LiveRamp’s second quarter results surpassed Wall Street’s revenue and profit expectations, yet the market responded negatively amid concerns about the outlook for the coming quarter. Management attributed the strong performance to continued momentum in its data collaboration offerings, especially Cross-Media Intelligence, Commerce Media Networks, and connected TV (CTV) solutions. CEO Scott Howe highlighted, “Our data collaboration network is experiencing strong sales momentum, evidenced by an above-average conversion of pipeline into signings, a reduction in the average sales cycle length and an increase in average deal size during the first quarter.” However, management also acknowledged some elevated churn from specific large customers, such as Oracle, which impacted certain customer metrics.
Is now the time to buy RAMP? Find out in our full research report (it’s free).
LiveRamp (RAMP) Q2 CY2025 Highlights:
- Revenue: $194.8 million vs analyst estimates of $191.2 million (10.7% year-on-year growth, 1.9% beat)
- Adjusted EPS: $0.44 vs analyst estimates of $0.42 (4.8% beat)
- Adjusted Operating Income: $35.8 million vs analyst estimates of $32.7 million (18.4% margin, 9.5% beat)
- The company slightly lifted its revenue guidance for the full year to $808 million at the midpoint from $802 million
- Operating Margin: 3.7%, up from -3% in the same quarter last year
- Net Revenue Retention Rate: 105%, up from 104% in the previous quarter
- Annual Recurring Revenue: $502 million vs analyst estimates of $510.2 million (5% year-on-year growth, 1.6% miss)
- Market Capitalization: $1.70 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From LiveRamp’s Q2 Earnings Call
- Shyam Vasant Patil (Susquehanna) asked for detail on second quarter revenue assumptions. CFO Lauren Dillard clarified that strong subscription usage growth in Q1 is not expected to repeat, with Q2 guidance reflecting a more conservative outlook.
- Cal Bartyzal (Craig-Hallum) sought insight on Commerce Media Network momentum. CEO Scott Howe described sector expansion and highlighted partnerships beyond retail, saying new verticals are fueling the company’s network effect.
- Cal Bartyzal (Craig-Hallum) followed up on CTV and programmatic adoption. Howe said the shift from linear TV to CTV benefits LiveRamp’s clean room solutions, allowing for better targeting and measurement.
- Mark John Zgutowicz (Benchmark) questioned the dip in $1 million-plus customers. Dillard explained that known churn from Oracle’s exit impacted the metric, but new large deals in Q2 are expected to reverse the trend.
- Clark Joseph Wright (D.A. Davidson) asked about the impact of the new pricing model on deal-making. Howe responded that pilot customers view it favorably, especially those seeking lower upfront commitments and usage-based flexibility.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will focus on (1) the pace at which LiveRamp’s new pricing model attracts and retains smaller and mid-sized customers, (2) further adoption of Cross-Media Intelligence and Commerce Media solutions across a broader set of industries, and (3) progress on operational efficiencies, including offshoring and automation. Execution on these priorities, along with continued growth in connected TV partnerships, will be critical to tracking whether LiveRamp can sustain both top-line growth and margin improvement.
LiveRamp currently trades at $26.10, down from $32.58 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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