LiveRamp (RAMP) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue grew 16% year-over-year to $185–$185.5 million, driven by double-digit growth in both subscription and marketplace revenues, and supported by a scaled network of 885 direct clients and 500+ partners.

• Subscription revenue rose 14% to $143–$143.3 million; marketplace and other revenue increased 23–23.5% to $42–$42.2 million.

• Record 125 customers with $1M+ annualized subscription revenue, up from 99 a year ago, reflecting improved retention and upsell success.

• Share repurchases totaled $49.9–$50 million in Q2, with $291.7–$292 million remaining under the expanded repurchase program.

• Platform updates, new AI partnerships, and clean room network expansion announced to enhance data collaboration and customer value.

Financial highlights

• Non-GAAP operating income was $41 million (22% margin), up from $32 million; GAAP operating income was $7–$7.5 million (4% margin), down from $8 million.

• Net earnings for the quarter were $1.7–$2 million ($0.03 per diluted share), down from $4.9 million ($0.07 per share) a year ago.

• Non-GAAP net income was $34 million ($0.51 per share), up 17–19% year-over-year.

• Operating cash flow was $55.6–$56 million, up from $35.8–$36 million a year ago; free cash flow to equity was $55 million.

• Annualized recurring revenue (ARR) reached $483 million, up 13% year-over-year; remaining performance obligations were $504 million, up 3%.

Outlook and guidance

• FY25 revenue guidance raised to $737–$739 million (12% growth); non-GAAP operating income expected at $133–$135 million (18% margin).

• Q3 FY25 revenue expected at $191 million (up 10% year-over-year); non-GAAP operating income projected at $39 million.

• FY26 operating margin targeted at 20–25%, driven by cost efficiencies and offshoring.

• Capital spending to remain below 1% of revenue; non-GAAP tax rate expected at 24%.