RAMP - Earnings call transcript Q1 2020

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Operator

Good afternoon, ladies and gentlemen, and welcome to LiveRamp's Fiscal 2020 First Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer-session. [Operator Instructions] Thank you.

As a reminder, this conference call is being recorded.

like Dillard, the Head now your over would Lauren host, of I to call turn to And Investor Relations.

Lauren Dillard

Good discuss of first CFO; and operator. joining Products. our CEO; today you, afternoon Gupta, President Thank Howe, welcome. Thank and Jenson, you are us Scott to results. President our quarter XXXX Anneka Warren fiscal With me and for and Head

results this are that release and call differ actual subject could risks press forward-looking that may Today's statements uncertainties to and cause to materially. contain

For description Risk these the please Factors risks, section in release. a filings of detailed read of the our press public

non-GAAP undertakes forward-looking measures liveramp.com. at publicly during statements. website. release any deck is release be the obligation of Also our our call on copy slide to of press our to any including financial LiveRamp A schedule no posted and referring available revision we to will today, financial to reconciliation any

time, call I'll over At the Scott. to turn this

Scott Howe

We joining Good Lauren. year's you, Thank building on in strong today. afternoon solid last momentum. thanks for growth quarter QX, us delivered and another

lost quarter, the XX%, revenue up Facebook from and was XX%. excluding the up For revenue

up Our continued XX% subscription XX%, our was by and due channels. business And data Other & to driven agency the marketplace. our strength Marketplace of enterprise grew over

television. launched Beneath We fueled Authenticated we operational Traffic durable to with Math buy the more with drive to connect or a our made innovation, safe provide position. way effective transparent top closed data-driven acquisition Solution ecosystem and line, Data excellence growth solidify and continued to investments advertisers to competitive and power further ATS and a measure sell to and our of the TV publishers; Plus way

of our ongoing to our on March XX back down program of our share doubled we part as nearly commitment XX. shareholders since you, stock buying buyback finally, And million

track one, direction; three, strategic two, to our macro is prepared our in call, our highly defensible strong our business of billion; remain four can even with number the plotting hear are have that. following in competitive of we we better lot you number a lot which a moats $X themes: move we course the four, our to pleased trends number we a conviction while today's in to continue widening; will and on our our initiatives do remarks see number and areas on is our the and do and of During course and are progress, path just platform are

use remained down in experiences growing platform strong. The great market of for people-based few good of These data meaningful the digital and The break experiences drives all, customer our more reserved Data consumers. key accountability, data business for greater and helping and customers be available navigate silos trends role for critical powers should giants. a ROI than propelling to capabilities a the higher rather complexity. the our is plays ecosystem creates

to and open an for We level-playing field are central ensuring participants. all

transform preferences the safe the protection tipping data as safe are consumer. haven privacy to into our enables choice. at a consumer reach of that as The privacy while data Finally, emerging the quickly time we and open the same customers value, honoring point, and and data

our and XXXX, provide on our FY to imperatives a call, shared like brief each. strategic On last three I'd for update I

our component directly different good on us our for points key verticals. logo this made land progress customers We our across The which base, the delighting adding QX, XX to net first of focus area new acquisition growing customer new in expand involves and customer direct model. over year, and

Fortune than now of quarter We are XX% ended subscription direct with the we XXX. XXX the ago to serve customers, up from XXX over and year a more proud

channels average deals the ACV than strong getting quarter. larger enterprise signed are in generally Our several agency and with

to help big effective customer advertising. direct interested company deal new a leveraging prospect This online has For been and and signed measurement. targeting example, was we enable to in digital and and company data a personalized a more mailer tourism more with its travel historically large inform

occur how conversions. of wanted Since their they to their drives the better offline understand spend offline, bookings online also vast majority

platforms distributing site their to are personalization, measurement. We data several closed-loop for media targeting, and

large Another this hyper-targeted its to win leading its fashion brand. quarter with a customer new was experiences to leverage purchase retailer data to help selected LiveRamp segments. This deliver multinational better digital

they We went brand are customer segments leveraging and Customer of reseller display use for variety and Match us. data They to became more through were this a as introduced currently targeting. the direct sending along to a originally Google their strategy social platforms their with case with sophisticated,

As we customer have trended while where from well stronger And higher aiming satisfaction about always churn. for view reduce opportunities In what performance. it retention and at and where transparent an came has signaled we're net opportunity better be even a see decline to going call, the we quarter, higher our working historically. are last eight to down we for generate and even years, the dollar we as last growth this is

more our As become this our is to going important plans we a billion, upsell business strengthen of component our of so to equation. scale let driver to growth $X me share

This First, we improving focus and implemented trading and sales field sales a group enablement. inside drive is to tasked greater function rep on recently strategy productivity. effectiveness with

opens subject analytics We selling formed provide advanced invest Horizon upsells. overlays our in matter team strategic drive to lake all initiatives. for continue to to drives data efforts and and and cases three we've two that growth and use growth advanced Second, more experts and strengthened a greater measurements

consultancies. advanced partners IDL-based strategies building data sharing like lakes advanced and are with clients And while we analytics our and technology agencies finally customer strategies cases it. expertise. require significant And are more expertise data this building integration use many tighter and More complex have go-to-market still key

of are provides marketing partners our partners. is attribution of a IdentityLink. make While example can with to for sophisticated this great Marketing use working is with work easier agencies involved evolution platform cases. A on built to we develop these multitouch clients that solutions, take technology evolution turnkey and it key less the we advantage more doing

bringing we approach really are pipeline joint a as have and And technical by has the market. are tight successful as we be and to alignment, a creating digital very to integration proven of partnership we pursuing. partnership a solution go-to-market This opportunities well

our as identity product is up second the best essential and doing establish directly to initiative inside to the of ubiquity for our to and work this The extensibility are LiveRamp effort. trusted we and drive matters The industry data. our standard commercial increase of platform connected teams

in building superior and has that connected We have and hard a data our her invented of Anneka worked team ensure we're worldwide data stewardship and graft the and category a have leader believe product. we automation, redundancy identity to and multiple in which easier efficacy never this again and of better on ubiquity intend products. channels. integrations, more we span will we that our But area is and all to continue rest an

addressable have to And aggressively expand our several market. initiatives underway finally, we

this initiatives to Our within effort we squarely of pleased across emerging opportunities. and progress be falls with our business group continue growing this

business In Own more quarter, for Facebook based excluding global our Your the XX% towards growing a or demand driven by than Bring ethically marketplace BYOD trend Data. by grew people data and sourced

and that Simply or role Math. continued multiples the with has. aspects The by to data-driven we be grew track our this of space ecosystem our in acquisition Plus is opportunity, LiveRamp inside no power and which on helping is In Data the integration way advanced of other importance. encouraged there addition is company television underway TV incredibly in is growing put all today in the to

business. an driven which Excluding will by XX% grew business in Math, the and Data quarter, CTV QX, Plus be in results in TV beginning volumes addressable our increase roughly included campaign TV ramping our our in

bookings for the year our in us more this even gives business. of outlook Importantly, confidence the remainder

data inventory strong tailwind as presents are for contract become homes addressable, enablement CTV We of our seeing business. another values more the and expand growing

for While we evangelize these optimism continue our entire capabilities must the the efforts to give us ecosystem. across future,

television, and thousands company, aware of to is help There generate of Plus want any them any better how we almost even them better utilizing advertise Store of performance. doing companies marketing, be by Likewise, Data currently can who all can who Math are results Data generate on

intact, our for our thanking LiveRampers hard The partners it exceptional is support their ongoing and customers, believe remain early With and opportunity. trends we to close market that, business and for morning I'll work. our LiveRamp driving by and continue

off XXXX, on look progress we and to continued updating strong forward a to our you FY are ahead. start in in We the quarters

our now to discuss Anneka I'll more product to in strategy the turn detail. call

Anneka Gupta

Scott, I'm and afternoon, excited Thanks, everyone. good to today's join call.

focus have built can enterprise, product own Scott standard do is one mentioned, defensible technology. integral the inside trusted to platform data As everyone in identity and independent for the their that we connectivity a this, our use part anyone and data. an extensible LiveRamp and industry connected as industry towards a of as To establish

partner for trusted agnostic In do, we an industry. everything are neutral and we the

deliver We their are ecosystem customers and customers. essential great enabling to a to our experiences to competitive to

businesses. help our partners our their industry growing navigate the enables and And and innovation. areas impacting entire We identity, stewardship customers important that we help in complexity and I'll the to believe unique us today: discuss three data industry positioning regulatory

including cookies the there subscriber many people. in names, third-party our device misunderstood many identifiers Today, and e-mails, -- to in the of many, unique most one different IDs, proprietary and IDs, IDs, addresses, concepts more. things because maybe cookies, ad Identity, means industry, mobile and third-party term proliferation is different user a

needs no of be one their complete identity preferences own is to data a landscape an Within every accessed across clear, company connected neutral and fragmented customers' of that layer a and participants. trusted translation and enables complex the and of one thing company view has identity ecosystem

for is This the concept essential identity fulfills that connected of role LiveRamp industry. the

identity We are compete partners in we if asked very connect. too with the often we actually

to value data. identity, to isn't power of greater from every goal owner Our identity rather their but own all to get

access identity. As interoperability new from product, ecosystem and version our protects customers the held activate of more source partners integration our to being effort any to At gain into captive their our identity. enable manage own we of configure and capabilities single and identifiers same embed time, to participants

We're doing ways. many this in

few. to consumers an to customers a content this omni-channel they emerging increasing number just of these highlight a number We've are. Consumers me want and identifiers across let wherever channels. and So new in our context coverage consume in of addressable medium increased talk added

example, XX premium U.S. and our on MVPD population XX For through the over million of our can Connected over now our people XX% integration integration. over reach people publisher million customers TV, through

availability the able More offering solution advertising this launching of IDs inventory, the of customers people through display authenticated of third-party about to will be regardless traffic end LiveRamp's mobile Our at later. or cookies across August. reach

we alone, online coverage XXx Reach said, contribution a going enable XXX%. grown advertisers by our are taking third-party contribution near-term hugely Off-line the identity it in year are Reach their shift away sharing program, and occur can in identities Through industry non-discoverable XX%. last competition. believe cookies to context. the first-party by our we've be contribution whatever as disruptive and than of Smart We may That to ecosystem and regardless broaden steps in the In future. don't by Smart more addressability to mobile would permissioned the

example, we only into bidstream. For the in last available identifier incorporated programmatic the bidstream display. the IdentityLink for people-based IdentityLink omnichannel is in the year, LiveRamp's

billions have have to an bid to on on ability bid. the of of currently with five are now or to IdentityLink. bid implementing and the we IdentityLink live out top in directly We committed requests available XX Four DSPs SSPs implementing IdentityLink which bidstream the

and with not progress their in the gas the businesses. SSPs take across those DSPs the the publishers, proofing We are and off to together to collaborate foot future ecosystem pleased urge

monetization relationships our IdentityLink first-party be tied Authenticated and ATS finally, of Traffic can with to inventory with suppliers of And publishers ensure stable identifiers to enables big user or their their enables customers to advertisers. the through publishers ATS tech. can directly addressable so of to business winds and Solution build their independent make the their enduring model This relationships that first-party own traffic. effectively

partners area at contemplated the rapidly complexity GDPR important the markets identity, play complexity. live growing by consumer role in U.S. additional stewardship. a accompanied impacted changing in construct many regulatory by international well-positioned new and with that And our federal businesses. regulation We level. states protection is Beyond of customers a is afforded we in many The of data many second to were are world where and for in complexities that an

And beyond far data legislation. stewardship extends

increasingly Understandably, control, ensure For permissioning instance, shared, company within what with to limitation. over any companies how to want wanting needs by complexity their and to overwhelmed that what and what's to data. source it feel consumers used, data and any often an own do and collaborate by protect the navigate how other leverage competitive advantage is right data asset visibility is customer company appropriately valuable of

as to our to ensure legal to for And the operate for are ethical customers more and taken steps this partners a enable we We feel LiveRamp specifically, companies ecosystem we a is safe are trusted change. and ensuring ready provide tremendous parameters. to and within value regulatory have tailwind choice

and GDPR Preparing relates readiness. of to for being really are areas as it interpretations CCPA law responsive focus for tackling us new rulings for the three CCPA and to of has us readiness. There key well prepared

The first policy. is

our updating their policies California ensure are understand CCPA. informed privacy are We and that about the rights under consumers to

focus consumer interact like are parties that focus transmitting who and stipulation perpetuating and area is of core recognize to products And CCPA our space-compliant downstream. manner. support ensure all area the second third The a network our reviewing system data our of with in privacy the is ensuring, about contracts of

set and is its as to to and across later safe ecosystem management haven manage We're Faktor continue for to this core for effort, And to fall. is launch platform permission. businesses. consumer also it CCPA this we consent trusted serve the making collect easier the

one often is of are our the we time product. we the that foundation customers and access built that of have data is are PII. trust very companies again, time velocity we because, how their of our We build to and only ethical stewards into shown with that This

data our identity ever with our Increasingly, innovation create LiveRamp collaborating believe that across new and and accelerates In see customers making can further product in ecosystem. entirely for our unlock to innovation by we another we entire modularized platform addition LiveRamp's catalyzes stewardship, to And more products. ecosystem. one our we

of Safe for couple neutral Data examples, Haven a a measurement. you give me Let current

publisher ad-supported businesses ROI building to other show enable advertisers. to for and search optimization platforms need granular publishers, able premium media, be Social and

Without LiveRamp's ROI limited to their these only tracking data are connectivity, or conversion mobile platforms in online analysis.

of sales However, XX% across online. are than retail today less

years, measurement. platforms couple omnichannel of publishers these into and sales Over enable has retailers with safely been data the in-store developing to past from LiveRamp programs securely to bring

XX of a or few advertising programs. directly sold measurement one these have years programs. A platforms of more are handful enable we have as clients source publishers XX only often and these and and holistic measurement over by over ago, sales we Today a into programs product. These leveraging packaged

integration. seamless and Modularization

the at Cloud in are a our critical the which step to We scalability of is Platform, our tail-end migration Google of currently business.

externally. groundwork the migration platform internal today more in execute post We our are laying to platforms our both to API simplify strategy and expose functionality

to customers own and faster more Through both and they connectivity are environment. platforms data within greater capability. and and to looking do creating their flexibility develop identity are translation identity on top brands their our identity and efforts own customers graph of external are Many our modularize for for building to easier ways our expose APIs, we core

because and collaborate design LiveRamp future of products as inspire bring us. identity because boundaries a part ever potential new the give The and partners ecosystem to not the to a competitor us is opportunities launching who feedback partner for on us across identity push the that us of us connect standards, ecosystem. hold Every higher catalyze of as opens see bright in this and customers we with amazing own their building to continue us ideas company's of new new and

ecosystem. to as and around even to regulation opportunity collection usage partners. continue across we we data our product, see power customer to customers permissions and drive partner while We with opportunity an innovation our see our and own innovation within an greater will And strengthen

trusted I And where partner exciting that's are close do, neutral I'll pretty be. we for started. place an a In ecosystem. to we agnostic, everything and the

will I call Warren. that, the to With turn

Warren Jenson

Anneka, good everyone. afternoon, Thanks, and

execution our growth quarter strong We report and another opportunity are continued against our highlighted initiatives set. pleased to by

callouts. few A

XX%. XX% is levers. Subscription strong, run and company Total $XXX increased a is total multiple on up increased XX% basis is ARR revenue now our revenue business than million. XX% normalized growth more rate predictable and $XXX from and benefiting is increased Our million approximately year-over-year.

XX%. was to going Data more working. While becoming way have marketplace life. and we approximately is quarter, In always up growth are extend the revenue fast Plus Land, well. integration the over our grew extremely XX% levers Math a and do TV of is LiveRamp expand

lower was non-regrettable business lapping by upsells Dollar-based which large customer the net driven and by few was The was driven up bulk of lesser decline churn. sequential retention Our BXB XXX%. a a extent upsell was the over XX%. to of

We the ecosystem. the serve of and of needs the enterprise enterprise MarTech We are SaaS world. best in the many serve brands

XX% added began XX revenue we reporting than currently contributed more quarter, than which period and of more in Subscription and our our revenue we of the During XXXX, was Data customers total new the net XX% brands and subscription over standalone total since XXX has results. QX of platforms have using Store. revenue

defensible. and differentiated is product Our

do not not a model. and an are media operate platform We arbitrage

middleware for which services. and from infrastructure We are personalized ecosystem experience delivers We innovative provide the economy. customer the and products

products Cloud our to track innovation levels and tighten. our Operationally, working day continue is to into every Google the we and and platform. higher to teams In are technical on operations, automation migration drive our of

marketing, In we're enhancing standardizing offerings. our sales and product and

are our improve productivity And largely capabilities. and the increase standalone we staff to We our rep completed finally, shorten in functions, ROI. of customer deal working cycles, have build-out

Taken together along growing FY opportunity, strong market be to in profitable position XXXX. we a our are with in

total shares billion. of have our for consideration the XXst, In capital Lastly, acquisitions consideration growth shares closed Since program, and balance more investment Data a acquisition the to Plus $X of our of in we $XX million. million acquisition continue the and Since our we Faktor XX over a have now million we with repurchased quarter, March appropriately announce returning repurchased than the X.X to total of we inception shareowners. Math. initiatives for

summary, we In macro back. squarely believe are to do, have winds our we the much while at

Switzerland. We are

breadth helping enabling experiences. a and our in create neutrality ever than open of The services ecosystem. great healthy, is service to Our competitive more brands is and foundational important customer

the on a from my remind specifics end to walk of an you like of update FY through remarks, capital to For our the XXXX allocation and guidance. few our approach quarter, I'd with remainder

and Faktor we total acquisition the for a $X results QX million. closed the approximately of quarter, In activities. consideration

also $XX closed million million in million million million of FY announced and XXXX. Math. $XXX acquisition Data $XXX time-based $X of XXXX The We comprised purchase the should revenue of FY in of approximately deal Total was and of price $XX and contribute revenue in cash now equity. Plus is

Importantly by roughly $X billion. this opportunity has our increased TAM

income and other no liabilities. new million a implemented we in gross-up Finally, standard. resulted $XX This is impact. a assets There lease in statement

Next slide capital X. Please allocation. to turn

to again talk of our few is into approach the for our This spend once and about we capital we the part outlines minutes better jumping chart Before Analyst years. guidance, at specifically and a Day have a more eight operated wanted how we to last allocation. our presented

are priorities Our straightforward.

noncore. We for in This are areas principle in working that long-term. sharing not the includes are in is managing this investments Also things future. or BXB. our Fund service are TV, appropriate embedded data our like that stopping

Over eight noncore years proceeds. billion the assets after-tax $X.X have we past the in generating divested roughly

acquisition to important our share seek an continue to to advantage now $X more Today of we capital on approach Since have we follow. is capital we have focused will fiscal opportunities, our returned Next to acquisition which take we are committed our returning competencies. shareowners. This XXXX, core and we to leverage than billion opportunities. strategic appropriately And finally, owners.

our be intend opportunistic. just near-term approach, will we as we did conservative this in quarter we While be to

of In returning long-term have capital. we discipline record track a summary, and

talk. walk to the continue and have We

remains and allocation philosophy unchanged. Our capital to approach

Please our Now turn XX. guidance. to slide

noncash and XX% comp, restructuring amortization expect we up million to intangible including between As revenue stock our report purchased $XXX and excludes charges. million, guidance and FY XX%. a between $XXX XXXX, In of reminder, now items

loss now This $XX transition in costs. $XX million approximately of $XX million and operating between million. estimate Non-GAAP includes

of associated $XXX of expect million which For million, an $X and is up spending. we operating $XX loss with QX, million transition revenue approximately roughly of

we roughly fiscal dollar the based net the we the Further, year retention our given XXX% be factors already to for discussed. expect of remainder have

GCP our operating of in QX spending before complete expect should we transition September. a to QX. high We the end meaningful migration in margin on to track for QX we be expect watermark and improvement loss are the our be as finished

XX our including assumptions guidance be and other updated can reminder, a phasing XX. found as on revenue slides Finally

a We great quarter. With that, final thoughts. close few finished let a me with just

strong, Our business recurring. is predictable and

SaaS. We are enterprise

multiple have We growth in levers place.

Our and sweet to in a billions of helping create product for of are martech and value customers. are spot in our services dollars

and have has our liquidity the just transformation ample see to only our behalf progression. profitability We through begun. to of LiveRampers, us On path all

the now questions. we call open Operator, to will

Operator

Dan [Operator Your you. question Instructions] first go from from Salmon Markets. Please comes BMO ahead. Thank Capital

Dan Salmon

the Thanks for question. taking Good afternoon everyone.

one, maybe bit see you and what results side little more I U.S. to because this with For overall. well, higher We've ask is about should lot on of the the growth but be wanted the as a the key checkpoints I see the sort Scott International company really spent Anneka rate time well an we than to on for International know it the of power looking the Warren are story of just I to a just that accelerate? and as still early the business. continued know

buyback, And you milestones up some particularly got you Obviously, some past it. more then the we July. Warren, visibility and picked acquisitions got for with a on bit in see you, specific that

if it's the the Just light you a to picking that your buyback of hear of to the pace here but just more about to of that Thanks timing of after or saying up the be something love were in bit of curious would to lately? expect a pullback, updated the you where stock elevation July, thoughts everyone. pace on lastly trends contributed in

Warren Jenson

going we've It's the beneficial. did our been on I'm about then quite hardened number as in say been having past then further I through gone CCPA, to the we've has the because way It's even jump been routines internationally. really would and Thanks, Dan, years through GDPR GDPR beneficial also incredibly one, we gone Warren. we is the incredibly and think this as International buyback. as both fascinating over

we U.S. this has So us one, big a in to the number in approaching how benefit regulation been believe we're

benefit of been the of is get are leading point the this of point inflection or way second four where you that -- internationally us will we we've that I think today also also innovative are thing that The to because Dan. think on by where incredibly will the and internationally pace International things what highlight And out the to is about I the leading. to working focused and we where GDPR ultimately entirety talked three that cause wanted we're we hit can company. I'd

Number one, transactional doing what we are with data.

We have incredible extremely with grocers basically, the U.K. we will transaction partnerships will continue France in and we are whole advertisers out and loop. to and complete across retailers, with to others with the so can we entire both measurement the connecting where that advertisers with data. company, that working something well This be actual roll connecting is

which a is doing second innovative. lot about It sharing. data thing are heard The attention. Carrefour is The incredibly we global on platform has what you've

up four running continents. on multiple tenants now We believe -- over and I have four

this what's internationally, We with Store? a us in benefit internationally. think great marketplace. and to overall Obviously, going Next, continue on with Data Store Data we in will quarter terms of had

Tokyo part to for I And all important finally, story, us in very, a -- just before to se things that but in I in as We've wanted see is And internationally. Internationally, We made we or also assistance. much you'll our work -- become data-driven into are works talk lot to us about, I overall for turning this a XXX% lot in marketing is that material the then on of a that believe believe positive or nothing TV a story. Paris International believe are so put quarter York one I'd fits of the our that case. the of which New things City the wrapper clients finally is come. per it as also statement global more very

buyback. the on Next

actually we or and talk capital we time market somewhere in preparing remarks, cap here $XXX million that we capital pretty the been said we more were period going our stock it entire shareowners. when to as market is out when of or our prepared walking to around the $XXX It's returning that little believe we since million believe cap bought really comes analysis we've in interesting back back, period started a allocation our Just long we over of time.

our want good way the quarter example we was the We balance like another want that. And were That be in appropriate the we of were to quarter Therefore, said, there to we closed. and opportunistic. to was an this be In be be guidance market the opportunity the consistent different even and said, approach upon term, time forward. as just circumstances, we same. the going of needs time to conservative in to will expect outlined Therefore, we all our facts remains continue near be from felt we also we've That depending our to before. after or opportunistic.

Dan Salmon

Great. Warren. Thank you,

Warren Jenson

you. Thank

Operator

is go Materne Kirk from Our next question from ISI. Please Evercore ahead.

Kirk Materne

was much, wondering Thanks and on congrats quarter. good I maybe very a if…

Warren Jenson

you, Kirk. Thank

Kirk Materne

of around is the Maybe customers or are if year conversations you're of Anneka could and of Google that get wanted customers getting or at longer? -- the going of they that are time? had to we sales the half at having are longer the look just ran back point creating Meaning in some in I color just types just changes some as -- Scott kind these given the beyond could the ran back are half on with -- cycles, to things CCPA, when of this through you year?

Scott Howe

Yes. someday international Number GDPR -- just us through hopefully we've legislation. CCPA federal one benefit you of all of a prepare helping other for is had Warren flurry state, living experience would of mentioned tell and clients and and is two as the I things. that

companies global we with that companies to enterprise the businesses. of have Most work tend

they perhaps remediation to So through they do is have what that of been they in this too to going lot parallel had before. U.S.. do result have And to in a a the as the Europe now

up partners most changing we us this for on all the business. the it's even really a our the in much, sophisticated of so, to at look hard speed stay tailwind of so our and of to That's And clients as all as for regulations. entirety

our clients for being where more on so, think, and to now than prepare things going what partners our we what we do asked perspective for future. to need are ever that importantly And think, we're and

Kirk Materne

through Okay. your are retention in for one That's And year I there? mentioned Warren, I can't together. you target? the line maybe half so to actually, quarter. just have better guess than it dovetailed What helpful. XXX% I of happen the in of -- just last know with guidance other has with why Dollar-base right one and we is deal start just follow-up, of was you that back And sort that

Warren Jenson

Okay.

because from last will XXX% that helpful it for from that drivers I to that You same is, to know are to XXX%. XXX% everyone and to what do quarter you think the same the might be drove you it it for is, we us XXX% to were leading to call the XXX% down what I'd just Kirk reconcile are find at get like drivers me

Scott Howe

what's Once I'll about you about reconciliation jump talk and in next.

Warren Jenson

Good. Okay.

XXX the I’d – sort within reconciliation to put of So concept ask we've buckets. done is of up three what into then page and you on your we've top the divided reconciliation of

is non-regrettable and then the is one of third second is all other. first large kind churn The one deals,

ago. about In dollar So the on net and the year a quarter, start based let from deals. me retention ago phone is with everybody a revenue year cohort large remember for

what generating a what did we ago and So quarter. the year what revenue did subscription to clients in translate that how then you did have current

resulted to year clients. the with large performance were the that about materially of yields to unable contributed in in large decline. So ago upside. that had That X We three repeat points those we quarter,

-- point was about, which else X was we've also talked that and churn was everything The non-regrettable point. amounted single else everything second piece

X XXX%. X, XXX% to X So and

I'm remarks. more X of of mentioned When the XXX% churn in is reconciling to of the the we from points points Again, really year, as about points six and another about all prepared half about talk the is that X XXX% Scott? large back other. just deals same it's I non-regrettable is

Scott Howe

Yes.

bullet In terms That's now it? no always news to increase Kirk is need silver there of sales what to It's good The what we here. do about execution. all about. is is

whole bringing starts of which enterprise about it ideas. our of conversations with trying all to accomplish, up-selling clients And having so, is they them concept what with the are just

product into or pipeline then into which XXX. tweaks new It's bookings. turn ideas ultimately then and those themselves configurations And conversations manifest and Sales into then our

subscription you'll generate we be to upsell. that to net retention. some core dollar of in And our as going those Now them bookings our increases see business that's

dollar Some sit our going won't because go else of retention somewhere in you our it it's in to see P&L. quite frankly net

so but drove the those many the we're are doing, existing into that things marketplace things aren't that business, And of book for times with dollar instance retention. net the factored

upsell television Data a show dollar which won't in like things conversations, result that up of So are or retention. those actually Store

per that from se, The opportunity we're really second manage to which or it's just problem isn't more downsell but churn is a an clients trying thing doing effectively.

back to place such So be X, having products cannot never front we're clients evangelizing, and churn fall putting Again definitely to client, for of only avoid not a long with those but in but problem success above that technologies as actually a indicators the as of not going opportunity isn't them, how getting happy is and in churn, our into us, bucket. use it. upsell then early an much winning educating they and as

of such as such sales that line effective. to doing, and whole when alignments get from Things are and go understanding to of just product. core lot what and subject-matter -- they have the training, of thing products our more trying scaled help across partner the we've questions. that can couple and we're in our I partners' Or do really the sales a client concept ensuring just force are management our prepared my accountability that that translation And surround that's they really a in we then sellers Anneka that this, and sales this gave products basics. like, like, ensuring remarks referenced with the final core And the examples we're a tweaking of are experts

So, the I underway. things are news think good all manageable. quite those all is they're And

Kirk Materne

color. Congrats. super. for Thanks That’s all the

Warren Jenson

Thank you.

Operator

from next comes question Susquehanna. go ahead. from Shyam Our Patil Please

Shyam Patil

guys, Hey, had quarter. of I great a questions. couple

how that how ramping business about you for how on LiveRamp TV, fits up more is can you're well CTV, into a guys just U.S. here one Fire you the opening First then, about bit demand as talk Amazon as and in internationally? third-party that? And the just thinking little

has when forward? that growth thinking can talk Warren then about you subscription revenue for going been revenue that is, look the question second portion and you the And just of at how direct how just about of you're you trending kind

Scott Howe

Yes.

and So this a is Scott start. I'll

Math there. will with skyrocketed. the not but television expectations And you Math Data Store, core television, some Plus pre-Data In the efforts of for acquisition, XX% like our that terms business of remember, But draws also quarter. I that's we will it here Plus Data the television it tell our really have from so up television grew lot around all of a sit in do show actually

has TAM to Data of about I new offering our really increased. portfolio to excited to Math. have they're a our on back about see go And Our Plus as clients excited acquisition as LiveRamp

all it television that more they you. of television search as or kind be advertising just clients doing or enterprise think extends advertising. makes have are It our them with in Plus what doing effective and that Math, of e-mail what Virtually, we some might Data already display

business we expect would grow our television is significantly remainder that the than to significantly, faster baseline. going for So, the our of year

of DSP. to already have QX respect we're the live should We that. even our the Amazon both is, of that, will -- on powering thoughts. remember them their two Amazon, At one and for early Number good. it are goes at partners dozens of with of With one Number one of there. board make easier API get to live -- end advertisers advertisers

have relationship we with a Amazon. really good So,

OTT, does the things television, elements of whether that is of any the television think awareness anything Because Moreover, all data-driven one is that sort that good it drives LiveRamp of of for we we across linear, play gamut. our full advanced be of advanced remember, television, connected the business.

the us. inquiries And so awareness in opportunities means and for industry

Warren Jenson

second variable versus And going And talk talk way part. the and One, me of about and I'll is to both comment revenue answer part on then direct the then let I'm subscription about our two revenue I'm question really second then to subscription the the going ways. reseller.

So, in consulting again term do where versus increase around strong. direct firms both see to terms we and of a long it holding our partnering And hopeful the reseller, as others, nicely. variable with it we strategic piece XX%, increasingly would XX%, are up the the in of be, interested in of subscription, were so comes we in to relationships right they XX% clients. reseller When it's over fact number global see kind right or their trending because their that very us we of work thought with

Shyam Patil

guys. you, Thank Great.

Warren Jenson

you. Thank

Operator

Our ahead. Please Stanley. from Morgan next comes Stan go Zlotsky question from

Stan Zlotsky

so questions. taking start. just much my Maybe Hi, perfect. you Thank for to

beat rest your What a strong should the you forward the that in of QX? shifted the QX follow-up. strong very when which QX up looks you of results move into I baked year given year like And QX. the And deck, guidance full the look for QX. despite versus think about but your phasing So, through didn't revenue year? is rest very seeing also we towards then, for How now your -- outlook the the great, more then towards revenue are we more it and quick guidance the phasing a have

Warren Jenson

materially around own to firsthand. the to not year. we all, really that. things just From in the QX, Yes. and/or me we own point internal we the think it's course I back full of yes, our part guess would outlook. obviously internal to of had a come have year year, too QX. We our QX change first throughout what do let change If our perspective, early warrants raised, I we full And say change moved of would things didn't that relative expectation, solid that beat,

going Our which outlook, everybody are our think marketplace. XX% we on happen a That material rates marketplace, about current for revenue have continue based want and outlook in we expecting remind in very we step-up on expect a to what solid, based run QX. also strong in we step-up is to that to QX. in is expect I on what's

Our with well right what when increasing actually in historical averages. about to and subscription the QX in And historical QX we today is committed standards. with have revenue we line in line books, think

of just back are optimistic on the with very did, have as year. back about growth part levers, the to growth That our we And Scott we saw subscription is strength the some feeling in part in rates directly a we we're our do we pressure the growth, our but subscription in pressure of these seeing growth of said, has some that are Where from year. clients long-term rates. lot the large that

Stan Zlotsky

more discussion to as making revenue organization as substantial that back net could you're sales adjustments the the retention analytics on it. the sales for Got specifically of And changes, that the it I if rate. little lakes? around around just maybe start, go not dive maybe adding that's your focusing that but strategy Thank about far the you. And into data functions bit you up-sell Could me. like a you're measurement,

Scott Howe

for and Yes. years. has just let the has I'd it the changes really talk about this two left been tracks train say, rolling several down me station and

there's any course is just shifts of strategic business. huge think don't normal This here. So that

You've and talk of the evangelization. importance about education us heard before

out going and creator category a to as difficult very is It talking large clients.

to We educate how have our to utilize effectively. what capabilities do, we around them

is into of products realized kind more increasingly And with that's one portfolio. we we over our that our as subject-matter we that, things surround true, so, quarterbacks And account have add time of to the experts.

who group a of subject-matter creation up experts can because a whole the help those subject the that and have that's focused lakes, across line. data our not expertise measurement that's to meeting has. account deep conversations really concept television on in spun a Likewise, the everyone more So we matter the organization owner of get accompany we measurement,

entire And subject one portfolio. much smaller client work many those selling so, a matter experts across relationships, to of group, works there across kind we our have

the in about team. thing that my of talked prepared other we was remarks construct sales excellence The

we the how LiveRamp up business. do a the a When we've everything on sold legacy matters of isn't when public at get just in spotlight as that we with but sales, stood -- focus business. we to company. that One had we our We throughout business, this things and did really on Acxiom really our

we can business levers which tracking, and And so, so teams. year measuring with the our to look arm how we a things all two relative granularity at our much have in or we dashboards the ago, the we're in key

group just manage teams stood help work about businesses to really more their sales it of interpret book the their determine dashboards of those what help sales to results, to up them was all And long across so, excellence manage and term and effectively. do the

Stan Zlotsky

Got you. it. Thank

Scott Howe

you. Thank

Operator

Our go next ahead. Please from Research. question Cannonball Karasyov comes from Vasily

Vasily Karasyov

go I that afternoon. and Math wanted Good step had to you. a Plus question in too. about back Anneka can and to here Thank Data maybe

of advertising, the that they I'm do that So to which was company trying It -- understand correct my and imply more would would service understand to response like here. wrong if the the advertising TAM service direct me to I the and and that I'm seem question has to exactly and where provide not necessarily all television it's market. applicable seems the advertising has It TV with wrong. want

understanding of entirely assuming, And so, provide. the I'm services suite I'm they not

So if works brand and how really on me would with you it television, correct I tell me appreciate advertising could that.

Scott Howe

beneficial response an one things it's really see Yes. advertising. accountable it's Anneka advertising. for purchased. and in ad I website. some could couple subsequently But is, and not other be cases, would about this a on say Number saw they jump and that a direct of visit And here. that in someone can cases, for It's just in

So opportunities that have with measure to things but as, been bought on awareness, there historically building doing are it accountability.

historically is, thing do traditional bought has TRPs The reach to that our measures. second on GRPs, and television broad allows us business been television

we that interesting the just more simply in age The granular more than all in data is us Northeast, can data. of do now on what far the more But, bring, market tells someone gender. something purchase and interesting is the to automobile,

them. buy precision, more to them been to it with has accessible buy even advertisers with much so, for And historically dials, those to brand than allows

Vasily Karasyov

very Okay. much. you Thank

Operator

Jenson like for Warren call the back turn to, My over apologies, closing to I'd remarks.

Warren Jenson

a with for quarter. you. great thanking joining Again, everyone me conclude, few I'll by thoughts. finished just again, today. a And close us Let simply We thank just final

recurring. predictable. It's is strong. It's business Our

to growth we enterprise today and in We SaaS Switzerland. We're with multiple are this are pleased levers call have place.

path is Our services create to spot to products dollars in our great And Martech. our -- in of are for profitability, sweet The customers. a us helping see clear news through to ample they're of are billions we progression. have and value the liquidity

And again, you. thank

Our transformation at begun. only LiveRamp has just

Operator

call. conference This concludes today's

now may disconnect. You

LiveRamp (RAMP) 5 Aug 192020 Q1 Earnings call transcript