LiveRamp Earnings: What To Look For From RAMP

Adam Hejl /
2023/11/07 2:01 am EST

Advertising data platform LiveRamp (NYSE:RAMP) will be reporting results tomorrow afternoon. Here's what you need to know.

Last quarter LiveRamp reported revenues of $154.1 million, up 8.3% year on year, beating analyst revenue expectations by 4.8%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but decelerating customer growth. The company added 1 enterprise customer paying more than $1m annually to a total of 96.

Is LiveRamp buy or sell heading into the earnings? Read our full analysis here.

This quarter analysts are expecting LiveRamp's revenue to grow 3.5% year on year to $152.3 million, slowing down from the 15.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 per share.

LiveRamp Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.9%.

Looking at LiveRamp's peers in the sales and marketing software segment, some of them have already reported Q2 earnings results, giving us a hint what we can expect. Zeta delivered top-line growth of 24.1% year on year, beating analyst estimates by 5.7% and Sprout Social reported revenues up 31% year on year, exceeding estimates by 1.6%. Zeta traded flat on the results, Sprout Social was up 16.9%.

Read our full analysis of Zeta's results here and Sprout Social's results here.

The whole tech sector has been facing a sell-off and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share price declining 4.4% over the last month. LiveRamp is up 0.5% during the same time, and is heading into the earnings with analyst price target of $33.8, compared to share price of $29.6.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.