LiveRamp (RAMP) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue grew 14% year-over-year to $176 million, with double-digit growth in both Subscription and Marketplace & Other segments, and non-GAAP operating income of $27 million, a 29% increase year-over-year.

• Subscription revenue rose 11% to $135 million; Marketplace & Other revenue increased 28% to $41 million, with CTV revenue roughly doubling.

• Annual recurring revenue (ARR) reached $478 million, up 12% year-over-year, with 77% of total revenue from subscriptions and 115 clients generating over $1 million each.

• Integration of Habu progressed smoothly, contributing to product enhancements, a robust sales pipeline, and $3 million in Q1 revenue.

• The company remains focused on simplifying customer experience, expanding its ecosystem, and driving adoption of authenticated addressability solutions amid evolving privacy and browser changes.

Financial highlights

• GAAP gross margin was 71%, while non-GAAP gross margin improved to 74%, up 1 point year-over-year; GAAP gross profit reached $124 million, non-GAAP gross profit $130 million.

• Operating margin (non-GAAP) expanded by 2 points to 15%, the highest Q1 margin on record; GAAP operating margin was -3%.

• GAAP net loss was $7 million ($0.11 per share), while non-GAAP net income was $24 million and non-GAAP diluted EPS was $0.35.

• Operating cash flow was -$9 million, impacted by seasonal working capital and a prior year tax refund; free cash flow to equity was negative $9.6 million.

• Cash and cash equivalents at quarter-end were $310 million.

Outlook and guidance

• FY25 revenue guidance raised to $715–$735 million, representing 8–11% growth; non-GAAP operating income expected at $127–$131 million, with an 18% margin.

• Q2 FY25 revenue expected at $176 million, with non-GAAP operating income of $31 million and 18% margin.

• Subscription revenue growth expected in high single to low double digits; usage revenue to be flat year-over-year.

• Marketplace & Other revenue growth outlook raised to mid-teens.

• Stock-based compensation for FY25 expected at $113 million, down from prior guidance.