RAMP - Earnings call 3 2024 | LiveRamp Holdings, Inc.

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Drew Borst

Good afternoon, and welcome. Thank you for joining our fiscal 2024 third quarter earnings call. With me today are Scott Howe, our CEO; and Lauren Dillard, our CFO. Today's press release and this call may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially.

For a detailed description of these risks, please read the Risk Factors section of our public filings and the press release. press financial financial liveramp.com. measures, our reconciliation including of non-GAAP to is copy release schedules, and any A available at during website.And we'll deck today, to Scott. turn the to over Also slide the the be call posted that, with referring our let me on call

Scott Howe

Thank and everyone thanks joining QX call today. you, another for quarter LiveRamp. Drew, represented of to our improved momentum

accomplishments today in initial of remarks will focus our my detail. greater recent Some on

digital the industry see a As significant watershed for and we look however, opportunity for a forward, we year marketing LiveRamp.

revenue So up I'll coming A in the time X% nonrecurring up progress this, talking recall XX% million several our X% can may goals acceleration year board the growth was our up up against marketplace so operating about $X and income total expectations QX our quarters. year-on-year rate 'XX, from of that Non-GAAP XX%, you also ahead spend our the subscription subscription underlying that we revisit a our settlement. been XX% contract quarters. the which has notable growth was was acceleration some turnaround in for quarters. trailing the guidance. exceeded FY revenue in and XX%. This revenue or productivity these ambitions across we over X is ago, reflects the X%, a sales Adjusting posted building had we for past with

X-year on year to of in ARR The the confidence and revenue now $XXX SaaS million our to increasing QX about by which or term indicators quarter to contract revenue X-figure gift annual supermarket clean last company I upswing QX chain increase years. the and and is in that the in leading products. room curse revenue with our a best and growth the is a give decelerate dollar encouragingly, us A the demonstrates health we X-year a a quarter-on-quarter, logo $XX X-figure and QX, identity quarter for often major of the new million, accelerate. was identity represented our the recurring logo We onboarding. contract insurance data increased bookings say, signed X strength slow As ACV ahead.Our on for fiscal slow is over a quarters.Building with growth model largest seemingly U.S. a are also new reported annual signed X of

annual well, of X-figure we X-figure and a for measurement. sector we onboarding upsell spanning incremental Finally, We and Fortune to measurement X-year new credit large CPG identity activation. card existing customers. In with company multiple enterprise upselling QX, contract clean contract perform for particularly activation our services products, signed a including annual wide major products.We to XXX verticals. activation for ACV a our financial data customer clients, to an a company customers, continue We had X-figure XX also data a premium upsold room, a range and upsold

of a had company identity orchestrated our team clean our am sales past recent beauty and products.I cosmetics we upsell proud our performance for X-figure plus. turnaround room with extremely the another Finally, year the sales and global over and has

seller after 'XX in levels us have XX% FY than capacity FY continued higher our to headcount FY it setting Sales productivity Our approximately back a spiking normalized up this attrition corner, is was has for and gains.Capacity. sales 'XX year and turned direct 'XX. in

were bookings XX% productivity. optimize improving capacity as fiscal productivity. a capacity year-to-date. that up healthy is as QX in are sales level sales year-on-year sufficient can we over at our seeing growth, both performance.Sales well only and rep per Not we for faster for a means is Average Our position, revenue in proactively also

hiring quarters now from QX sellers year. consecutive to pipeline testament sales Much was this for is XX-quarter high. a contract to experienced process last ramp reps.Cloud has with and Our revamped the strategy on A onboarded partnerships. of time has for both accelerated that coming our of in our our that conversion and enterprise we signings X improvement as focuses revised onboarding improved sellers enablement well vertical as new expertise

the we continue key progress gain build identity XXXX because Snowflake channel to August, to of partnership Partner as and AWS. on Year this make This also and for cloud also year. products. and our sound with as sales should bookings Google In solutions last a this double and Global fiscal Services Industry channel Year.We Web playing of Amazon accolade role innovation drive a activation We traction helping our familiar from partnerships continue will selected with customers also embedded us Partner the Cloud QX, selected our were

year the As announced strong Databricks, year, focus we partnerships me Habu and on on for scale coming in expect to XX Habu's relationship.Let closed January meaningfully these ahead, Azure Habu. with to part starting acquisition the the XX. more to We and thanks our major of in for of areas January turn

shareholders. partners, board. share many have across employees with We conversations that I'm overwhelmingly the the to had positive feedback pleased and customers, has been

of safe, appreciate partners a of has enough their LiveRamp stakeholders making that that on marketing own data and smart.The collaboration journey, the Habu a no complete and of the data type clean has platform sharing, imperative. personalized recognize room first-party have long importance data software LiveRamp this leader data view The in world comprehensive makes of Our collaboration third-party combination the the signals. simple, a and data in space. creates scalable single of and been diminishing platform customer for collaboration to They company

room by we In offering Habu of room The first us our than take level clean capabilities. clean X launched X acquisition helps more the commercially scaled years to next the critical fact, ago. adding

understand the is Habu LiveRamp's that clean clean Habu's software infrastructure brings across will to data to complexity and while that important room point, customers allow room warehouses First, this offering. to to customers it sits data is the in our streamlined architecture customer client's or a resources In and fully constraints. its prefer reducing environment, seamlessly and IT our and cross-cloud and because legacy to simplified a yet their clouds, clean cloud.Some collaboration hosted room whereas effect, environment. it rooms environment clean hosted sends not is managed cloud. data environment connect cloud IT internal their On our complementary is and no requires the on

QX. number add significant a to clients room, have quarter, clean and continue We of customers using our current new including every we

product forward, conversion the the Looking become cloud more embed Habu to acquisition, more the room is prior map cloud expect we clean embedded this our But to to clean this cloud, architecture. longer acquisition, moves and our the data as road to room the of with no included conversion architecture prominent necessary.

interface. across platforms. a resources. view accelerating less for of room measure redeployed view is and brands it's enhances to or benefits the easy-to-use gardens, provides product self-service walled are networks single an measurement Habu importantly, and a value. time our combined critical R&D with compare single all first have This the but spend including looking advertising. requirements, cloud enhancements. clean of that account hosted.Second, platforms.Third, user CTV programmatic of an the on ad that ability nearly will garden, and measurement Habu's and dollars channel measurement perhaps return audience exceptional to experience the We powerful any and technical Habu often allows customers, meantime, of to in SMBs digital especially and to to offering walled clean TV all technology can create that time or room major partner, its across nonsearch embedded internal customers with customers' of unique other kind, media is X/X gardens incredibly our whether for media walled given This be click architecture And meet customers, saving any customers nontechnical button, international most which

to where delivers in belief both week, Meeting about simplicity. Leadership Our And feedback scaling the the allowing of all of received firsthand in our from combination network Their collaboration of the Annual everyone the Advertising for this this Bureau's supports customers attended care us Internet ecosystem, I feedback. and power I early our more scale customers customers. accelerate combination.Last to

activation more opportunity Our customers have excited also ease identity network. are They improved rooms platform a especially a and are a partner the plus in clean use. of collaboration plus unified about the for scaled excited to cloud-native single

a dormant over collaborate the had running. went reengage initial with implementation are team Retail we wider excited the platform a collaboration partners.Our with large sales fact, self-serve publisher ground about In hit us to network discussions more after solution customers our a set to media that room service data time. platforms has clean makes of have managed with

dollars. has an most conducted the rock several meeting, Last combination. weeks and man clients building. the like and given We he by been sales million He just at actively momentum over a full the customer felt star the And told XXX Habu of have a IAB me as team week, fielded is our popular our meeting discuss start from has Habu's on product have CEO, sales absolutely dozens the Habu's that Matt IAB; already with meetings In the and customers. prospects. already engaging the example, tremendous expanded acquisition, he pipeline to requests X was training the Kilmartin, it's at since a announcing completed first calls well and

for in the the LiveRamp for XXXX. very optimistic absence be cookie deprecation in the one and will because third-party Google cookie will years.XXXX milestone as coming be a signals.On our for marketers major the that and of deprecated us globally significant also will users the third-party Consequently, We for January advertising advertising of collaboration people-based as that Habu first-party authenticated year. plan in industry phase are thrilled welcome We to for the second the the focus this the we of for announced X, to third-party year view to are believe all users identity sustain primary in we data is third-party a Chrome out Chrome embraces LiveRamp coming solutions second of cookies customers team The accomplish Google's retired. what opportunity existing be new about personalized next cookies marketing in leverages will area half true globally. to X%

deprecation browser cookies its authenticated people-based a line, this notable forward identity. Chrome's globally the given to share industry's with and market was leveraging Given XX%-plus of marketing, past deprecation cookie X% third-party delays in transition step time

as initiative. as is and payer XXX demand operated some for third-party privacy-friendly to and now, publishers the to side excited or reconciliation for future with cookie solution, signalless inventory in we more to securely is Google's share stands approach.Our this advertising.LiveRamp's the marketers leader. helping answer was enter. from and to access stakeholders first-party measure deprecation and market personalized time and twofold. PAIR publishers. for than Display to from ad preparing DVXXX a this and to authenticated been reconcile marketing and safely owned customers the DVXXX Video YouTube publisher continue platform journey are and and making we inventory.Additionally, data on and advertiser the sites, programmatic partnered purpose to its such allows third-party publishers have and environment about advertisers ATS role data and enable signalless is and we advertising first-party are for personalize securely is built privately our DVXXX PAIR, to connects identity unauthenticated Google's ATS on video years their is which have display advertisers well partners, traffic DVXXX's as in X Google's We gives more

X room now partner. partner announced scale Google company, and in First, mandated clean X were vastly the PAIR for use of partners has those independent same partners. X Habu, exceeds and and the combined our an readiness the launch third of LiveRamp

authenticated publisher consented. adoption be now fuels audience PAIR of must Second, traffic and solution both advertiser LiveRamp's since

significantly proposition. either/or this & For Last more case than have impressions; our Omni LiveRamp testing on has advertiser Xx, cookie-based that this more now, campaigns are authenticated data the campaign results more with week, based months PAIR effective. is conversion Resorts. a first-party showed we case not results deal. our X indicating over championed Xx privacy idea big outstanding. and study first is PAIR and truly not in increase delivered personalization in than The long DVXXX, Hotels that campaigns. PAIR The cookie an effective third-party partners. rate targeting are of are with demonstrate published study traditional a been first-party we They better-performing publisher PAIR just audience

year. turning for the focus excited are post-cookie area third should results, results. coming to world. the Lauren, on the move bottom our XX, And is We on advertisers bottom Rule these in us also.Before over based line of me major touch line to be into performance call including a let

lost fiscal XXX not on margin We points. more And could expecting into million upside certainly to sight we to we've delivered basis of return year, of our product have delivering in cash our flow. our and steadily expansion positive QX of now quarters, been people, flow. also produced amount Candidly, top better of points. the are in year but the this We And basis even line guidance, performance. double-digit operating XXX deliver bottom growth.We flow. sustainable we to top reinvest margin X expect this was cash while upside deliver operating cash sixth line, started operating we updated meaningful line of have some we this to we chose can a nearly $XXX consecutive so producing quarter trailing based now

to done. is more there As as proud this, am I work of be

be make sustainable operating almost a to me area We'll technology increasingly XX focus for these that XX our is continue to further operational continue revenue. scale, see continue of broaden XX% to and make efficiency the momentum ongoing productivity simple, we organization, guidance, push knowing we improve our of our gives our are reiterate make performance. company. revenue and to our We'll effectiveness. margin.Given in continue more goal. SaaS from our XX% a let believe 'XX pipeline make improve But you always of a themes to intuitive to to opportunities In our Rule to as re-architect top market will a FY automation XX% the top key of satisfaction every improved even to future scalability. to bookings we We'll growth improve drivers to be through continue gains our As and Across medium-term and 'XX, and progress push with current we'll will I end churn product reduce our even closing, to a to available non-GAAP clients.In to know, me our Rule and we create will priority, company self-serve serve. reference cost more FY goal finally, toward priority, to And XX% medium-term and quarter. business, what confidence client the and trying

momentum First, really organic high particularly in I am pleased towards subscription digits. business, our single with turning growth the revenue with

As a we result, 'XX have FY again our guidance. raised

establishing walled further will across accelerate all platform this core network interoperable Habu the for and driving momentum expanding of collaboration acquisition identity organic by collaboration strategically adoption our of industry-leading the further solutions. globally, Second, all gardens data our clouds, and connectivity

industry long the a back as the well, wind third-party the they're retail of media Third, our as trends, networks computing, CTV. includes commerce cloud to This and deprecation over and shift term. cookies at well

and now all support. to the to in years to quarters.I We joining including will in LiveRampers, turn all work the ahead.Thank our our coming Lauren. benefit are and ongoing to on positioned We from you updating for look well new and Habu hard again progress colleagues today the their thanks customers, us over forward these call our of for you special partners exceptional a megatrends

Lauren Dillard

thank I and you us. will all X Scott, topics. joining Today, Thanks, cover for

sales upsell quarter the growth million quarter subscription XXX was contract in basis up positive 'XX customer. Total total at continued sequentially me was settlement dollar largest subscription operating updated stronger-than-expected million, from for the QX $XXX benefited reported ahead and revenue million downsell.Subscription million consistent First, expectations, XX% XX%, million, marketplace continued high XX-month increase the results; X. to with a driven with non-GAAP RPO, retention large accelerated XX% X%.Usage Current $XXX a QX Operating that execution came churn contracted our by Unless X expectation. Subscription growth. primarily with up good January the revenue and Revenue pertain million period. million, XX% generated expanded well a to percentage by between additional is points the indicated, recent year and last details. sixth approximately guidance X XX. above $XX ago in logo, record results. $X tick revenue million, above contracted provide our to quarter backlog QX. our was Revenue XX%. percentage income were CRPO was cash XX%, and Fixed sequential up by next to up $XXX of $X above and lower other in Total a significantly growth X% income of a months, advertising OCF.Let consecutive was in results the operating our million.Like as nonrecurring increase XX market. review driven net with digital recent primarily revenue new and next of from and historical our our some backlog beyond subscription now customer Slide ago million, we $XX preliminary and turn Recall stable improved and million. This on a ARR as difference customer and line most margin and our and and range. with including X%. financial was points was growth our results X%. $XXX my ARR Please up ARR with large by outlook $XX operating XXX%, flow, guidance. Starting $XXX of we XX%, was by $X RPO million, was quarters, a of is to quarters. or our second, year The was to improvement remarks quarter-on-quarter as relative otherwise there to a or $XXX FY in

to given And again our benefited of in discussed QX and previously, healthy. multiyear environment contract enterprise sensitive was fairly growth timing focus to very the is quarter.Overall, CRPO CRPO the selling we've factors both shift the durations. deals, and As more to renewals these of

to see of We were conversion a combination the to improvement to On an also deals our XX-quarter dollar of high. and a our X-year and logo basis, new sign our quarterly a the Also, fruit. strategy our of was bear U.S. continue continues was larger XX-quarter signings conversion customers pipeline customer or prioritizing as rate contraction low. in a high downsell churn

Gross run out ad other particular, as of growth consistent made $XX which seamless.We customers, marketplace see and platforms, data the tech cycle professional revenue. buying trailing softness marketplace was as continue $XX X of and in were compensation and of margin income including that up in quarters. million, charges, commissions operating X $X expanded $XX restructuring $XX with acquisition-related $XX ACV year year-on-year year-on-year services and ago as well low from $XX APAC the call a $XX X%. of ago. the due other.Moving GAAP basis area non-NEO continued growth. beyond Operating of year's to flat timing driven was as year comparison by of was our by Operating Our FY for was growth and in our in to margin to $XX flow XX% small, enhancements planned sales by also XX%.GAAP higher high a restructuring impacted selling operating down marketplace our the was of deal million data brands million, for Stock-based revenue tax and vesting year the for $X basis and One months, strong million. year-to-date million, continued average operating operating million, of for in purposes.Operating environment is million, both accelerated revenue was expenses up of $XX the than was driven down with advertising grew $XX our current the of QX QX, bringing million from offset from by we've certain to and growth to We to which total a marketplace, million repurchased points income comps. revenue. due accounted incurred X tax expenses. The margin the make to primarily savings to tech XXX normalization fueled million X/X investments services, data Habu CTV payments. XX% year timing of RSUs increased points XX%, cash negatively structural marketplace by a incentive well change.Marketplace million XX%, to is representing record planning from experiencing point million to year.We more digital of 'XX with the was and cash nearly up $XX Fiscal other accounted XXX,XXX at a and strong last and guidance, X year-to-date in by Data million, at XXX primarily shares $XX restructuring flow ago, last million from

XX%, authorization ARR summary, both exceeding million $XXX remaining that years. quarter-on-quarter, Revenue in XX, with our XXXX.In a December over million quarterly the under approximately subscription X expires improved current strong the expectations. have $XX by was on We quarter. grew largest QX growth and marketplace to increase

Our non-GAAP $XXX generated the million the $XX flow operating in and margin expanded cash by X operating quarter approximately XXX quarters. in million trailing basis points. We in

shareholders we Please in through for amortization, charges. turn for to million $XX to now XX and excludes 'XX Finally, outlook and stock-based with Please our XX. QX. related QX. intangibles, fiscal have share keep and restructuring financial year-to-date, our Slides guidance repurchase compensation and let non-GAAP program.Next, turn Starting mind me our to FY returned

revenue income $XX Non-GAAP up to million to margin X% of $XX and total operating few to $XXX $XXX other expect call-outs between an We million, for X% and million X% QX. of million operating X%.A of year-on-year.

to stable or XXX% QX be in retention net subscription expect We quarter-on-quarter. roughly

customers, We digital changes expect tech down, platform ad and that advertising reflecting consolidation be tech. flat the market impact count including may to customer to ongoing in smaller

impact material. this impact customer we expect be While the don't would count, revenue to

with digits, fixed flat the and to name of QX usage up in digits similar conservatism. We up expect also to revenue be subscription mid-single mid-single

teens quarter-to-date on stable be to advertising the remains market Marketplace and trends mid current based current the digital We quarter. expect of assuming up and throughout the other high to course

XX% approximately year-on-year. be operating to XX%.We be to margin up gross expect roughly expect We expenses

Let me a here. spend moment

the roughly add X points going to of in is Habu quarter. OpEx First,

highest benefit start our recall from last in the respect dollar restructuring, sequential the a our cost to to with fiscal is quarter we year-to-date. incentive we And in seasonality, increase QX, year. year's like meaningful is with to cost restructurings last consistent QX year provided conference, payroll QX seasonally savings The taxes of had operating growth the will comp. impact expense onetime the that RampUp which our due finally, excluding historical expense Next, lapping increase, and quarter-over-quarter of

operating We loss be $XX million, expenses.Now and inclusive expect between $X with million compensation, expense $X full million GAAP million associated additional Habu's to stock-based $XX of acquisition-related for to of the intangible year. amortization and

our X% We Non-GAAP to the $XXX $XXX midpoint approximately expected guidance between is XXX million year-on-year. million is basis operating $XX.X and between guidance increased in midpoint up our million be by revenue the At the our range, operating by $X points to now $X at million, is and X% at the of beat to expect compared $XXX approximately We income the $XXX are increasing and million. total XX%, margin up million year-on-year. midpoint million to revenue quarter. be

approximately to compensation $XX in benefits stock-based million $XX million, expect which vesting in We 'XX. be accelerated from FY the

due $X expect prior than million million in acquisition-related expenses. restructuring our We $XX higher guide charges, to

We the with conclude a call expect final and to $X GAAP to opening million.Before thoughts. income between questions, $X I'll million few operating be

First, lines. top the on and QX both was strong bottom

positioned higher, this we for ARR growth is Our and are further year. and revenue exiting in acceleration trending subscription

and top ahead, year a couple Next, as there and we our bottom that both of next help line, are will we beyond. look initiatives believe

and effectively foremost is integrating Habu. and First efficiently

initiative, our XX. and improvements offshoring data. we intend Rule remains will to of will back-end our progress product our roll financial finally, more allow with incremental we star make And north to us customers' India efficiently process out that Additionally,

Habu path trends new what the office, for in margin opportunity with front, On the the the continuing by joining gives in productivity we're year.On line growth healthy that implies on questions. you sales now us encouraged to LiveRampers, of subscription a ultimately, expansion India today.Operator, invest for growth. next line, call combined expansion our in model, that, top to margin years thank of in and leverage our the the all positive behalf the appropriately the will for us top while open steady to With we support coming

Operator

line first Group. [Operator from Susquehanna of the from comes question Patil Instructions] International Your Shyam

Aaron Samuels

Shyam. then Aaron impact Could the Samuels on we've well. as the on And on This DVXXX the for got study. a you the and expectations PAIR case just is thank elaborate you partnership follow-up business PAIR Scott, details moving starting could your for Maybe how for forward? off,

Scott Howe

a I of Sure. for hoping LiveRamp, we quarter-over-quarter asking started this mean, I X kind thanks look to a story. try PAIR that, At balance and actually years would is when that a view. long-term with ask fun And And relentless of on Aaron. about was month-over-month, ago. operating I PAIR someone to such kind focus balance because over we back, as working ATS a always response

part And really so that journey fun really the X can be divided into right now. phases, and we're hitting

building the in share SSPs, all agencies. really all shape the to industry. started publishers future tech a And shared we've the connecting terms DSPs connecting in for there. preparing and of good during nodes stats the COVID, We're brands, and with it market and different of the So the

and squarely what that's right is doing works, it now. proving second The that we're piece

first And released phenomenal. I So OMNI case many. mean, results That's that Xx on the we defined almost the of cookies. users users study. improvement was the logic. that versus same for targeting A consented

back So nice also going lift. that Remember, have blog, link publisher a there. get showed it. we publishers can a my I case a in also That study, blog that published I year, yesterday. to a a did really you nice a lift see

when generate higher they yield solutioning. use So authenticated they

cookies And that come show we'll soon even reach to fully is also without deprecated. increases. now, Right

reach implemented, And everyone same cookies. the meaningful on is more once users generates will exceed fully reach scale, at think we just persistent. those that reach effective have we're to volume. that -- authenticated We think It's to to -- traffic going targeted we the

one advertisers. story. it's better It's for consumers. publishers. is for better where, better Really nice like It's this So for

are. now And to we're industry they the So And It's ready is a little telling what? oh, for It the time. happens. real the need they those this by third is We the way, reached bit than where industry, part in that they ready sooner about fun be the the when of evangelization journey. think.

of about scaling January, starting won't ratable cookies then Edge cookies will Google cookies summer, deprecation full So done. out, are if XX% or is fall. are because Firefox out. is talked a Well, when already by out, work, that's Safari effectively out, X% be, cookies not And of to more in by which is deprecation, it Google

So get get on clients to how to need how And we quickly. educate going to started.

fueling also is this demand Now Habu. for

data, also So rooms but can room and way which for this is have also makes it gives services we a makes companies do sense by for because deep targeting that loyalty fuels the having much and you clean us that. demand for potential financial anonymizing do. securing kind access retail who have it And don't and clean sense is what so in the to it travel while databases, new only this clients, clients of

from And or retail retailer can the data customer, identify of because Coca-Cola so company collaboration. themselves media like like a benefit hence, networks that P&G things the or through growth since Kraft the can

that And because is months stopping not about lot don't train that's good I going either. so of I delay. tech of say better. for the noise stopping We're they're saying to over there's ready And and companies this think works this no Google and is everyone. really next would we something should is couple The ready, hear it a

for a this going So fun really to be us. time is

Aaron Samuels

quick for a you. one then, Lauren, just And

You talked XQ XQ typical. being OpEx an seasonally from about to as step-up

the there Just color typical on seasonal click share can sizing any you Is double this. step up? to wanted on

Lauren Dillard

Sure. Thanks, I'm happy Aaron. to.

is $X $XX the assume to $X taxes RampUp, million midpoint related million as quarter-on-quarter, of we seasonal to million roughly incentive are increase and to such you comp items our OpEx So at adjustments. expecting guidance, which of by payroll can

to expect being to our underlying future that is wouldn't expense And I in into OpEx line run $X The Habu, is some quarter. adding So investments rate. of about support increases, reflecting million carry of we're now remaining forward the of the growth. which addition by top QX just portion the driven making

'XX. FY strong we forward really as sales So hiring as are entering hiring pull we to choosing an as to ensure example, services some have well capacity

Operator

question of Porter line Your comes from Morgan next from Elizabeth the Stanley.

Elizabeth Elliott

X highest on X.X you nicely. count. we've of customer lot upsells first about the referenced we're seen plus customers My really question And in the increased a Because million adds The was also net years. quarter. the large

being kind of spend up, loosening what's driving the now, sales there, deadline in but was now customers feeling be uptick the tight I would probably really factors wondering what after better lot greater about us a cookie that macro, in execution. appreciate could I driving if there's helpful. just is environment, you So coming help a unpack of of the some of a

Scott Howe

answer the is yes. So

recognition of particular effectively. interest compete is data. play sophisticated the name All positioned an well landscape, look could us But they they in do we around increasing connectivity. information are consumers the X things to points, I walled clean those factor. when across think from advertisers I are across And really can and competing the a that one that as amongst Number certainly are things collect mean, rooms in point driving all really to multiple the gardens, -- and they we companies touch

can't. way, privacy-compliant saying, they collaborate. And data the in they to in insights a than I signal. pool catch everyone far and how measurability Amazon out can of up data extract So unless do can thing is around interesting are everybody their Not is start they industry that when Amazon, else And of together more they and loss that actually then giant. any second an

expand, on plans line As there more those and media items more are plans. media

tipped all And just different on also personalization, not need message necessarily With with do instance. CTV. for kind for for existed the viewership so It's choices, previously choices the linear television, linear. technology many they to Just different there allows but personalization, take ads your of that that of explosion than towards but suppression. add comes placing are companies

So you and unless I'll other throw that just but do the And has CTV that mix. the industry. standard, one thing on measurement that into back.And simple technology then is capping, facilitates we data as a frequency is the data also you in going a instance, can't measurement work a so important such for programmatic. copycat That is LiveRamp measurement coming out have

it been before. so company And than and saying, RampUp doing better you've to And who's looking Elizabeth, is me. there every out

that off clients those talk packaged do. our put our the You know stage. and And partners clients now, ourselves. a We are right having, don't and they're other clients. all and successes attracting There's goods We and us viral we what on partners our talking that partners going that's network bring packaged takes partners retailers. effect retailers and when more just goods bring about us

efforts, efforts. our our to rightfully, upselling as from new out, that logo starting also with but you we're benefit So with point

So really, bear and logo. bookings the biggest to been network that's the since fruit. cloud starting pandemic, has of was effect of business, X/X new about our partnerships quarter this this And our logo percentage the some new

Elizabeth Elliott

side. Is for additional I and a fair the And I the from Habu to savings us next the QX. that on that know in initiatives. year? wanted quarter into extra just look and you as million color ongoing expense to it at I ask $X have follow-up, offshoring appreciate extrapolate on

about just those X So how think of fiscal the we net should things 'XX. into going

Lauren Dillard

lot Elizabeth, start our a on line, going and to call. on top I'll XX saying we're give roughly bottom just May and Yes both more color by the

we tuned So of QX. closed quarter But contribute partial million respect impact stay $X to given particular, in with January for That's going it's XX. perhaps that a in precise to Habu, deal expense detail.

from, 'XX. million $XX So you can $XX to call FY anywhere it it, assume in expense should in add million

Operator

Fitzgerald Your Fargo. next question comes of from the from line Wells Brian

Robert Coolbrith

confidence bit talked there least sort your of are about sandbox. are I absorbing your ID-based X% future you know customers and call. but that privacy actually This But heard conviction bit the to attempting little I hearing the now. some start I cookie right a of on. is the Rob advertising. at a ask but more frustrations We've early What impact, little to of to them? evaluating consent, also ask deprecation is evangelization, of Chrome wanted wanted in sort And enhancing you from go-to-market on the your

a that this reinforcing reinforcing you phase? X or are years. sort of ton transition You've critical sort the But of of how over done obviously, past groundwork, right now the during

Scott Howe

Rob. Yes,

They nice First it's XX to from how mean, cookies I say, has off, their I hear just And we go-to-market, don't case been that while the frustration consistent. know developing embedded different. would in in started. have of over get fairly studies, we're years. the been workflow clients terms for really

media to it's think that bought as we this fine, And so But industry. going But a that think slowed get case change to materially. it we is this change a for just and we make think is how be represents is future our but sold. we an the studies. there, it we'll to down And grasp is, that, If to have don't And through within be simple. that better we'll sharing evangelization, do better.

webinars of bunch upcoming. a have We

to feel Some this more day I will our of this But and that, companies And I'm we'll cases, in would will about carry a initiative. saying, Google, what that ago. those go It events, including the towards have GDPR both And fielding I've and will a our in work seen implement to quickly. there will selling themselves of ultimately, big and make just ultimately "Hey, true RampUp. it. people will It going That lived our said, this before. to becomes years This isn't YXK what teach to what for priority like And up a start movie wait longer this itself geared answering commercial XXXX. to the through on the those few this And to entire All having real. out." it in no by clients go it that make and efforts tell concerned was a then I was just end follows And I who to the evangelize requests devoted will questions to simple is What We'll viral. tracks coming. if be to eve certainly product is it. to we're is them. panic. all not initiative both I market lived people through this and they that And because we entire was started. would didn't get partners, history I success evangelize far. recognize getting have pandemonium. capacity at do. so were want it up you running ready publishers for said,

Robert Coolbrith

And or cost on Lauren, out just of else impact? in there call side any Habu, profit is purchase on terms a accounting the to anything follow-up or impact the there

Lauren Dillard

absolutely. Yes,

$XX million year. So we $X in non-GAAP adding million about talked Habu expense roughly, to next it, call

about million, balance the asset driven driven comps $XX impact and of stock-based million incremental amortization. We intangible also expect that with it to $XX GAAP by expense about being purchased by by being

Operator

from from comes of Jason question next Your the Kreyer line Craig-Hallum.

Jason Kreyer

the to But a metrics in the improvement We've seen the a spend the maybe like revenue of slowdown guide December just dissecting the retention kind we contrast with from guide, maybe I nice little if specifically guide. wanted quarter. bit subscription a and RPO. of Lauren, key that ARR revenue net second consistent QX subscription or in

down can little bit. if that see reconcile to trying a we flow Just

Lauren Dillard

and would growth subscription in has up with to variability pretty the quarterly usage slightly the particular. variability kind to chosen in rather outlook model And in stable slightly subscription been given of chosen of one quarter-on-quarter just we've we've areas Yes. sometimes conservatively and our where improve business of And expect QX to we fixed being usage being roughly flat. -- our historical

that the on that's better the So it piece do revenue, will of we much if business because be we subscription there. outperformed

Jason Kreyer

me, offshoring on you've for had that initiatives place One over in the last follow-up year. just the

you're there's Just there expectation as any wondering to if the changes Habu? now integrating

Lauren Dillard

there to project is, pieces, this future the phases XXX measured to just roles. roles of pleased for moving progress Thanks We're our transition with thoughtful sure want acknowledge for I'd we of is that take magnitude, we are get very the of making of a implementation. major no headline business how continue we date, have and But it with and early really this just the north right No. question. multiyear date. learnings changes. in The course, to we're process, to long early focused and any a we're for on and To offshore and term. the approach very

we we FY still but savings FY expect the beyond. meaningful in expecting accrue 'XX So 'XX, are cost and to in really savings

Operator

Company. Benchmark from line comes the the Mark from Zgutowicz question next of Your

Mark Zgutowicz

you then I flesh acceleration I the saw apologies a was driving could just that call next your if and a little XX but this confidence to I that RPO sort the in gives And addressed whether you relative bit accelerating have maybe in And total -- what's over the revenues current on got months? that opening, bit think revenue late, of hoping I in the you a out you follow-up. and accelerating

Lauren Dillard

Yes, to. happy

being accounts CRPO So larger by XX%. multiyear we've the current total now nice for delta or is quarters, really success a driven entirely quarter we've Mark, RPO on portion as over in terms, multiyear outlook directly, a the mean, is enterprise for of to landing business mentioned to term. XX%. there, up few was long up this the And and seen which, medium during there increased course, our thing really the more a yes, May next share for I in which confidence lot our year, give answer the does positive your call. we'll, question deals, us

Mark Zgutowicz

more it at of guys term, services looking sort you which your just you near to nice not But know had get just year. front trying a to synergies Habu, sense too relates recently And when and materialize some then I really get revenue line, closed. it of growth the as this of in to was because just possibly

if you Given of Habu's I'd could if that. it. SMB momentum appreciate that could a services line, perhaps comment focus, add little your bit on on

Scott Howe

think talked little get prepared with those I pipeline and about well to I already We I conversations, can are don't in my commercial remarks. synergies. expect to start. start Yes, bit a wait And and it underway. Synergies

IAB weeks, with very busy counterparts. their was the Last have week meeting over team and the LiveRamp leadership had was So XXX last clients over Habu face-to-face the X meeting prospects with and we meetings. annual

and this clients seeing coming of that month front clients. we'll again, We're already to of the prospects where get We end RampUp pipeline. a in great thousand San that's several up going our at Once be to invite Francisco. to in have opportunity

it. is pretty So optimistic But running. And we does question several to ground feel into long We've those for million hit the dollars already. about revenue? take the then increase how convert it

together. it conversations implementation see companies things they a matter is a chance do them. the perspective, we we co-author shared of gives a document we what how Google us having map as when out and our because we are is from think of One strategy with that a course, do to dev corp with And vision a

So written, as running. well that a was purchase we iterated, price. discussed hit have revised, before ever on we ground all result, agreed final And a of the

Lauren Dillard

maybe numbers benefit, put comment. Mark, hey couple of for I could a And just everyone's Scott's against

mentioned So begin in think that get show when least of million And as $X 'XX, up assumption is in FY in to to predicated synergies revenue really the it half million roughly at we QX, on we Habu's we standalone in we the to momentum. back The revenue. Consistent contribute $XX 'XX. but to we FY ahead expect synergies, the Habu we interesting 'XX. with a lot what roughly announced expect of contribute deal, look

Scott Howe

time for Operator, have time Operator, we -- more have Sorry, question, please. one to we

Operator

Certainly.

Evercore Your next Materne line ISI. question from comes from of the Kirk

S. Kirk Materne

are could doubling. bit ones little I little bit the a and perhaps more your they're just those where that sequentially, on just of start, remind you maybe I contributing you Scott, said what just more sort the us each partnerships, to year? cloud give a expectations now Can you maybe are? calendar of color which for guess know are

Scott Howe

acquisition. that and the answer. of one a of answer of Kirk. Yes, kind forma pre-Habu I And a think pro there's that was And drivers

LiveRamp cloud decision time, you made own for as to if partner So look on standardize GCP tech. initially our back our in the

one naturally originations. an way the was started. of single LiveRamp, XX-year history new been And has that not biggest of biggest, the to if client Google easy sources always, so get of throughout And

cases, effective drive when bring storage continue. how quarter, us think we had In prepared some in, they've partners So that their walking nice then But being made mentioned of more we each inroads remarks and us year. clients. my which last those into recently, also will their named the in I AWS. compute. of one I Snowflake, I talked they about And with more been at of

good some much Admittedly, the partners news great Databricks is with the really collaboration. it a has cases, made is in progress those board. or pretty So haven't much Habu And like as across relationships we nice of Azure. other the

to is last cloud really are hand we I you if are advisory in we client of in year, every go how this multiple of clouds. one the the the went room question, room back from boards Now up. our many important up. then single Every many asked and hand using the single you because using went And how asked of

the with provider cloud. growth be cloud companies you start service, if to all utilize it Snowflake have clouds. going them, inhibited. talking you to they case to is different an not And talking is only Amazon individual cloud, if you So every then a when can't of relationship Azure across that you collaborate, multiple because need absolutely have But cloud to do a your an interoperable be to can't

So we of an think should this is be that we area business. talked of about so years Habu? the than I think rest excited the we back the doubling, but goes cloud. coming about accelerates the business already is think were why One our of to big We reasons to it faster this in the traction with We're grow going pleased. the

S. Kirk Materne

still the in revenue the to given the one be sort that else And some little the that ARR. subscription -- part for your that would guess, is there going Lauren, after reason trends towards stabilizing was lower still that -- then conservatism quick is something of just But customers might on is on in of lower there Lauren. ARR in guide, guess, the that of net probably last know back for you surprised the I a in $XXX down couple be related I back customer I were there. I down and business that Is a that's going Or quarters? base? it churn talking smaller some about might push that? of sort

Lauren Dillard

Yes.

So It's And first in then we X trends assuming from what revenue mentioned, a call variable contribution you seasonal are out. would the also, just with Kirk. there. things I QX, lower consistent

Operator

Lauren will I call the turn closing for now remarks. Dillard over to

Lauren Dillard

on both lines. bottom the QX again, us you Thanks so everyone, thank for and strong today. joining top much. was And first,

conference year. ARR are our positioned exiting continued in up levers you annual and margin as further revenue growth trending Francisco. acceleration end and have growth drive Our referenced for top invite several Scott of at this the We love we expansion. And San you have line is ahead, We'd we RampUp all finally, subscription join. higher, of call, to have we strong the look February coming we to And believe and as we in there. to during growth

the you month. Drew you With quarters to end If any everyone have please to progress we us the registering, look that, on We our questions or help need forward at today. in Cassandra. updating for thanks reach out or again joining And the me, ahead. see hopefully, of

Operator

conference now for disconnect. concludes your Thank This call. today's may participation, you and you

LiveRamp (RAMP) 8 Feb 242024 Q3 Earnings call transcript