LiveRamp (NYSE: RAMP) reported Q4 EPS of ($0.05), $0.09 better than the analyst estimate of ($0.14). Revenue for the quarter came in at $105.7 million versus the consensus estimate of $102.53 million.

Fourth Quarter Financial Highlights

• Total revenue was $106 million, up 35% compared to the prior year period.
• Subscription revenue was $84 million, up 28% and contributed 79% of total revenue.
• Marketplace & Other revenue was $22 million, up 71%.
• GAAP gross profit was $69 million, up 70% compared to the prior year period. GAAP gross margin of 65% expanded 13 percentage points. Non-GAAP gross profit was $75 million, up 59% compared to the prior year period. Non-GAAP gross margin of 71% expanded 11 percentage points.
• GAAP operating loss was $41 million compared to a GAAP operating loss of $82 million in the prior year period. Non-GAAP operating loss was $16 million compared to a non-GAAP operating loss of $22 million in the prior year period.
• GAAP loss per share from continuing operations was $0.07, and non-GAAP loss per share from continuing operations was $0.05.
• GAAP and non-GAAP operating results include an incremental $3.5 million bad debt charge largely as a result of current economic conditions.
• Net cash provided by operating activities was roughly break-even compared to net cash provided by operating activities of $38 million during the fourth quarter of fiscal 2019. Prior year cash flow from operating activities included a $55 million cash tax benefit associated with the sale of the Acxiom Marketing Solutions (AMS) business.
• As of May 20, 2020, LiveRamp has repurchased 3.1 million shares for $103 million under the current stock repurchase program since December 31, 2019. Since August 2011, the Company has returned over $1.17 billion in capital to shareholders.

“During this unprecedented time, we remain focused on the health and well-being of our employees and partners who continue to serve our global network of customers,” said LiveRamp CEO Scott Howe. “Now more than ever, it is important for brands to remain close to their customers and to demonstrate that their marketing investments are driving real results and returns. LiveRamp plays a critical role in enabling enterprise marketers to spend smarter. Our product suite, and in particular the Authenticated Traffic Solution® (or ATS), Safe Haven® and Advanced TV products, ensure every marketing dollar spent is addressable, accountable and measurable.”

“I would also like to take this opportunity to thank the entire LiveRamp team for the resiliency and exceptionalism they have demonstrated during this period,” added Howe. “In times of adversity, the true character of a team emerges, and I could not be more proud to lead this incredible group of people.”

COVID-19 Business Update

“LiveRamp, along with most companies, is being impacted by the COVID-19 crisis. That said, we are fortunate to be operating from a position of strength,” said LiveRamp President and CFO Warren Jenson. “In addition to our robust balance sheet, we have great customers, dedicated employees, a subscription business model and products that benefit from the secular wave toward outcome-based marketing and advertising. However, we are watching and monitoring our business closely, and in particular, usage trends and our Data Marketplace.”

GUIDANCE:

LiveRamp sees Q1 2021 revenue of $88 million, versus the consensus of $101.14 million.

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