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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on RAMP

LiveRamp Holdings' recent performance was driven by a strong strategic pivot to Clean Room and Cross-Media Intelligence, positioning the company for long-term growth. The company's Q4 results beat expectations, with revenue up 10% year-over-year, and margins expanded, supporting a strong Rule-of-31 score. Additionally, the company's free cash flow hit a record, and its valuation remains attractive with a P/E well below historical norms, strong cash flow, and minimal debt. The demand for privacy-safe data tools is rising, driven by the cookie phase-out, and the company's Clean Room is accelerating advertiser ability to boost performance outcomes.

1.c. Company Highlights

2. LiveRamp Holdings' Q3 Earnings: A Showcase of Durability and Scalability

LiveRamp Holdings, Inc. reported a robust Q3 with revenue growth of 9% to $212 million, exceeding guidance for the eleventh consecutive quarter. The company's operating income increased by 36% to $62 million, with an operating margin expanding by six points year over year to a record 29%. Earnings per share (EPS) came in at $0.76, beating estimates of $0.69. The strong financial performance was driven by a 9% growth in subscription revenue and a significant increase in million-dollar-plus customers to 140.

Publication Date: Mar -07

📋 Highlights
  • Revenue Growth & Guidance Beat: Total revenue reached $212M (+9%), exceeding guidance with 11th consecutive quarter of outperformance.
  • Operating Margin Expansion: Record non-GAAP operating margin of 29% (+6 pts YoY), driven by fixed cost structure and $62M operating income (+36% YoY).
  • Customer & Subscription Growth: Total customers grew to 140 million-dollar-plus clients (+8 QOQ), with 15 new subscription customers added (highest in 12 quarters).
  • Free Cash Flow & Share Repurchases: Generated $67M free cash flow, with $39M used for share buybacks under $137M remaining authorization.
  • AI Integration Momentum: Data marketplace demand reaccelerated to double-digit growth post-November, expanding AI use in 10% of activations without disrupting core demand.

Revenue Growth and Customer Expansion

The company's total customer count increased quarter over quarter, with the largest increase in more than three and a half years. Annual recurring revenue (ARR) rose by $11 million quarter over quarter and 7% year over year. Lauren Dillard noted that the company saw a remarkably strong sales quarter in Q3, with conversion rates, deal cycle length, and individual rep productivity all increasing.

Operational Efficiency and Cash Flow

LiveRamp Holdings, Inc. achieved record quarterly operating margins on both a non-GAAP and GAAP basis, as well as record quarterly free cash flow of $67 million. The company's operating expenses were $95 million, down 6% year over year, mainly due to the timing of project-related spending. The strong cash flow generation is expected to be utilized for share repurchases, with $137 million remaining under the authorization that expires on December 31.

Guidance and Outlook

The company increased its revenue guidance for FY '26 by $1 million at the midpoint, expecting revenue to grow by roughly 9%. For Q4, LiveRamp Holdings, Inc. expects total revenue to be between $203 and $207 million, with non-GAAP operating income of approximately $38 million. The guidance suggests a continued strong performance in the fourth quarter, driven by growth in subscription revenue and marketplace and other revenue.

Valuation and Growth Prospects

With a P/E Ratio of 27.48 and an EV/EBITDA of 16.72, the market appears to be pricing in a certain level of growth for LiveRamp Holdings, Inc. Analysts estimate next year's revenue growth at 9.3%, which is in line with the company's historical performance. The company's strong track record of driving operating margin expansion and its focus on accelerating growth through its platform position it well for future success.

3. NewsRoom

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DIRECTV Empowers Advertisers to Connect Real-Time Outcomes to Ad Spend Through LiveRamp's Conversions API (CAPI) Hub

Apr -16

Source: prnewswire.com

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Later More Than Doubles Enterprise Business as Influencer Marketing Becomes a Performance Channel

Apr -14

Source: prnewswire.com

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LiveRamp and Akkio Partner to Enable Seamless Measurement and Stronger Insights for Marketers Using AI

Apr -07

Source: businesswire.com

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LiveRamp Unlocks Identity-Driven Marketing with Unity to Power Better Returns in Gaming

Apr -02

Source: businesswire.com

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Ohio Virtual Academy Earns National RAMP® Designation for Excellence in School Counseling

Mar -12

Source: globenewswire.com

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Buy 3 High-Flying Small-Sized Tech Services Stocks for Solid Returns

Mar -12

Source: zacks.com

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LiveRamp: How Its Agentic AI Could Be Essential For Digital Marketing

Mar -12

Source: seekingalpha.com

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How Much Upside is Left in LiveRamp (RAMP)? Wall Street Analysts Think 30.28%

Mar -09

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.62%)

6. Segments

Subscription

Expected Growth: 12%

LiveRamp Holdings, Inc.'s 12% subscription growth is driven by increasing demand for data-driven marketing, expansion into new industries, and strategic partnerships. The company's people-based identifier, RampID, enables accurate customer data management, fueling growth. Additionally, LiveRamp's data marketplace and analytics capabilities provide a competitive edge, attracting new customers and driving subscription revenue.

Marketplace and Other

Expected Growth: 10%

LiveRamp's Marketplace and Other segment growth is driven by increasing demand for people-based marketing, expansion of its data marketplace, and growth in its identity resolution capabilities. Additionally, the company's strategic partnerships, investments in AI and machine learning, and increasing adoption of its platform by top brands and agencies contribute to its 10% growth.

7. Detailed Products

IdentityLink

A people-based identifier that enables brands to connect with their customers across devices and channels

Safe Haven

A neutral, permission-based data collaboration platform that enables secure data sharing and collaboration

Data Marketplace

A platform that enables brands to discover, purchase, and activate third-party data to enhance their customer insights

Abacus

A data onboarding and activation platform that enables brands to upload, standardize, and activate their offline data

Connect

A platform that enables brands to connect their customer data across online and offline channels

8. LiveRamp Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

LiveRamp Holdings, Inc. operates in a niche market, providing a unique data connectivity platform, which reduces the threat of substitutes. However, the company still faces competition from other data management platforms, which could be a threat.

Bargaining Power Of Customers

LiveRamp Holdings, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's platform provides a unique value proposition, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

LiveRamp Holdings, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position also gives it the ability to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The data connectivity platform market is highly competitive, and new entrants can easily enter the market. However, LiveRamp Holdings, Inc. has a strong brand presence and a unique value proposition, which makes it difficult for new entrants to compete.

Intensity Of Rivalry

The data connectivity platform market is highly competitive, with several established players competing for market share. LiveRamp Holdings, Inc. faces intense competition from companies like Salesforce, Adobe, and SAP, which could impact its market share and revenue.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.26%
Debt Cost 3.95%
Equity Weight 95.74%
Equity Cost 8.92%
WACC 8.71%
Leverage 4.45%

11. Quality Control: LiveRamp Holdings, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
LiveRamp

A-Score: 4.6/10

Value: 3.4

Growth: 6.8

Quality: 6.9

Yield: 0.0

Momentum: 5.0

Volatility: 5.3

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EverCommerce

A-Score: 4.1/10

Value: 4.4

Growth: 7.9

Quality: 6.1

Yield: 0.0

Momentum: 2.0

Volatility: 4.0

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Stock-Card
Bandwidth

A-Score: 3.9/10

Value: 7.4

Growth: 7.1

Quality: 2.8

Yield: 0.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Repay

A-Score: 3.8/10

Value: 9.4

Growth: 5.1

Quality: 4.5

Yield: 0.0

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Bridgeline Digital

A-Score: 3.5/10

Value: 9.2

Growth: 2.0

Quality: 4.9

Yield: 0.0

Momentum: 2.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Backblaze

A-Score: 2.8/10

Value: 6.2

Growth: 3.2

Quality: 3.6

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

28.22$

Current Price

28.22$

Potential

-0.00%

Expected Cash-Flows