LiveRamp (RAMP) Q4 2024 earnings summary

Executive summary

• Q4 FY24 revenue rose 16% YoY to $172M; ARR reached $467M, up 10%. FY24 revenue increased 11% to $660M, with GAAP operating income of $11M.

• Subscription revenue was 78% of total revenue; there were 900 direct subscription customers and 115 customers with $1M+ annualized subscription revenue.

Financial highlights

• Q4 GAAP gross profit was $124M, up 18%, at 72% margin; non-GAAP gross profit was $129M, up 16%, at 75% margin.

• Q4 GAAP operating loss was $14M, with an -8% margin improved 24 points YoY; non-GAAP operating income was $16M, up 13%, at 9% margin.

• Q4 GAAP net loss was $5M and diluted loss per share was $0.08; non-GAAP net income was $17M and diluted EPS was $0.25.

• FY24 GAAP net earnings were $12M versus a $119M loss in FY23; non-GAAP net earnings were $98M versus $58M.

• FY24 operating cash flow was $106M versus $34M; free cash flow to equity was $101M versus $30M. Q4 operating cash flow was $28M and free cash flow to equity was $26M.

Outlook and guidance

• FY25 revenue guidance is $710M–$730M, up 8%–11% YoY; Q1 revenue guidance is $172M, up 12%.

• FY25 GAAP operating loss guidance is $8M–$4M; non-GAAP operating income guidance is $125M–$129M.

• Q1 guidance includes a GAAP operating loss of $8M and non-GAAP operating income of $25M; quarterly revenue phasing is 24%, 24%, 26%, and 26%.

• FY25 capital spending is expected to be ~1% of revenue; guidance assumes a 25% non-GAAP tax rate and 150% GAAP tax rate.