Advertising data platform LiveRamp (NYSE:RAMP) beat analysts' expectations in Q3 FY2024, with revenue up 9.6% year on year to $173.9 million. The company also expects next quarter's revenue to be around $160 million, slightly above analysts' estimates. It made a non-GAAP profit of $0.47 per share, improving from its profit of $0.28 per share in the same quarter last year.
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LiveRamp (RAMP) Q3 FY2024 Highlights:
- Revenue: $173.9 million vs analyst estimates of $171.8 million (1.2% beat)
- EPS (non-GAAP): $0.47 vs analyst estimates of $0.40 (18.2% beat)
- Revenue Guidance for Q4 2024 is $160 million at the midpoint, above analyst estimates of $158.5 million
- Free Cash Flow of $14.35 million, down 59.7% from the previous quarter
- Net Revenue Retention Rate: 101%, in line with the previous quarter
- Customers: 895, similar to the previous quarter
- Gross Margin (GAAP): 74.2%, up from 72.7% in the same quarter last year
- Market Capitalization: $2.69 billion
Advertising SoftwareThe digital advertising market is large, growing, and becoming more diverse, both in terms of audiences and media. As a result, there is a growing need for software that enables advertisers to use data to automate and optimize ad placements.
Sales GrowthAs you can see below, LiveRamp's revenue growth has been unremarkable over the last two years, growing from $140.6 million in Q3 FY2022 to $173.9 million this quarter.
LiveRamp's quarterly revenue was only up 9.6% year on year, which might disappoint some shareholders. However, we can see that the company's revenue grew by $14 million quarter on quarter, re-accelerating from $5.80 million in Q2 2024.
Next quarter's guidance suggests that LiveRamp is expecting revenue to grow 7.7% year on year to $160 million, improving on the 4.9% year-on-year increase it recorded in the same quarter last year. Looking ahead, analysts covering the company were expecting sales to grow 10.1% over the next 12 months before the earnings results announcement.
Customer Growth LiveRamp reported 895 customers at the end of the quarter, flat versus the previous quarter. That's an welcome improvement from the trend of previous quarters, when the company was losing customers.
Key Takeaways from LiveRamp's Q3 Results We were impressed by LiveRamp's strong growth in customers this quarter. We were also glad next quarter's revenue guidance came in higher than Wall Street's estimates. Overall, this quarter's results seemed fairly positive. The market was likely expecting more, however, and the stock is down 2.3% after reporting, trading at $41 per share.
