Liveramp Holdings, Inc. · NYSE:RAMP

Liveramp — Q1 2020 Earnings Presentation

23 slides from Liveramp's earnings presentation, Aug 5, 2019

  1. Slide 1: Q1 FY20 Supplemental Earnings Slides

    Q1 FY20 Supplemental Earnings Slides August 5, 2019

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement Some of the matters discussed in this presentation contain forward-looking statements regarding the Company’s future business prospects which are subject to certain risks and uncertainties, including competitive pressures, adverse economic conditions and governmental regulation

  3. Slide 3: Best-in-Class SaaS Model

    Best-in-Class SaaS Model Q1 FY20, Non-GAAP Predictable, Subscription Customer Land & Expand with Profitable Recurring Revenue Growth Network Effects Long-term Model 1 2,3 $330M 690 108% 4 75% Revenue Direct Dollar-based Long-term Run-Rate Clients Net Retention Gross Margin Target 5 >80% 105 45 25% S

  4. Slide 4: Summary Financial Results

    Summary Financial Results $Ms, except per share amounts GAAP Non-GAAP 6 Q120 YoY Q120 YoY Revenue $83 32% $83 32% Gross profit $46 19% $51 13% Gross margin 56% (6) Pts 62% (10) Pts Operating loss ($48) nm ($22) nm Operating margin (59%) (11) pts (27%) (18) Pts Net loss ($42) nm ($16) nm EPS ($0.61)

  5. Slide 5: Trended Financial Measures

    Trended Financial Measures $Ms, Non-GAAP FY17 FY18 Q119 Q219 Q319 Q419 FY19 Q120 Revenue $154 $220 $62 $65 $80 $78 $286 $83 Gross profit $96 $150 $45 $45 $51 $47 $188 $51 Gross margin 62% 68% 73% 69% 64% 60% 66% 62% Operating loss ($59) ($36) ($6) ($14) ($11) ($22) ($54) ($22) Operating loss margin

  6. Slide 6: Revenue Summary

    Revenue Summary $Ms As Reported Excluding Facebook Revenue by Type Q120 Q119 YoY Q120 Q119 YoY Subscription $68 $51 33% $68 $51 33% Marketplace & Other $14 $11 27% $14 $8 76% Total $83 $62 32% $83 $59 39% Revenue by Geography Q120 Q119 YoY Q120 Q119 YoY US $77 $56 36% $77 $54 41% International $6 $6

  7. Slide 7: Trended Revenue

    Trended Revenue $Ms, Non-GAAP Revenue as Reported FY17 FY18 Q119 Q219 Q319 Q419 FY19 Q120 Subscription $113 $172 $51 $55 $65 $66 $237 $68 YoY % 57% 52% 38% 30% 42% 40% 38% 33% Marketplace & Other 41 48 11 10 15 13 49 14 YoY % 22% 21% 15% (15%) 13% (4%) 2% 27% Total $154 $220 $62 $65 $80 $78 $286 $83

  8. Slide 8: Cash Flow

    Cash Flow $Ms Q120 Q119 Operating cash flow ($15) ($2) Capital expenditures 7 $5 $2 Free Cash Flow ($20) ($4) © 2019 LiveRamp. All rights reserved. Slide 8 of 23

  9. Slide 9: Disciplined Capital Allocation

    Disciplined Capital Allocation $2.1 billion in after-tax proceeds from sale of Over $1.0 billion in share non-core assets8 repurchases to date, Bold business including tender offer transformation Meaningful TAM expansion completed Q3’19, since & value creation through FY129 disciplined M&A More of t

  10. Slide 10: Outlook

    Outlook

  11. Slide 11: Fiscal 2020 Outlook

    Fiscal 2020 Outlook $Ms, except per share amounts Revenue 27% to 32% GAAP Non-GAAP10 Outlook Growth Facebook Revenue $363 to $377 $363 to $377 Revenue $286 $5 $281 Revenue ex Facebook Operating Loss $189 to $169 $76 to $56 Included $13 $13 Transition Costs Note: We continue to expect full year fisca

  12. Slide 12: Guidance Phasing & Estimated Transition Costs

    Guidance Phasing & Estimated Transition Costs $Ms, Non-GAAP FY20E FY19A Q120A Q220 Q320 Q420 FY20E Revenue phasing by quarter 100% 22% 23% 27% 28% 100% Transition costs (cost of revenue) $6 $3 $2 - - $5 Transition costs (op expenses) $15 $4 $4 - - $8 Total transition costs $ $22 $7 $6 - - $13 Pro fo

  13. Slide 13: Other Guidance Items

    Other Guidance Items Ms FY20E Ongoing stock-based comp $56 Acquisition-related stock based comp $32 Total stock-based comp $8811 Interest income $18 Non-GAAP tax rate 0% Share count (basic) ~68 Capital spending (% of rev.) 5% © 2019 LiveRamp. All rights reserved. Slide 13 of 23

  14. Slide 14: Appendix

    Va y Appendix

  15. Slide 15: Knockout Combination

    Knockout Combination Together Enabling an open and flexible currency on which TV is bought, sold and measured Global leader in true omnichannel Largest open, people-based identity and data connectivity Largest, most identity graph and comprehensive cross- relationships with world’s Neutral, safe and

  16. Slide 16: Common Identity Across Every Touchpoint

    Common Identity Across Every Touchpoint Premium Publisher Cookie Known PII Anonymous data Email address Mobile Cookie 123 @JSmith Telephone Johnjsmith@gmail.com CTV AAID 456 Jf_smith@1 Cookie XYZ 650.987.1234 John.Smith@LiveRamp.com IP Address 73.15.102.238 Android ID lm.98.no.76 Name & Postal Other

  17. Slide 17: Update on CCPA Readiness

    Update on CCPA Readiness Q2 Q3 Complete Data Inventory Launch New Consumer Rights Portal Product Automate Opt Outs, SARs, Deletion Requests Document & Publish Policies Conduct Training Governance Complete Procedure Definition Review Match, ATS, Smart Reach External Review Data Store Sellers; and Off

  18. Slide 18: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation Income Statement (part 1 of 2), $Ks 12 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Total Revenue $ 174,760 $ 46,757 $ 54,013 $ 59,121 $ 60,210 $ 220,101 $ 62,471 $ 64,812 $ 80,021 $ 78,316 $ 285,620 $ 82,511 Gross Profit (GAAP) $ 74,784 $ 2

  19. Slide 19: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation Income Statement (part 2 of 2), $Ks 12 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Loss from operations (GAAP) $ (131,412) $ (39,819) $ (38,133) $ (27,689) $ (27,883) $ (133,524) $ (29,602) $ (38,199) $ (48,211) $ (82,134) $ (198,146) $ (48

  20. Slide 20: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation $Ks 12 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Net earnings (loss) from continuing operations (GAAP) $ (85,576) $ (26,215) $ (25,191) $ 3,117 $ (19,010) $ (67,299) $ (27,818) $ (41,180) $ (15,261) $ (49,688) $ (133,947) $ (42,140) Income

  21. Slide 21: GAAP to Non-GAAP EPS Reconciliation

    GAAP to Non-GAAP EPS Reconciliation $Ks, except per share amounts 12 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Loss from continuing ops before income taxes ($130,760) ($40,399) ($37,870) ($27,257) ($27,496) ($133,022) ($29,246) ($38,480) ($37,807) ($73,823) ($179,356) $

  22. Slide 22: Footnotes

    Footnotes 1 Revenue run-rate equals most recent quarter revenue total multiplied by four. 2 Direct client count excludes agency and reseller deployments and Data Store-only customers. 3 Beginning in Q3’19 we began reporting client count net of 40 client contracts that were absorbed into one large re

  23. Slide 23: © 2019 LiveRamp. All rights reserved.

    © 2019 LiveRamp. All rights reserved.

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