Liveramp Holdings Inc
NYSE:RAMP
Liveramp Holdings Inc
In the ever-evolving landscape of digital marketing and data management, LiveRamp Holdings Inc. stands out as a pivotal player, artfully orchestrating the complex web of data connectivity. Founded from the roots of Acxiom Corporation, LiveRamp became an independent entity focused on providing enterprises with the tools to harness their data's full potential. At the core of LiveRamp's operations is its data connectivity platform, which enables organizations to link their customer data across various channels and platforms without exposing sensitive information. By using sophisticated identity resolution technology, LiveRamp helps clients construct a unified view of individual consumers, facilitating personalized marketing initiatives that respect privacy yet maximize impact.
Revenue streams for LiveRamp largely spring from subscription fees for its services, as companies shell out a premium for improved data management and activation. Additionally, LiveRamp garners income through its ability to convey value through targeted advertising and data analytics services, offering businesses the capability to execute finely-tuned marketing strategies with measurable outcomes. Through strategic acquisitions and continuous innovation, LiveRamp has expanded its reach across industries such as retail, media, and technology, asserting itself as a linchpin in the data-driven economy. Its unique position in the market comes from balancing technological prowess with an emphasis on privacy, ensuring that data-driven insights do not come at the expense of consumer trust.
In the ever-evolving landscape of digital marketing and data management, LiveRamp Holdings Inc. stands out as a pivotal player, artfully orchestrating the complex web of data connectivity. Founded from the roots of Acxiom Corporation, LiveRamp became an independent entity focused on providing enterprises with the tools to harness their data's full potential. At the core of LiveRamp's operations is its data connectivity platform, which enables organizations to link their customer data across various channels and platforms without exposing sensitive information. By using sophisticated identity resolution technology, LiveRamp helps clients construct a unified view of individual consumers, facilitating personalized marketing initiatives that respect privacy yet maximize impact.
Revenue streams for LiveRamp largely spring from subscription fees for its services, as companies shell out a premium for improved data management and activation. Additionally, LiveRamp garners income through its ability to convey value through targeted advertising and data analytics services, offering businesses the capability to execute finely-tuned marketing strategies with measurable outcomes. Through strategic acquisitions and continuous innovation, LiveRamp has expanded its reach across industries such as retail, media, and technology, asserting itself as a linchpin in the data-driven economy. Its unique position in the market comes from balancing technological prowess with an emphasis on privacy, ensuring that data-driven insights do not come at the expense of consumer trust.
Revenue Beat: LiveRamp reported Q3 revenue of $212 million, up 9% year-over-year and $1 million above the midpoint of guidance, marking the 11th consecutive quarter exceeding guidance.
Strong Profitability: Operating income reached $62 million, up 36% from last year, with a record operating margin of 29%; free cash flow also hit a record $67 million.
Customer Growth: Total customer count increased by 15, the largest quarterly gain in over 3.5 years, and $1 million-plus customers grew by 8 to 140.
AI Tailwind: Management emphasized that AI is boosting data usage across their network, driving incremental revenue opportunities, and making LiveRamp more essential to partners.
Pricing Model Shift: The company is moving toward usage-based pricing, which has already shown benefits with both new and existing customers and is set for broader rollout in FY '27.
Raised Outlook: FY '26 revenue guidance was increased to $810–$814 million, about 9% growth; management expects double-digit revenue growth next year if current execution continues.
Margin Expansion: Operating margin expanded by 6 points year-over-year in Q3 and is expected to improve by 4 points for the full year, aided by cost controls and offshoring.
Rule of 40 Focus: The company remains committed to achieving the Rule of 40 (revenue growth + margin ≥ 40%) by FY '28, with Rule of 31 (9% growth, 22% margin) expected in FY '26.
