LiveRamp Holdings, Inc. · NYSE:RAMP
LiveRamp — Q1 2021 Earnings Presentation
23 slides from LiveRamp's earnings presentation, Aug 10, 2020
Slide 1: Q1 FY21 Earnings Slides
Q1 FY21 Earnings Slides August 10, 2020
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 Q1 FY21 Predictable, Subscription Land & Expand with Profitable Recurring Revenue Customer Growth Network Effects Long-term Model, Non-GAAP 1 2,3 4 $307M 780 111% 75% ARR Direct Platform Long-term (up 28% YoY) Clients Net Retention Gross Margin Target 25% 5 83% 90 60 Subscri
Slide 5: Summary Financial Results
Summary Financial Results $Ms, except per share amounts 6 GAAP Non-GAAP Q121 YoY Q121 YoY Revenue $99 21% — — Gross profit $65 41% $71 38% Gross margin 65% 9 pts 71% 9 pts Operating income (loss) ($26) nm $1 nm Operating margin (26%) 32 pts 1% 29 pts Net earnings (loss) 7 ($22) nm $1 nm EPS ($0.33)
Slide 6: Revenue Summary
Revenue Summary $Ms Revenue by Type Q121 Q120 YoY Subscription $83 $68 21% Marketplace & Other $17 $14 16% Total $99 $83 21% Revenue by Geography Q121 Q120 YoY US $93 $77 22% International $6 $6 1% Total $99 $83 21% Totals may not foot due to rounding. © 2020 LiveRamp. All rights reserved. Slide 6 o
Slide 7: Cash Flow
Cash Flow $Ms Q121 Q120 Operating cash flow ($24) ($15) Capital expenditures ($1) ($5) Free Cash Flow ($24) ($20) Totals may not foot due to rounding. © 2020 LiveRamp. All rights reserved. Slide 7 of 23
Slide 8: Four Corners of Growth
Four Corners of Growth $Ms, Non-GAAP 1 Subscription Net Retention 3 ARR Growth 9 Q120 Q220 Q320 Q420 Q121 Q120 Q220 Q320 Q420 Q121 Subscription ARR $241 $270 $283 $299 $307 108% 109% 112% 110% 109% Net Retention YoY % 33% 40% 26% 29% 28% ARR ex IPG $221 $250 $263 $279 $287 YoY % 22% 30% 29% 31% 31%
Slide 9: Total Remaining Performance Obligations
Total Remaining Performance Obligations 10 $Ms $344 $350 $339 $339 $323 $224 $223 $190 $200 Current $167 RPO Q120 Q220 Q320 Q420 Q121 © 2020 LiveRamp. All rights reserved. Slide 9 of 23
Slide 10: What We Said, What We are Seeing
What We Said, What We are Seeing + Positives – Negatives Our View Current Current Current What We Said What We Said What We Said Status Status Status • Secular trends are in our • We’re not immune to macro • Despite uncertainty, our favor economic forces products are well- positioned and • We’re Saa
Slide 11: Outlook
Outlook LiveRamp
Slide 12: Q2'FY21 Outlook
Q2’FY21 Outlook $Ms GAAP11 Non-GAAP12 Revenue ~$100 -- YoY Growth % ~11% Operating Loss Up to $39 Up to $7 © 2020 LiveRamp. All rights reserved. Slide 12 of 23
Slide 13: FY21 Operating Expenses
FY21 Operating Expenses $M, Non-GAAP Q420 Less Non-Run-Rate Q420 Adj. RR to FY21E Bridge OpEx Quarterly Phasing FY20A* FY21E ~$30 ~$(45) Q1 23% 22% $(10) Q2 25% 24% $91 $91 $324 $310 Q3 25% 26% +/- $81 $81 Q4 27% 28% Q420A Non-Run-Rate Q420 Adj. Q420 Adj. RR Investment Productivity / FY21E ($81 x 4)
Slide 14: Other Guidance Items
Other Guidance Items ~Ms FY21E Ongoing stock-based comp $59 Acquisition-related stock based $33 comp Total stock-based comp $92 Interest income $2 Share count (basic) 67 Capital spending (% of rev.) 2% © 2020 LiveRamp. All rights reserved. Slide 14 of 23
Slide 15: Appendix
Appendix fo V4, LiveRamp
Slide 16: Strong Ecosystem Adoption of ATS
Strong Ecosystem Adoption of ATS Ready Today, Scalable for the Future 22B+ 40+ DSPs and Reach, ROAS impressions 20+ SSPs CPMs with LiveRamp IdentityLink have committed / implemented immediately through previously already flowing through LiveRamp IdentityLink in the unaddressable cookieless programma
Slide 17: LiveRamp Identity Outperforms Third-party Cookies
LiveRamp Identity Outperforms Third-party Cookies Fitbit Campaign Details Large scale, month long campaign to A/B test bidding on IdentityLink versus bidding on leading DSP 3p cookie Fitbit’s campaign highlights the better 2x 34% 13% efficiency and value of transacting on the Higher ROAS - online Lo
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Income Statement (part 1 of 2), $Ks FY 17 13 FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Total Revenue $ 174,760 $ 220,101 $ 285,620 $ 82,511 $ 90,143 $ 102,217 $ 105,701 $ 380,572 $ 99,437 Gros s P rofit (GAAP ) $ 74,784 $ 123,705 $ 164,902 $ 46,085 $ 48,683 $ 64
Slide 19: 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 Los s from operations (GAAP ) $ (131,412) $ (133,524) $ (198,146) $ (48,375) $ (50,273) $ (41,485) $ (40,789) $ (180,922) $ (26,007) % of Revenue -75.2% -60.7% -69.4% -58.6% -55.
Slide 20: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $Ks FY 17 FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 20 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) Income taxes (benefit) (45,184) (65,723) (45,409) (353
Slide 21: 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 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) Income taxes (benefit) (45,184) (65,
Slide 22: GAAP to Non-GAAP Reconciliation – FY21 Operating Expenses
GAAP to Non-GAAP Reconciliation – FY21 Operating Expenses $Ms FY21E GAAP Operating Expenses $ 429 Intangible Asset Amortization 17 Stock-based Compensation 92 Restructuring & Transformation Costs 10 Total Reconciliations $ 119 Non-GAAP Operating Expense $ 310 © 2020 LiveRamp. All rights reserved. Sl
Slide 23: 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