LiveRamp (RAMP) To Report Earnings Tomorrow: Here Is What To Expect

Radek Strnad /
2022/11/07 2:30 am EST

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 $142.2 million, up 19.4% year on year, beating analyst revenue expectations by 2.35%. It was a weaker quarter for the company, with a full year guidance missing analysts' expectations and decelerating customer growth. The company added 3 enterprise customers paying more than $1m annually to a total of 90.

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 12.6% year on year to $143.3 million, slowing down from the 21.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 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 3.33%.

Looking at LiveRamp's peers in the sales and marketing software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Zeta delivered top-line growth of 32.2% year on year, beating analyst estimates by 7.94% and BigCommerce reported revenues up 22.1% year on year, exceeding estimates by 3.97%. Zeta traded up 5.26% on the results, BigCommerce was down 9.05%. Read our full analysis of Zeta's results here and BigCommerce's results here.

Tech stocks have been under pressure since the end of last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 5.91% over the last month. LiveRamp is down 9.19% during the same time, and is heading into the earnings with analyst price target of $36.40, compared to share price of $16.20.

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.