Summary
LiveRamp's fiscal 2025 second quarter revenue rose 16.0% to $185.48 million from $159.87 million. That marked a third consecutive quarter of double-digit revenue growth, according to management. GAAP gross profit increased 13.1% to $134.25 million from $118.66 million, but GAAP gross margin compressed to 72.4% from 74.2%. Non-GAAP gross profit was $139 million, up 16%, and non-GAAP gross margin held at 75%. GAAP operating income fell 8.8% to $7.49 million from $8.21 million. GAAP operating margin slipped to 4.0% from 5.1%. Non-GAAP operating income was $41 million compared with $32 million, and non-GAAP operating margin expanded to 22% from 20%. GAAP net income was $1.73 million, or $0.03 per diluted share, down from $4.86 million, or $0.07 per diluted share. Non-GAAP diluted earnings per share was $0.51 compared with $0.43.
The quarter's cash and backlog metrics were mixed. Operating cash flow was $55.60 million for the quarter and $46.27 million for the fiscal year to date. Capital expenditures were $0.24 million for the quarter and $0.47 million for the fiscal year to date. Deferred revenue, current portion, rose 72.4% to $36.16 million from $20.98 million. Remaining performance obligations increased 2.9% to $503.80 million from $489.80 million. Current remaining performance obligations were $374 million, up 10%. Annual recurring revenue was $483 million, up 13%. LiveRamp ended the quarter with 125 customers whose annualized subscription revenue exceeds $1 million, compared with 99 a year earlier. Direct subscription customers totaled 885, compared with 895. Subscription net retention was 107%, and platform net retention was 110%.
LiveRamp returned capital during the quarter. Share repurchases totaled $50 million in the second quarter and $66 million for the fiscal year to date. In August 2024 the board expanded the repurchase authorization by $200 million to $1.3 billion and extended the program through December 31, 2026. Remaining capacity was about $292 million as of September 30, 2024. On the product front, the company released a semi-annual update to its Data Collaboration Platform in October 2024. It also announced AI destinations with Perplexity and Chalice. Management said the update should speed time to value for customers and make first-party data activation easier.
Guidance points to slower growth in the next quarter. For the third quarter of fiscal 2025, LiveRamp expects revenue of $191 million, an increase of 10%, and non-GAAP operating income of $39 million. For the full fiscal year 2025, the company guided revenue to between $737 million and $739 million, an increase of 12%, and non-GAAP operating income to between $133 million and $135 million. Non-GAAP operating income excludes non-cash stock compensation, purchased intangible asset amortization, and restructuring and related charges. The fiscal year guidance is for the full year, while the $191 million revenue outlook is for the next quarter.
The profitability picture is weaker on a GAAP basis. Gross margin fell 1.8 percentage points to 72.4%, and operating margin fell 1.1 percentage points to 4.0%. Operating income declined 8.8% to $7.49 million, and net income dropped 64.4% to $1.73 million. For the fiscal year to date, net loss was $5.76 million compared with net income of $3.28 million, and diluted EPS was -$0.09 compared with $0.05. Management highlighted risks in its forward-looking statements. These include high interest rates, cost increases, a possible recession, inflation, geopolitical conflicts, dependence on customer renewals and new customer additions, reliance on partners and data suppliers, competition, rapid technology changes, integration of acquired businesses such as Habu, talent retention, hybrid work challenges, workforce reductions, data breaches, reliance on third-party data hosting, decline of third-party cookies, regulatory changes, tax law changes, and intellectual property claims.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $185.5M | $176.0M | +5.4% | $159.9M | +16.0% |
| Gross profit | $134.2M | $124.2M | +8.1% | $118.7M | +13.1% |
| Gross margin | 72.4% | 70.6% | +1.8 pp | 74.2% | -1.8 pp |
| Research & development | $43.9M | $44.1M | -0.5% | $33.7M | +30.1% |
| Sales & marketing | $51.1M | $54.2M | -5.7% | $44.1M | +15.8% |
| General & administrative | $31.4M | $31.0M | +1.3% | $26.0M | +20.6% |
| Total operating expenses | $126.8M | $129.5M | -2.1% | $110.5M | +14.8% |
| Operating income (loss) | $7.5M | -$5.2M | +242.7% | $8.2M | -8.8% |
| Operating margin | 4.0% | -3.0% | +7.0 pp | 5.1% | -1.1 pp |
| Net income (loss) | $1.7M | -$7.5M | +123.1% | $4.9M | -64.4% |
| Net margin | 0.9% | -4.3% | +5.2 pp | 3.0% | -2.1 pp |
| Diluted EPS | $0.03 | -$0.11 | +$0.14 | $0.07 | -$0.04 |
| Customers | 125 | 115 | +8.7% | 500 | -75.0% |
| Net retention rate | 107.0% | 105.0% | +2.0 pp | 101.0% | +6.0 pp |
Risks
In July 2024 Google announced that instead of deprecating third-party cookies it will introduce a new Chrome experience letting people make an informed choice across their web browsing. The filing states Google's ongoing efforts may substantially impact the ability to collect and use data from Internet users, updating prior risk factors on third-party cookies and tracking technology.
The filing updates risk factors on legislative, judicial, regulatory, or cultural environments relating to information collection and use. It warns such developments may limit the ability to collect and use data, cause revenues to decline, increase the cost and availability of data, and adversely affect demand for products and services.
Gross margin decreased to 72.4% in FY2025 Q2 from 74.2%, and operating margin decreased to 4.0% from 5.1%. Operating income decreased 8.8% in the quarter and 78.6% year to date, while net income swung to a loss of $5.76 million year to date. MD&A attributes pressure to higher cloud infrastructure, services, intangible amortization, and stock-based compensation costs.
RPO increased 2.9% year over year to $503.8 million in FY2025 Q2. MD&A notes that RPO and CRPO growth decelerated relative to prior periods due to timing of multi-year renewals and revenue run-off from large multi-year arrangements subject to future renewal.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Platform Net Retention
Subscription Net Retention
Current Remaining Performance Obligations (CRPO)
Customers > $1M ARR
Direct Subscription Customers
Free Cash Flow to Equity
Remaining Performance Obligations (RPO)
Annual Recurring Revenue (ARR)
Summary, forecast, risks and KPIs are extracted from LiveRamp Holdings, Inc.'s SEC filings for Q2 FY2025 (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.