LiveRamp (RAMP) Reports Q4: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2022/05/23 7:00 am EDT

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

Last quarter LiveRamp reported revenues of $140.6 million, up 17.4% year on year, beating analyst revenue expectations by 1.08%. It was a mixed quarter for the company, with accelerating customer growth but an underwhelming revenue guidance for the next quarter. The company added 6 enterprise customers paying more than $1m annually to a total of 86.

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 16.9% year on year to $139.3 million, improving on the 12.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 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 5.04%.

Looking at LiveRamp's peers in the advertising software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. PubMatic delivered top-line growth of 25% year on year, beating analyst estimates by 0.15% and The Trade Desk reported revenues up 43.4% year on year, exceeding estimates by 3.63%. PubMatic traded flat on the results, and The Trade Desk was down 6.26%. Read our full analysis of PubMatic's results here and The Trade Desk's results here.

Technology stocks have been hit hard on fears of higher interest rates and software stocks have not been spared, with share price down on average 17.5% over the last month. LiveRamp is down 27% during the same time, and is heading into the earnings with analyst price target of $67, compared to share price of $25.2.

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.