Q3 2025 Liveramp Holdings Inc Earnings Call Transcript
Key Points
- LiveRamp Holdings Inc (RAMP) exceeded expectations for revenue and operating income, achieving double-digit revenue growth for the fourth consecutive quarter.
- The company reported a 12% increase in revenue and a 24% increase in operating income, with operating margin reaching a record high of 23%.
- Sales momentum rebounded significantly, with improved pipeline conversion rates and strong performance in data marketplace and usage revenue.
- LiveRamp's data collaboration platform is well-positioned to capitalize on the growing demand for enhanced measurement of digital advertising using first-party data.
- The company continues to make progress on its Rule of 40 journey, with expectations to reach or surpass Rule of 30 this fiscal year, driven by revenue growth and operating margin improvements.
- Despite strong sales momentum, the total customer count experienced pressure, particularly from smaller, lower ACV customers and market consolidation.
- The company faces challenges in maintaining consistent sales efficiency and is not yet at historical norms in this area.
- Gross margin slightly decreased by 0.5 points year-on-year, reflecting short-term investments in platform reliability and data processing speed.
- The expected deceleration in revenue growth in Q4 to high-single digits reflects the challenging sales environment experienced in prior quarters.
- Stock-based compensation increased significantly, impacting GAAP operating income, partly due to the Habu acquisition and prior year tax planning benefits.
Good afternoon, ladies and gentlemen, and welcome to LiveRamp's Fiscal 2025 Third Quarter Earnings Call. All lines have been placed on mute to prevent any background noise.(Operator Instructions)
As a reminder, this conference call is being recorded. I would now like to turn the call over to your host, Drew Borst, Vice President of Investor Relations.
Thank you, operator. Good afternoon, everyone, and thank you for joining our fiscal 2025, third quarter earnings call. With me today are Scott Howe, our CEO; and Lauren Dillard, our CFO.
Today's press release and this call may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. For a detailed description of these risks, please read the Risk Factors section of our public filings and the press release. A copy of our press release and financial schedules, including any reconciliation to non-GAAP financial measures, is available at
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