SAN FRANCISCO - LiveRamp (NYSE: RAMP), a prominent data collaboration platform, announced today an increase in its share repurchase authorization from $1.1 billion to $1.3 billion, with an extension on the program's expiration to December 31, 2026. The company has bought back $35 million worth of stock in the current fiscal year, including $19 million during the ongoing fiscal second quarter up until today.
The expansion allows LiveRamp approximately $322 million remaining for stock repurchases through the end of 2026. CEO Scott Howe commented on the decision, highlighting the company's tradition of capital return to shareholders and pointing to the current share price as an opportune investment. Howe emphasized the company's financial capacity to leverage the share price drop, citing a robust cash balance and projected fiscal year free cash flow.
LiveRamp's repurchase strategy is subject to market conditions, share price, and capital availability, with the company reserving the right to adjust or discontinue the program at any time.
In other recent news, LiveRamp Holdings (NYSE:RAMP), Inc. reported a robust first quarter for Fiscal 2025, exceeding market expectations with double-digit growth in revenue and annual recurring revenue (ARR). The company also noted a rise in subscription net retention to 105%. Despite macroeconomic challenges and changes in Google (NASDAQ:GOOGL)'s privacy policies, LiveRamp remains confident in its strategic position and its solutions, including the Authenticated Traffic Solution (ATS) and RampID.
The company's Q1 financial performance included revenue reaching $176 million and an operating income of $27 million. LiveRamp's Data Marketplace segment saw a growth of 23%, mirroring the US digital advertising market's trend. The company also revised its revenue guidance for FY'25 upwards, now expecting between $715 million and $735 million.
These developments come as LiveRamp continues to promote data collaboration, working with digital publishers to standardize terms of service and query templates. Despite a few deals being delayed due to client companies' layoffs and macroeconomic uncertainty, LiveRamp maintains a strong relationship with Google Ads and sees positive revenue opportunities from its partnership with Oracle (NYSE:ORCL).
InvestingPro Insights
LiveRamp's recent announcement regarding the increase in its share repurchase authorization reflects a strategic move to take advantage of its current stock valuation and return capital to shareholders. With a market capitalization of approximately $1.48 billion and a cash-rich balance sheet, LiveRamp is positioned to leverage its financial resources for share repurchases, which could potentially increase shareholder value.
InvestingPro data indicates that LiveRamp has a Price to Earnings (P/E) Ratio of 248.11, which suggests a high earnings multiple. This is supported by the InvestingPro Tips, which highlight that the stock is trading at a high earnings multiple and is also in oversold territory, with a Relative Strength Index (RSI) indicating potential undervaluation.
Furthermore, the company's gross profit margin stands at a strong 72.77% for the last twelve months as of Q1 2025, showcasing its ability to maintain profitability. This is in line with the management's confidence as expressed in the recent share repurchase announcement.
InvestingPro Tips also reveal that management has been aggressively buying back shares, reinforcing the company's commitment to utilizing its capital to support the stock price. Additionally, the company holds more cash than debt, which provides a cushion in volatile market conditions and aligns with the CEO's statement about the company's financial capacity.
For investors seeking a deeper analysis, there are 16 additional InvestingPro Tips available for LiveRamp, which can be accessed at https://www.investing.com/pro/RAMP. These tips provide a comprehensive overview of the company's financial health and market position, offering valuable insights for potential investment decisions.
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