LiveRamp (RAMP) Q3 Earnings Report Preview: What To Look For

Anthony Lee /
2023/02/06 2:59 am EST

Advertising data platform LiveRamp (NYSE:RAMP) will be reporting earnings tomorrow after the bell. Here's what you need to know.

Last quarter LiveRamp reported revenues of $147 million, up 15.5% year on year, beating analyst revenue expectations by 2.6%. It was a decent quarter for the company, with accelerating customer growth but a decline in net revenue retention rate. The company added 2 enterprise customers paying more than $1m annually to a total of 92.

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 12.1% year on year to $157.7 million, slowing down from the 17.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 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 has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.13%.

Looking at LiveRamp's peers in the sales and marketing software segment, only Qualtrics has so far reported results, delivering top-line growth of 23.1% year on year, and beating analyst estimates by 2.08%. The stock traded up 1.25% on the results. Read our full analysis of Qualtrics's earnings results here.

There has been positive sentiment among investors in the sales and marketing software segment, with the stocks up on average 23.4% over the last month. LiveRamp is up 19.5% during the same time, and is heading into the earnings with analyst price target of $29.6, compared to share price of $27.75.

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.

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