LiveRamp Reports $745.6 Million Revenue with 13% Growth, Faces Net Loss

LiveRamp Holdings, Inc. reported a total revenue of $745.6 million for the fiscal year ending March 31, 2025, marking a 13% increase from $659.7 million in the previous year. The growth was driven by both subscription revenue, which rose by 11% to $568.9 million, and marketplace revenue, which increased by 21% to $176.7 million. However, the company experienced a net loss of $0.8 million, or $(0.01) per diluted share, a significant decline from net earnings of $11.9 million, or $0.17 per diluted share, in the prior year. The decrease in profitability was attributed to rising costs, including a 20.3% increase in cost of revenue, which reached $215.9 million.

In terms of operational changes, LiveRamp underwent a workforce restructuring that affected approximately 65 employees, or about 5% of its workforce, as part of a strategic initiative to enhance efficiency and profitability. This restructuring resulted in $7.9 million in employee-related charges. Additionally, the company completed the acquisition of Habu, a data clean room software provider, for approximately $173.4 million, which is expected to enhance its data collaboration capabilities and streamline marketing performance measurement for clients.

LiveRamp's customer base grew to 840 direct customers, with 128 of those having subscription contracts exceeding $1 million in annual revenue. The company also reported a subscription net retention rate of 104%, indicating a slight improvement from the previous year. The annualized recurring revenue (ARR) increased by 8% to $504 million, reflecting both new customer acquisitions and growth in existing customer revenue. However, international revenue saw a slight decline, decreasing by 0.5% to $40.9 million.

Looking ahead, LiveRamp aims to expand its global footprint and enhance its product offerings. The company plans to invest in growing its sales and customer success teams to capture a larger share of the market, which it estimates includes around 2,000 potential marketers. LiveRamp also intends to continue innovating its data collaboration platform, focusing on automation and integration with additional partners to drive future growth. Despite the challenges posed by market conditions and regulatory changes, the company remains optimistic about its long-term prospects and the potential for increased revenue through strategic initiatives and acquisitions.