Liveramp Holdings, Inc. · NYSE:RAMP
Liveramp — Q1 FY23 Earnings Presentation
22 slides from Liveramp's earnings presentation, Aug 4, 2022
Slide 1: Q1 FY23 Earnings Slides
Q1 FY23 Earnings Slides August 4, 2022
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended, including, without limitation, regarding LiveRamp’s (the "Company“) future business
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 informatio
Slide 4: Key SaaS Metrics
Key SaaS Metrics Q1 FY23 Predictable, Subscription Land & Expand with Profitable Recurring Revenue Customer Growth Network Effects Long-term Model, Non-GAAP5 $409M 910 90 75% ARR1 Direct Clients2 $1M Clients3 Gross Margin (up 20% YoY) 81% 8 113% 9th Subscription Of Top 10 Largest Platform Consecutiv
Slide 5: Solid Growth / Profitability Trends & Return of Capital
Solid Growth / Profitability Trends & Return of Capital Trailing Twelve Month Revenue ($M) & $1M+ Customer Counts Trailing Twelve Month Non-GAAP EBITDA ($M)* 600 200 $552 $48 $529 $45 $46 $44 $506 180 $485 500 $463 $30 $443 160 $25 $430 $397 $412 140 400 $381 $9 $353 $331 120 $306 87 90 86 300 100 8
Slide 6: Summary Financial Results
Summary Financial Results $M, except per share amounts GAAP Non-GAAP5 Q123 YoY Q123 YoY Revenue $142 19% — — Gross Profit $101 19% $107 19% Gross Margin 71% — 75% — Operating Income (Loss) ($26) (45%) $4 (41%) Operating Margin (18%) (3pts) 3% (3pts) Net Income (Loss) ($27) (257%) $3 (47%) EPS ($0.40
Slide 7: Revenue Summary
Revenue Summary $M Revenue by Type Q123 Q122 YoY Subscription $116 $97 20% Marketplace & Other $27 $23 18% Total $142 $119 19% Revenue by Geography Q123 Q122 YoY US $132 $112 18% International 7 $10 $7 39% Total $142 $119 19% Totals may not foot due to rounding. © 2022 LiveRamp. All rights reserved.
Slide 8: Cash Flow
Cash Flow $M, Non-GAAP Q123 Q122 Operating cash flow ($33) ($17) Capital expenditures ($2) ($0) Free cash flow to equity ($35) ($18) Totals may not foot due to rounding. © 2022 LiveRamp. All rights reserved. 8
Slide 9: Key Growth Metrics
Key Growth Metrics $M, Non-GAAP 1 Subscription Net Retention 8 3 ARR Growth 1 Q122 Q222 Q322 Q422 Q123 Q122 Q222 Q322 Q422 Q123 Subscription 103% 108% 110% 111% 113% ARR $342 $365 $381 $399 $409 Net Retention (SNR) YoY % 12% 15% 16% 19% 20% See footnote 8 on slide 21 for definition of Subscription N
Slide 10: Revenue Detail
Revenue Detail $M Subscription Revenue: Q122 Q222 Q322 Q422 Q123 Fixed % of Total Subscription 87% 86% 85% 85% 88% Usage % of Total Subscription 13% 14% 15% 15% 12% Total Subscription Revenue $97 $105 $111 $116 $116 YoY growth 16% 23% 19% 22% 20% Marketplace & Other Revenue: Data Marketplace $17 $18
Slide 11: Remaining Performance Obligations (RPO)
Remaining Performance Obligations (RPO) 9 $M $398 $394 (up 6% YoY) $375 $371 $380 $86 $103 Non-Current $91 $119 $106 $289 $309 $295 Current $256 $266 (up 15% YoY) Q122 Q222 Q322 Q422 Q123 Totals may not foot due to rounding. © 2022 LiveRamp. All rights reserved. See slide 21 for footnote definitions
Slide 12: Outlook
Outlook /L
Slide 13: Q2 & FY23 Outlook
Q2 & FY23 Outlook $M Q2 FY23 Revenue $144 $590 - $600 YoY Growth 13% 12% -13% Q1 Q2 Q3 Q4 Revenue Phasing 24% 24% 26% 26% (percentages are calculated as quarterly revenue divided by full fiscal year revenue) Q2 Subscription Net Retention (SNR) ~104% © 2022 LiveRamp. All rights reserved. 13
Slide 14: FY23E Updated Revenue Guidance Bridge
FY23E Updated Revenue Guidance Bridge $M ~($11) – ($15) Revising down based on ~($7) – ($10) macro-economic signals and customer budget pressures ~$8M Advertising outlook ~($8M) 8% - $625 $616M $608 7% $42M $595M $39M $590 - $600 © 2022 LiveRamp. All rights reserved. 14
Slide 15: Q2 & FY23 Outlook (continued)
Q2 & FY23 Outlook (continued) Operating Performance (~$M) Other Items (~M) Q2 FY23 FY23 Non-GAAP Operating Income 10 $8 $39 / 7% Ongoing Stock-based Comp $95 GAAP Operating Loss ($38) ($103) Acquisition-related Stock-based Comp $17 Total Stock-based Comp $112 Share Count (Basic) 67 Share Count (Dilu
Slide 16: FY22A – FY23E Operating Margin Bridge
FY22A – FY23E Operating Margin Bridge $M / % of Operating Margin (Non-GAAP) ~($19) ~$22 ~($6) 8% 7% $42 $39 © 2022 LiveRamp. All rights reserved. *Return of travel, event and in-office expenses that were not incurred in FY22 16
Slide 17: Appendix
Appendix /L
Slide 18: ATS – The Global Standard
ATS – The Global Standard Ready for activation A scalable solution 75+ DSPs live or committed to buying on RampID 1,500+ publishers, representing 11,500 domains, have adopted ATS 65+ SSPs live or committed to implementing RampID in the bidstream Comscore Top Publishers 17 of Top 20 Integrations not
Slide 19: ATS Is:
ATS Is: LiveRamp… Global North America EU LATAM APAC Integrated with 400+ Interoperable platforms 11k+ Open Web Most Ubiquitious 75%+ of Comscore 50 Domains Multi-Channel Open Exchange Private Marketplace Direct Walled Garden CTV MarTech More than 89% of US More than 48% of US At Scale consumer time
Slide 20: GAAP to Non-GAAP Schedules and Metrics
GAAP to Non-GAAP Schedules and Metrics GAAP to Non-GAAP Trended Schedules, Reconciliations, EBITDA and EPS metrics are presented on our investor relations website: https://investors.liveramp.com/financial-information/default.aspx © 2022 LiveRamp. All rights reserved. 20
Slide 21: 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
Slide 22: Thank You
Thank You