LiveRamp Holdings, Inc. Q4 FY2025 earnings call

• FY'25 was a year of strong progress: Delivered 13% revenue growth, with double-digit growth in Subscription (11%) and Marketplace & Other (21%). Added 13 $1 million plus subscription customers, including 3 in Q4. Reduced contraction rate to the lowest ever. Achieved record renewals with 20 multimillion dollar ACV contracts, half of which are multiyear. Platform refreshes and backend migration improved stability and processing speed.
• FY'26 opportunities: Highlighted RampUp conference, Cross-Media Intelligence solution which enables seamless marketing insights, growth of commerce media networks beyond retail, and data collaboration with governance for AI and agentic marketing solutions. Cross-Media Intelligence addresses the need for robust privacy-centric measurement in the digital ecosystem.

In Q4, LiveRamp had strong financial performance. Revenue was $189 million. Subscription revenue was $145 million, up 9%, and Marketplace & Other was $44 million, up 14%. Subscription revenue grew 11% for the year, and Marketplace & Other surged 21%. Operating margin expanded by 3 points, operating income grew 43%, and it was a record free cash flow quarter. For FY'25, revenue increased 13%, with Subscription revenue growing 11% and Marketplace & Other surging 21%, and it marked the third consecutive year of hitting the 10% to 15% revenue growth target.

• FY'26 revenue expected to be between $787 million and $817 million, growth of 6% to 10%, depending on macro environment and execution on Clean Room and Cross-Media Intelligence.
• GAAP operating income expected to be between $85 million and $89 million, margin 10% to 11%.
• Q1 revenue expected to be approximately $191 million, non-GAAP operating income $33 million, operating margin 17%.

• Macro uncertainty could impact variable revenue from Data Marketplace and Subscription usage.
• New logo signings proved more challenging with modest lengthening of average deal cycle due to need to educate market on Clean Room solutions and customer hesitancy tied to macro uncertainty.
• Migration of customers from direct to reseller arrangement in international market pressured customer count.

Q: On product usability and Cross-Media Insights competition?

A: Scott Howe said focus on usability, scalability, and functionality across identity, access, connectivity, and insights pillars. For Cross-Media Insights, LiveRamp is a measurement enabler, not a solution, with unique network scale. Lauren Dillard added LiveRamp's network is the biggest differentiator in Cross-Media Insights.