LiveRamp Holdings, Inc. · NYSE:RAMP
LiveRamp — Q3 FY21 Earnings Presentation
28 slides from LiveRamp's earnings presentation, Feb 8, 2021
Slide 1: Q3 FY21 Earnings Slides
Q3 FY21 Earnings Slides February 8, 2021
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 Q3 FY21 Predictable, Subscription Land & Expand with Profitable Recurring Revenue Customer Growth Network Effects Long-term Model, Non-GAAP 1 2,3 4 $329M 810 110% 75% ARR Direct Platform Long-term (up 17% YoY) clients net retention gross margin target 25% 5 78% 40 65 Subscri
Slide 5: Summary Financial Results
Summary Financial Results $Ms, except per share amounts 6 GAAP Non-GAAP Q321 YoY Q321 YoY Revenue $120 17% — — Gross profit $83 29% $88 24% Gross margin 69% 6 pts 73% 4 pts Operating income (loss) ($16) nm $12 nm Operating margin (13%) 27 pts 10% 16 pts Net earnings (loss) 7 ($12) nm $10 nm EPS ($0.
Slide 6: Revenue Summary
Revenue Summary $Ms Revenue by Type Q321 Q320 YoY Subscription $93 $82 15% Marketplace & other $26 $21 27% Total $120 $102 17% Revenue by Geography Q321 Q320 YoY US $112 $95 18% International $7 $7 9% Total $120 $102 17% Totals may not foot due to rounding. © 2021 LiveRamp. All rights reserved. Slid
Slide 7: Cash Flow
Cash Flow $Ms Q321 Q320 Operating cash flow $15 $16 Capital expenditures ($1) ($3) Free cash flow $14 $13 © 2021 LiveRamp. All rights reserved. Slide 7 of 28
Slide 8: Four Corners of Growth
Four Corners of Growth $Ms, Non-GAAP 1 Subscription Net Retention 3 ARR Growth 9 Q320 Q420 Q121 Q221 Q321 Q320 Q420 Q121 Q221 Q321 Subscription ARR $281 $298 $305 $318 $329 112% 110% 109% 111% 105% net retention YoY % 25% 29% 27% 18% 17% ARR ex IPG $261 $278 $285 $298 $309 YoY % 28% 31% 30% 19% 20%
Slide 9: Revenue Summary
Revenue Summary $Ms Subscription revenue: Q320 Q420 Q121 Q221 Q321 Fixed % of total subscription 85% 88% 91% 91% 87% Usage % of total subscription 15% 12% 9% 9% 13% Total subscription revenue $82 $84 $83 $86 $93 Y/Y growth 25% 28% 21% 19% 15% Marketplace & other revenue: Data marketplace $12 $15 $11
Slide 10: Total Remaining Performance Obligations
Total Remaining Performance Obligations 10 $Ms $344 $350 $339 $319 $333 $224 $223 $231 $216 $200 Current RPO Q320 Q420 Q121 Q221 Q321 © 2021 LiveRamp. All rights reserved. Slide 10 of 28
Slide 11: Outlook
Outlook LiveRamp
Slide 12: Q4 & FY21 Outlook
Q4 & FY21 Outlook $Ms Q4’FY21 FY21 GAAP11 Non-GAAP12 GAAP Non-GAAP Revenue ~$116 -- ~$440 -- YoY growth % ~10% ~16% Operating (loss) income ~($31) ~$1 ~($101) ~$16 © 2021 LiveRamp. All rights reserved. Slide 12 of 28
Slide 13: GAAP to Non-GAAP Reconciliation – FY21 Operating Expenses
GAAP to Non-GAAP Reconciliation – FY21 Operating Expenses $Ms FY21E GAAP operating expenses $ 420 Intangible asset amortization 18 Stock-based compensation 89 Restructuring & transformation costs 10 Total reconciliations $ 117 Non-GAAP operating expenses $ 303 © 2021 LiveRamp. All rights reserved. S
Slide 14: Other Guidance Items
Other Guidance Items ~Ms FY21E 13 Ongoing stock-based comp $56 Acquisition-related stock based comp $33 13 Total stock-based comp $89 Interest income $1 Share count (basic) 66 Share count (diluted) 69 Capital spending (% of rev.) 1% © 2021 LiveRamp. All rights reserved. Slide 14 of 28
Slide 15: DataFleets Acquisition
_4liveRamp \) DataFleets Acquisition TA 7 ,
Slide 16: DataFleets Acquisition Summary
DataFleets Acquisition Summary • LiveRamp announced it has entered into a definitive agreement to acquire DataFleets • Purchase price: approximately $68 million in cash plus assumed equity and additional retention incentives • Expected close: LiveRamp’s fiscal Q4 (March 2021 quarter) • Headquartered
Slide 17: Customer needs are changing
Customer needs are changing Enterprises need maximum flexibility and control over data – wherever it lives Protect Control Analyze & unlock who can without value from access moving the data data © 2021 LiveRamp. All rights reserved. Slide 17 of 28
Slide 18: Powering next generation data collaboration
Powering next generation data collaboration Established, global leader in privacy-preserving identity and data collaboration Advanced set of data protection technologies that can be configured based on business needs Unlocks new use cases for distributed analytics in Safe Haven and expands market op
Slide 19: Unlocking new capabilities and use cases
Unlocking new capabilities and use cases Retail and CPG TV Measurement Global Enterprise Personalized Offerings Measurement Analytics within Health Plans CPGs can measure the impact of Content creators can combine Multinational enterprises can Healthcare providers can their digital campaigns on sale
Slide 20: How it works today – centralization
How it works today – centralization Enterprise 1 Enterprise 2 Analytics Protective identifiers Protective identifiers environment (e.g. IDL, Abilitec) (e.g. IDL, Abilitec) Data Data © 2021 LiveRamp. All rights reserved. Slide 20 of 28
Slide 21: Distributed data collaboration
Distributed data collaboration Leveraging federated learning and moving computing to the edge Enterprise 1 Enterprise 2 Protect, connect, and analyze data distributed across Configurable enterprises with no Configurable privacy data ever moving privacy protects data protects data Analytics view © 20
Slide 22: DataFleets' holistic approach – integrating multiple privacy-preserving technologies
DataFleets’ holistic approach – integrating multiple privacy-preserving technologies Providing customers with flexibility to configure based on business needs, removing the need to compromise data security and privacy with data utility Encryption In-use Speed Simplicity Federated Synthetic Learning
Slide 23: Appendix
Appendix fo V4, LiveRamp
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Income Statement (part 1 of 2), $Ks FY 17 14 FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Total Revenue $ 174,760 $ 220,101 $ 285,620 $ 82,511 $ 90,143 $ 102,217 $ 105,701 $ 380,572 $ 99,437 $ 104,661 $ 119,753 Gros s P rofit (GAAP ) $ 74,784 $ 123,705
Slide 25: 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 Q3 21 Total Revenue $ 174,760 $ 220,101 $ 285,620 $ 82,511 $ 90,143 $ 102,217 $ 105,701 $ 380,572 $ 99,437 $ 104,661 $ 119,753 Los s from operations (GAAP ) $ (131,412) $ (
Slide 26: 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 Q3 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) $ (11,725) Income taxes (benefi
Slide 27: 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 Q3 21 Los s from continuing ops before income taxes ($130,760) ($133,022) ($179,356) $ (42,493) $ (45,493) $ (38,327) ($39,224) ($165,537) $ (25,544) $ (27,077) $ (15,867) In
Slide 28: 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