The following is a summary of the LiveRamp Holdings, Inc. (RAMP) Q2 2025 Earnings Call Transcript:
Financial Performance:
LiveRamp reported Q2 revenue of $185 million, exceeding expectations with a 16% growth year-over-year.
Operating margin reached a record high of 22%, with operating income growing by 28% to $41 million.
Subscription net retention improved to 107%, and the '$1 million plus' customer count reached a record of 125, an increase of 10 from the previous quarter.
Business Progress:
LiveRamp achieved a sixth consecutive quarter of double-digit growth in subscription revenue, with a notable increase of 14%.
Marketplace and other revenue grew by 23%, reflecting strong execution, especially in digital advertising.
Significant wins included a multiyear, multimillion-dollar deal with a major global ad agency and new contracts with significant players in biopharmaceuticals and public cloud sectors.
International expansion included new wins with France's TF1 and Australia's REA for using clean room solutions.
Opportunities:
LiveRamp's ongoing expansion of its Clean Room Network positions it to capitalize significantly on evolving market demands for privacy-centric data collaborations.
The enhancements in network nodes, particularly with major CTV companies and large retailers, are expected to foster substantial future growth.
Risks:
The more tepid demand environment and economic uncertainties pose challenges to sales momentum, potentially impacting short-term growth, as noted in discussions about IT budget constraints and client caution in technology investment decisions.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
