LiveRamp Holdings (RAMP) AI Stock Analysis

• Market Cap: $2.21B
• Dividend Yield: N/A
• Average Volume (3M): 437.13K
• Price to Earnings (P/E): 93566.7
• Beta (1Y): 1.27
• Revenue Growth: 13.02%
• EPS Growth: -105.82%
• Country: US
• Employees: 1,400
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Infrastructure
• EPS (TTM): 0.30
• Shares Outstanding: 65,940,315
• 10 Day Avg. Volume: 329,216
• 30 Day Avg. Volume: 437,127
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $41.14
• Price Target Upside: 22.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $36.00 ▲(7.37%Upside)

LiveRamp Holdings' overall stock score is driven by strong financial and operational performance, highlighted by revenue growth and cash flow improvements. Technical indicators are positive, providing additional support. However, valuation concerns due to negative earnings and macroeconomic uncertainties pose risks. The earnings call optimism, driven by strategic initiatives, offers a favorable outlook despite these challenges.

Positive Factors

Financial Performance

LiveRamp delivered revenue driven by upside in Marketplace revenue and Subscription revenue beating expectations.

Market Position

LiveRamp is a middleware provider with a competitive edge in the data collaboration space due to its strong relationships with the walled gardens and participants in the advertising ecosystem that result in meaningful network effects.

Revenue Model

76% of total revenue is subscription based and recurring, providing a stable revenue stream for the company.

Negative Factors

Customer Metrics

Concerns on muted customer metrics and a slower forward pace of net revenue retention are worth monitoring.

Customer Strategy

The direct subscription count declined by 25 sequentially, below the estimate of a flat client count but consistent with RAMP’s strategy of focusing on larger customers.

Sales Cycle

RAMP is not out of the thick macro woods, noting still extended sales cycles for new logos.

LiveRamp Holdings Business Overview & Revenue Model

Company Description

LiveRamp Holdings, Inc., a technology company, provides enterprise data connectivity platform solutions in the United States, Europe, and the Asia-Pacific. The company offers RampID, a true people-based identifier; Safe Haven, an enterprise data enablement platform; LiveRamp Data Marketplace, a solution that seamlessly connects data owners' audience data across the marketing ecosystem; and AbiliTec, an offline identity resolution platform. It serves financial, insurance and investment services, retail, automotive, telecommunications, high tech, consumer packaged goods, healthcare, travel, entertainment, non-profit, and government industries. The company was formerly known as Acxiom Holdings, Inc. and changed its name to LiveRamp Holdings, Inc. in October 2018. LiveRamp Holdings, Inc. was incorporated in 2018 and is headquartered in San Francisco, California.

How the Company Makes Money

LiveRamp Holdings generates revenue primarily through a subscription-based model, where clients pay for access to its data connectivity and identity resolution services. The company also earns money from usage fees, which are tied to the volume of data processed or the extent of services utilized by its clients. Key revenue streams include partnerships with major technology platforms, media companies, and marketing agencies, which leverage LiveRamp's solutions to enhance data-driven marketing and advertising strategies. LiveRamp's ability to integrate with a broad ecosystem of partners and platforms significantly contributes to its earnings.

LiveRamp Holdings Financial Statement Overview

Summary

LiveRamp Holdings is experiencing strong revenue growth and improving operational efficiency, as indicated by rising EBIT and EBITDA margins. However, consistent net losses and negative return on equity highlight profitability challenges. The balance sheet remains stable with low leverage, and cash flow improvements offer financial flexibility.

Income Statement

LiveRamp Holdings demonstrates strong revenue growth, with revenues increasing consistently over the past few years. The gross profit margin is robust, indicative of effective cost management. However, there are concerns with the net profit margin, as the company has struggled with profitability, posting net losses in multiple years. The EBIT and EBITDA margins have shown improvement, suggesting a move towards operational efficiency.

Balance Sheet

The company's balance sheet is stable, with a healthy equity ratio indicating that a substantial portion of assets is financed through equity. The debt-to-equity ratio is low, implying conservative leverage. Return on equity has been negative due to net losses, which is a concern. Overall, the balance sheet reflects a solid financial position but highlights the need for improved profitability.

Cash Flow

LiveRamp Holdings has shown significant improvement in operating cash flow, indicating effective cash management and operational improvements. The free cash flow has increased, demonstrating enhanced cash generation. However, the free cash flow to net income ratio is impacted by net losses, suggesting room for better profit conversion. The trajectory for cash flow is positive, contributing to financial flexibility.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

LiveRamp Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAMP, the sentiment is Positive. The current price of 33.53 is above the 20-day moving average (MA) of 33.06, above the 50-day MA of 32.29, and above the 200-day MA of 29.67, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 57.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RAMP.

LiveRamp Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ODD	82 Outperform	$3.82B	39.44	32.25%	―	26.83%	47.48%
EVCM	73 Outperform	$2.12B	―	-3.09%	―	-1.96%	19.43%
CSGS	72 Outperform	$1.79B	21.08	30.24%	2.01%	3.08%	34.87%
RAMP	71 Outperform	$2.21B	93,566.67	-0.26%	―	13.02%	-105.82%
FIVN	70 Outperform	$2.20B	―	-0.90%	―	14.44%	91.60%
Sector *	63 Neutral	$34.94B	5.14	-11.21%	1.86%	5.61%	-19.33%
AVDX	61 Neutral	$2.04B	1,187.95	0.27%	―	10.46%	―

LiveRamp Holdings Corporate Events

LiveRamp Holdings Announces CPO Departure and Severance

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.