LiveRamp (RAMP) Q4 2022 earnings summary

Executive summary

• FY22 marked strong top-line growth, improved gross margin and operating cash flow, and continued market expansion; entering FY23 with a focus on growth and higher operating profit.

• Platform serves 905 direct customers and thousands more through partners; subscription contracts above $1M rose to 87 from 70 YoY.

Financial highlights

• FY22 revenue rose 19.3% to $528.7M; operating expenses increased 6.5% to $446.8M.

• Net loss was $33.8M, or $0.50 diluted loss per share, versus $90.3M and $1.36 in FY21; FY22 other income included a $30.2M gain on a retained profits interest.

• Operating cash flow was $78.1M, versus cash used of $20.6M in FY21; cash and equivalents were $600.2M at Mar. 31, 2022.

Outlook and guidance

• FY23 priorities: hire enterprise sales talent, simplify products, expand internationally, grow cloud and partner channels, and improve productivity across much of the business.

• Expected to balance solid top-line growth with enhanced operating profit; R&D spending as a percentage of revenue expected to remain near FY22 levels.

• Plans to use growing cash flow and the strong balance sheet to return shareholder value through repurchases; an additional $150M buyback was announced for completion before Dec. 31, 2022.