LiveRamp (RAMP) Q1 2027 earnings summary

Executive summary

• Revenue for the quarter ended June 30, 2026, was $214.0 million, up 9.8% year-over-year, driven by growth in both Subscription and Marketplace and Other revenues.

• Net earnings rose to $17.5 million ($0.28 per diluted share), a 126% increase from $7.7 million ($0.12 per diluted share) in the prior year quarter.

• GAAP operating income more than doubled to $20.2 million, and non-GAAP operating income rose 41% to $50 million.

• Cash flow from operations was $17.0 million, compared to a use of $15.8 million in the prior year period.

• Strategic initiatives included new AI partnerships and product launches, such as the Agent Builders Lab and integrations with OpenAI, Databricks, Adobe, and DoorDash.

Financial highlights

• Subscription revenue grew 8.1% to $160.4 million; Marketplace and Other revenue increased 15.4% to $53.6 million.

• GAAP gross profit increased 11% to $151 million, with a stable gross margin of 71%.

• Operating margin expanded to 9.4% from 3.7% year-over-year.

• Adjusted EBITDA reached $51 million, up from $36 million in the prior year.

• Free cash flow was $16 million, compared to negative $16 million a year ago.

Outlook and guidance

• The pending merger with Publicis is expected to close by the end of calendar year 2026, subject to shareholder and regulatory approvals.

• The company expects to recognize $482.2 million of its $684.9 million remaining performance obligations over the next twelve months.

• Management believes existing cash is sufficient for both short- and long-term needs, but notes potential risks from macroeconomic and geopolitical factors.