Advertising data platform LiveRamp (NYSE:RAMP) will be announcing earnings results tomorrow after market close. Here’s what to look for.
LiveRamp beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $176 million, up 14.2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but decelerating customer growth. Its number of enterprise customers paying more than $1m annually flat at a total of 115.
Is LiveRamp a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting LiveRamp’s revenue to grow 10.2% year on year to $176.2 million, improving from the 8.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. LiveRamp has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.9% on average.
Looking at LiveRamp’s peers in the sales and marketing software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GoDaddy delivered year-on-year revenue growth of 7.3%, meeting analysts’ expectations, and VeriSign reported revenues up 3.8%, in line with consensus estimates. GoDaddy’s stock price was unchanged after the results, and VeriSign’s price followed a similar reaction.
Read our full analysis of GoDaddy’s results here and VeriSign’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 5.8% on average over the last month. LiveRamp is up 4.5% during the same time and is heading into earnings with an average analyst price target of $39.88 (compared to the current share price of $24.79).
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