Summary
LiveRamp finished fiscal 2021 with solid revenue growth and a wider GAAP loss. Fourth-quarter revenue was $119.2 million, up 12.7% from the prior-year quarter. Gross profit rose 18.5% to $81.6 million, and gross margin expanded to 68.5% from 65.1%. The GAAP operating loss widened to $51.9 million from $40.8 million a year earlier, and operating margin slipped to -43.6% from -38.6%. Net loss widened to $32.8 million from $4.1 million.
Full-year results show real operating leverage. Fiscal 2021 revenue reached $443.0 million, up 16.4%. Gross profit climbed 31.2% to $299.0 million, and full-year gross margin improved to 67.5% from 59.9%. The GAAP operating loss narrowed to $120.5 million from $180.9 million, and operating margin improved to -27.2% from -47.5%. Net loss narrowed to $90.3 million. Diluted loss per share improved to $1.36 from $1.84. Net cash used in operating activities was $20.6 million for the fiscal year, and capital expenditures were $2.2 million.
The non-GAAP picture is far brighter than the GAAP one. Subscription revenue grew 13% in the fourth quarter and contributed 79% of total revenue. Marketplace Other revenue also grew 13%. Non-GAAP gross profit was $88 million, up 18%, at a non-GAAP gross margin of 74%. Non-GAAP operating income was $1 million, compared with a non-GAAP operating loss of $16 million in the prior-year period. For the full year, subscription revenue grew 17% and represented 80% of total revenue, while Marketplace Other revenue grew 15%. Full-year non-GAAP gross profit was $322 million, up 27%, and non-GAAP operating income was $16 million against a non-GAAP operating loss of $64 million. Non-GAAP earnings per share were $0.04 for the quarter and $0.23 for the fiscal year.
Identity products are doing the heavy lifting. More than 400 publishers have adopted the company's Authenticated Traffic Solution, including 70% of the U.S. Comscore 20 and 65% of the U.S. Comscore 50. More than 70 supply-side and demand-side platforms have adopted ATS. A Forrester Consulting study commissioned by LiveRamp found advertisers using ATS can reach a 343% return on investment over three years, with payback inside six months, and recent publisher case studies suggest potential CPM gains above 40%. Subscription net retention was 101% and platform net retention was 104%. Current remaining performance obligations were $256 million, up 14% year over year and 11% sequentially. Total remaining performance obligations were $371.0 million, up 6.0%, and current deferred revenue was $11.6 million, up 76.3%. The company counted 70 clients with subscription contracts above $1 million in annual revenue, up 32%, and 825 direct subscription customers, up from 780 a year ago.
Capital returns continued through the year. LiveRamp repurchased 1.3 million shares for $42 million during fiscal 2021 and bought another 275 thousand shares for $13.3 million after March 31, 2021. Total capital returned to shareholders since the program began in August 2011 is over $1.19 billion. Guidance points to more growth but continued GAAP losses. For the first quarter of fiscal 2022, management expects revenue growth of up to 13% year over year, a GAAP operating loss, and a non-GAAP operating loss of up to $2 million. For the full fiscal year 2022, guidance calls for revenue growth of up to 15% year over year, a GAAP operating loss, and non-GAAP operating income of between $0 million and $5 million. The guidance excludes non-cash stock compensation, purchased intangible asset amortization, and restructuring charges.
The risk list is long. LiveRamp depends on customer renewals, on new customer additions and upsell, and on partners and data suppliers. Competition and the challenge of attracting and retaining talent are persistent concerns. Platform changes, regulation, or increased user controls could restrict the use of third-party cookies and tracking technology that parts of the business still rely on. A significant security breach, negative publicity about the industry, or service interruptions from data center hosting vendors could hurt results. International operations, tax law changes, and intellectual property claims add further uncertainty. GAAP profitability remains the open question, because non-cash stock compensation and purchased intangible amortization keep reported results well below the non-GAAP figures.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2021 | Q3 FY2021 | QoQ | Q4 FY2020 | YoY |
|---|---|---|---|---|---|
| Revenue | $119.2M | $119.8M | -0.5% | $105.7M | +12.7% |
| Gross profit | $81.6M | $82.7M | -1.3% | $68.8M | +18.5% |
| Gross margin | 68.5% | 69.0% | -0.5 pp | 65.1% | +3.3 pp |
| Research & development | $46.5M | $30.6M | +51.9% | $28.4M | +63.6% |
| Sales & marketing | $53.3M | $43.9M | +21.4% | $48.6M | +9.8% |
| General & administrative | $32.4M | $23.9M | +35.3% | $30.2M | +7.2% |
| Total operating expenses | $133.5M | $98.4M | +35.6% | $109.6M | +21.8% |
| Operating income (loss) | -$51.9M | -$15.8M | -228.9% | -$40.8M | -27.3% |
| Operating margin | -43.6% | -13.2% | -30.4 pp | -38.6% | -5.0 pp |
| Net income (loss) | -$32.8M | -$11.7M | -180.1% | — | — |
| Net margin | -27.6% | -9.8% | -17.8 pp | — | — |
| Diluted EPS | -$0.50 | -$0.18 | -$0.32 | -$0.06 | -$0.44 |
Risks
Google Chrome is phasing out third-party cookies; in April 2021 Google began releasing software updates with features to phase out third party cookies, and Safari already blocks some third-party cookies. LiveRamp relies on third-party cookies and similar technology to provide its platform, so restrictions could materially impact its business.
Much of the data used is purchased or licensed from third-party suppliers, and suppliers may withhold data due to legal, privacy, competitive, or economic concerns, or if they are acquired by a competitor. Withdrawal or limitation of data could decrease revenue and client confidence.
CCPA came under California AG enforcement on July 1, 2020, CPRA and VCDPA take effect on January 1, 2023, and GDPR penalties can reach the greater of €20 million or 4% of global annual revenue. The invalidation of the Privacy Shield on July 16, 2020 adds uncertainty to EU-U.S. data transfers.
The ten largest clients represented approximately 33% of revenues in fiscal year 2021, and one client, The Interpublic Group of Companies, accounted for 11%. Loss of or decrease in revenue from any significant client could have a material adverse effect.
The business stores, transmits, and utilizes personally identifiable information and client data, making it a particularly attractive target for cyber-attacks; databases have in the past been subject to unauthorized access. A significant breach could disrupt operations, decrease revenues, and harm reputation.
The ongoing COVID-19 pandemic and resulting global economic uncertainty could continue to affect advertising spending, particularly for customers in transportation, travel and hospitality, retail and energy. Customers may reduce or delay technology spending, seek concessions, or face lengthened payment terms.
The industry is highly competitive and rapidly changing, and competitors may sell comparable products at lower prices by accepting lower margins or due to proprietary data, technical superiority, or economies of scale. This could force LiveRamp to reduce prices and lower its operating margin.
Growth depends on attracting, onboarding, and retaining technical, client services, sales, research and development, and management personnel. The labor market is very competitive due to limited people with necessary technical skills, and remote work during COVID-19 adds challenges.
Most platform functions are served from third-party data center hosting facilities operated by Google Cloud Platform and Amazon Web Services. Damage, interruption, or termination of these arrangements could disrupt the platform and reduce revenue.
Negative public perception about the data and marketing industry, including scrutiny following Cambridge Analytica, led Facebook to change targeted advertising and its relationship with the company. Additional scrutiny or consumer opt-outs could reduce demand for LiveRamp's products.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Platform Net Retention
Subscription Net Retention
Current Remaining Performance Obligations (CRPO)
Customers > $1M ARR
Direct Subscription Customer Count
Summary, forecast, risks and KPIs are extracted from LiveRamp Holdings, Inc.'s SEC filings for Q4 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.