LiveRamp Earnings: What To Look For From RAMP

Adam Hejl /
2024/02/07 2:01 am EST

Advertising data platform LiveRamp (NYSE:RAMP) will be reporting earnings tomorrow after market close. Here's what investors should know.

Last quarter LiveRamp reported revenues of $159.9 million, up 8.7% year on year, beating analyst revenue expectations by 4.9%. Despite a miss on direct subscription customers (a number that decreased year on year), the company beat on all other key line items like revenue, adjusted operating profit, and adjusted EPS. The major positive is that guidance was strong and full year guidance in particular was raised across the board. 

Is LiveRamp buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting LiveRamp's revenue to grow 8.3% year on year to $171.8 million, slowing down from the 12.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.40 per share.

LiveRamp Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing 6 upwards revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.2%.

Looking at LiveRamp's peers in the sales and marketing software segment, only Freshworks has so far reported results, delivering top-line growth of 20.2% year on year, and beating analyst estimates by 1%. Freshworks traded down 2.9% on the results.

Read our full analysis of Freshworks's earnings results here.

There has been positive sentiment among investors in the sales and marketing software segment, with the stocks up on average 4.1% over the last month. LiveRamp is up 15.5% during the same time, and is heading into the earnings with analyst price target of $45.1, compared to share price of $40.8.

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.