FY 2026, supported by ongoing cost discipline and strategic investments.LiveRamp Holdings Corporate Events
Executive/Board Changes
LiveRamp Holdings Announces CPO Departure and Severance
Neutral
Mar 3, 2025
On March 3, 2025, LiveRamp Holdings announced the departure of Chief Product Officer Kimberly Bloomston, effective March 1, 2025, with her employment concluding at the end of fiscal 2025. Ms. Bloomston will receive a severance package including a lump sum cash payment and accelerated vesting of stock units, contingent on a separation agreement. She will also provide limited consulting services until March 31, 2026, with continued vesting of certain equity awards, unless she accepts other employment.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.