SAN FRANCISCO - LiveRamp (NYSE: RAMP), a leading data collaboration platform, has reported a significant earnings and revenue beat for its fourth quarter, sending its shares up by 10.7%. The company announced Q4 adjusted EPS of $0.25, surpassing the analyst estimate of $0.19. Revenue for the quarter reached $172 million, exceeding the consensus estimate of $160.53 million and marking a 16% increase YoY.
The strong performance was driven by robust subscription revenue growth of 11% YoY and a notable 38% jump in Marketplace & Other revenue. LiveRamp's GAAP gross profit rose to $124 million, an 18% improvement, with a GAAP gross margin expansion of 1 percentage point to 72%. Adjusted operating income remained stable at $16 million, maintaining a non-GAAP operating margin of 9%.
CEO Scott Howe commented on the results, highlighting the company's successful quarter and positive trends in key performance indicators, such as annual recurring revenue and significant customer additions. "We ended fiscal 2024 on a high note, with fourth quarter revenue and operating income exceeding our expectations," said Howe.
Looking ahead to the first quarter of fiscal 2025, LiveRamp anticipates revenue of $172 million, a 12% increase, and non-GAAP operating income of $25 million. For the full fiscal year 2025, the company expects revenue between $710 million and $730 million, representing an 8% to 11% increase, and non-GAAP operating income between $125 million and $129 million.
The upbeat earnings release and forward guidance reflect LiveRamp's solid position in the data collaboration market, particularly as advertisers and publishers navigate the challenges of cookie deprecation and evolving technology. The company's stock movement following the earnings release underscores investor confidence in its strategic direction and execution.
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