LiveRamp Holdings, Inc. reported its financial results for the quarter and six months ended September 30, 2024, showcasing a notable increase in revenue but a decline in profitability compared to the previous fiscal period.
For the three months ended September 30, 2024, LiveRamp generated revenues of $185.5 million, marking a 16% increase from $159.9 million in the same period of 2023. The growth was driven by a 14% rise in subscription revenues, totaling $143.3 million, and a 23% increase in Marketplace and Other revenues, which reached $42.2 million. For the six months ended September 30, 2024, total revenues were $361.4 million, a 15% increase from $313.9 million in the prior year.
Despite the revenue growth, the company faced challenges in profitability. Gross profit for the quarter was $134.2 million, a 13% increase from $118.7 million in the previous year, but the gross margin decreased to 72.4% from 74.2%. Total operating expenses rose to $126.8 million, up 15% from $110.5 million, leading to a decrease in income from operations to $7.5 million, down from $8.2 million a year earlier. Net earnings for the quarter were $1.7 million, or $0.03 per diluted share, a significant decline from $4.9 million, or $0.07 per diluted share, in the same quarter of 2023. For the six months, the company reported a net loss of $5.8 million, compared to a profit of $3.3 million in the prior year.
LiveRamp's cash and cash equivalents as of September 30, 2024, stood at $338.9 million, slightly up from $336.9 million at the end of March 2024. The company also repurchased 2.4 million shares for $65.7 million during the six months, with a total of 40.2 million shares repurchased for $1.0 billion under its stock repurchase program, which has been extended through December 31, 2026.
Strategically, LiveRamp has focused on enhancing its product offerings and customer base. The acquisition of Habu contributed to revenue growth, with the company reporting a Subscription Net Retention increase of 6%. However, the company also incurred employee-related restructuring charges totaling $4.2 million during the fiscal year, reflecting ongoing adjustments to optimize operations.
Overall, while LiveRamp experienced revenue growth, the increase in operating expenses and restructuring efforts impacted its profitability, leading to a net loss for the six-month period.
About LiveRamp Holdings, Inc.
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