Liveramp Holdings, Inc. · NYSE:RAMP
Liveramp — Q2 2020 Earnings Presentation
22 slides from Liveramp's earnings presentation, Nov 7, 2019
Slide 1: Q2 FY20 Earnings Slides
Q2 FY20 Earnings Slides November 6, 2019
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
Slide 3: Best-in-Class SaaS Model
Best-in-Class SaaS Model Q2 FY20, Non-GAAP Predictable, Subscription Land & Expand with Profitable Recurring Revenue Customer Growth Network Effects Long-term Model 1 2,3 4 $270M 720 109% 75% ARR Direct Subscription Long-term (up 40% YoY) Clients Net Retention Gross Margin Target 5 80% 110 44 25% Su
Slide 4: Summary Financial Results
Summary Financial Results $Ms, except per share amounts GAAP Non-GAAP 6 Q220 YoY Q220 YoY Revenue $90 39% -- -- Gross profit $49 21% $56 26% Gross margin 54% (8) pts 63% (6) pts Operating loss ($50) nm ($20) nm Operating margin (56%) 3 pts (22%) 0 pts Net loss ($40) nm ($15) nm EPS ($0.59) nm ($0.23
Slide 5: Trended Financial Measures
Trended Financial Measures $Ms, Non-GAAP FY17 FY18 Q119 Q219 Q319 Q419 FY19 Q120 Q220 Revenue $154 $220 $62 $65 $80 $78 $286 $83 $90 Gross profit $96 $150 $45 $45 $51 $47 $188 $51 $56 Gross margin 62% 68% 73% 69% 64% 60% 66% 62% 63% Operating loss ($59) ($36) ($6) ($14) ($11) ($22) ($54) ($22) ($20)
Slide 6: Revenue Summary
Revenue Summary $Ms As Reported Excluding Facebook Revenue by Type Q220 Q219 YoY Q220 Q219 YoY Subscription $72 $55 31% $72 $55 31% Marketplace & Other $18 $10 83% $18 $8 118% Total $90 $65 39% $90 $63 43% Revenue by Geography Q220 Q219 YoY Q220 Q219 YoY US $84 $60 40% $84 $59 43% International $6 $
Slide 7: Trended Revenue
Trended Revenue $Ms, Non-GAAP Revenue as Reported FY17 FY18 Q119 Q219 Q319 Q419 FY19 Q120 Q220 Subscription $115 $172 $51 $55 $65 $66 $237 $68 $72 YoY % 58% 50% 38% 30% 42% 40% 38% 33% 31% Marketplace & Other 40 48 11 10 15 13 49 14 18 YoY % 19% 21% 15% (15%) 13% (4%) 2% 27% 83% Total $154 $220 $62
Slide 8: Cash Flow
Cash Flow $Ms Q220 Q219 Operating cash flow ($29) ($27) Capital expenditures 7 $3 $2 Free Cash Flow ($31) ($29) © 2019 LiveRamp. All rights reserved. Slide 8 of 22
Slide 9: Four Corners of Growth
Four Corners of Growth $Ms, Non-GAAP 1 Subscription Net Retention 3 ARR Growth Q219 Q319 Q419 Q120 Q220 Q219 Q319 Q419 Q120 Q220 Subscription ARR $193 $223 $232 $241 $270 >115% >115% 114% 108% 109% Net Retention YoY % 32% 45% 41% 33% 40% ARR ex IPG $193 $203 $212 $221 $250 YoY % 32% 32% 28% 22% 30%
Slide 10: Remaining Performance Obligations
Remaining Performance Obligations $Ms $336 $345 $339 $323 $190 $155 $171 $167 Q319 Q419 Q120 Q220 Current RPO Total RPO © 2019 LiveRamp. All rights reserved. Slide 10 of 22
Slide 11: Outlook
Outlook
Slide 12: Fiscal 2020 Outlook
Fiscal 2020 Outlook $Ms, except per share amounts Revenue 32% to 33% Growth GAAP9 Non-GAAP10 Outlook Revenue $376 to $381 -- $286 Operating $180 to $175 $68 to $63 Loss Included Transition $11 $11 Costs FY19 As Reported FY20 Guidance © 2019 LiveRamp. All rights reserved. Slide 12 of 22
Slide 13: Guidance Phasing & Transition Costs
Guidance Phasing & Transition Costs $Ms, Non-GAAP FY20E FY19A Q120A Q220A Q320E Q420E FY20E Revenue phasing by quarter 100% 22% 24% ~27% ~27% 100% Transition costs (cost of revenue) $6 $3 $2 - - $5 Transition costs (op expenses) $15 $4 $3 - - $7 Total transition costs $ $22 $7 $5 - - $11 Pro forma f
Slide 14: Other Guidance Items
Other Guidance Items ~Ms FY20E Ongoing stock-based comp $54 Acquisition-related stock based comp $33 Total stock-based comp $8711 Interest income $17 Non-GAAP tax rate 1% Share count (basic) 68 Capital spending (% of rev.) 5% © 2019 LiveRamp. All rights reserved. Slide 14 of 22
Slide 15: Appendix
Va y Appendix
Slide 16: 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 Q2 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 $ 90,143 Gross Profit (GAA
Slide 17: 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 Q2 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)
Slide 18: 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 Q2 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)
Slide 19: 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 Q2 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,
Slide 20: Footnotes
Footnotes 1 Annualized recurring revenue (ARR) is ending MRR (last month of quarter) annualized. Recurring revenue is fixed and contracted subscription revenue and does not include any variable or non-recurring revenue amounts. 2 Direct client count excludes agency and reseller deployments and Data
Slide 21: Further Reading
Further Reading The following supplemental slide decks are available to investors on LiveRamp’s investor relations website: 1) LiveRamp Advanced TV Overview URL: https://investors.liveramp.com/advanced-tv-slides-november-2019 2) Subject Rights Under the California Consumer Privacy Act (CCPA) URL: ht
Slide 22: © 2019 LiveRamp. All rights reserved.
© 2019 LiveRamp. All rights reserved.