LiveRamp's Fiscal 4Q 2024 Earnings Call

Introduction

Host: Drew Borst (VP of Investor Relations)
Speakers: Scott Howe (CEO), Lauren Dillard (CFO)
Call includes forward-looking statements subject to risks.
- More details in public filings and press release.

Strong finish to FY 2024:
- Q4 Revenue Growth: Total revenue up 16%, Subscription up 11%, Marketplace up 38%.
- Exceeding Expectations: Revenue ahead by $12M (7%), Operating income by $3M (20%).
- ARR Growth: Accelerated for second consecutive quarter.

Initial Revenue Growth Expectation: 2-4%
Actual Growth: 11% total, 10% like-for-like excluding Habu.
Subscription Revenue: Grew 9% in Q4.
New Contracts: Significant new three-year contracts with major retail and pharmaceutical clients.
Upselling Existing Customers: Improved customer retention to 103%.
High-Value Customers: Increased to 25 million-dollar customers.

Strategic Position: Favorable for secure first-party data collaboration and addressable digital advertising.
Operational Efficiency: Many areas identified for improved efficiency.
- Revenue and Operational Goals: Achieving better customer retention, leadership in data collaboration, scaling partner ecosystem, and simplifying operations.
Technology Integration: Upgrading RampID, investing in AI tools for productivity, enhancing customer experience.
Corporate Priorities: Enhancements in Products and Customer Experience
- Focus on pre- and post-sales integration.
- Platform modernization for faster turnaround.
- Dedicated resources for customer data activation.

**Importance of First-Party Data: **Adapting to the loss of third-party cookies.
Habu Acquisition: Seamlessly integrated, with strong initial performance and expanding responsibilities.
Platform Modernization: Unification of identity, connectivity, and data collaboration with new capabilities for cross-cloud interoperability.

**Authenticated Traffic Solution (ATS): **Fully scaled solution adopted by 21,000+ publisher domains.
Google's Pair Initiative: Partnership expanding across large publishers and CTV providers.
- Early results show increased match rates of 27%.

Technology Simplification: Continuous improvements in UI, contract processes, and pricing policies.
AI Utilization: Internally for developer productivity and externally for data collaboration.
Customer AI Support: Enhancing customer data for AI-driven insights.

Q4 Revenue: $172M (16% growth), Operating Income: $16M (3M above guide), Operating Margin: 9%.
Cash Flow: $28M for the quarter, $106M for the fiscal year.
- Subscription Revenue: $134M (11% growth), Strong growth in ARR (10%).
- Marketplace Revenue: $38M (38% growth), strong contributions from data marketplace and professional services.

Revenue: $710M to $730M (8-11% growth).
- Subscription Growth: High single digits, with fixed subscription to grow by double digits.
- International Challenges: Mid-teens decline in APAC region.
Operating Income: $125M to $129M (21% growth), Operating Margin: 18%.
Stock Repurchase Program: $15M per quarter expected.

Habu Integration: Successful integration, positive customer feedback, strong sales pipeline.
New Vertical Expansion: Notable exploration in travel, entertainment, and cloud strategies.
Customer Retention: Stabilizing trends among lower ACV customers, incremental contributions from large customers.
Google Pair Initiative: Significant opportunities with Google's Pair, better targeting, and measurement expected post-cookie deprecation.

**Adjournment: **Future updates anticipated, focus on long-term strategic goals.