LiveRamp Reports $194.8 Million Revenue and $7.7 Million Net Income for Q2 2025

LiveRamp Holdings, Inc. reported a revenue of $194.8 million for the three months ended June 30, 2025, marking a 10.7% increase from $175.9 million in the same period last year. The company achieved a net income of $7.7 million, or $0.12 per diluted share, a significant turnaround from a net loss of $7.5 million, or $(0.11) per diluted share, in the prior year. The gross profit for the quarter was $136.5 million, resulting in a gross margin of 70.1%, slightly down from 70.6% in the previous year. The increase in revenue was attributed to growth in both subscription and marketplace services, with subscription revenue rising by 10.1% to $148.4 million and marketplace revenue increasing by 12.8% to $46.4 million.

In terms of operational metrics, LiveRamp's customer base grew to 835 direct customers, with annualized recurring revenue (ARR) reaching $502 million, a 5% increase from the previous year. The company reported a subscription net retention rate of 104%, reflecting a slight decline from 105% a year earlier. Remaining performance obligations, which represent future revenue under contract, increased by 29% to $690 million, indicating strong demand for LiveRamp's services. The company also noted a rise in trade accounts receivable, which increased to $219.8 million, up from $186.2 million at the end of the previous fiscal year.

LiveRamp's operational expenses remained stable, totaling $129.3 million, a marginal decrease from $129.5 million in the prior year. Research and development expenses decreased by 10.2% to $39.6 million, while general and administrative expenses rose by 20.6% to $37.3 million, primarily due to increased professional services costs related to litigation and strategic initiatives. The company also reported a total other income of $3.7 million, down from $4.4 million, largely due to lower interest income.

Looking ahead, LiveRamp's management expressed optimism about future growth, citing the potential benefits of its recent acquisition of Habu and ongoing investments in its data collaboration platform. The company has amended its stock repurchase program, increasing the total authorized amount to $1.3 billion, with $226.3 million remaining for future repurchases. LiveRamp's management believes that its existing cash reserves, totaling $363.6 million, will be sufficient to meet its working capital and capital expenditure needs in the near term, despite potential economic uncertainties.