Summary
LiveRamp reported second quarter fiscal 2022 results for the quarter ended September 30, 2021. Total revenue was $127.29 million, up 21.6% from the prior-year quarter. Gross profit was $92.21 million, up 32.2%. Gross margin expanded by 5.8 percentage points to 72.4%. The company posted an operating loss that narrowed to $6.18 million, and operating margin improved by 20.8 percentage points to -4.9%. Net loss narrowed to $6.43 million, or a diluted loss per share of $0.09. GAAP results improved because revenue growth came with nearly flat cost of revenue. This was the sixth consecutive quarter of non-GAAP profitability, management said.
For the six months ended September 30, 2021, revenue was $246.33 million, up 20.7%. Gross profit was $176.93 million, up 31.3%, and gross margin was 71.8%. The company reported an operating loss of $23.78 million and an operating margin of -9.7%. Net income was $10.93 million, and diluted earnings per share were $0.16, a swing to profit from the prior-year period. The year-to-date profit included a gain from a retained profits interest distribution, a non-recurring item, so the operating loss better reflects the underlying business.
Cash generation turned positive in the quarter. Net cash provided by operating activities was $10.90 million, up 74.4% from the prior-year quarter. For the six months, operating cash flow was -$6.34 million, an improvement from the prior-year period. Capital expenditures were $0.88 million in the quarter, up 195.9%, and $1.30 million for the six months, up 15.5%. Deferred revenue was $11.06 million at September 30, 2021, up 68.9% from a year earlier. Remaining performance obligations were $371.50 million, up 16.4%. The company repurchased approximately 365 thousand shares under its share repurchase program during the quarter.
Operational metrics showed broad adoption. LiveRamp added 15 net new direct subscription customers in the second quarter, and customer count at quarter end was 870, up from 795 a year ago. The company had 80 customers with subscription contracts exceeding $1 million in annual revenue, up 29%. Subscription net retention was 108% and platform net retention was 109%. The Authenticated Traffic Solution had more than 55 supply-side platforms and 70 demand-side platforms live or committed to bid on RampID and ATS. More than 500 publishers, representing more than 8,000 publisher domains, were deployed with ATS. LiveRamp also launched an enhanced TV platform with support from Innovid, E.W. Scripps Company, Publica, Philo, Plex, Univision and Dish.
Management raised its full year outlook. For the third quarter of fiscal 2022, guidance points to a GAAP operating loss and to positive non-GAAP operating income. For the full fiscal year 2022, the company also expects a GAAP operating loss and positive non-GAAP operating income. The non-GAAP guidance excludes non-cash stock compensation, purchased intangible asset amortization, and restructuring charges. Risks remain. COVID-19 and variants such as Delta continue to affect operations and customer demand. Growth depends on customer renewals, new customer additions, and upsell, plus partners and data suppliers. Competition for talent, privacy regulation, and the decline of third-party cookies could pressure the business. LiveRamp disclosed that subscription revenue will be negatively impacted by approximately $14 million during the remainder of fiscal 2022 because a few platform customers moved off cookie-based components of its digital identity graph to alternative solutions. Other risks include data breaches, changes in tax laws, and intellectual property claims.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2022 | Q1 FY2022 | QoQ | Q2 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $127.3M | $119.0M | +6.9% | $104.7M | +21.6% |
| Gross profit | $92.2M | $84.7M | +8.8% | $69.8M | +32.2% |
| Gross margin | 72.4% | 71.2% | +1.3 pp | 66.7% | +5.8 pp |
| Research & development | $35.8M | $34.8M | +2.9% | $31.0M | +15.3% |
| Sales & marketing | $39.5M | $42.0M | -5.9% | $41.7M | -5.3% |
| General & administrative | $23.1M | $24.3M | -5.0% | $24.5M | -5.8% |
| Total operating expenses | $98.4M | $102.3M | -3.8% | $96.6M | +1.8% |
| Operating income (loss) | -$6.2M | -$17.6M | +64.9% | -$26.9M | +77.0% |
| Operating margin | -4.9% | -14.8% | +9.9 pp | -25.7% | +20.8 pp |
| Net income (loss) | -$6.4M | $17.4M | -137.0% | -$24.0M | +73.2% |
| Net margin | -5.0% | 14.6% | -19.6 pp | -22.9% | +17.8 pp |
| Diluted EPS | -$0.09 | $0.25 | -$0.34 | -$0.36 | +$0.27 |
| Net retention rate | 108.0% | 103.0% | +5.0 pp | 111.0% | -3.0 pp |
Risks
LiveRamp disclosed that Subscription revenue will be negatively impacted by approximately $14 million during the remainder of fiscal 2022 as a few platform customers that licensed cookie-based components of its digital identity graph transition to alternative solutions, which will slow overall subscription growth.
The COVID-19 pandemic continues to create uncertainty; LiveRamp said it is actively evaluating potential negative impact on customers' ability to pay receivables, and days sales outstanding increased to 95 days at September 30, 2021 from 86 days at March 31, 2021, while net accounts receivable rose $16.7 million to $130.9 million.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Platform Net Retention
Subscription Net Retention
Current Remaining Performance Obligations (CRPO)
Free Cash Flow to Equity
Non-GAAP Gross Margin
Non-GAAP Operating Income
Net New Direct Subscription Customers
Summary, forecast, risks and KPIs are extracted from LiveRamp Holdings, Inc.'s SEC filings for Q2 FY2022 (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.