LiveRamp Holdings, Inc. · NYSE:RAMP
LiveRamp — Q2 FY2021 Earnings Presentation
23 slides from LiveRamp's earnings presentation, Nov 9, 2020
Slide 1: Q2 FY21 Earnings Slides
Q2 FY21 Earnings Slides November 9, 2020
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, regarding LiveRamp’s (the "Company“) future business prospects. These stat
Slide 3: Use of Non-GAAP Information
Use of Non-GAAP Information The Company reports all financial information required in accordance with U.S. generally accepted accounting principles (GAAP). The Company believes, however, that evaluating its ongoing operating results will be enhanced if it also discloses certain non- GAAP information
Slide 4: Best-in-Class SaaS Model
Best-in-Class SaaS Model Q2 FY21 Predictable, Subscription Land & Expand with Profitable Recurring Revenue Customer Growth Network Effects Long-term Model, Non-GAAP 1 2,3 4 $318M 795 109% 75% ARR Direct Platform Long-term (up 18% YoY) Clients Net Retention Gross Margin Target 25% 5 82% 75 62 Subscri
Slide 5: Summary Financial Results
Summary Financial Results $Ms, except per share amounts 6 GAAP Non-GAAP Q221 YoY Q221 YoY Revenue $105 16% — — Gross profit $70 43% $75 33% Gross margin 67% 13 pts 72% 9 pts Operating income (loss) ($27) nm $1 nm Operating margin (26%) 30 pts 1% 23 pts Net earnings (loss) 7 ($24) nm $2 nm EPS ($0.36
Slide 6: Revenue Summary
Revenue Summary $Ms Revenue by Type Q221 Q220 YoY Subscription $86 $72 19% Marketplace & Other $19 $18 4% Total $105 $90 16% Revenue by Geography Q221 Q220 YoY US $98 $84 17% International $7 $6 5% Total $105 $90 16% Totals may not foot due to rounding. © 2020 LiveRamp. All rights reserved. Slide 6
Slide 7: Cash Flow
Cash Flow $Ms Q221 Q220 Operating cash flow $6 ($29) Capital expenditures ($0) ($3) Free Cash Flow $6 ($31) Totals may not foot due to rounding. © 2020 LiveRamp. All rights reserved. Slide 7 of 23
Slide 8: Four Corners of Growth
Four Corners of Growth $Ms, Non-GAAP 1 Subscription Net Retention 3 ARR Growth 9 Q220 Q320 Q420 Q121 Q221 Q220 Q320 Q420 Q121 Q221 Subscription ARR $270 $281 $298 $305 $318 109% 112% 110% 109% 111% Net Retention YoY % 40% 25% 29% 27% 18% ARR ex IPG $250 $261 $278 $285 $298 YoY % 30% 28% 31% 30% 19%
Slide 9: Total Remaining Performance Obligations
Total Remaining Performance Obligations 10 $Ms $339 $344 $350 $339 $319 $224 $223 $216 $190 $200 Current RPO Q220 Q320 Q420 Q121 Q221 © 2020 LiveRamp. All rights reserved. Slide 9 of 23
Slide 10: What We Said, What We’re Seeing
What We Said, What We’re Seeing + Positives – Negatives Our View What We Said Today What We Said Today What We Said Today • Secular trends are in our favor • We’re not immune to macro • Despite uncertainty, our economic forces products are well-positioned • We’re SaaS; subscription and benefitting f
Slide 11: Outlook
Outlook LiveRamp
Slide 12: Q3’FY21 Outlook
Q3’FY21 Outlook $Ms GAAP11 Non-GAAP12 Revenue ~$113 -- YoY Growth % ~11% Operating (Loss) Income ~($25) Up to $4 © 2020 LiveRamp. All rights reserved. Slide 12 of 23
Slide 13: GAAP to Non-GAAP Reconciliation – FY21 Operating Expenses
GAAP to Non-GAAP Reconciliation – FY21 Operating Expenses $Ms FY21E GAAP Operating Expenses $ 421 Intangible Asset Amortization 18 Stock-based Compensation 90 Restructuring & Transformation Costs 8 Total Reconciliations $ 116 Non-GAAP Operating Expense $ 305 © 2020 LiveRamp. All rights reserved. Sli
Slide 14: FY21 Operating Expenses
FY21 Operating Expenses $M, Non-GAAP Q420 Less Non-Run-Rate Q420 Adj. RR to FY21E Bridge OpEx Quarterly Phasing FY20A* FY21E ~$33 ~$(52) Q1 23% 23% $(10) Q2 25% 24% $91 $324 $305 $91 +/- Q3 25% 25% $81 $81 Q4 27% 28% Q420A Non-Run-Rate Q420 Adj. Q420 Adj. RR Investment Productivity / FY21E ($81 x 4)
Slide 15: Other Guidance Items
Other Guidance Items ~Ms FY21E Ongoing stock-based comp $57 Acquisition-related stock based comp $33 Total stock-based comp $90 Interest income $1 Share count (basic) 66 Share count (diluted) 69 Capital spending (% of rev.) 1% © 2020 LiveRamp. All rights reserved. Slide 15 of 23
Slide 16: Appendix
Appendix fo V4, LiveRamp
Slide 17: LiveRamp Safe Haven
LiveRamp Safe Haven The Power of the Safe Haven Flywheel Addressable single view of Optimizes media spend by the customer – levels the Maximizes Media Value enabling cross-device and data playing field with the Media TV cross-channel measurement Walled Gardens Spend Viewership CPG CPG Revolutionizes
Slide 18: Building the Trusted Ecosystem: By the Numbers
Building the Trusted Ecosystem: By the Numbers 45+ DSPs 25+ SSPs 22B+ avg. impressions per day buying — live with — can be bought and or committed to buying— or implementing — measured on on LiveRamp IdentityLink LiveRamp IdentityLink LiveRamp IdentityLink in the bidstream Comscore Top 400+ brands 2
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Income Statement (part 1 of 2), $Ks FY 17 13 FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Total Revenue $ 174,760 $ 220,101 $ 285,620 $ 82,511 $ 90,143 $ 102,217 $ 105,701 $ 380,572 $ 99,437 $ 104,661 Gros s Profit (GAAP) $ 74,784 $ 123,705 $ 164,902 $ 46,085
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Income Statement (part 2 of 2), $Ks FY 17 FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Total Revenue $ 174,760 $ 220,101 $ 285,620 $ 82,511 $ 90,143 $ 102,217 $ 105,701 $ 380,572 $ 99,437 $ 104,661 Los s from ope ra tions (GAAP) $ (131,412) $ (133,524) $ (198
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $Ks FY 17 FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Net earnings (los s ) from continuing operations (GAAP ) $ (85,576) $ (67,299) $ (133,947) $ (42,140) $ (40,202) $ (38,040) $ (4,879) $ (125,261) $ (21,728) $ (23,968) Income taxes (benefit) (45,184) (65,7
Slide 22: GAAP to Non-GAAP EPS Reconciliation
GAAP to Non-GAAP EPS Reconciliation $Ks, except per share amounts FY 17 FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Los s from continuing ops be fore income ta xe s ($130,760) ($133,022) ($179,356) $ (42,493) $ (45,493) $ (38,327) ($39,224) ($165,537) $ (25,544) $ (27,077) Income ta xe s (
Slide 23: Footnotes
Footnotes 1 Annualized recurring revenue (ARR) is last month of quarter recurring revenue annualized. Recurring revenue is fixed and contracted subscription revenue and does not include any variable or non-recurring revenue amounts. This metric is forward looking and does not factor in potential con