LiveRamp Holdings, Inc. · NYSE:RAMP
LiveRamp — Q1 2022 Earnings Presentation
25 slides from LiveRamp's earnings presentation, Aug 5, 2021
Slide 1: Q1 FY22 Earnings Slides
Q1 FY22 Earnings Slides August 5, 2021
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended, including, without limitation, regarding LiveRamp’s (the "Company“) future business
Slide 3: Use of Non-GAAP Information
Use of Non-GAAP Information The Company reports all financial information required in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes, however, that evaluating its ongoing operating results will be enhanced if it also discloses certain non-GAAP informatio
Slide 4: Key SaaS Metrics
Key SaaS Metrics Q1 FY22 Predictable, Subscription Land & Expand with Profitable Recurring Revenue Customer Growth Network Effects Long-term Model, Non-GAAP 1 2,3 $342M 855 28% 76% ARR Direct Brand ACV Gross margin (up 12% YoY) clients YoY growth (up 4 points YoY) 81% 70 4 108% 5 5th Consecutive Sub
Slide 5: Summary Financial Results
Summary Financial Results $Ms, except per share amounts 6 GAAP Non-GAAP Q122 YoY Q122 YoY Revenue $119 20% — — Gross profit $85 30% $90 27% Gross margin 71% 6 pts 76% 4 pts Operating income (loss) ($18) nm $7 393% Operating margin (15%) 11 pts 6% 4 pts Net earnings 7 $17 nm $7 nm EPS $0.25 nm $0.09
Slide 6: Revenue Summary
Revenue Summary $Ms Revenue by Type Q122 Q121 YoY Subscription $97 $83 16% Marketplace & Other $23 $17 36% Total $119 $99 20% Revenue by Geography Q122 Q121 YoY US $112 $93 20% International $7 $6 21% Total $119 $99 20% Totals may not foot due to rounding. © 2021 LiveRamp. All rights reserved. Slide
Slide 7: Cash Flow
Cash Flow $Ms, Non-GAAP Q122 Q121 Operating cash flow ($17) ($24) Capital expenditures ($0) ($1) Free cash flow to equity ($18) ($24) Totals may not foot due to rounding. © 2021 LiveRamp. All rights reserved. Slide 7 of 25
Slide 8: Key Growth Metrics
Key Growth Metrics $Ms, Non-GAAP 1 Subscription Net Retention 10 3 ARR Growth 1 Q121 Q221 Q321 Q421 Q122 Q121 Q221 Q321 Q421 Q122 Subscription ARR $305 $318 $329 $337 $342 109% 111% 105% 101% 103% net retention YoY % 27% 18% 17% 13% 12% See footnote 10 on slide 24 for definition of subscription net
Slide 9: Revenue Detail
Revenue Detail $Ms Subscription revenue: Q121 Q221 Q321 Q421 Q122 Fixed % of total subscription 91% 91% 87% 88% 87% Usage % of total subscription 9% 9% 13% 12% 13% Total subscription revenue $83 $86 $93 $94 $97 YoY growth 21% 19% 15% 13% 16% Marketplace & other revenue: Data marketplace $11 $14 $20
Slide 10: Key Growth Metrics Highlight Topline Momentum Building
Key Growth Metrics Highlight Topline Momentum Building YoY growth %s, except net retention metrics 11 As reported Ex. Wholesale Q421 Q122 Q421 Q122 Subscription revenue 13% 16% 14% 29% Marketplace & other revenue 13% 36% 13% 36% Total revenue 13% 20% 14% 30% Annualized recurring revenue (ARR) 13% 12
Slide 11: Total Remaining Performance Obligations
13 Total Remaining Performance Obligations $Ms $371 $375 $339 $333 $319 $115 $119 Non-Current $116 $102 $103 $231 $256 $256 Current $223 $216 Q121 Q221 Q321 Q421 Q122 © 2021 LiveRamp. All rights reserved. Slide 11 of 25
Slide 12: Safe Haven
Safe Haven A network of industry-defining capabilities powering a network of data connections Activation Identity / ATS Unparalleled scale of integrations, making Leader in privacy-safe, configurable identity / it easy for customers to take action on consent. Federated approach to global identity -
Slide 13: Outlook
Outlook LiveRamp
Slide 14: Q2 & FY22 Outlook
Q2 & FY22 Outlook $Ms Q2 FY Revenue $124 $522 ~YoY Growth % 18% 18% 11 ex Wholesale >25% >25% Q1 Q2 Q3 Q4 Revenue Phasing 23% 24% 27% 26% (percentages are calculated as quarterly revenue divided by full fiscal year revenue) Q2 Subscription Net Retention ~103% SNR ex Wholesale 11 ~113% © 2021 LiveRam
Slide 15: Q2 & FY22 Outlook (continued)
Q2 & FY22 Outlook (continued) ~Ms Operating Performance Other Items (approximate) FY22 Q2 FY22 Operating (Loss) Ongoing stock-based comp $57 13 ~$4 $15 Income Non-GAAP Operating (Loss) 14 ~($22) ($96) Acquisition-related stock-based comp $34 Income GAAP Total stock-based comp $91 Share count (basic)
Slide 16: Appendix
Appendix Va 4 LiveRamp
Slide 17: Wholesale Contraction Impact
11 Wholesale Contraction Impact $Ms, except net retention metrics Q421A FY21A Q122A Q222E Q322E Q422E FY22E Total Revenue ($1) ($1) ($8) ($8) ($8) ($6) ($30) Subscription Revenue ($1) ($1) ($8) ($8) ($8) ($6) ($30) ARR ($5) ($5) ($30) ($30) ($30) ($25) ($25) Net Retention Metrics ~(2pts) - ~(10pts)
Slide 18: Building the Trusted Ecosystem: By the Numbers
Building the Trusted Ecosystem: By the Numbers Ready for activation A scalable solution 60+ DSPs 450+ publishers adopted ATS live or committed to buying on RampID 90% US addressable reach 55+ SSPs Comscore Top Publishers live or committed to implementing RampID in 80% 75% the bidstream of the Top 20
Slide 19: LiveRamp's Identity Coverage
LiveRamp’s Identity Coverage Other Addressable TV Pub Direct Other Conversational Direct Mail EXPERIENCES SERVED Bing In-store Snapchat Gaming Partner Customer Linear TV Premium Deals Spotify Apps Messaging Channels Service Phone Chat Dating Apps CTV Direct YouTube Google E-commerce CTV Open Web Web
Slide 20: LiveRamp Serves the World
LiveRamp Serves the World Addressability for Paid Media EXPERIENCES SERVED ACROSS GEOGRAPHIES Additional* 2021 2021 2021 LatAm* 2021 2021 2021 APAC* Japan UK EU North America* Open Web Programmatic TV Publisher Premium * Additional Countries: Argentina, Brazil, Mexico, Canada, Indonesia, Vietnam, Th
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Income Statement (part 1 of 2), $Ks FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Total Revenue $ 220,101 $ 285,620 $ 82,511 $ 90,143 $ 102,217 $ 105,701 $ 380,572 $ 99,437 $ 104,661 $ 119,753 $ 119,175 $ 443,026 $ 119,038 Gros s Profit
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Income Statement (part 2 of 2), $Ks FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Total Revenue $ 220,101 $ 285,620 $ 82,511 $ 90,143 $ 102,217 $ 105,701 $ 380,572 $ 99,437 $ 104,661 $ 119,753 $ 119,175 $ 443,026 $ 119,038 Los s from op
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $Ks FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Ne t e a rnings (los s ) from continuing ope ra tions (GAAP) $ (67,299) $ (133,947) $ (42,140) $ (40,202) $ (38,040) $ (4,879) $ (125,261) $ (21,728) $ (23,968) $ (11,725) $ (32,847) $ (9
Slide 24: GAAP to Non-GAAP EPS Reconciliation
GAAP to Non-GAAP EPS Reconciliation $Ks, except per share amounts FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Los s from continuing ops be fore income ta xe s ($133,022) ($179,356) $ (42,493) $ (45,493) $ (38,327) ($39,224) ($165,537) $ (25,544) $ (27,077) $ (15,867
Slide 25: Footnotes
Footnotes 1 Annualized recurring revenue (ARR) is last month of quarter recurring revenue annualized. Recurring revenue is fixed and contracted subscription revenue and does not include any variable or non-recurring revenue amounts. This metric is forward looking and does not factor in potential con