Advertising data platform LiveRamp (NYSE:RAMP) will be reporting earnings tomorrow after market close. Here's what to look for.
LiveRamp beat analysts' revenue expectations by 7% last quarter, reporting revenues of $171.9 million, up 15.6% year on year. It was a very strong quarter for the company, with optimistic revenue guidance for the next quarter and a meaningful improvement in its net revenue retention rate. It added 10 enterprise customers paying more than $1m annually to reach a total of 115.
Is LiveRamp a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting LiveRamp's revenue to grow 11.6% year on year to $171.9 million, improving from the 8.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. LiveRamp has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.9% on average.
Looking at LiveRamp's peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 32.6%, beating analysts' expectations by 7.2%, and DoubleVerify reported revenues up 16.6%, topping estimates by 1.4%. Zeta traded up 11.9% following the results while DoubleVerify was down 2.2%.
Read our full analysis of Zeta's results here and DoubleVerify's results here.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 6% on average over the last month. LiveRamp is down 14.6% during the same time and is heading into earnings with an average analyst price target of $47.6 (compared to the current share price of $26.97).
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