LiveRamp Holdings, Inc. SEC 10-K Report

LiveRamp Holdings, Inc., a leading enterprise platform for data collaboration, has released its annual Form 10-K report, detailing significant financial growth, strategic initiatives, and the challenges faced in the rapidly evolving data technology industry. The report provides a comprehensive overview of the company's performance over the past fiscal year, highlighting key financial metrics, business operations, strategic goals, and potential risks.

Financial Highlights

LiveRamp Holdings, Inc. reported robust financial performance for the fiscal year, with notable increases in key metrics:

• Total Revenues: $745.6 million, a 13.0% increase from $659.7 million, driven by growth in both Subscription and Marketplace and Other revenues.
• Gross Profit: $529.7 million, representing a gross margin of 71.0%, down from 72.8% in the prior year due to increased cloud infrastructure and services costs.
• Income from Operations: $5.4 million, a decrease of 53% from $11.4 million, impacted by increased stock-based compensation expenses.
• Net Earnings (Loss) from Continuing Operations: $(2.5) million, compared to $10.1 million in the prior year, reflecting higher operating expenses and a decrease in other income.
• Diluted Earnings (Loss) Per Share from Continuing Operations: $(0.04), compared to $0.15 in the prior year, due to the net loss from continuing operations.

Business Highlights

LiveRamp's business operations demonstrated strong performance and strategic growth:

• Data Collaboration Platform: LiveRamp operates a leading enterprise platform for data collaboration, enabling organizations to access and leverage data more effectively across applications. The platform's core capabilities include identity resolution, data access, connectivity, and insights, which help unify customer data while protecting consumer privacy.
• Revenue Segments: The company generates revenue from subscription fees and Marketplace and Other revenue. Subscription revenue is primarily from customers accessing the LiveRamp platform, while Marketplace and Other revenue includes revenue-sharing fees from data transactions and professional services.
• Geographical Performance: LiveRamp serves a global customer base with operations in the United States, Europe, and the Asia-Pacific region. The company continues to expand its presence outside the United States to meet the needs of its global customers.
• Customer Base: LiveRamp works with 840 direct customers worldwide, including many Fortune 1000 companies across various industry verticals such as financial services, retail, automotive, telecommunications, and healthcare. The company also serves thousands of additional customers indirectly through reseller partnerships.
• Sales and Marketing Strategy: The sales teams focus on new business development and revenue growth within existing accounts, while the partner organization enables key media partners, agencies, and software providers to drive value for customers. Marketing efforts aim to increase brand awareness and generate new leads.
• Research and Development: LiveRamp invests in its global data collaboration platform to enable effective use of data. The R&D teams focus on product development, testing, and release, with a commitment to maintaining spending levels as a percentage of revenue.
• Future Outlook: LiveRamp aims to grow its customer base, increase network density, expand sales channel partnerships, and continue innovating in identity solutions. The company also plans to expand its global footprint and addressable market, focusing on data-driven advertising and customer experience use cases.

Strategic Initiatives

LiveRamp has undertaken several strategic initiatives to enhance its market position and drive long-term growth:

• Data Collaboration Platform Enhancement: The company is focusing on expanding its global customer base and partner ecosystem, prioritizing innovation in data privacy and security to strengthen its leadership in data collaboration technology.
• Workforce Restructuring: LiveRamp has engaged in workforce restructuring to streamline operations and improve profitability, involving the reduction of approximately 65 full-time employees.
• Capital Management: The company has actively managed its capital through a common stock repurchase program, which was amended in August 2024 to authorize an additional $200 million in share repurchases, extending the program through December 31, 2026. During the fiscal year ended March 31, 2025, LiveRamp repurchased 3.8 million shares for $101.1 million. The company has maintained a strong liquidity position with $413.3 million in cash and cash equivalents as of March 31, 2025.
• Future Outlook: Looking ahead, LiveRamp plans to continue its strategic focus on data collaboration and innovation, leveraging its platform to drive growth and enhance customer value. The company aims to maintain its capital management strategy, including the ongoing stock repurchase program, while exploring opportunities for strategic investments and partnerships to support its long-term objectives. LiveRamp remains committed to optimizing its operational efficiency and financial performance in a challenging economic environment.

Challenges and Risks

LiveRamp faces several challenges and risks that could impact its business operations and financial performance:

• Market Risks: The company is dependent on customer renewals and the addition of new customers for subscription revenue. Economic slowdowns and geopolitical tensions could adversely affect customer spending on advertising products.
• Operational Risks: The loss of significant customers, data suppliers withdrawing data, and failure to attract and retain qualified personnel are major operational risks. Additionally, the company faces substantial competition, which could lead to decreased market share and reduced revenues.
• Regulatory Risks: Changes in data privacy laws, such as the GDPR and CCPA, and the potential for new regulations could limit the company's ability to collect and use data, increasing compliance costs and impacting revenue.
• Emerging Risks: The ongoing deprecation of third-party cookies by major browsers like Google Chrome poses a significant threat to data collection and advertising effectiveness. Climate change and public health emergencies, such as COVID-19, also present emerging risks that could disrupt operations and financial performance.
• Management Strategies: Management acknowledges the challenges posed by the evolving regulatory landscape and competitive pressures. The company is focused on expanding its customer base, increasing network density, and innovating its identity solutions to maintain a leadership position. Strategic investments in platform capabilities and global expansion are key components of LiveRamp's growth strategy.

SEC Filing: LiveRamp Holdings, Inc. [ RAMP ] - 10-K - May. 21, 2025