Liveramp Holdings, Inc. · NYSE:RAMP

Liveramp — Q4 2020 Earnings Presentation

27 slides from Liveramp's earnings presentation, May 22, 2020

  1. Slide 1: Q4 FY20 Earnings Slides

    Q4 FY20 Earnings Slides May 21, 2020

  2. 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

  3. 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

  4. Slide 4: Best-in-Class SaaS Model

    Best-in-Class SaaS Model Q4 FY20 Predictable, Subscription Land & Expand with Profitable Recurring Revenue Customer Growth Network Effects Long-term Model, Non-GAAP 4 780 122% 2,3 $299M 1 75% ARR Direct Platform Long-term (up 29% YoY) Clients Net Retention Gross Margin Target 5 79% 115 53 25% Subscr

  5. Slide 5: Summary Financial Results – Continuing Operations

    Summary Financial Results – Continuing Operations $Ms, except per share amounts 6 GAAP Non-GAAP Q420 YoY Q420 YoY Revenue $106 35% — — Gross profit $69 70% $75 59% Gross margin 65% 13 pts 71% 11 pts Operating loss ($41) nm ($16) nm Operating margin (39%) 66 pts (15%) 14 pts Net loss 7 ($5) nm ($3) n

  6. Slide 6: Trended Financial Measures

    Trended Financial Measures $Ms, Non-GAAP FY17 FY18 Q119 Q219 Q319 Q419 FY19 Q120 Q220 Q320 Q420 FY20 Revenue $154 $220 $62 $65 $80 $78 $286 $83 $90 $102 $106 $381 Gross profit $96 $150 $45 $45 $51 $47 $188 $51 $56 $71 $75 $253 Gross margin 62% 68% 73% 69% 64% 60% 66% 62% 63% 69% 71% 67% Operating lo

  7. Slide 7: Revenue Summary

    Revenue Summary $Ms As Reported Revenue by Type Q420 Q419 YoY Subscription $84 $66 28% Marketplace & Other $22 $13 71% Total $106 $78 35% Revenue by Geography Q420 Q419 YoY US $99 $72 37% International $7 $6 16% Total $106 $78 35% Revenue is not adjusted for the acquisition Data Plus Math given the

  8. Slide 8: Trended Revenue

    Trended Revenue $Ms, Non-GAAP Revenue as Reported FY17 FY18 Q119 Q219 Q319 Q419 FY19 Q120 Q220 Q320 Q420 FY20 Subscription $115 $172 $51 $55 $65 $66 $237 $68 $72 $82 $84 $306 YoY % 58% 50% 38% 30% 42% 40% 38% 33% 31% 25% 28% 29% Marketplace & Other 40 48 11 10 15 13 49 14 18 21 22 75 YoY % 19% 21% 1

  9. Slide 9: Cash Flow

    Cash Flow $Ms Q420 Q419 Operating cash flow 8 ($0) $38 Capital expenditures ($1) ($3) Free Cash Flow ($2) $35 Totals may not foot due to rounding. © 2020 LiveRamp. All rights reserved. Slide 9 of 27

  10. Slide 10: Four Corners of Growth

    Four Corners of Growth $Ms, Non-GAAP 1 Subscription Net Retention 3 ARR Growth 9 Q419 Q120 Q220 Q320 Q420 Q419 Q120 Q220 Q320 Q420 Subscription ARR $232 $241 $270 $283 $299 Net Retention 114% 108% 109% 112% 110% YoY % 41% 33% 40% 26% 29% ARR ex IPG $212 $221 $250 $263 $279 YoY % 29% 22% 30% 29% 31%

  11. Slide 11: Total Remaining Performance Obligations

    Total Remaining Performance Obligations 10 $Ms $345 $339 $344 $350 $323 $221 $190 $200 Current $171 $167 RPO Q419 Q120 Q220 Q320 Q420 © 2020 LiveRamp. All rights reserved. Slide 11 of 27

  12. Slide 12: Recent Trends

    ye Uo Recent Trends

  13. Slide 13: Diversified Customer Base

    Diversified Customer Base March 31, 2020 ARR by Industry 22% Acxiom IPG (40+ sub clients) Retail (100+ clients) Media & Ent. Agencies (60+ Travel & Hosp. clients) (100+ clients) Auto Healthcare Manuf. Other Information Technology Telecom (120+ clients include enterprise / marketing clouds) Marketing

  14. Slide 14: April Results

    April Results Growth Remains Positive Ending ARR +27% Y/Y Revenue +14% Y/Y Usage % of Subscription Revenue Marketplace +8% Y/Y Subscription 14% +15% Y/Y 5% April 2019 April 2020 April 2019 April 2020 April 2019 April 2020 All values are unaudited Charts are not to scale © 2020 LiveRamp. All rights r

  15. Slide 15: Our Perspective (What We're Seeing)

    Our Perspective (What We’re Seeing) Timing of the Recovery Unclear – but Well-Positioned + Positive – Negative Our View • 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 fro

  16. Slide 16: FY21 Operating Expenses

    FY21 Operating Expenses $M, Non-GAAP Q4 Less Non-Run-Rate Q420 Adj. RR to FY21E Bridge OpEx Quarterly Phasing FY20A* FY21E ~$30 ~$(45) Q1 23% 23% $(10) Q2 25% 26% $310 $91 $324 +/- $310 Q3 25% 25% +/- $81 Q4 27% 26% Q420A Non-Run-Rate Q420 Adj. Q420 Adj. RR Investment Productivity / FY21E ($81 x 4)

  17. Slide 17: Outlook

    Outlook LiveRamp

  18. Slide 18: Q1'FY21 Outlook

    Q1’FY21 Outlook $Ms Revenue ~7% Growth GAAP11 Non-GAAP12 ~$88 Revenue ~$88 -- Operating Up to $47 Up to $12 $83 Loss Q1'FY20A Q1'FY21E © 2020 LiveRamp. All rights reserved. Slide 18 of 27

  19. Slide 19: Other Guidance Items

    Other Guidance Items ~Ms FY21E Ongoing stock-based comp $68 Acquisition-related stock based $31 comp Total stock-based comp $99 Interest income $2 Share count (basic) 67 Capital spending (% of rev.) 3% © 2020 LiveRamp. All rights reserved. Slide 19 of 27

  20. Slide 20: Appendix

    Appendix fo V4, LiveRamp

  21. Slide 21: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation Income Statement (part 1 of 2), $Ks FY 17 13 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Total Revenue $ 174,760 $ 220,101 $ 62,471 $ 64,812 $ 80,021 $ 78,316 $ 285,620 $ 82,511 $ 90,143 $ 102,217 $ 105,701 $ 380,572 Gros s Profit (GAAP) $ 74,784

  22. Slide 22: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation Income Statement (part 2 of 2), $Ks FY 17 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Los s from ope ra tions (GAAP) $ (131,412) $ (133,524) $ (29,602) $ (38,199) $ (48,211) $ (82,134) $ (198,146) $ (48,375) $ (50,273) $ (41,485) $ (40,789) $ (18

  23. Slide 23: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation $Ks FY 17 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Ne t e a rnings (los s ) from continuing ope ra tions (GAAP) $ (85,576) $ (67,299) $ (27,818) $ (41,180) $ (15,261) $ (49,688) $ (133,947) $ (42,140) $ (40,202) $ (38,040) $ (4,879) $ (125,261)

  24. Slide 24: GAAP to Non-GAAP EPS Reconciliation

    GAAP to Non-GAAP EPS Reconciliation $Ks, except per share amounts 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 Q3 20 Q4 20 FY 20 Los s from continuing ops be fore income ta xe s ($130,760) ($40,399) ($37,870) ($27,257) ($27,496) ($133,022) ($29,246) ($38,480) ($37,80

  25. Slide 25: GAAP to Non-GAAP Recon – FY21 Operating Expenses

    GAAP to Non-GAAP Recon – FY21 Operating Expenses $Ms FY21E GAAP Operating Expenses $ 432 Intangible Asset Amortization 17 Stock-based Compensation 99 Restructuring & Related 6 Total Reconciliations $ 122 Non-GAAP Operating Expense $ 310 © 2020 LiveRamp. All rights reserved. Slide 25 of 27

  26. Slide 26: 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

  27. Slide 27: © 2020 LiveRamp. All rights reserved.

    © 2020 LiveRamp. All rights reserved.

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