Summary
LiveRamp reported fiscal 2021 second quarter results for the period ended September 30, 2020. Total revenue was $104.7 million, up 16.1% from the prior-year quarter. Gross profit was $69.8 million, up 43.3%, and gross margin expanded to 66.7%, up 12.7 percentage points. GAAP operating loss was $26.9 million, a narrower loss than the prior-year quarter. Net loss was $24.0 million, or $0.36 per diluted share, also a narrower loss. Operating cash flow turned positive at $6.2 million, compared with negative operating cash flow in the prior-year quarter. Capital expenditures were $0.3 million, down 88.8%. Deferred revenue was $6.5 million, up 47.2%. Total remaining performance obligations were $319.2 million, down 5.8%. On a year-to-date basis, revenue was $204.1 million, up 18.2%, and net loss was $45.7 million, a narrower loss than the prior-year period. Operating cash flow for the six months was negative $17.4 million, an improvement from the prior-year period.
The non-GAAP picture was stronger. Non-GAAP gross profit was $75 million, up 33%, and non-GAAP gross margin was 72%, up 9 percentage points. Non-GAAP operating income was $1 million, compared with a non-GAAP operating loss of $20 million in the prior-year quarter. Non-GAAP earnings per share was $0.03. Adjusted EBITDA was $3.9 million, compared with negative $15.9 million in the prior-year quarter. LiveRamp ended the quarter with no debt.
Operational momentum centered on the Authenticated Traffic Solution. More than 215 publishers worldwide have committed to ATS, including 60% of the US comScore 50. More than 25 supply-side platforms are live or committed, and over 45 demand-side platforms are live or committed to bid on the LiveRamp identifier. The Trade Desk's Unified ID 2.0 will be made available to publishers through LiveRamp's Authenticated Identity Infrastructure. Subscription net retention was approximately 111%, and platform net retention was 109%. Current remaining performance obligations, which cover contracted and committed revenue expected over the next 12 months, were $216 million, up 13% year over year. LiveRamp had 795 direct subscription customers at quarter end, up 10% year over year, and 62 clients with subscription contracts exceeding $1 million in annual revenue, up from 44 in the prior-year period. The board extended the share repurchase program through December 31, 2022, with approximately $326 million of remaining capacity as of September 30, 2020. Since the program began in August 2011, the company has returned approximately $1.17 billion to shareholders.
Guidance for the third quarter of fiscal 2021 follows. LiveRamp guided to non-GAAP operating income of up to $4 million for that quarter. The company said it is providing third quarter guidance only because of macroeconomic uncertainties, and the non-GAAP guidance excludes non-cash stock compensation, purchased intangible asset amortization, business transformation costs and restructuring charges. Management added that it expects to be slightly profitable on a non-GAAP basis for the full year. That full-year expectation is separate from the third quarter guidance.
Risks remain elevated. LiveRamp said COVID-19 continues to create uncertainty, and short-term service concessions reduced revenue by $0.7 million in the quarter and $2.1 million in the six-month period. Some concessions may extend into future periods. The company also flagged dependence on customer renewals, new customer additions, and upsell within its subscription business. It relies on partners and data suppliers, faces competition, and needs to attract and retain talent. Remote work poses risks to maintaining culture and innovating, and acquisitions or divestitures could cause disruption. International operations carry additional risks. A significant data breach or security failure could harm the business, reputation, and results. LiveRamp also noted risks from unfavorable publicity, service interruptions from data center hosting vendors, and dependence on third-party data hosting and transmission. Declines in third-party cookies and tracking technology, changes in data and tax regulations, and intellectual property claims round out the main concerns. Total RPO fell 5.8% even as current RPO rose 13%, a mix the company will need to manage.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2021 | Q1 FY2021 | QoQ | Q2 FY2020 | YoY |
|---|---|---|---|---|---|
| Revenue | $104.7M | $99.4M | +5.3% | $90.1M | +16.1% |
| Gross profit | $69.8M | $65.0M | +7.4% | $48.7M | +43.3% |
| Gross margin | 66.7% | 65.3% | +1.3 pp | 54.0% | +12.6 pp |
| Research & development | $31.0M | $27.0M | +15.0% | $26.4M | +17.4% |
| Sales & marketing | $41.7M | $38.6M | +8.0% | $45.2M | -7.7% |
| General & administrative | $24.5M | $23.4M | +4.8% | $27.3M | -10.1% |
| Total operating expenses | $96.6M | $91.0M | +6.2% | $99.0M | -2.4% |
| Operating income (loss) | -$26.9M | -$26.0M | -3.2% | -$50.3M | +46.6% |
| Operating margin | -25.7% | -26.1% | +0.5 pp | -55.8% | +30.1 pp |
| Net income (loss) | -$24.0M | -$21.7M | -10.3% | — | — |
| Net margin | -22.9% | -21.9% | -1.0 pp | — | — |
| Diluted EPS | -$0.36 | -$0.33 | -$0.03 | -$0.59 | +$0.23 |
| Net retention rate | 111.0% | 109.0% | +2.0 pp | 109.0% | +2.0 pp |
Risks
COVID-19 has continued to spread and adversely affect workforces, customers, economies, and financial markets, and LiveRamp's revenues were negatively impacted by $0.7 million in the quarter ended September 30, 2020 and $2.1 million in the six months ended September 30, 2020 due to short-term service concessions related to the pandemic, with certain concessions expected to extend into subsequent periods.
LiveRamp states its liquidity position may change due to inability to collect from customers, inability to raise new capital via equity or debt, and disruption in completing payments to creditors, and COVID-19 has caused significant disruptions in global financial markets that could increase its cost of capital and adversely impact its ability to raise additional capital, potentially forcing it to curtail operations.
Net accounts receivable rose to $99.4 million at September 30, 2020 from $92.8 million at March 31, 2020, and days sales outstanding increased to 87 days from 80 days, while LiveRamp is actively evaluating the potential negative impact of COVID-19 on its customers' ability to pay.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Platform Net Retention
Subscription Net Retention
Customers > $1M ARR
Direct Subscription Customers
Free Cash Flow to Equity
Non-GAAP Gross Margin
Adjusted EBITDA
Summary, forecast, risks and KPIs are extracted from LiveRamp Holdings, Inc.'s SEC filings for Q2 FY2021 (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.