LiveRamp Holdings, Inc. · NYSE:RAMP

LiveRamp — Q1 2021 Earnings Presentation

23 slides from LiveRamp's earnings presentation, Aug 10, 2020

  1. Slide 1: Q1 FY21 Earnings Slides

    Q1 FY21 Earnings Slides August 10, 2020

  2. Slide 2: Cautionary Statement

    Cautionary Statement This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, regarding LiveRamp’s (the "Company“) future business prospects. These stat

  3. 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 information

  4. Slide 4: Best-in-Class SaaS Model

    Best-in-Class SaaS Model Q1 FY21 Predictable, Subscription Land & Expand with Profitable Recurring Revenue Customer Growth Network Effects Long-term Model, Non-GAAP 1 2,3 4 $307M 780 111% 75% ARR Direct Platform Long-term (up 28% YoY) Clients Net Retention Gross Margin Target 25% 5 83% 90 60 Subscri

  5. Slide 5: Summary Financial Results

    Summary Financial Results $Ms, except per share amounts 6 GAAP Non-GAAP Q121 YoY Q121 YoY Revenue $99 21% — — Gross profit $65 41% $71 38% Gross margin 65% 9 pts 71% 9 pts Operating income (loss) ($26) nm $1 nm Operating margin (26%) 32 pts 1% 29 pts Net earnings (loss) 7 ($22) nm $1 nm EPS ($0.33)

  6. Slide 6: Revenue Summary

    Revenue Summary $Ms Revenue by Type Q121 Q120 YoY Subscription $83 $68 21% Marketplace & Other $17 $14 16% Total $99 $83 21% Revenue by Geography Q121 Q120 YoY US $93 $77 22% International $6 $6 1% Total $99 $83 21% Totals may not foot due to rounding. © 2020 LiveRamp. All rights reserved. Slide 6 o

  7. Slide 7: Cash Flow

    Cash Flow $Ms Q121 Q120 Operating cash flow ($24) ($15) Capital expenditures ($1) ($5) Free Cash Flow ($24) ($20) Totals may not foot due to rounding. © 2020 LiveRamp. All rights reserved. Slide 7 of 23

  8. Slide 8: Four Corners of Growth

    Four Corners of Growth $Ms, Non-GAAP 1 Subscription Net Retention 3 ARR Growth 9 Q120 Q220 Q320 Q420 Q121 Q120 Q220 Q320 Q420 Q121 Subscription ARR $241 $270 $283 $299 $307 108% 109% 112% 110% 109% Net Retention YoY % 33% 40% 26% 29% 28% ARR ex IPG $221 $250 $263 $279 $287 YoY % 22% 30% 29% 31% 31%

  9. Slide 9: Total Remaining Performance Obligations

    Total Remaining Performance Obligations 10 $Ms $344 $350 $339 $339 $323 $224 $223 $190 $200 Current $167 RPO Q120 Q220 Q320 Q420 Q121 © 2020 LiveRamp. All rights reserved. Slide 9 of 23

  10. Slide 10: What We Said, What We are Seeing

    What We Said, What We are Seeing + Positives – Negatives Our View Current Current Current What We Said What We Said What We Said Status Status Status • Secular trends are in our • We’re not immune to macro • Despite uncertainty, our favor economic forces products are well- positioned and • We’re Saa

  11. Slide 11: Outlook

    Outlook LiveRamp

  12. Slide 12: Q2'FY21 Outlook

    Q2’FY21 Outlook $Ms GAAP11 Non-GAAP12 Revenue ~$100 -- YoY Growth % ~11% Operating Loss Up to $39 Up to $7 © 2020 LiveRamp. All rights reserved. Slide 12 of 23

  13. Slide 13: FY21 Operating Expenses

    FY21 Operating Expenses $M, Non-GAAP Q420 Less Non-Run-Rate Q420 Adj. RR to FY21E Bridge OpEx Quarterly Phasing FY20A* FY21E ~$30 ~$(45) Q1 23% 22% $(10) Q2 25% 24% $91 $91 $324 $310 Q3 25% 26% +/- $81 $81 Q4 27% 28% Q420A Non-Run-Rate Q420 Adj. Q420 Adj. RR Investment Productivity / FY21E ($81 x 4)

  14. Slide 14: Other Guidance Items

    Other Guidance Items ~Ms FY21E Ongoing stock-based comp $59 Acquisition-related stock based $33 comp Total stock-based comp $92 Interest income $2 Share count (basic) 67 Capital spending (% of rev.) 2% © 2020 LiveRamp. All rights reserved. Slide 14 of 23

  15. Slide 15: Appendix

    Appendix fo V4, LiveRamp

  16. Slide 16: Strong Ecosystem Adoption of ATS

    Strong Ecosystem Adoption of ATS Ready Today, Scalable for the Future 22B+ 40+ DSPs and Reach, ROAS impressions 20+ SSPs CPMs with LiveRamp IdentityLink have committed / implemented immediately through previously already flowing through LiveRamp IdentityLink in the unaddressable cookieless programma

  17. Slide 17: LiveRamp Identity Outperforms Third-party Cookies

    LiveRamp Identity Outperforms Third-party Cookies Fitbit Campaign Details Large scale, month long campaign to A/B test bidding on IdentityLink versus bidding on leading DSP 3p cookie Fitbit’s campaign highlights the better 2x 34% 13% efficiency and value of transacting on the Higher ROAS - online Lo

  18. Slide 18: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation Income Statement (part 1 of 2), $Ks FY 17 13 FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Total Revenue $ 174,760 $ 220,101 $ 285,620 $ 82,511 $ 90,143 $ 102,217 $ 105,701 $ 380,572 $ 99,437 Gros s P rofit (GAAP ) $ 74,784 $ 123,705 $ 164,902 $ 46,085 $ 48,683 $ 64

  19. Slide 19: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation Income Statement (part 2 of 2), $Ks FY 17 FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Los s from operations (GAAP ) $ (131,412) $ (133,524) $ (198,146) $ (48,375) $ (50,273) $ (41,485) $ (40,789) $ (180,922) $ (26,007) % of Revenue -75.2% -60.7% -69.4% -58.6% -55.

  20. Slide 20: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation $Ks FY 17 FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 20 Net earnings (los s ) from continuing operations (GAAP ) $ (85,576) $ (67,299) $ (133,947) $ (42,140) $ (40,202) $ (38,040) $ (4,879) $ (125,261) $ (21,728) Income taxes (benefit) (45,184) (65,723) (45,409) (353

  21. Slide 21: GAAP to Non-GAAP EPS Reconciliation

    GAAP to Non-GAAP EPS Reconciliation $Ks, except per share amounts FY 17 FY 18 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Los s from continuing ops before income taxes ($130,760) ($133,022) ($179,356) $ (42,493) $ (45,493) $ (38,327) ($39,224) ($165,537) $ (25,544) Income taxes (benefit) (45,184) (65,

  22. Slide 22: GAAP to Non-GAAP Reconciliation – FY21 Operating Expenses

    GAAP to Non-GAAP Reconciliation – FY21 Operating Expenses $Ms FY21E GAAP Operating Expenses $ 429 Intangible Asset Amortization 17 Stock-based Compensation 92 Restructuring & Transformation Costs 10 Total Reconciliations $ 119 Non-GAAP Operating Expense $ 310 © 2020 LiveRamp. All rights reserved. Sl

  23. Slide 23: Footnotes

    Footnotes 1 Annualized recurring revenue (ARR) is ending MRR (last month of quarter) annualized. Recurring revenue is fixed and contracted subscription revenue and does not include any variable or non-recurring revenue amounts. 2 Direct client count excludes agency and reseller deployments and Data

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