LiveRamp Holdings Inc. Reports Strong Q3 FY25 Financial Results

LiveRamp reported total revenue of $195 million, reflecting a 12% increase from the prior year. The company's subscription revenue reached $146 million, up 10% year-over-year, while Marketplace and Other revenue surged 20% to $50 million. This continued growth marks the fourth consecutive quarter of double-digit revenue increases.

The company's GAAP gross profit stood at $140 million, with a gross margin of 72%, although this represented a slight compression of two percentage points compared to the previous year. Non-GAAP gross profit was $146 million, with a gross margin of 74%, down one percentage point year-over-year.

Operating income remained stable at $15 million, consistent with the prior year, leading to a GAAP operating margin of 8%. Conversely, non-GAAP operating income increased to $45 million, a 24% rise, resulting in a non-GAAP operating margin of 23%, an improvement of two percentage points.

Diluted earnings per share (EPS) were reported at $0.17 on a GAAP basis and $0.55 on a non-GAAP basis, marking a significant year-over-year increase for non-GAAP EPS from $0.47.

Net cash provided by operating activities showed substantial improvement, amounting to $45 million, up from $17 million in the prior year. During the third quarter, LiveRamp repurchased approximately 368,000 shares for $10 million, bringing the fiscal year-to-date total share repurchased to 2.8 million shares for $76 million.

Scott Howe, CEO of LiveRamp, expressed optimism regarding the results, stating, *“We posted a strong quarter, with revenue and operating income exceeding our expectations. Our sales momentum improved appreciably in the third quarter as our Data Collaboration Platform and clean room solution are resonating with customers. This confirms the substantial market demand for our platform that helps customers efficiently use their first-party data to deliver, measure, and optimize their digital advertising.”*

LiveRamp also shared several additional key metrics and developments:

LiveRamp is preparing for its upcoming investor day presentation scheduled for February 25, 2025, which will coincide with its RampUp 2025 customer and partner conference. The company has recently expanded its Quick Start Insights on the Data Collaboration Platform and launched the industry’s first casino media network in partnership with Mohegan, underscoring its commitment to innovation and customer engagement.

For the fourth quarter of fiscal 2025, LiveRamp anticipates revenue between $184 million and $186 million, representing an increase of 7% to 8%. The company expects a GAAP operating loss of $8 million but a non-GAAP operating income of $22 million.

For the full fiscal year 2025, LiveRamp has raised its guidance, projecting total revenue between $741 million and $743 million, with GAAP operating income expected at $10 million and non-GAAP operating income estimated at $135 million.

LiveRamp’s third quarter results highlight the company’s strong performance and the increasing demand for its data collaboration solutions. With continued growth in revenue, profitability, and strategic initiatives, LiveRamp appears well-positioned to navigate the evolving digital landscape and enhance its market presence.

LiveRamp is a global technology company based in San Francisco, California, that empowers brands to build enduring business value through responsible data collaboration. The company offers a connected customer view while ensuring brand and consumer trust. For more information, visit LiveRamp.com.

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those anticipated in forward-looking statements due to various factors, including market conditions and operational performance.

For inquiries, please contact LiveRamp Investor Relations at Investor.Relations@LiveRamp.com.