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what it is
LiveRamp helps companies connect customer data across apps, ads, and devices without losing track of who is who.
how it gets paid
Last year Liveramp made $746M in revenue. U.S. subscription was the main engine at $532.9M, or 71% of sales.
why it's growing
Revenue grew 13.0% last year. ARR grew 7%. ARR → contracted annual revenue → future subscription dollars already under agreement → so what: it tells you demand held up even.
what just happened
Revenue hit $200M in the fiscal second quarter, up 8% vs. prior year, while gross margin slipped to 72%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
30/100 earnings predictability — expect surprises
38.6x trailing p/e — you're paying up for this one
5.0% return on capital — nothing to write home about
xvary composite: 62/100 — average
What they do
LiveRamp helps companies connect customer data across apps, ads, and devices without losing track of who is who.
Its edge is connection density. The company says 76% of FY24 revenue came from subscriptions, which means customers keep paying to stay plugged into the network. ARR → contracted annual revenue → your yearly subscription base → so what: it rose 7%, which says churn eased and bigger deals are sticking.
How they make money
$746M
annual revenue · their business grew +13.0% last year
U.S. subscription
$532.9M
U.S. marketplace and other
$168.3M
International subscription
$34.0M
International marketplace and other
$10.7M
The products that matter
subscription data connectivity software
Data Connectivity Platform
$461M · 76% of sales
it is the core business: $461M of revenue, or 76% of the company total. If growth reaccelerates anywhere, it needs to happen here.
core engine
data marketplace transactions
Data Marketplace
$146M · 24% of sales
this piece contributes $146M, or 24% of revenue. It matters, but it is still the smaller side of the house.
second engine
regional market expansion
European Operations
$30M · 5% of sales
Europe contributes $30M, about 5% of revenue. That is real, but still too small to change the company-wide story on its own.
small base
Key numbers
$36
18m target
The 18-month target sits 44% above the $25.07 stock price, so you are being paid for margin improvement that has not fully shown up yet.
$880M
fy2026 sales
The FY2026 revenue estimate is $134M above the $746M trailing base, which is the scale the margin story needs.
38.6x
trailing p/e
P/E → price-to-earnings → how much you pay for each dollar of profit → so what: you are paying up before profits look mature.
5.1%
net margin
Net margin → profit after all costs → so what: LiveRamp keeps just 5 cents from each revenue dollar, which is thin for this valuation.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 25 / 100
- net profit margin 5.1% — keeps 5 cents of every dollar in revenue
- return on equity 5% — $0.05 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in RAMP 3 years ago → it's now worth $10,380.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $200M in the fiscal second quarter, up 8% vs. prior year, while gross margin slipped to 72%.
EPS was $0.42 in the quarter, up from $0.03 a year earlier based on the quarterly history provided. Better churn and larger deals pushed ARR up 7%, but modernization costs pressured margin.
$200M
revenue
$0.42
eps
72.0%
gross margin
the number that mattered
ARR grew 7%. ARR → contracted annual revenue → future subscription dollars already under agreement → so what: it tells you demand held up even as costs ran hot.
-
liveramp’s latest quarter suggests momentum is returning.
-
revenue rose 8% vs. prior year to $200 million in the fiscal 2025 second quarter (year ends march 31st.), in line with our target.this was supported by demand for data and marketplace and measurement, as advertising budgets stayed steady and spending shifted toward streaming video and retail-driven advertising.
-
annual recurring revenue (arr) rose 7% on better churn and larger deals.
-
the gross margin fell to 72% as platform modernization costs and the extended operation of both new and legacy systems delayed cost savings, limiting gross-profit growth to 4%.
-
operating costs declined enough to more than offset this, driving earnings to $0.42 per share versus our $0.20 target.
source: company earnings report, 2025
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What could go wrong
the top risk is privacy-rule changes and platform shifts that make identity resolution less valuable.
med
privacy and identity-rule changes
LiveRamp sells data connectivity. If regulators, browsers, or major platforms make identity matching harder, the product gets less useful fast.
The core Data Connectivity Platform is $461M, or 76% of total revenue. That is the exposure.
med
modernization drags on longer than expected
Gross margin already fell to 72% because LiveRamp kept old and new systems running together. If that overlap persists, the cost savings story keeps getting pushed out.
With a 4.1% net margin, this is not a business with much room for overruns.
med
growth stays stuck near the current pace
The market can forgive a noisy quarter. It is much less forgiving when 53.8% last year turns into 2.1% now and stays there.
At 38.6x trailing earnings and roughly 46x the $0.55 EPS estimate, the valuation leaves very little slack.
If growth does not move meaningfully above 2.1%, investors are left paying a premium multiple for a $607M business with a 4.1% margin. That math gets uncomfortable quickly.
source: institutional data · regulatory filings · risk analysis
Pay attention to
key metric
revenue growth versus 2.1%
the whole story changes if reported growth starts moving away from the current 2.1% pace and back toward something the multiple can defend.
trend
ARR holding above 7%
ARR rose 7% on better churn and larger deals. If that slips, the reacceleration story gets thinner.
risk
gross margin after modernization
72% gross margin is still good, but it fell because old and new systems are both running. You want that drag shrinking, not settling in.
calendar
the next earnings print
one more quarter of noisy EPS is survivable. Another quarter with weak growth and no margin recovery would say much more.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they think the stock can work even if the business still needs to prove it.
risk profile
average
stability score 3 — typical risk profile. Not a bunker stock, not a chaos machine.
chart momentum
top 20%
technical score 2 — the chart has been stronger than the fundamentals alone would suggest. Welcome to expectation management.
earnings predictability
30 / 100
earnings are harder to model here than at steadier software names. You should expect more noise.
source: institutional data
Institutional activity
142 buyers vs. 143 sellers in 3q2025. total institutional holdings: 60.5M shares.
source: institutional data
Price targets
3-5 year target range
$19
$52
$25
current price
$36
target midpoint · +44% from current · 3-5yr high: $50 (+100% · 19% ann'l return)
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