On Thursday, Susquehanna reiterated a Positive rating on LiveRamp Holdings Inc. (NYSE: NYSE:RAMP) stock, maintaining a $50.00 price target. The firm's analysis highlighted LiveRamp's impressive fourth fiscal quarter performance, which surpassed both their own projections and the consensus.
The company's revenue for the quarter stood at $172 million, marking a year-over-year increase of 16%. This figure exceeded estimates by 7%, a result attributed to a robust digital advertising market and solid sales execution.
LiveRamp's financial success was reflected in the breakdown of its revenue streams. Subscription revenue reached $134 million, an 11% rise from the previous year, and outperformed expectations by 5%.
Marketplace revenue experienced a significant surge, climbing 38% year-over-year to $38 million, surpassing estimates by 17-18%. The integration of Habu, a recent acquisition, contributed $2 million to subscription revenue, despite incurring $3 million in expenses.
The company also reported an increase in the direct subscription client count, which went up by five, defying expectations of a decline. This growth was particularly noteworthy as it was achieved organically, without relying on acquisitions or mergers.
The expansion of LiveRamp's client base, especially among high-value customers, was a highlight of the quarter. The company added 10 new clients, each contributing over $1 million in revenue, setting a new record for the firm.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for LiveRamp amounted to $17 million, surpassing Susquehanna's estimates by 16% and consensus by 25%.
Furthermore, non-GAAP EBIT of $16 million was 19% higher than both the firm's estimates and the consensus. This financial metric underscores the company's profitability and operational efficiency during the quarter.
In summary, LiveRamp's fourth fiscal quarter results reflected a company that is not only outpacing expectations but also demonstrating a capacity for sustained growth and customer acquisition. The firm's positive outlook is supported by strong financials and a strategic position in the expanding digital advertising market.
InvestingPro Insights
Following Susquehanna's positive outlook on LiveRamp Holdings Inc. (NYSE: RAMP), InvestingPro data provides additional context to the company's financial health and market performance. LiveRamp's market capitalization stands at a robust $2.14 billion, showcasing its considerable size within its sector. Despite not having turned a profit over the last twelve months, analysts have a favorable view of the company's future, as evidenced by a projected net income growth this year. This optimism is reflected in the company's high EBIT and EBITDA valuation multiples, signaling market confidence in LiveRamp's earning potential.
InvestingPro Tips suggest that LiveRamp's financial stability is underpinned by its liquidity, with cash reserves exceeding its debt levels and liquid assets surpassing short-term obligations. This could provide the company with the flexibility to navigate market changes and invest in growth opportunities. While the company does not currently offer dividends, its low price volatility could appeal to investors seeking stability in their stock holdings. For readers interested in a deeper dive into LiveRamp's financials and market prospects, there are additional InvestingPro Tips available at https://www.investing.com/pro/RAMP. Take advantage of our special offer using the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
As LiveRamp continues to expand its client base and capitalize on the digital advertising boom, these insights may prove valuable for investors considering the company's stock. With six more InvestingPro Tips available, those looking to make informed decisions have ample resources at their disposal to assess LiveRamp's potential.
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