On Thursday, LiveRamp Holdings Inc. (NYSE: NYSE:RAMP) received a reiterated Buy rating and a $55.00 price target from Craig-Hallum. The firm acknowledged LiveRamp's robust fundamental trajectory, highlighting its resilience despite the delay in the cookie deprecation timeline. The company's third-quarter call had caused some initial confusion and a subsequent pullback in shares, but recent trends have dispelled concerns.
LiveRamp has reported accelerated growth in subscription and annual recurring revenue (ARR), now reaching double-digit figures. Additionally, Marketplace growth has picked up for the fourth consecutive quarter. These positive developments are part of an impressive fiscal year 2024 for LiveRamp, which included an overhaul of sales force productivity, the strategic acquisition of Habu, and significant margin expansion.
Craig-Hallum points out that LiveRamp is strategically positioned to leverage long-term growth opportunities. These include the industry's shift away from third-party cookies, the increased spending on authenticated traffic, the evolution of Connected TV (CTV), and the expanding use of AI solutions. The firm also noted LiveRamp's success in data collaboration solutions and positive results from Google (NASDAQ:GOOGL) PAIR testing, suggesting that the company is well-equipped to benefit from the ongoing deprecation of third-party cookies.
LiveRamp's financial performance has been impressive, with the company beating expectations in both revenue and EBITDA, thanks to improved sales execution and a strengthening advertising market. The guidance for the first quarter of 2025 and the full fiscal year 2025 was also encouraging, surpassing estimates and accounting for a conservative outlook for the latter part of the year.
InvestingPro Insights
With LiveRamp Holdings Inc. (NYSE: RAMP) demonstrating a solid growth trajectory, it's beneficial to look at the company through the lens of real-time data and expert analysis. According to InvestingPro data, LiveRamp holds a market capitalization of $2.14 billion and has experienced a revenue growth of nearly 8% over the last twelve months as of Q3 2024, indicating a steady increase in its business operations. Despite a high P/E ratio of 215.6, which suggests a premium valuation, analysts predict the company will be profitable this year, which can justify the optimistic outlook on the stock. Additionally, the company's gross profit margin stands strong at 72.47%, reflecting a robust profitability at the core of its operations.
InvestingPro Tips highlight that LiveRamp's liquid assets exceed its short-term obligations, providing financial stability and flexibility. Moreover, the company holds more cash than debt on its balance sheet, which is a reassuring sign for investors concerned about financial health in uncertain economic times. These insights, coupled with the expectation of net income growth this year, provide a comprehensive view of LiveRamp's financial position and future prospects.
For those seeking deeper analysis, InvestingPro offers additional tips that can further inform investment decisions. With a total of 9 InvestingPro Tips available, including insights on valuation multiples and stock volatility, investors can gain a nuanced understanding of LiveRamp's market position. Take advantage of these insights by visiting https://www.investing.com/pro/RAMP and using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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