Summary
LiveRamp's fiscal 2023 first quarter showed steady top-line growth but wider losses. Total revenue was $142.2 million, up 19.5% from the prior-year quarter. Gross profit was $101.2 million, also up 19.5%, and gross margin held flat at 71.2%. The bottom line moved the other way. Operating loss was $25.6 million, 45.5% wider than a year ago. Operating margin fell to negative 18.0%, down 3.2 percentage points. Net loss was $27.2 million, a swing from prior-year profitability. Diluted loss per share was $0.40. On a non-GAAP basis, gross profit was $107 million, gross margin was 75%, operating income was $4 million, and earnings per share were $0.05.
Cash generation weakened. Operating cash flow was negative $33.4 million, and the outflow widened by 93.5% from the prior-year quarter. Capital expenditures were $1.7 million, up 307.7%. Free cash flow to equity, a non-GAAP measure, was negative $35.1 million. Deferred revenue, current portion only, was $14.8 million, up 31.8%. Remaining performance obligations were $398.0 million, up 6.2%. The company also continued to return capital. Fiscal year to date, it repurchased approximately 2.8 million shares for $80 million. During the quarter, it repurchased 2.1 million shares for $60.1 million. Remaining capacity under the repurchase program stood at $207.8 million, and since inception the program has returned approximately $1.3 billion to shareholders.
Operational metrics were mixed but showed expansion. LiveRamp ended the quarter with 910 direct customers, up from 855 a year ago, and added 5 net new direct subscription customers. The company had 90 customers with subscription contracts above $1 million in annual revenue, up 29% from the prior-year period. Subscription net retention and platform net retention were both 113%. The Authenticated Traffic Solution ecosystem now includes more than 125 supply-side platforms and demand-side platforms live or committed to bid on RampID and ATS. More than 1,500 publishers, representing over 11,500 deployed domains, have integrated ATS worldwide. LiveRamp also works with more than 200 data providers and over 475 of the largest brands and agencies. Management pointed to an uncertain macro backdrop but said data-driven marketing and customer experience remain critical, and adoption of the Safe Haven platform continues to expand.
Guidance points to slower growth and heavier losses in the near term. For the second quarter of fiscal 2023, LiveRamp expects revenue of approximately $144 million, an increase of 13% year over year, and non-GAAP operating income of approximately $8 million. For the full fiscal year 2023, revenue is expected between $590 million and $600 million, an increase of between 12% and 13% year over year, with non-GAAP operating income of approximately $39 million. Risks include the ongoing COVID-19 pandemic, rising interest rates, cost increases and general inflationary pressure, customer renewals, new customer additions and upsell, reliance on partners and data suppliers, competition, and talent retention. The decline of third-party cookies and tracking technology, regulation of data collection and use, and international risks such as war and civil unrest could also affect results. A tax change under IRC Section 174 could increase cash taxes and reduce cash flows by approximately $6 million in fiscal 2023.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2023 | Q4 FY2022 | QoQ | Q1 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $142.2M | $141.7M | +0.4% | $119.0M | +19.5% |
| Gross profit | $101.2M | $102.2M | -1.0% | $84.7M | +19.5% |
| Gross margin | 71.2% | 72.2% | -1.0 pp | 71.2% | -0.0 pp |
| Research & development | $47.7M | $45.5M | +4.7% | $34.8M | +37.1% |
| Sales & marketing | $51.3M | $55.0M | -6.7% | $42.0M | +22.2% |
| General & administrative | $27.1M | $29.6M | -8.2% | $24.3M | +11.7% |
| Total operating expenses | $126.8M | $130.2M | -2.6% | $102.3M | +23.9% |
| Operating income (loss) | -$25.6M | -$28.0M | +8.5% | -$17.6M | -45.5% |
| Operating margin | -18.0% | -19.7% | +1.7 pp | -14.8% | -3.2 pp |
| Net income (loss) | -$27.2M | -$29.4M | +7.4% | $17.4M | -256.7% |
| Net margin | -19.1% | -20.7% | +1.6 pp | 14.6% | -33.7 pp |
| Diluted EPS | -$0.40 | -$0.43 | +$0.03 | $0.25 | -$0.65 |
| Customers | 90 | — | — | — | — |
| Net retention rate | 113.0% | — | — | 103.0% | +10.0 pp |
Risks
Operating loss widened to $25.6 million in FY2023 Q1 from $17.6 million in FY2022 Q1, and operating margin fell 3.2 percentage points to negative 18.0% from negative 14.8%, driven by higher operating expenses primarily from headcount investments. Net loss swung to a loss of $27.2 million from net income of $17.4 million a year earlier, and diluted EPS swung to a loss of $0.40 from earnings of $0.25.
Operating cash flow was down 93.5% in FY2023 Q1 versus FY2022 Q1, with net cash used in operating activities of $33.4 million compared with $17.2 million. Working capital decreased $49.5 million to $581.8 million at June 30, 2022 compared with March 31, 2022, primarily due to cash used for treasury share repurchases, and MD&A warns that rising interest rates, cost increases, and inflationary pressures could affect liquidity and ability to raise capital.
The IRC Section 174 requirement to capitalize and amortize R&D expenditures is expected to increase cash taxes and reduce cash flows by approximately $6 million in fiscal 2023 if not repealed or modified.
International revenue growth in FY2023 Q1 was negatively impacted by approximately 10% from differences in exchange rates compared with the prior-year quarter, and MD&A cites ongoing COVID-19, rising interest rates, and general inflationary pressures as pressures on liquidity and customer collections.
Days sales outstanding increased to 99 days at June 30, 2022 from 94 days at March 31, 2022, and net accounts receivable rose $6.2 million to $154.6 million over the same period, partly from increased Data Marketplace gross accounts receivable. This can pressure working capital and cash conversion.
R&D expense rose 37.1% in FY2023 Q1 versus FY2022 Q1, S&M rose 22.2%, and G&A rose 11.7%, with increases attributed to headcount investments. Non-cash stock compensation also increased to $24.2 million from $18.5 million, indicating cost pressure from talent and retention.
The Company repurchased 2.1 million shares for $60.1 million during FY2023 Q1 under its repurchase program, contributing to the decrease in working capital and reducing cash available for operations or other investments.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Platform Net Retention
Subscription Net Retention
Current Remaining Performance Obligations (CRPO)
Customers > $1M ARR
Free Cash Flow to Equity
Non-GAAP Gross Margin
Summary, forecast, risks and KPIs are extracted from LiveRamp Holdings, Inc.'s SEC filings for Q1 FY2023 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.