LiveRamp (RAMP) Q4 2021 earnings summary

Executive summary

• FY21 revenue grew 16.4% YoY to $443.0M; subscription revenue rose 16.7%, with growth from new customer wins and expansion partially offset by lower variable revenue.

• Margin improvement and disciplined spending supported the first full year of non-GAAP operating profit, while GAAP operating loss remained $120.5M.

• Record bookings, enterprise customer growth and momentum in Safe Haven and Connected TV underpin confidence in FY22 growth.

Financial highlights

• Revenue $443.0M, up 16.4% YoY; subscription $356.6M, up 16.7%, and Marketplace and Other $86.4M, up 15.4%.

• Gross profit rose 31% to $299.0M; gross margin expanded to 67.5% from 59.9%, as revenue grew and cost of revenue declined 5.7%.

• GAAP operating loss narrowed to $120.5M from $180.9M; net loss from continuing operations was $90.3M, or $1.36 diluted loss per share, versus $125.3M and $1.85.

• Net cash used in operating activities was $20.6M versus $28.6M in FY20; cash and cash equivalents were $572.8M at March 31, 2021.

• Adjusted for non-cash stock compensation and other specified costs, operating expenses reflected lower travel and promotional spending; total non-cash stock compensation was $111.7M, including $21.4M tied to accelerated vesting.

Outlook and guidance

• FY22 subscription revenue could be negatively affected by approximately $30M as several customers transition from cookie-based identity graph components to alternative solutions.

• Record bookings and the recurring revenue model provide visibility into FY22; Safe Haven and Connected TV are building momentum and enabling new customer use cases.

• Plans call for increased future R&D investment to capture Safe Haven and CTV opportunities; R&D spending as a percentage of revenue was expected to remain at similar levels in FY22.