Liveramp Holdings, Inc. · NYSE:RAMP
Liveramp — Q3 FY2022 Earnings Presentation
27 slides from Liveramp's earnings presentation, Feb 9, 2022
Slide 1: Q3 FY22 Earnings Slides
Q3 FY22 Earnings Slides February 9, 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 Q3 FY22 Predictable, Subscription Land & Expand with Profitable Recurring Revenue Customer Growth Network Effects Long-term Model, Non-GAAP 1 2,3 $381M 890 16% 77% ARR Direct Brand ACV Gross Margin (up 16% YoY) Clients YoY growth (up 3 points YoY) 79% 86 4 109% 5 7th Consecutive Sub
Slide 5: Solid Growth / Profitability Trends & Return of Capital
Solid Growth / Profitability Trends & Return of Capital Trailing Twelve Month Revenue ($M) & $1M+ Customer Counts Trailing Twelve Month Non-GAAP EBITDA ($M) 550 60 120 $45 $46 $506 40 $25 $30 500 $485 110 $463 100 20 $9 $443 86 450 $430 80 90 - $412 $397 70 70 80 (20) ($8) 400 $381 65 60 62 70 $353
Slide 6: Summary Financial Results
Summary Financial Results $M, except per share amounts 6 GAAP Non-GAAP Q322 YoY Q322 YoY Revenue $141 17% — — Gross Profit $102 23% $108 23% Gross Margin 73% 4pts 77% 3pts Operating Income (Loss) ($14) 13% $15 19% Operating Margin (10%) 3pts 10% — Net Earnings (Loss) ($15) (31%) $10 nm EPS ($0.23) (
Slide 7: Revenue Summary
Revenue Summary $M Revenue by Type Q322 Q321 YoY Subscription $111 $93 19% Marketplace & Other $29 $26 12% Total $141 $120 17% Revenue by Geography Q322 Q321 YoY US $132 $112 18% International $8 $7 15% Total $141 $120 17% Totals may not foot due to rounding. © 2022 LiveRamp. All rights reserved. Sl
Slide 8: Cash Flow
Cash Flow $M, Non-GAAP Q322 Q321 Operating Cash Flow $25 $15 Less: Capital Expenditures $1 $1 Free Cash Flow to Equity $24 $14 Totals may not foot due to rounding. © 2022 LiveRamp. All rights reserved. Slide 8 of 27
Slide 9: Key Growth Metrics
Key Growth Metrics $M, Non-GAAP 1 Subscription Net Retention 8 3 ARR Growth 1 Q321 Q421 Q122 Q222 Q322 Q321 Q421 Q122 Q222 Q322 Subscription ARR $329 $337 $342 $365 $381 Net Retention 105% 101% 103% 108% 110% YoY % 17% 13% 12% 15% 16% See footnote 8 on slide 27 for definition of Subscription Net Ret
Slide 10: Revenue Detail
Revenue Detail $M Subscription Revenue: Q321 Q421 Q122 Q222 Q322 Fixed % of Total Subscription 88% 89% 87% 86% 85% Usage % of Total Subscription 12% 11% 13% 14% 15% Total Subscription Revenue $93 $94 $97 $105 $111 YoY growth 15% 13% 16% 23% 19% Marketplace & Other Revenue: Data Marketplace $20 $18 $
Slide 11: Remaining Performance Obligations
Remaining Performance Obligations 10 $M $380 $371 $375 $371 (up 14% YoY) $333 $91 Non-Current $115 $119 $106 $102 $289 $256 $256 $266 (up 25% YoY) Current $231 Q321 Q421 Q122 Q222 Q322 © 2022 LiveRamp. All rights reserved. Slide 11 of 27
Slide 12: Outlook
Outlook LiveRamp
Slide 13: Q4 & FY22 Outlook
Q4 & FY22 Outlook ~$M Q4 FY Revenue $139 $526 YoY growth % 17% 19% 9 ex. Wholesale Contraction 23% 27% Q4 Subscription Net Retention (SNR) ~106% (SNR Wholesale Contraction impact ~8pts) © 2022 LiveRamp. All rights reserved. Slide 13 of 27
Slide 14: Q4 & FY22 Outlook (continued)
Q4 & FY22 Outlook (continued) Operating Performance (~$M) Other Items (~M) FY22 Q4 FY22 Operating Income Ongoing Stock-based Comp $56 11 $2 $41 Non-GAAP Acquisition-related Stock-based Comp $34 Operating (Loss) 12 ($31) ($69) GAAP Total Stock-based Comp $90 Share Count (Basic) 68 Share Count (Dilute
Slide 15: Safe Haven
YY i Safe Haven
Slide 16: Safe Haven
Safe Haven A network of industry-defining capabilities powering a network of data connections with competitive advantage Privacy Identity / ATS Leader in privacy-safe, authenticated identity. Global leader in configurable privacy Federated approach to global identity – and privacy preserving technol
Slide 17: Safe Haven – Enterprise Data Infrastructure for Customer Experience
Safe Haven – Enterprise Data Infrastructure for Customer Experience Creating a Single Customer View DMP/CDP Future Proof Marketing Across Siloed Data Assets – First Replacement/Enhancement - Activation Through ATS Party Graph Data Ingestion, Audience Development and Distribution People-Based Measure
Slide 18: JD.com – Another Safe Haven Anchor
JD.com – Another Safe Haven Anchor Audience Segmentation & Modeling Audience Targeting POS Data Loyalty # Minimize data movement Advanced Analytics & and ensure data exchange Coupon is protected and permissioned Measurement End-to-End Collaboration © 2022 LiveRamp. All rights reserved. Slide 18 of 2
Slide 19: Safe Haven – From App to Enterprise
Safe Haven – From App to Enterprise Safe Haven Customers Customers on Safe Haven Platform (Ending ARR, $M) Higher ACV with Significant Upsell Opportunity ~20% of Total ARR >3x in Two Years >$1M >120% ~$70 $75 Avg. ARR Subscription Net Retention <10% of Total ARR $40 $25 Q3FY20 Q3FY21 Q3FY22 © 2022 L
Slide 20: Appendix
Appendix YY i LiveRamp
Slide 21: Building the Trusted Ecosystem – By the Numbers
Building the Trusted Ecosystem – By the Numbers Ready for Activation A Scalable Solution 70+ DSPs 500+ publishers adopted ATS live or committed to buying on RampID Connected to 70%+ US time spent online Comscore Top Publishers 55+ SSPs live or committed to implementing RampID in 80% 75% the bidstrea
Slide 22: Wholesale Contraction Impact
9 Wholesale Contraction Impact $M, except net retention metrics Q421A FY21A Q122A Q222A Q322A Q422E FY22E Total Revenue ($1) ($1) ($8) ($8) ($8) ($6) ($30) Subscription Revenue ($1) ($1) ($8) ($8) ($8) ($6) ($30) ARR ($5) ($5) ($30) ($30) ($30) ($25) ($25) Net Retention Metrics ~(2pts) - ~(10pts) ~(
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Income Statement (part 1 of 2), $K © 2022 LiveRamp. All rights reserved. Slide 23 of 27
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Income Statement (part 2 of 2), $K © 2022 LiveRamp. All rights reserved. Slide 24 of 27
Slide 25: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $K © 2022 LiveRamp. All rights reserved. Slide 25 of 27
Slide 26: GAAP to Non-GAAP EPS Reconciliation
GAAP to Non-GAAP EPS Reconciliation $K, except per share amounts © 2022 LiveRamp. All rights reserved. Slide 26 of 27
Slide 27: 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