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LiveRamp (RAMP) Reports Q1: Everything You Need To Know Ahead Of Earnings


Radek Strnad /
2022/08/03 4:18 am EDT
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Advertising data platform LiveRamp (NYSE:RAMP) will be announcing earnings results tomorrow after market hours. Here's what to expect.

Last quarter LiveRamp reported revenues of $141.7 million, up 18.9% year on year, beating analyst revenue expectations by 1.7%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter. The company added 1 enterprise customer paying more than $1m annually to a total of 87.

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 16.7% year on year to $138.9 million, slowing down from the 19.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 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 4.55%.

Looking at LiveRamp's peers in the sales and marketing software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Qualtrics delivered top-line growth of 42.9% year on year, beating analyst estimates by 3.34% and Zendesk reported revenues up 27.9% year on year, exceeding estimates by 0.62%. Qualtrics traded down 5.24% on the results, and Zendesk was flat on the results. Read our full analysis of Qualtrics's results here and Zendesk's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 0.79% over the last month. LiveRamp is down 2.37% during the same time, and is heading into the earnings with analyst price target of $43.1, compared to share price of $27.11.

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.