LiveRamp (NYSE: RAMP) reported Q3 EPS of $0.14, $0.07 better than the analyst estimate of $0.07. Revenue for the quarter came in at $120 million versus the consensus estimate of $113.14 million.

Third Quarter Financial Highlights

• Total revenue was $120 million, up 17% compared to the prior year period.
• Subscription revenue was $93 million, up 15% compared to the prior year period and contributed 78% of total revenue.
• Marketplace & Other revenue was $26 million, up 27% compared to the prior year period.
• GAAP gross profit was $83 million, up 29% compared to the prior year period. GAAP gross margin of 69% expanded 6 percentage points. Non-GAAP gross profit was $88 million, up 24% compared to the prior year period. Non-GAAP gross margin of 73% expanded 4 percentage points.
• GAAP operating loss was $16 million compared to a GAAP operating loss of $41 million in the prior year period. Non-GAAP operating income was $12 million compared to a non-GAAP operating loss of $6 million in the prior year period.
• GAAP loss per share was $0.18, and non-GAAP earnings per share was $0.14.
• Net cash generated from operating activities was $15 million compared to net cash generated from operating activities of $16 million in the prior year period.
• Cash and cash equivalents totaled $663 million with no debt at quarter end.

A reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release.

“With LiveRamp, brands don’t have to compromise data security and privacy for data utility – they can have both,” said LiveRamp CEO Scott Howe. “The past quarter has really validated the important role we play in helping our customers and partners safely and securely use data to deliver better customer experiences and ultimately drive growth across their enterprises. The explosive global adoption of our Authenticated Traffic Solution (or ATS) and new innovation like Safe Haven demonstrate the value we are creating for our customers.”

“Our record Q3 performance highlights the strength and leverage of our model,” added LiveRamp President and CFO Warren Jenson. “We delivered our first double-digit non-GAAP operating margin in the Company’s history, and we were again cash flow positive. We now expect to be profitable on a non-GAAP basis for the full year.”

GUIDANCE:

LiveRamp sees Q4 2021 revenue of $116 million, versus the consensus of $113.22 million.

LiveRamp sees FY2021 revenue of $440 million, versus the consensus of $430.42 million.

LiveRamp’s non-GAAP guidance excludes the impact of non-cash stock compensation, purchased intangible asset amortization, business transformation costs and restructuring charges.

For the fourth quarter of fiscal 2021, LiveRamp expects to report:

• Revenue of approximately $116 million, an increase of approximately 10% year-over-year
• GAAP operating loss of approximately $31 million
• Non-GAAP operating income of up to $1 million

For fiscal 2021, LiveRamp expects to report:

• Revenue of approximately $440 million, an increase of approximately 16% year-over-year
• GAAP operating loss of approximately $101 million
• Non-GAAP operating income of up to $16 million

For earnings history and earnings-related data on LiveRamp (RAMP) click here.