LiveRamp Holdings, Inc. Q1 FY2026 earnings call

• Q1 was a strong start with double-digit revenue growth and non-GAAP operating income increasing by 34% to a record 18% margin. - Product momentum: Cross-Media Intelligence launched in Q1 has attracted high-profile customers; Commerce Media Networks saw growth with partnerships like Walgreens and Western Union; CTV has strong momentum with brand adoption. - Pricing: Modernizing pricing model with a 6-month pilot program launched, addressing complexity and enabling flexibility. - AI impact: AI will change customer journeys, and LiveRamp's data collaboration platform is positioned to support the AI-driven future with data connectivity and interoperability.

Total revenue was $195 million, up 11%. Subscription revenue was $148 million, up 10%, with fixed subscription revenue up 6% and subscription usage revenue up approximately 40%. Marketplace and other revenue increased 13% to $46 million, with data marketplace (accounting for 76% of marketplace and other revenue) growing by 9%. ARR was up 5% year-on-year. Total RPO or contracted backlog was up 29% to $690 million, and current RPO was up 14% to $451 million.

• Increased FY '26 guidance for revenue and free cash flow. Now expects FY '26 revenue to be between $798 million and $818 million (7%-10% growth). - Q2 expected total revenue of $197 million, non-GAAP operating income of approximately $39 million, and an operating margin of approximately 20%. Subscription revenue expected to be up mid-single digits, marketplace and other revenue up low to mid-teens, and gross margin similar to Q1.

• Macro economic uncertainties could impact client spending. - Customer churn risk due to unique events. - Execution risk in rolling out the new pricing model and platform modernization.

Q: Sticking to the pricing changes, I would love to understand how conversations around the actual pricing and all changes are impacting new deals or potentially reducing friction in the new business process.

A: Scott E. Howe said the new pricing model is viewed as favorable, with lower upfront costs attracting new customers like the world's biggest QSR, solving entry and growth challenges for the business.

Q: There's -- you talked about the fact that several technology providers are competing for a share of brand's AI budget to solve for data-driven marketing and advertising use cases. What do you think LiveRamp's right to win is in this rapidly changing environment?

A: Scott E. Howe said LiveRamp is an AI enabler, not an AI company, but uses AI to improve products and can enable clients to combine data for AI segments, with partnerships like Perplexity and Chalice, leveraging its data collaboration platform's complexity-solving ability.