Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries LiveRamp Announces Fourth Quarter and Fiscal Year Results By: LiveRamp via Business Wire May 25, 2021 at 16:05 PM EDT Q4 Revenue Up 13% Record Q4 Bookings Q4 GAAP Gross Margin of 68% and Non-GAAP Gross Margin of 74% LiveRamp’s Global Authenticated Traffic Solution (ATS) Adopted by Over 400 Publishers LiveRamp® (NYSE: RAMP), the leading global data connectivity platform, today announced its financial results for the quarter and fiscal year ended March 31, 2021. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210525005938/en/ Fourth Quarter Financial Highlights All metrics compared to the prior year period Total revenue was $119 million, up 13%. Subscription revenue was $94 million, up 13% and contributed 79% of total revenue. Marketplace & Other revenue was $25 million, up 13%. GAAP gross profit was $82 million, up 19%, and GAAP gross margin of 68% expanded 3 percentage points. Non-GAAP gross profit was $88 million, up 18%, and non-GAAP gross margin of 74% expanded 3 percentage points. GAAP operating loss was $52 million compared to a GAAP operating loss of $41 million in the prior year period. Non-GAAP operating income was $1 million compared to a non-GAAP operating loss of $16 million in the prior year period. GAAP loss per share was $0.49, and non-GAAP earnings per share was $0.04. Net cash used in operating activities was $18 million compared to net cash used in operating activities of $0 million in the prior year period. Fiscal Year Financial Highlights All metrics compared to the prior fiscal year Total revenue was $443 million, up 16%. Subscription revenue was $357 million, up 17% and contributed 80% of total revenue. Marketplace & Other revenue was $86 million, up 15%. GAAP gross profit was $299 million, up 31%, and GAAP gross margin of 67% expanded 8 percentage points. Non-GAAP gross profit was $322 million, up 27%, and Non-GAAP gross margin of 73% expanded 6 percentage points. GAAP operating loss was $121 million compared to a GAAP operating loss of $181 million in the prior fiscal year. Non-GAAP operating income was $16 million compared to a non-GAAP operating loss of $64 million in the prior fiscal year. GAAP loss per share was $1.36, and non-GAAP earnings per share were $0.23. Net cash used from operating activities was $21 million compared to net cash used from operating activities of $29 million in the prior fiscal year. In fiscal 2021, LiveRamp repurchased 1.3 million shares for $42 million. Since March 31, 2021, the Company has repurchased an additional 275 thousand shares for $13.3 million. In total, since the inception of the share repurchase program in August 2011, the Company has returned over $1.19 billion in capital to shareholders. A reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release. “LiveRamp had an exceptional year amidst an unprecedented macro environment. I am proud of how our team showed up for our customers and each other in FY21,” said LiveRamp CEO Scott Howe. “LiveRamp’s Authenticated Traffic Solution has become the industry standard for identity in a post cookie world, and Safe Haven® is game changing for the future of data-driven customer experience.” “LiveRamp again delivered on its commitments in FY21,” said LiveRamp President and CFO Warren Jenson. “Not only did we meaningfully grow our top-line, we delivered a record bottom-line performance, as well. We were profitable on a non-GAAP operating income basis in each quarter of FY21. Further, our record bookings performance positions us well for another strong year in FY22.” GAAP and Non-GAAP Results The following table summarizes the Company’s financial results for its fourth fiscal quarter and fiscal year ($ in millions): Q4 Fiscal 2021 Full Year Fiscal 2021 Results Results GAAP Non-GAAP GAAP Non-GAAP Subscription revenue $94 — $357 — YoY change % 13% 17% Marketplace & other revenue $25 — $86 — YoY change % 13% 15% Total revenue $119 — $443 — YoY change % 13% 16% Gross profit $82 $88 $299 $322 % Gross margin 68% 74% 67% 73% YoY change, pts 3pts 3pts 8pts 6pts Operating income (loss) ($52) $1 ($121) $16 % Operating margin (44%) 1% (27%) 4% YoY change, pts (5pts) 16pts 20pts 20pts Net income (loss) ($33) $3 ($90) $16 Earnings (loss) per share ($0.49) $0.04 ($1.36) $0.23 Shares to Calculate EPS 67.1 69.9 66.3 69.0 YoY change % 0% 4% (2%) 2% Net operating cash flow ($18) — ($21) — Free cash flow to equity — ($18) — ($23) Totals may not sum due to rounding. A detailed discussion of our non-GAAP financial measures and a reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release. Additional Business Highlights & Metrics ATS continues to experience strong global adoption, solidifying its role as the leading post-cookie solution. To date, more than 400 publishers have adopted ATS, including 70% of the U.S Comscore 20 and 65% of the U.S. Comscore 50. In addition, ATS has been adopted by more than 70 leading supply-side and demand-side platforms. Importantly, it is generating results: Brand advertisers are generating better returns. A new Forrester Consulting Total Economic Impact™ (TEI) study, commissioned by LiveRamp, found advertisers who use LiveRamp’s ATS can achieve 343% ROI over three years with payback within only six months of initial investment. Publishers are making more money. Recent case studies with top publishers suggest potential to increase CPM (cost per thousand impression) by over 40% using ATS compared to legacy third-party cookie methods. During the fourth quarter, subscription net retention was 101% and platform net retention was 104%. Current remaining performance obligations (CRPO), which is contracted and committed revenue expected to be recognized over the next 12 months, was $256 million, up 14% compared to the fourth quarter of last year. Sequentially, CRPO was up 11%. LiveRamp has 70 clients whose subscription contracts exceed $1 million in annual revenue, up 32% compared to the prior year. LiveRamp’s direct subscription customer count at quarter end was 825, up from 780 a year ago. Financial Outlook LiveRamp’s non-GAAP guidance excludes the impact of non-cash stock compensation, purchased intangible asset amortization, and restructuring charges. For the first quarter of fiscal 2022, LiveRamp expects to report: Revenue of up to $112 million, an increase of up to 13% year-over-year GAAP operating loss of approximately $30 million Non-GAAP operating loss of up to $2 million For fiscal 2022, LiveRamp expects to report: Revenue of up to $509 million, an increase of up to 15% year-over-year GAAP operating loss of between $119 million and $114 million Non-GAAP operating income of between $0 million and $5 million Conference Call LiveRamp will hold a conference call at 1:30 p.m. PT today to further discuss this information. Interested parties are invited to listen to the call which will be broadcast via the Internet and can be found on LiveRamp’s investor site. A slide presentation will be referenced during the call and can be accessed here. About LiveRamp LiveRamp is the leading data connectivity platform for the safe and effective use of data. Powered by core identity capabilities and an unparalleled network, LiveRamp enables companies and their partners to better connect, control, and activate data to transform customer experiences and generate more valuable business outcomes. LiveRamp’s fully interoperable and neutral infrastructure delivers end-to-end addressability for the world’s top brands, agencies, and publishers. For more information, visit www.LiveRamp.com. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended (the “PSLRA”). These statements, which are not statements of historical fact, may contain estimates, assumptions, projections and/or expectations regarding the Company’s financial position, results of operations, market position, product development, growth opportunities, economic conditions, and other similar forecasts and statements of expectation. Forward-looking statements are often identified by words or phrases such as “anticipate,” “estimate,” “plan,” “expect,” “believe,” “intend,” “foresee,” or the negative of these terms or other similar variations thereof. These forward-looking statements are not guarantees of future performance and are subject to a number of factors and uncertainties that could cause the Company’s actual results and experiences to differ materially from the anticipated results and expectations expressed in the forward-looking statements. Among the factors that may cause actual results and expectations to differ from anticipated results and expectations expressed in forward-looking statements are uncertainties related to COVID-19 and the associated impact on our suppliers, customers and partners; the Company’s dependence upon customer renewals; new customer additions and upsell within our subscription business; our reliance upon partners, including data suppliers; competition; and attracting and retaining talent. Additional risks relate to maintaining our culture and our ability to innovate and evolve while working remotely and within a rapidly changing industry, while also avoiding disruption from acquisition and divestiture activities. Our international operations are also subject to risks that may harm the Company’s business. The risk of a significant breach of the confidentiality of the information or the security of our or our customers’, suppliers’, or other partners’ computer systems could be detrimental to our business, reputation and results of operations. Other business risks include unfavorable publicity and negative public perception about our industry; interruptions or delays in service from data center hosting vendors we rely upon; and our dependence on the continued availability of third-party data hosting and transmission services. Our clients’ ability to use data on our platform could be restricted if the industry’s use of third-party cookies and tracking technology declines due to technology platform changes, regulation or increased user controls. Changes in regulations relating to information collection and use represents a risk, as well as changes in tax laws and regulations that are applied to our customers which could cause enterprise software budget tightening. In addition, third parties may claim that we are infringing their intellectual property or may infringe our intellectual property which could result in competitive injury and / or the incurrence of significant costs and draining of our resources. For a discussion of these and other risks and uncertainties, please refer to LiveRamp’s Annual Report on Form 10-K for our fiscal year 2020 ended March 31, 2020, and LiveRamp's Quarterly Reports on Form 10-Q issued in fiscal year 2021. The financial information set forth in this press release reflects estimates based on information available at this time. LiveRamp assumes no obligation and does not currently intend to update these forward-looking statements. To automatically receive LiveRamp financial news by email, please visit www.LiveRamp.com and subscribe to email alerts. LiveRampⓇ, IdentityLinkTM, AbilitecⓇ, Safe HavenⓇ and all other LiveRamp marks contained herein are trademarks or service marks of LiveRamp, Inc. All other marks are the property of their respective owners. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per share amounts) For the Three Months Ended March 31 $ % 2021 2020 Variance Variance Revenues 119,175 105,701 13,474 12.7 % Cost of revenue 37,557 36,852 705 1.9 % Gross profit 81,618 68,849 12,769 18.5 % % Gross margin 68.5 % 65.1 % Operating expenses: Research and development 46,479 28,411 18,068 63.6 % Sales and marketing 53,307 48,564 4,743 9.8 % General and administrative 32,395 30,216 2,179 7.2 % Gains, losses and other items, net 1,345 2,447 (1,102 ) (45.0 %) Total operating expenses 133,526 109,638 23,888 21.8 % Loss from operations (51,908 ) (40,789 ) (11,119 ) (27.3 %) % Margin -43.6 % -38.6 % Total other income (expense) (404 ) 1,565 (1,969 ) (125.8 %) Loss from continuing operations before income taxes (52,312 ) (39,224 ) (13,088 ) (33.4 %) Income taxes (benefit) (19,465 ) (34,345 ) 14,880 43.3 % Net loss from continuing operations (32,847 ) (4,879 ) (27,968 ) (573.2 %) Earnings from discontinued operations, net of tax - 750 (750 ) (100.0 %) Net loss (32,847 ) (4,129 ) (28,718 ) (695.5 %) Basic earnings (loss) per share: Continuing operations (0.49 ) (0.07 ) (0.42 ) (571.9 %) Discontinued operations - 0.01 (0.01 ) (100.0 %) Basic loss per share (0.49 ) (0.06 ) (0.43 ) (688.7 %) Diluted earnings (loss) per share: Continuing operations (0.49 ) (0.07 ) (0.42 ) (571.9 %) Discontinued operations - 0.01 (0.01 ) (100.0 %) Diluted loss per share (0.49 ) (0.06 ) (0.43 ) (688.7 %) Basic weighted average shares 67,111 66,977 Diluted weighted average shares 67,111 66,977 LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per share amounts) For the Twelve Months Ended March 31 $ % 2021 2020 Variance Variance Revenues 443,026 380,572 62,454 16.4 % Cost of revenue 144,004 152,704 (8,700 ) (5.7 %) Gross profit 299,022 227,868 71,154 31.2 % % Gross margin 67.5 % 59.9 % Operating expenses: Research and development 135,111 105,981 29,130 27.5 % Sales and marketing 177,543 188,905 (11,362 ) (6.0 %) General and administrative 104,201 108,903 (4,702 ) (4.3 %) Gains, losses and other items, net 2,715 5,001 (2,286 ) (45.7 %) Total operating expenses 419,570 408,790 10,780 2.6 % Loss from operations (120,548 ) (180,922 ) 60,374 33.4 % % Margin -27.2 % -47.5 % Total other income (expense) (252 ) 15,385 (15,637 ) (101.6 %) Loss from continuing operations before income taxes (120,800 ) (165,537 ) 44,737 27.0 % Income taxes (benefit) (30,532 ) (40,276 ) 9,744 24.2 % Net loss from continuing operations (90,268 ) (125,261 ) 34,993 27.9 % Earnings from discontinued operations, net of tax - 750 (750 ) (100.0 %) Net loss (90,268 ) (124,511 ) 34,243 27.5 % Basic earnings (loss) per share: Continuing operations (1.36 ) (1.85 ) 0.49 26.4 % Discontinued operations - 0.01 (0.01 ) (100.0 %) Basic loss per share (1.36 ) (1.84 ) 0.48 26.0 % Diluted earnings (loss) per share: Continuing operations (1.36 ) (1.85 ) 0.49 26.4 % Discontinued operations - 0.01 (0.01 ) (100.0 %) Diluted loss per share (1.36 ) (1.84 ) 0.48 26.0 % Basic weighted average shares 66,304 67,760 Diluted weighted average shares 66,304 67,760 LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP EPS (1) (Unaudited) (Dollars in thousands, except per share amounts) For the Three Months Ended For the Twelve Months Ended March 31, March 31, 2021 2020 2021 2020 Loss from continuing operations before income taxes (52,312 ) (39,224 ) (120,800 ) (165,537 ) Income taxes (benefit) (19,465 ) (34,345 ) (30,532 ) (40,276 ) Net loss from continuing operations (32,847 ) (4,879 ) (90,268 ) (125,261 ) Earnings from discontinued operations, net of tax - 750 - 750 Net loss (32,847 ) (4,129 ) (90,268 ) (124,511 ) Loss per share: Basic (0.49 ) (0.06 ) (1.36 ) (1.84 ) Diluted (0.49 ) (0.06 ) (1.36 ) (1.84 ) Excluded items: Purchased intangible asset amortization (cost of revenue) 4,177 5,181 18,046 19,042 Non-cash stock compensation (cost of revenue and operating expenses) 47,124 17,168 111,707 89,447 Accelerated depreciation (cost of revenue and operating expenses) - - - 3,569 Transformation costs (general and administrative) - - 3,863 - Restructuring and merger charges (gains, losses, and other) 1,345 2,447 2,715 5,001 Total excluded items 52,646 24,796 136,331 117,059 Income (loss) from operations before income taxes and excluding items 334 (14,428 ) 15,531 (48,478 ) Income taxes (benefit) (2) (2,628 ) (11,199 ) (638 ) (11,452 ) Non-GAAP net earnings (loss) 2,962 (3,229 ) 16,169 (37,026 ) Non-GAAP earnings (loss) per share: Basic 0.04 (0.05 ) 0.24 (0.55 ) Diluted 0.04 (0.05 ) 0.23 (0.55 ) Basic weighted average shares 67,111 66,977 66,304 67,760 Diluted weighted average shares 69,935 66,977 68,963 67,760 (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A. (2) Income taxes were calculated by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusting for discrete tax items in the period. The differences between our GAAP and non-GAAP effective tax rates were primarily due to the net tax effects of the excluded items, coupled with larger pre-tax losses for GAAP purposes versus smaller pre-tax losses or income for non-GAAP purposes. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP INCOME (LOSS) FROM OPERATIONS (1) (Unaudited) (Dollars in thousands) For the Three Months Ended For the Twelve Months Ended March 31, March 31, 2021 2020 2021 2020 Loss from continuing operations (51,908 ) (40,789 ) (120,548 ) (180,922 ) Excluded items: Purchased intangible asset amortization (cost of revenue) 4,177 5,181 18,046 19,042 Non-cash stock compensation (cost of revenue and operating expenses) 47,124 17,168 111,707 89,447 Accelerated depreciation (cost of revenue and operating expenses) - - - 3,569 Transformation costs (general and administrative) - - 3,863 - Restructuring and merger charges (gains, losses, and other) 1,345 2,447 2,715 5,001 Total excluded items 52,646 24,796 136,331 117,059 Income (loss) from continuing operations before excluded items 738 (15,993 ) 15,783 (63,863 ) (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF ADJUSTED EBITDA (1) (Unaudited) (Dollars in thousands) For the Three Months Ended For the Twelve Months Ended March 31, March 31, 2021 2020 2021 2020 Net loss from continuing operations (32,847 ) (4,879 ) (90,268 ) (125,261 ) Income taxes (benefit) (19,465 ) (34,345 ) (30,532 ) (40,276 ) Other expense (income) 404 (1,565 ) 252 (15,385 ) Loss from operations (51,908 ) (40,789 ) (120,548 ) (180,922 ) Depreciation and amortization 6,277 7,943 27,741 35,901 EBITDA (45,631 ) (32,846 ) (92,807 ) (145,021 ) Other adjustments: Non-cash stock compensation (cost of revenue and operating expenses) 47,124 17,168 111,707 89,447 Transformation costs (general and administrative) - - 3,863 - Restructuring and merger charges (gains, losses, and other) 1,345 2,447 2,715 5,001 Other adjustments 48,469 19,615 118,285 94,448 Adjusted EBITDA 2,838 (13,231 ) 25,478 (50,573 ) (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands) March 31, March 31, $ % 2021 2020 Variance Variance Assets Current assets: Cash and cash equivalents 572,787 717,811 (145,024 ) (20.2 %) Restricted cash 8,900 14,815 (5,915 ) (39.9 %) Trade accounts receivable, net 114,284 92,761 21,523 23.2 % Refundable income taxes 65,692 38,340 27,352 71.3 % Other current assets 64,052 32,666 31,386 96.1 % Total current assets 825,715 896,393 (70,678 ) (7.9 %) Property and equipment 44,284 44,786 (502 ) (1.1 %) Less - accumulated depreciation and amortization 32,327 25,465 6,862 26.9 % Property and equipment, net 11,957 19,321 (7,364 ) (38.1 %) Intangible assets, net 39,730 45,200 (5,470 ) (12.1 %) Goodwill 357,446 297,796 59,650 20.0 % Deferred commissions, net 22,619 16,014 6,605 41.2 % Other assets, net 30,854 27,165 3,689 13.6 % 1,288,321 1,301,889 (13,568 ) (1.0 %) Liabilities and Stockholders' Equity Current liabilities: Trade accounts payable 39,955 42,204 (2,249 ) (5.3 %) Accrued payroll and related expenses 46,438 28,791 17,647 61.3 % Other accrued expenses 58,353 68,991 (10,638 ) (15.4 %) Acquisition escrow payable 8,900 14,815 (5,915 ) (39.9 %) Deferred revenue 11,603 6,581 5,022 76.3 % Total current liabilities 165,249 161,382 3,867 2.4 % Other liabilities 42,389 52,995 (10,606 ) (20.0 %) Stockholders' equity: Preferred stock - - - n/a Common stock 14,781 14,394 387 2.7 % Additional paid-in capital 1,630,072 1,496,565 133,507 8.9 % Retained earnings 1,454,826 1,545,094 (90,268 ) (5.8 %) Accumulated other comprehensive income 7,522 5,745 1,777 30.9 % Treasury stock, at cost (2,026,518 ) (1,974,286 ) (52,232 ) (2.6 %) Total stockholders' equity 1,080,683 1,087,512 (6,829 ) (0.6 %) 1,288,321 1,301,889 (13,568 ) (1.0 %) LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) For the Three Months Ended March 31, 2021 2020 Cash flows from operating activities: Net loss (32,847 ) (4,129 ) Earnings from discontinued operations, net of tax - (750 ) Non-cash operating activities: Depreciation and amortization 6,277 7,943 Loss on disposal or impairment of assets 54 1,865 Provision for doubtful accounts (431 ) 3,450 Deferred income taxes (1,418 ) (8,343 ) Non-cash stock compensation expense 47,124 17,168 Changes in operating assets and liabilities: Accounts receivable 1,818 (8,667 ) Deferred commissions (1,523 ) (2,563 ) Other assets (26,283 ) (8,548 ) Accounts payable and other liabilities 6,731 12,326 Income taxes (17,233 ) (12,030 ) Deferred revenue (156 ) 2,058 Net cash used in operating activities (17,887 ) (220 ) Cash flows from investing activities: Capital expenditures (376 ) (1,409 ) Proceeds from sales of property and equipment - 356 Purchases of investments (4,500 ) - Cash paid in acquisition, net of cash received (58,264 ) - Net cash used in investing activities (63,140 ) (1,053 ) Cash flows from financing activities: Proceeds related to the issuance of common stock under stock and employee benefit plans 61 1,331 Shares repurchased for tax withholdings upon vesting of stock-based awards (538 ) (6,465 ) Acquisition of treasury stock - (61,002 ) Net cash used in financing activities (477 ) (66,136 ) Cash flows from discontinued operations: From operating activities - (207 ) From investing activities - 18,582 Net cash provided by discontinued operations - 18,375 Effect of exchange rate changes on cash (210 ) (355 ) Net change in cash, cash equivalents, and restricted cash (81,714 ) (49,389 ) Cash, cash equivalents, and restricted cash at beginning of period 663,401 782,015 Cash, cash equivalents, and restricted cash at end of period 581,687 732,626 Supplemental cash flow information: Cash paid (received) during the period for: Income taxes (819 ) (13,515 ) LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) For the Twelve Months Ended March 31, 2021 2020 Cash flows from operating activities: Net loss (90,268 ) (124,511 ) Earnings from discontinued operations, net of tax - (750 ) Non-cash operating activities: Depreciation and amortization 27,741 35,901 Loss on disposal or impairment of assets 388 1,725 Provision for doubtful accounts 2,915 7,133 Deferred income taxes (1,418 ) (6,878 ) Non-cash stock compensation expense 111,707 89,447 Changes in operating assets and liabilities: Accounts receivable (24,828 ) (20,518 ) Deferred commissions (6,605 ) (5,273 ) Other assets (18,772 ) (6,144 ) Accounts payable and other liabilities (116 ) 24,923 Income taxes (26,215 ) (25,453 ) Deferred revenue 4,911 1,823 Net cash used in operating activities (20,560 ) (28,575 ) Cash flows from investing activities: Capital expenditures (2,182 ) (11,711 ) Proceeds from sales of property and equipment - 873 Purchases of investments (7,500 ) - Purchases of strategic investments (2,200 ) - Cash paid in acquisition, net of cash received (76,012 ) (105,365 ) Net cash used in investing activities (87,894 ) (116,203 ) Cash flows from financing activities: Proceeds related to the issuance of common stock under stock and employee benefit plans 8,737 4,736 Shares repurchased for tax withholdings upon vesting of stock-based awards (9,920 ) (24,522 ) Acquisition of treasury stock (42,312 ) (182,190 ) Net cash used in financing activities (43,495 ) (201,976 ) Cash flows from discontinued operations: From operating activities - (207 ) From investing activities - 18,582 Net cash provided by discontinued operations - 18,375 Effect of exchange rate changes on cash 1,010 (468 ) Net change in cash, cash equivalents, and restricted cash (150,939 ) (328,847 ) Cash, cash equivalents, and restricted cash at beginning of period 732,626 1,061,473 Cash, cash equivalents, and restricted cash at end of period 581,687 732,626 Supplemental cash flow information: Cash paid (received) during the period for: Income taxes (2,911 ) (7,344 ) LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CALCULATION OF FREE CASH FLOW TO EQUITY (1) (Unaudited) (Dollars in thousands) 06/30/19 09/30/19 12/31/19 03/31/20 FY2020 06/30/20 09/30/20 12/31/20 03/31/21 FY2021 Net Cash Provided by (Used in) Operating Activities (15,408 ) (28,751 ) 15,804 (220 ) (28,575 ) (23,612 ) 6,249 14,690 (17,887 ) (20,560 ) Less: Capital expenditures (4,888 ) (2,641 ) (2,773 ) (1,409 ) (11,711 ) (832 ) (296 ) (678 ) (376 ) (2,182 ) Free Cash Flow to Equity (20,296 ) (31,392 ) 13,031 (1,629 ) (40,286 ) (24,444 ) 5,953 14,012 (18,263 ) (22,742 ) (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per share amounts) FY21 to FY20 06/30/19 09/30/19 12/31/19 03/31/20 FY2020 06/30/20 09/30/20 12/31/20 03/31/21 FY2021 % $ Revenues 82,511 90,143 102,217 105,701 380,572 99,437 104,661 119,753 119,175 443,026 16.4 % 62,454 Cost of revenue 36,426 41,460 37,966 36,852 152,704 34,465 34,897 37,085 37,557 144,004 (5.7 %) (8,700 ) Gross profit 46,085 48,683 64,251 68,849 227,868 64,972 69,764 82,668 81,618 299,022 31.2 % 71,154 % Gross margin 55.9 % 54.0 % 62.9 % 65.1 % 59.9 % 65.3 % 66.7 % 69.0 % 68.5 % 67.5 % Operating expenses Research and development 23,722 26,445 27,403 28,411 105,981 26,989 31,035 30,608 46,479 135,111 27.5 % 29,130 Sales and marketing 43,144 45,204 51,993 48,564 188,905 38,627 41,705 43,904 53,307 177,543 (6.0 %) (11,362 ) General and administrative 25,318 27,262 26,107 30,216 108,903 23,368 24,495 23,943 32,395 104,201 (4.3 %) (4,702 ) Gains, losses and other items, net 2,276 45 233 2,447 5,001 1,995 (619 ) (6 ) 1,345 2,715 (45.7 %) (2,286 ) Total operating expenses 94,460 98,956 105,736 109,638 408,790 90,979 96,616 98,449 133,526 419,570 2.6 % 10,780 Loss from operations (48,375 ) (50,273 ) (41,485 ) (40,789 ) (180,922 ) (26,007 ) (26,852 ) (15,781 ) (51,908 ) (120,548 ) 33.4 % 60,374 % Margin -58.6 % -55.8 % -40.6 % -38.6 % -47.5 % -26.2 % -25.7 % -13.2 % -43.6 % -27.2 % Total other income (expense) 5,882 4,780 3,158 1,565 15,385 463 (225 ) (86 ) (404 ) (252 ) (101.6 %) (15,637 ) Loss from continuing operations before income taxes (42,493 ) (45,493 ) (38,327 ) (39,224 ) (165,537 ) (25,544 ) (27,077 ) (15,867 ) (52,312 ) (120,800 ) 27.0 % 44,737 Income taxes (benefit) (353 ) (5,291 ) (287 ) (34,345 ) (40,276 ) (3,816 ) (3,109 ) (4,142 ) (19,465 ) (30,532 ) 24.2 % 9,744 Net loss from continuing operations (42,140 ) (40,202 ) (38,040 ) (4,879 ) (125,261 ) (21,728 ) (23,968 ) (11,725 ) (32,847 ) (90,268 ) 27.9 % 34,993 Earnings from discontinued operations, net of tax - - - 750 750 - - - - - (100.0 %) (750 ) Net loss (42,140 ) (40,202 ) (38,040 ) (4,129 ) (124,511 ) (21,728 ) (23,968 ) (11,725 ) (32,847 ) (90,268 ) 27.5 % 34,243 Diluted loss per share (0.61 ) (0.59 ) (0.56 ) (0.06 ) (1.84 ) (0.33 ) (0.36 ) (0.18 ) (0.49 ) (1.36 ) 25.9 % 0.48 Diluted loss per share continuing operations (0.61 ) (0.59 ) (0.56 ) (0.07 ) (1.85 ) (0.33 ) (0.36 ) (0.18 ) (0.49 ) (1.36 ) 26.4 % 0.49 Some loss per share amounts may not add due to rounding. Basic shares 68,906 67,684 67,473 66,977 67,760 65,570 66,010 66,523 67,111 66,304 Diluted shares 68,906 67,684 67,473 66,977 67,760 65,570 66,010 66,523 67,111 66,304 LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP EPS (1) (Unaudited) (Dollars in thousands, except per share amounts) 06/30/19 09/30/19 12/31/19 03/31/20 FY2020 06/30/20 09/30/20 12/31/20 03/31/21 FY2021 Loss from continuing operations before income taxes (42,493 ) (45,493 ) (38,327 ) (39,224 ) (165,537 ) (25,544 ) (27,077 ) (15,867 ) (52,312 ) (120,800 ) Income taxes (benefit) (353 ) (5,291 ) (287 ) (34,345 ) (40,276 ) (3,816 ) (3,109 ) (4,142 ) (19,465 ) (30,532 ) Net loss from continuing operations (42,140 ) (40,202 ) (38,040 ) (4,879 ) (125,261 ) (21,728 ) (23,968 ) (11,725 ) (32,847 ) (90,268 ) Earnings from discontinued operations, net of tax - - - 750 750 - - - - - Net loss (42,140 ) (40,202 ) (38,040 ) (4,129 ) (124,511 ) (21,728 ) (23,968 ) (11,725 ) (32,847 ) (90,268 ) Loss per share: Basic (0.61 ) (0.59 ) (0.56 ) (0.06 ) (1.84 ) (0.33 ) (0.36 ) (0.18 ) (0.49 ) (1.36 ) Diluted (0.61 ) (0.59 ) (0.56 ) (0.06 ) (1.84 ) (0.33 ) (0.36 ) (0.18 ) (0.49 ) (1.36 ) Excluded items: Purchased intangible asset amortization (cost of revenue) 3,123 5,369 5,369 5,181 19,042 5,306 4,350 4,213 4,177 18,046 Non-cash stock compensation (cost of revenue and operating expenses) 18,630 23,354 30,295 17,168 89,447 16,485 24,204 23,894 47,124 111,707 Accelerated depreciation (cost of revenue and operating expenses) 1,906 1,663 - - 3,569 - - - - - Restructuring and merger charges (gains, losses, and other) 2,276 45 233 2,447 5,001 1,995 (619 ) (6 ) 1,345 2,715 Transformation costs (general and administrative) - - - - - 3,605 258 - - 3,863 Total excluded items, continuing operations 25,935 30,431 35,897 24,796 117,059 27,391 28,193 28,101 52,646 136,331 Income (loss) from continuing operations before income taxes and excluding items (16,558 ) (15,062 ) (2,430 ) (14,428 ) (48,478 ) 1,847 1,116 12,234 334 15,531 Income taxes (benefit) (216 ) 190 (227 ) (11,199 ) (11,452 ) 934 (1,291 ) 2,347 (2,628 ) (638 ) Non-GAAP net earnings (loss) from continuing operations (16,342 ) (15,252 ) (2,203 ) (3,229 ) (37,026 ) 913 2,407 9,887 2,962 16,169 Non-GAAP earnings (loss) per share from continuing operations: Basic (0.24 ) (0.23 ) (0.03 ) (0.05 ) (0.55 ) 0.01 0.04 0.15 0.04 0.24 Diluted (0.24 ) (0.23 ) (0.03 ) (0.05 ) (0.55 ) 0.01 0.03 0.14 0.04 0.23 Basic weighted average shares 68,906 67,684 67,473 66,977 67,760 65,570 66,010 66,523 67,111 66,304 Diluted weighted average shares 68,906 67,684 67,473 66,977 67,760 67,337 68,804 69,775 69,935 68,963 Some totals may not add due to rounding (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP EXPENSES (1) (Unaudited) (Dollars in thousands) 06/30/19 09/30/19 12/31/19 03/31/20 FY2020 06/30/20 09/30/20 12/31/20 03/31/21 FY2021 Expenses: Cost of revenue 36,426 41,460 37,966 36,852 152,704 34,465 34,897 37,085 37,557 144,004 Research and development 23,722 26,445 27,403 28,411 105,981 26,989 31,035 30,608 46,479 135,111 Sales and marketing 43,144 45,204 51,993 48,564 188,905 38,627 41,705 43,904 53,307 177,543 General and administrative 25,318 27,262 26,107 30,216 108,903 23,368 24,495 23,943 32,395 104,201 Gains, losses and other items, net 2,276 45 233 2,447 5,001 1,995 (619 ) (6 ) 1,345 2,715 Gross profit: 46,085 48,683 64,251 68,849 227,868 64,972 69,764 82,668 81,618 299,022 % Gross margin 55.9 % 54.0 % 62.9 % 65.1 % 59.9 % 65.3 % 66.7 % 69.0 % 68.5 % 67.5 % Excluded items: Purchased intangible asset amortization (cost of revenue) 3,123 5,369 5,369 5,181 19,042 5,306 4,350 4,213 4,177 18,046 Non-cash stock compensation (cost of revenue) 755 1,060 1,028 926 3,769 775 913 988 2,624 5,300 Non-cash stock compensation (research and development) 4,451 6,346 6,462 6,001 23,260 5,886 7,713 7,376 17,985 38,960 Non-cash stock compensation (sales and marketing) 8,920 9,758 15,670 3,678 38,026 7,123 9,233 9,212 14,833 40,401 Non-cash stock compensation (general and administrative) 4,504 6,190 7,135 6,563 24,392 2,701 6,345 6,318 11,682 27,046 Accelerated depreciation (cost of revenue) 1,487 1,245 - - 2,732 - - - - - Accelerated depreciation (general and administrative) 419 418 - - 837 - - - - - Restructuring and merger charges (gains, losses, and other) 2,276 45 233 2,447 5,001 1,995 (619 ) (6 ) 1,345 2,715 Transformation costs (general and administrative) - - - - - 3,605 258 - - 3,863 Total excluded items 25,935 30,431 35,897 24,796 117,059 27,391 28,193 28,101 52,646 136,331 Expenses, excluding items: Cost of revenue 31,061 33,786 31,569 30,745 127,161 28,384 29,634 31,884 30,756 120,658 Research and development 19,271 20,099 20,941 22,410 82,721 21,103 23,322 23,232 28,494 96,151 Sales and marketing 34,224 35,446 36,323 44,886 150,879 31,504 32,472 34,692 38,474 137,142 General and administrative 20,395 20,654 18,972 23,653 83,674 17,062 17,892 17,625 20,713 73,292 Gains, losses and other items, net - - - - - - - - - - Gross profit, excluding items: 51,450 56,357 70,648 74,956 253,411 71,053 75,027 87,869 88,419 322,368 % Gross margin 62.4 % 62.5 % 69.1 % 70.9 % 66.6 % 71.5 % 71.7 % 73.4 % 74.2 % 72.8 % (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP OPERATING INCOME (LOSS) GUIDANCE (1) (Unaudited) (Dollars in thousands) For the quarter ending For the year ending June 30, 2021 March 31, 2022 GAAP loss from operations (30,000 ) (116,500 ) Excluded items: Purchased intangible asset amortization 5,000 18,000 Non-cash stock compensation 21,000 99,000 Restructuring and merger charges 2,000 2,000 Total excluded items 28,000 119,000 Non-GAAP income (loss) from operations $ (2,000 ) $ 2,500 (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A. APPENDIX A LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES FISCAL 2021 FINANCIAL RESULTS EXPLANATION OF NON-GAAP MEASURES AND OTHER KEY METRICS To supplement our financial results, we use non-GAAP measures which exclude certain acquisition related expenses, non-cash stock compensation and restructuring charges. We believe these measures are helpful in understanding our past performance and our future results. Our non-GAAP financial measures and schedules are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated GAAP financial statements. Our management regularly uses these non-GAAP financial measures internally to understand, manage and evaluate our business and to make operating decisions. These measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is also based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures, including non-GAAP earnings (loss) per share, income (loss) from operations and adjusted EBITDA reflect adjustments based on the following items, as well as the related income tax effects when applicable: Purchased intangible asset amortization: We incur amortization of purchased intangibles in connection with our acquisitions. Purchased intangibles include (i) developed technology, (ii) customer and publisher relationships, and (iii) trade names. We expect to amortize for accounting purposes the fair value of the purchased intangibles based on the pattern in which the economic benefits of the intangible assets will be consumed as revenue is generated. Although the intangible assets generate revenue for us, we exclude this item because this expense is non-cash in nature and because we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our operational performance. Non-cash stock compensation: Non-cash stock compensation consists of charges for associate restricted stock units, performance shares and stock options in accordance with current GAAP related to stock-based compensation including expense associated with stock-based compensation related to unvested options assumed in connection with our acquisitions. As we apply stock-based compensation standards, we believe that it is useful to investors to understand the impact of the application of these standards to our operational performance. Although stock-based compensation expense is calculated in accordance with current GAAP and constitutes an ongoing and recurring expense, such expense is excluded from non-GAAP results because it is not an expense that typically requires or will require cash settlement by us and because such expense is not used by us to assess the core profitability of our business operations. Restructuring charges: During the past several years, we have initiated certain restructuring activities in order to align our costs in connection with both our operating plans and our business strategies based on then-current economic conditions. As a result, we recognized costs related to termination benefits for associates whose positions were eliminated, lease and other contract termination charges, and leasehold improvement write offs. These items, reported as gains, losses, and other items, net, are excluded from non-GAAP results because such amounts are not used by us to assess the core profitability of our business operations. Transformation costs: In previous years, we incurred significant expenses to separate the financial statements of our operating segments, with particular focus on segment-level balance sheets, and to evaluate portfolio priorities. Our criteria for excluding transformation expenses from our non-GAAP measures is as follows: 1) projects are discrete in nature; 2) excluded expenses consist only of third-party consulting fees that we would not incur otherwise; and 3) we do not exclude employee related expenses or other costs associated with the ongoing operations of our business. We substantially completed those projects during the third quarter of fiscal year 2018. Beginning in the fourth quarter of fiscal 2018, and through most of fiscal 2019, we incurred transaction support expenses and system separation costs related to the Company's announced evaluation of strategic options for its Marketing Solutions (AMS) business. Beginning in the first quarter of fiscal 2021 in response to the potential COVID-19 pandemic impact on our business, we incurred significant costs associated with the assessment of strategic and operating plans, including our long-term location strategy, and assistance in implementing the restructuring activities as a result of this assessment. Our criteria for excluding these costs are the same. We believe excluding these items from our non-GAAP financial measures is useful for investors and provides meaningful supplemental information. Accelerated depreciation: In the prior year we excluded depreciation costs associated with the reduced useful life of certain IT equipment in connection with the Company's migration to a cloud-based data center solution. This migration was part of our AMS separation strategy. These costs are excluded from our non-GAAP results because of the short-term nature of the incremental expenses and such amounts are not used by us to assess the core profitability of our business operations. Our non-GAAP financial schedules are: Non-GAAP EPS, Non-GAAP Income from Operations, and Non-GAAP expenses: Our Non-GAAP earnings per share, Non-GAAP income from operations, and Non-GAAP expenses reflect adjustments as described above, as well as the related tax effects where applicable. Adjusted EBITDA: Adjusted EBITDA is defined as net income from continuing operations before income taxes, other expenses, depreciation and amortization, and including adjustments as described above. We use Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as within our operating segments and to compare our results to those of our competitors. We believe that the inclusion of Adjusted EBITDA provides useful supplementary information to and facilitates analysis by investors in evaluating the Company's performance and trends. The presentation of Adjusted EBITDA is not meant to be considered in isolation or as an alternative to net earnings as an indicator of our performance. Free Cash Flow to Equity: To supplement our statement of cash flows, we use a non-GAAP measure of cash flow to analyze cash flows generated from operations. Free cash flow to equity is defined as operating cash flow less cash used by investing activities (excluding the impact of cash paid in acquisitions), less required payments of debt, and excluding the impact of discontinued operations. Management believes that this measure of cash flow is meaningful since it represents the amount of money available from continuing operations for the Company's discretionary spending after funding all required obligations including scheduled debt payments. The presentation of non-GAAP free cash flow to equity is not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity. View source version on businesswire.com: https://www.businesswire.com/news/home/20210525005938/en/Contacts Lauren Dillard LiveRamp Investor Relations Investor.Relations@LiveRamp.com ERAMP Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
LiveRamp Announces Fourth Quarter and Fiscal Year Results By: LiveRamp via Business Wire May 25, 2021 at 16:05 PM EDT Q4 Revenue Up 13% Record Q4 Bookings Q4 GAAP Gross Margin of 68% and Non-GAAP Gross Margin of 74% LiveRamp’s Global Authenticated Traffic Solution (ATS) Adopted by Over 400 Publishers LiveRamp® (NYSE: RAMP), the leading global data connectivity platform, today announced its financial results for the quarter and fiscal year ended March 31, 2021. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210525005938/en/ Fourth Quarter Financial Highlights All metrics compared to the prior year period Total revenue was $119 million, up 13%. Subscription revenue was $94 million, up 13% and contributed 79% of total revenue. Marketplace & Other revenue was $25 million, up 13%. GAAP gross profit was $82 million, up 19%, and GAAP gross margin of 68% expanded 3 percentage points. Non-GAAP gross profit was $88 million, up 18%, and non-GAAP gross margin of 74% expanded 3 percentage points. GAAP operating loss was $52 million compared to a GAAP operating loss of $41 million in the prior year period. Non-GAAP operating income was $1 million compared to a non-GAAP operating loss of $16 million in the prior year period. GAAP loss per share was $0.49, and non-GAAP earnings per share was $0.04. Net cash used in operating activities was $18 million compared to net cash used in operating activities of $0 million in the prior year period. Fiscal Year Financial Highlights All metrics compared to the prior fiscal year Total revenue was $443 million, up 16%. Subscription revenue was $357 million, up 17% and contributed 80% of total revenue. Marketplace & Other revenue was $86 million, up 15%. GAAP gross profit was $299 million, up 31%, and GAAP gross margin of 67% expanded 8 percentage points. Non-GAAP gross profit was $322 million, up 27%, and Non-GAAP gross margin of 73% expanded 6 percentage points. GAAP operating loss was $121 million compared to a GAAP operating loss of $181 million in the prior fiscal year. Non-GAAP operating income was $16 million compared to a non-GAAP operating loss of $64 million in the prior fiscal year. GAAP loss per share was $1.36, and non-GAAP earnings per share were $0.23. Net cash used from operating activities was $21 million compared to net cash used from operating activities of $29 million in the prior fiscal year. In fiscal 2021, LiveRamp repurchased 1.3 million shares for $42 million. Since March 31, 2021, the Company has repurchased an additional 275 thousand shares for $13.3 million. In total, since the inception of the share repurchase program in August 2011, the Company has returned over $1.19 billion in capital to shareholders. A reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release. “LiveRamp had an exceptional year amidst an unprecedented macro environment. I am proud of how our team showed up for our customers and each other in FY21,” said LiveRamp CEO Scott Howe. “LiveRamp’s Authenticated Traffic Solution has become the industry standard for identity in a post cookie world, and Safe Haven® is game changing for the future of data-driven customer experience.” “LiveRamp again delivered on its commitments in FY21,” said LiveRamp President and CFO Warren Jenson. “Not only did we meaningfully grow our top-line, we delivered a record bottom-line performance, as well. We were profitable on a non-GAAP operating income basis in each quarter of FY21. Further, our record bookings performance positions us well for another strong year in FY22.” GAAP and Non-GAAP Results The following table summarizes the Company’s financial results for its fourth fiscal quarter and fiscal year ($ in millions): Q4 Fiscal 2021 Full Year Fiscal 2021 Results Results GAAP Non-GAAP GAAP Non-GAAP Subscription revenue $94 — $357 — YoY change % 13% 17% Marketplace & other revenue $25 — $86 — YoY change % 13% 15% Total revenue $119 — $443 — YoY change % 13% 16% Gross profit $82 $88 $299 $322 % Gross margin 68% 74% 67% 73% YoY change, pts 3pts 3pts 8pts 6pts Operating income (loss) ($52) $1 ($121) $16 % Operating margin (44%) 1% (27%) 4% YoY change, pts (5pts) 16pts 20pts 20pts Net income (loss) ($33) $3 ($90) $16 Earnings (loss) per share ($0.49) $0.04 ($1.36) $0.23 Shares to Calculate EPS 67.1 69.9 66.3 69.0 YoY change % 0% 4% (2%) 2% Net operating cash flow ($18) — ($21) — Free cash flow to equity — ($18) — ($23) Totals may not sum due to rounding. A detailed discussion of our non-GAAP financial measures and a reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release. Additional Business Highlights & Metrics ATS continues to experience strong global adoption, solidifying its role as the leading post-cookie solution. To date, more than 400 publishers have adopted ATS, including 70% of the U.S Comscore 20 and 65% of the U.S. Comscore 50. In addition, ATS has been adopted by more than 70 leading supply-side and demand-side platforms. Importantly, it is generating results: Brand advertisers are generating better returns. A new Forrester Consulting Total Economic Impact™ (TEI) study, commissioned by LiveRamp, found advertisers who use LiveRamp’s ATS can achieve 343% ROI over three years with payback within only six months of initial investment. Publishers are making more money. Recent case studies with top publishers suggest potential to increase CPM (cost per thousand impression) by over 40% using ATS compared to legacy third-party cookie methods. During the fourth quarter, subscription net retention was 101% and platform net retention was 104%. Current remaining performance obligations (CRPO), which is contracted and committed revenue expected to be recognized over the next 12 months, was $256 million, up 14% compared to the fourth quarter of last year. Sequentially, CRPO was up 11%. LiveRamp has 70 clients whose subscription contracts exceed $1 million in annual revenue, up 32% compared to the prior year. LiveRamp’s direct subscription customer count at quarter end was 825, up from 780 a year ago. Financial Outlook LiveRamp’s non-GAAP guidance excludes the impact of non-cash stock compensation, purchased intangible asset amortization, and restructuring charges. For the first quarter of fiscal 2022, LiveRamp expects to report: Revenue of up to $112 million, an increase of up to 13% year-over-year GAAP operating loss of approximately $30 million Non-GAAP operating loss of up to $2 million For fiscal 2022, LiveRamp expects to report: Revenue of up to $509 million, an increase of up to 15% year-over-year GAAP operating loss of between $119 million and $114 million Non-GAAP operating income of between $0 million and $5 million Conference Call LiveRamp will hold a conference call at 1:30 p.m. PT today to further discuss this information. Interested parties are invited to listen to the call which will be broadcast via the Internet and can be found on LiveRamp’s investor site. A slide presentation will be referenced during the call and can be accessed here. About LiveRamp LiveRamp is the leading data connectivity platform for the safe and effective use of data. Powered by core identity capabilities and an unparalleled network, LiveRamp enables companies and their partners to better connect, control, and activate data to transform customer experiences and generate more valuable business outcomes. LiveRamp’s fully interoperable and neutral infrastructure delivers end-to-end addressability for the world’s top brands, agencies, and publishers. For more information, visit www.LiveRamp.com. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended (the “PSLRA”). These statements, which are not statements of historical fact, may contain estimates, assumptions, projections and/or expectations regarding the Company’s financial position, results of operations, market position, product development, growth opportunities, economic conditions, and other similar forecasts and statements of expectation. Forward-looking statements are often identified by words or phrases such as “anticipate,” “estimate,” “plan,” “expect,” “believe,” “intend,” “foresee,” or the negative of these terms or other similar variations thereof. These forward-looking statements are not guarantees of future performance and are subject to a number of factors and uncertainties that could cause the Company’s actual results and experiences to differ materially from the anticipated results and expectations expressed in the forward-looking statements. Among the factors that may cause actual results and expectations to differ from anticipated results and expectations expressed in forward-looking statements are uncertainties related to COVID-19 and the associated impact on our suppliers, customers and partners; the Company’s dependence upon customer renewals; new customer additions and upsell within our subscription business; our reliance upon partners, including data suppliers; competition; and attracting and retaining talent. Additional risks relate to maintaining our culture and our ability to innovate and evolve while working remotely and within a rapidly changing industry, while also avoiding disruption from acquisition and divestiture activities. Our international operations are also subject to risks that may harm the Company’s business. The risk of a significant breach of the confidentiality of the information or the security of our or our customers’, suppliers’, or other partners’ computer systems could be detrimental to our business, reputation and results of operations. Other business risks include unfavorable publicity and negative public perception about our industry; interruptions or delays in service from data center hosting vendors we rely upon; and our dependence on the continued availability of third-party data hosting and transmission services. Our clients’ ability to use data on our platform could be restricted if the industry’s use of third-party cookies and tracking technology declines due to technology platform changes, regulation or increased user controls. Changes in regulations relating to information collection and use represents a risk, as well as changes in tax laws and regulations that are applied to our customers which could cause enterprise software budget tightening. In addition, third parties may claim that we are infringing their intellectual property or may infringe our intellectual property which could result in competitive injury and / or the incurrence of significant costs and draining of our resources. For a discussion of these and other risks and uncertainties, please refer to LiveRamp’s Annual Report on Form 10-K for our fiscal year 2020 ended March 31, 2020, and LiveRamp's Quarterly Reports on Form 10-Q issued in fiscal year 2021. The financial information set forth in this press release reflects estimates based on information available at this time. LiveRamp assumes no obligation and does not currently intend to update these forward-looking statements. To automatically receive LiveRamp financial news by email, please visit www.LiveRamp.com and subscribe to email alerts. LiveRampⓇ, IdentityLinkTM, AbilitecⓇ, Safe HavenⓇ and all other LiveRamp marks contained herein are trademarks or service marks of LiveRamp, Inc. All other marks are the property of their respective owners. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per share amounts) For the Three Months Ended March 31 $ % 2021 2020 Variance Variance Revenues 119,175 105,701 13,474 12.7 % Cost of revenue 37,557 36,852 705 1.9 % Gross profit 81,618 68,849 12,769 18.5 % % Gross margin 68.5 % 65.1 % Operating expenses: Research and development 46,479 28,411 18,068 63.6 % Sales and marketing 53,307 48,564 4,743 9.8 % General and administrative 32,395 30,216 2,179 7.2 % Gains, losses and other items, net 1,345 2,447 (1,102 ) (45.0 %) Total operating expenses 133,526 109,638 23,888 21.8 % Loss from operations (51,908 ) (40,789 ) (11,119 ) (27.3 %) % Margin -43.6 % -38.6 % Total other income (expense) (404 ) 1,565 (1,969 ) (125.8 %) Loss from continuing operations before income taxes (52,312 ) (39,224 ) (13,088 ) (33.4 %) Income taxes (benefit) (19,465 ) (34,345 ) 14,880 43.3 % Net loss from continuing operations (32,847 ) (4,879 ) (27,968 ) (573.2 %) Earnings from discontinued operations, net of tax - 750 (750 ) (100.0 %) Net loss (32,847 ) (4,129 ) (28,718 ) (695.5 %) Basic earnings (loss) per share: Continuing operations (0.49 ) (0.07 ) (0.42 ) (571.9 %) Discontinued operations - 0.01 (0.01 ) (100.0 %) Basic loss per share (0.49 ) (0.06 ) (0.43 ) (688.7 %) Diluted earnings (loss) per share: Continuing operations (0.49 ) (0.07 ) (0.42 ) (571.9 %) Discontinued operations - 0.01 (0.01 ) (100.0 %) Diluted loss per share (0.49 ) (0.06 ) (0.43 ) (688.7 %) Basic weighted average shares 67,111 66,977 Diluted weighted average shares 67,111 66,977 LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per share amounts) For the Twelve Months Ended March 31 $ % 2021 2020 Variance Variance Revenues 443,026 380,572 62,454 16.4 % Cost of revenue 144,004 152,704 (8,700 ) (5.7 %) Gross profit 299,022 227,868 71,154 31.2 % % Gross margin 67.5 % 59.9 % Operating expenses: Research and development 135,111 105,981 29,130 27.5 % Sales and marketing 177,543 188,905 (11,362 ) (6.0 %) General and administrative 104,201 108,903 (4,702 ) (4.3 %) Gains, losses and other items, net 2,715 5,001 (2,286 ) (45.7 %) Total operating expenses 419,570 408,790 10,780 2.6 % Loss from operations (120,548 ) (180,922 ) 60,374 33.4 % % Margin -27.2 % -47.5 % Total other income (expense) (252 ) 15,385 (15,637 ) (101.6 %) Loss from continuing operations before income taxes (120,800 ) (165,537 ) 44,737 27.0 % Income taxes (benefit) (30,532 ) (40,276 ) 9,744 24.2 % Net loss from continuing operations (90,268 ) (125,261 ) 34,993 27.9 % Earnings from discontinued operations, net of tax - 750 (750 ) (100.0 %) Net loss (90,268 ) (124,511 ) 34,243 27.5 % Basic earnings (loss) per share: Continuing operations (1.36 ) (1.85 ) 0.49 26.4 % Discontinued operations - 0.01 (0.01 ) (100.0 %) Basic loss per share (1.36 ) (1.84 ) 0.48 26.0 % Diluted earnings (loss) per share: Continuing operations (1.36 ) (1.85 ) 0.49 26.4 % Discontinued operations - 0.01 (0.01 ) (100.0 %) Diluted loss per share (1.36 ) (1.84 ) 0.48 26.0 % Basic weighted average shares 66,304 67,760 Diluted weighted average shares 66,304 67,760 LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP EPS (1) (Unaudited) (Dollars in thousands, except per share amounts) For the Three Months Ended For the Twelve Months Ended March 31, March 31, 2021 2020 2021 2020 Loss from continuing operations before income taxes (52,312 ) (39,224 ) (120,800 ) (165,537 ) Income taxes (benefit) (19,465 ) (34,345 ) (30,532 ) (40,276 ) Net loss from continuing operations (32,847 ) (4,879 ) (90,268 ) (125,261 ) Earnings from discontinued operations, net of tax - 750 - 750 Net loss (32,847 ) (4,129 ) (90,268 ) (124,511 ) Loss per share: Basic (0.49 ) (0.06 ) (1.36 ) (1.84 ) Diluted (0.49 ) (0.06 ) (1.36 ) (1.84 ) Excluded items: Purchased intangible asset amortization (cost of revenue) 4,177 5,181 18,046 19,042 Non-cash stock compensation (cost of revenue and operating expenses) 47,124 17,168 111,707 89,447 Accelerated depreciation (cost of revenue and operating expenses) - - - 3,569 Transformation costs (general and administrative) - - 3,863 - Restructuring and merger charges (gains, losses, and other) 1,345 2,447 2,715 5,001 Total excluded items 52,646 24,796 136,331 117,059 Income (loss) from operations before income taxes and excluding items 334 (14,428 ) 15,531 (48,478 ) Income taxes (benefit) (2) (2,628 ) (11,199 ) (638 ) (11,452 ) Non-GAAP net earnings (loss) 2,962 (3,229 ) 16,169 (37,026 ) Non-GAAP earnings (loss) per share: Basic 0.04 (0.05 ) 0.24 (0.55 ) Diluted 0.04 (0.05 ) 0.23 (0.55 ) Basic weighted average shares 67,111 66,977 66,304 67,760 Diluted weighted average shares 69,935 66,977 68,963 67,760 (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A. (2) Income taxes were calculated by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusting for discrete tax items in the period. The differences between our GAAP and non-GAAP effective tax rates were primarily due to the net tax effects of the excluded items, coupled with larger pre-tax losses for GAAP purposes versus smaller pre-tax losses or income for non-GAAP purposes. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP INCOME (LOSS) FROM OPERATIONS (1) (Unaudited) (Dollars in thousands) For the Three Months Ended For the Twelve Months Ended March 31, March 31, 2021 2020 2021 2020 Loss from continuing operations (51,908 ) (40,789 ) (120,548 ) (180,922 ) Excluded items: Purchased intangible asset amortization (cost of revenue) 4,177 5,181 18,046 19,042 Non-cash stock compensation (cost of revenue and operating expenses) 47,124 17,168 111,707 89,447 Accelerated depreciation (cost of revenue and operating expenses) - - - 3,569 Transformation costs (general and administrative) - - 3,863 - Restructuring and merger charges (gains, losses, and other) 1,345 2,447 2,715 5,001 Total excluded items 52,646 24,796 136,331 117,059 Income (loss) from continuing operations before excluded items 738 (15,993 ) 15,783 (63,863 ) (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF ADJUSTED EBITDA (1) (Unaudited) (Dollars in thousands) For the Three Months Ended For the Twelve Months Ended March 31, March 31, 2021 2020 2021 2020 Net loss from continuing operations (32,847 ) (4,879 ) (90,268 ) (125,261 ) Income taxes (benefit) (19,465 ) (34,345 ) (30,532 ) (40,276 ) Other expense (income) 404 (1,565 ) 252 (15,385 ) Loss from operations (51,908 ) (40,789 ) (120,548 ) (180,922 ) Depreciation and amortization 6,277 7,943 27,741 35,901 EBITDA (45,631 ) (32,846 ) (92,807 ) (145,021 ) Other adjustments: Non-cash stock compensation (cost of revenue and operating expenses) 47,124 17,168 111,707 89,447 Transformation costs (general and administrative) - - 3,863 - Restructuring and merger charges (gains, losses, and other) 1,345 2,447 2,715 5,001 Other adjustments 48,469 19,615 118,285 94,448 Adjusted EBITDA 2,838 (13,231 ) 25,478 (50,573 ) (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands) March 31, March 31, $ % 2021 2020 Variance Variance Assets Current assets: Cash and cash equivalents 572,787 717,811 (145,024 ) (20.2 %) Restricted cash 8,900 14,815 (5,915 ) (39.9 %) Trade accounts receivable, net 114,284 92,761 21,523 23.2 % Refundable income taxes 65,692 38,340 27,352 71.3 % Other current assets 64,052 32,666 31,386 96.1 % Total current assets 825,715 896,393 (70,678 ) (7.9 %) Property and equipment 44,284 44,786 (502 ) (1.1 %) Less - accumulated depreciation and amortization 32,327 25,465 6,862 26.9 % Property and equipment, net 11,957 19,321 (7,364 ) (38.1 %) Intangible assets, net 39,730 45,200 (5,470 ) (12.1 %) Goodwill 357,446 297,796 59,650 20.0 % Deferred commissions, net 22,619 16,014 6,605 41.2 % Other assets, net 30,854 27,165 3,689 13.6 % 1,288,321 1,301,889 (13,568 ) (1.0 %) Liabilities and Stockholders' Equity Current liabilities: Trade accounts payable 39,955 42,204 (2,249 ) (5.3 %) Accrued payroll and related expenses 46,438 28,791 17,647 61.3 % Other accrued expenses 58,353 68,991 (10,638 ) (15.4 %) Acquisition escrow payable 8,900 14,815 (5,915 ) (39.9 %) Deferred revenue 11,603 6,581 5,022 76.3 % Total current liabilities 165,249 161,382 3,867 2.4 % Other liabilities 42,389 52,995 (10,606 ) (20.0 %) Stockholders' equity: Preferred stock - - - n/a Common stock 14,781 14,394 387 2.7 % Additional paid-in capital 1,630,072 1,496,565 133,507 8.9 % Retained earnings 1,454,826 1,545,094 (90,268 ) (5.8 %) Accumulated other comprehensive income 7,522 5,745 1,777 30.9 % Treasury stock, at cost (2,026,518 ) (1,974,286 ) (52,232 ) (2.6 %) Total stockholders' equity 1,080,683 1,087,512 (6,829 ) (0.6 %) 1,288,321 1,301,889 (13,568 ) (1.0 %) LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) For the Three Months Ended March 31, 2021 2020 Cash flows from operating activities: Net loss (32,847 ) (4,129 ) Earnings from discontinued operations, net of tax - (750 ) Non-cash operating activities: Depreciation and amortization 6,277 7,943 Loss on disposal or impairment of assets 54 1,865 Provision for doubtful accounts (431 ) 3,450 Deferred income taxes (1,418 ) (8,343 ) Non-cash stock compensation expense 47,124 17,168 Changes in operating assets and liabilities: Accounts receivable 1,818 (8,667 ) Deferred commissions (1,523 ) (2,563 ) Other assets (26,283 ) (8,548 ) Accounts payable and other liabilities 6,731 12,326 Income taxes (17,233 ) (12,030 ) Deferred revenue (156 ) 2,058 Net cash used in operating activities (17,887 ) (220 ) Cash flows from investing activities: Capital expenditures (376 ) (1,409 ) Proceeds from sales of property and equipment - 356 Purchases of investments (4,500 ) - Cash paid in acquisition, net of cash received (58,264 ) - Net cash used in investing activities (63,140 ) (1,053 ) Cash flows from financing activities: Proceeds related to the issuance of common stock under stock and employee benefit plans 61 1,331 Shares repurchased for tax withholdings upon vesting of stock-based awards (538 ) (6,465 ) Acquisition of treasury stock - (61,002 ) Net cash used in financing activities (477 ) (66,136 ) Cash flows from discontinued operations: From operating activities - (207 ) From investing activities - 18,582 Net cash provided by discontinued operations - 18,375 Effect of exchange rate changes on cash (210 ) (355 ) Net change in cash, cash equivalents, and restricted cash (81,714 ) (49,389 ) Cash, cash equivalents, and restricted cash at beginning of period 663,401 782,015 Cash, cash equivalents, and restricted cash at end of period 581,687 732,626 Supplemental cash flow information: Cash paid (received) during the period for: Income taxes (819 ) (13,515 ) LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) For the Twelve Months Ended March 31, 2021 2020 Cash flows from operating activities: Net loss (90,268 ) (124,511 ) Earnings from discontinued operations, net of tax - (750 ) Non-cash operating activities: Depreciation and amortization 27,741 35,901 Loss on disposal or impairment of assets 388 1,725 Provision for doubtful accounts 2,915 7,133 Deferred income taxes (1,418 ) (6,878 ) Non-cash stock compensation expense 111,707 89,447 Changes in operating assets and liabilities: Accounts receivable (24,828 ) (20,518 ) Deferred commissions (6,605 ) (5,273 ) Other assets (18,772 ) (6,144 ) Accounts payable and other liabilities (116 ) 24,923 Income taxes (26,215 ) (25,453 ) Deferred revenue 4,911 1,823 Net cash used in operating activities (20,560 ) (28,575 ) Cash flows from investing activities: Capital expenditures (2,182 ) (11,711 ) Proceeds from sales of property and equipment - 873 Purchases of investments (7,500 ) - Purchases of strategic investments (2,200 ) - Cash paid in acquisition, net of cash received (76,012 ) (105,365 ) Net cash used in investing activities (87,894 ) (116,203 ) Cash flows from financing activities: Proceeds related to the issuance of common stock under stock and employee benefit plans 8,737 4,736 Shares repurchased for tax withholdings upon vesting of stock-based awards (9,920 ) (24,522 ) Acquisition of treasury stock (42,312 ) (182,190 ) Net cash used in financing activities (43,495 ) (201,976 ) Cash flows from discontinued operations: From operating activities - (207 ) From investing activities - 18,582 Net cash provided by discontinued operations - 18,375 Effect of exchange rate changes on cash 1,010 (468 ) Net change in cash, cash equivalents, and restricted cash (150,939 ) (328,847 ) Cash, cash equivalents, and restricted cash at beginning of period 732,626 1,061,473 Cash, cash equivalents, and restricted cash at end of period 581,687 732,626 Supplemental cash flow information: Cash paid (received) during the period for: Income taxes (2,911 ) (7,344 ) LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CALCULATION OF FREE CASH FLOW TO EQUITY (1) (Unaudited) (Dollars in thousands) 06/30/19 09/30/19 12/31/19 03/31/20 FY2020 06/30/20 09/30/20 12/31/20 03/31/21 FY2021 Net Cash Provided by (Used in) Operating Activities (15,408 ) (28,751 ) 15,804 (220 ) (28,575 ) (23,612 ) 6,249 14,690 (17,887 ) (20,560 ) Less: Capital expenditures (4,888 ) (2,641 ) (2,773 ) (1,409 ) (11,711 ) (832 ) (296 ) (678 ) (376 ) (2,182 ) Free Cash Flow to Equity (20,296 ) (31,392 ) 13,031 (1,629 ) (40,286 ) (24,444 ) 5,953 14,012 (18,263 ) (22,742 ) (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per share amounts) FY21 to FY20 06/30/19 09/30/19 12/31/19 03/31/20 FY2020 06/30/20 09/30/20 12/31/20 03/31/21 FY2021 % $ Revenues 82,511 90,143 102,217 105,701 380,572 99,437 104,661 119,753 119,175 443,026 16.4 % 62,454 Cost of revenue 36,426 41,460 37,966 36,852 152,704 34,465 34,897 37,085 37,557 144,004 (5.7 %) (8,700 ) Gross profit 46,085 48,683 64,251 68,849 227,868 64,972 69,764 82,668 81,618 299,022 31.2 % 71,154 % Gross margin 55.9 % 54.0 % 62.9 % 65.1 % 59.9 % 65.3 % 66.7 % 69.0 % 68.5 % 67.5 % Operating expenses Research and development 23,722 26,445 27,403 28,411 105,981 26,989 31,035 30,608 46,479 135,111 27.5 % 29,130 Sales and marketing 43,144 45,204 51,993 48,564 188,905 38,627 41,705 43,904 53,307 177,543 (6.0 %) (11,362 ) General and administrative 25,318 27,262 26,107 30,216 108,903 23,368 24,495 23,943 32,395 104,201 (4.3 %) (4,702 ) Gains, losses and other items, net 2,276 45 233 2,447 5,001 1,995 (619 ) (6 ) 1,345 2,715 (45.7 %) (2,286 ) Total operating expenses 94,460 98,956 105,736 109,638 408,790 90,979 96,616 98,449 133,526 419,570 2.6 % 10,780 Loss from operations (48,375 ) (50,273 ) (41,485 ) (40,789 ) (180,922 ) (26,007 ) (26,852 ) (15,781 ) (51,908 ) (120,548 ) 33.4 % 60,374 % Margin -58.6 % -55.8 % -40.6 % -38.6 % -47.5 % -26.2 % -25.7 % -13.2 % -43.6 % -27.2 % Total other income (expense) 5,882 4,780 3,158 1,565 15,385 463 (225 ) (86 ) (404 ) (252 ) (101.6 %) (15,637 ) Loss from continuing operations before income taxes (42,493 ) (45,493 ) (38,327 ) (39,224 ) (165,537 ) (25,544 ) (27,077 ) (15,867 ) (52,312 ) (120,800 ) 27.0 % 44,737 Income taxes (benefit) (353 ) (5,291 ) (287 ) (34,345 ) (40,276 ) (3,816 ) (3,109 ) (4,142 ) (19,465 ) (30,532 ) 24.2 % 9,744 Net loss from continuing operations (42,140 ) (40,202 ) (38,040 ) (4,879 ) (125,261 ) (21,728 ) (23,968 ) (11,725 ) (32,847 ) (90,268 ) 27.9 % 34,993 Earnings from discontinued operations, net of tax - - - 750 750 - - - - - (100.0 %) (750 ) Net loss (42,140 ) (40,202 ) (38,040 ) (4,129 ) (124,511 ) (21,728 ) (23,968 ) (11,725 ) (32,847 ) (90,268 ) 27.5 % 34,243 Diluted loss per share (0.61 ) (0.59 ) (0.56 ) (0.06 ) (1.84 ) (0.33 ) (0.36 ) (0.18 ) (0.49 ) (1.36 ) 25.9 % 0.48 Diluted loss per share continuing operations (0.61 ) (0.59 ) (0.56 ) (0.07 ) (1.85 ) (0.33 ) (0.36 ) (0.18 ) (0.49 ) (1.36 ) 26.4 % 0.49 Some loss per share amounts may not add due to rounding. Basic shares 68,906 67,684 67,473 66,977 67,760 65,570 66,010 66,523 67,111 66,304 Diluted shares 68,906 67,684 67,473 66,977 67,760 65,570 66,010 66,523 67,111 66,304 LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP EPS (1) (Unaudited) (Dollars in thousands, except per share amounts) 06/30/19 09/30/19 12/31/19 03/31/20 FY2020 06/30/20 09/30/20 12/31/20 03/31/21 FY2021 Loss from continuing operations before income taxes (42,493 ) (45,493 ) (38,327 ) (39,224 ) (165,537 ) (25,544 ) (27,077 ) (15,867 ) (52,312 ) (120,800 ) Income taxes (benefit) (353 ) (5,291 ) (287 ) (34,345 ) (40,276 ) (3,816 ) (3,109 ) (4,142 ) (19,465 ) (30,532 ) Net loss from continuing operations (42,140 ) (40,202 ) (38,040 ) (4,879 ) (125,261 ) (21,728 ) (23,968 ) (11,725 ) (32,847 ) (90,268 ) Earnings from discontinued operations, net of tax - - - 750 750 - - - - - Net loss (42,140 ) (40,202 ) (38,040 ) (4,129 ) (124,511 ) (21,728 ) (23,968 ) (11,725 ) (32,847 ) (90,268 ) Loss per share: Basic (0.61 ) (0.59 ) (0.56 ) (0.06 ) (1.84 ) (0.33 ) (0.36 ) (0.18 ) (0.49 ) (1.36 ) Diluted (0.61 ) (0.59 ) (0.56 ) (0.06 ) (1.84 ) (0.33 ) (0.36 ) (0.18 ) (0.49 ) (1.36 ) Excluded items: Purchased intangible asset amortization (cost of revenue) 3,123 5,369 5,369 5,181 19,042 5,306 4,350 4,213 4,177 18,046 Non-cash stock compensation (cost of revenue and operating expenses) 18,630 23,354 30,295 17,168 89,447 16,485 24,204 23,894 47,124 111,707 Accelerated depreciation (cost of revenue and operating expenses) 1,906 1,663 - - 3,569 - - - - - Restructuring and merger charges (gains, losses, and other) 2,276 45 233 2,447 5,001 1,995 (619 ) (6 ) 1,345 2,715 Transformation costs (general and administrative) - - - - - 3,605 258 - - 3,863 Total excluded items, continuing operations 25,935 30,431 35,897 24,796 117,059 27,391 28,193 28,101 52,646 136,331 Income (loss) from continuing operations before income taxes and excluding items (16,558 ) (15,062 ) (2,430 ) (14,428 ) (48,478 ) 1,847 1,116 12,234 334 15,531 Income taxes (benefit) (216 ) 190 (227 ) (11,199 ) (11,452 ) 934 (1,291 ) 2,347 (2,628 ) (638 ) Non-GAAP net earnings (loss) from continuing operations (16,342 ) (15,252 ) (2,203 ) (3,229 ) (37,026 ) 913 2,407 9,887 2,962 16,169 Non-GAAP earnings (loss) per share from continuing operations: Basic (0.24 ) (0.23 ) (0.03 ) (0.05 ) (0.55 ) 0.01 0.04 0.15 0.04 0.24 Diluted (0.24 ) (0.23 ) (0.03 ) (0.05 ) (0.55 ) 0.01 0.03 0.14 0.04 0.23 Basic weighted average shares 68,906 67,684 67,473 66,977 67,760 65,570 66,010 66,523 67,111 66,304 Diluted weighted average shares 68,906 67,684 67,473 66,977 67,760 67,337 68,804 69,775 69,935 68,963 Some totals may not add due to rounding (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP EXPENSES (1) (Unaudited) (Dollars in thousands) 06/30/19 09/30/19 12/31/19 03/31/20 FY2020 06/30/20 09/30/20 12/31/20 03/31/21 FY2021 Expenses: Cost of revenue 36,426 41,460 37,966 36,852 152,704 34,465 34,897 37,085 37,557 144,004 Research and development 23,722 26,445 27,403 28,411 105,981 26,989 31,035 30,608 46,479 135,111 Sales and marketing 43,144 45,204 51,993 48,564 188,905 38,627 41,705 43,904 53,307 177,543 General and administrative 25,318 27,262 26,107 30,216 108,903 23,368 24,495 23,943 32,395 104,201 Gains, losses and other items, net 2,276 45 233 2,447 5,001 1,995 (619 ) (6 ) 1,345 2,715 Gross profit: 46,085 48,683 64,251 68,849 227,868 64,972 69,764 82,668 81,618 299,022 % Gross margin 55.9 % 54.0 % 62.9 % 65.1 % 59.9 % 65.3 % 66.7 % 69.0 % 68.5 % 67.5 % Excluded items: Purchased intangible asset amortization (cost of revenue) 3,123 5,369 5,369 5,181 19,042 5,306 4,350 4,213 4,177 18,046 Non-cash stock compensation (cost of revenue) 755 1,060 1,028 926 3,769 775 913 988 2,624 5,300 Non-cash stock compensation (research and development) 4,451 6,346 6,462 6,001 23,260 5,886 7,713 7,376 17,985 38,960 Non-cash stock compensation (sales and marketing) 8,920 9,758 15,670 3,678 38,026 7,123 9,233 9,212 14,833 40,401 Non-cash stock compensation (general and administrative) 4,504 6,190 7,135 6,563 24,392 2,701 6,345 6,318 11,682 27,046 Accelerated depreciation (cost of revenue) 1,487 1,245 - - 2,732 - - - - - Accelerated depreciation (general and administrative) 419 418 - - 837 - - - - - Restructuring and merger charges (gains, losses, and other) 2,276 45 233 2,447 5,001 1,995 (619 ) (6 ) 1,345 2,715 Transformation costs (general and administrative) - - - - - 3,605 258 - - 3,863 Total excluded items 25,935 30,431 35,897 24,796 117,059 27,391 28,193 28,101 52,646 136,331 Expenses, excluding items: Cost of revenue 31,061 33,786 31,569 30,745 127,161 28,384 29,634 31,884 30,756 120,658 Research and development 19,271 20,099 20,941 22,410 82,721 21,103 23,322 23,232 28,494 96,151 Sales and marketing 34,224 35,446 36,323 44,886 150,879 31,504 32,472 34,692 38,474 137,142 General and administrative 20,395 20,654 18,972 23,653 83,674 17,062 17,892 17,625 20,713 73,292 Gains, losses and other items, net - - - - - - - - - - Gross profit, excluding items: 51,450 56,357 70,648 74,956 253,411 71,053 75,027 87,869 88,419 322,368 % Gross margin 62.4 % 62.5 % 69.1 % 70.9 % 66.6 % 71.5 % 71.7 % 73.4 % 74.2 % 72.8 % (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP OPERATING INCOME (LOSS) GUIDANCE (1) (Unaudited) (Dollars in thousands) For the quarter ending For the year ending June 30, 2021 March 31, 2022 GAAP loss from operations (30,000 ) (116,500 ) Excluded items: Purchased intangible asset amortization 5,000 18,000 Non-cash stock compensation 21,000 99,000 Restructuring and merger charges 2,000 2,000 Total excluded items 28,000 119,000 Non-GAAP income (loss) from operations $ (2,000 ) $ 2,500 (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A. APPENDIX A LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES FISCAL 2021 FINANCIAL RESULTS EXPLANATION OF NON-GAAP MEASURES AND OTHER KEY METRICS To supplement our financial results, we use non-GAAP measures which exclude certain acquisition related expenses, non-cash stock compensation and restructuring charges. We believe these measures are helpful in understanding our past performance and our future results. Our non-GAAP financial measures and schedules are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated GAAP financial statements. Our management regularly uses these non-GAAP financial measures internally to understand, manage and evaluate our business and to make operating decisions. These measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is also based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures, including non-GAAP earnings (loss) per share, income (loss) from operations and adjusted EBITDA reflect adjustments based on the following items, as well as the related income tax effects when applicable: Purchased intangible asset amortization: We incur amortization of purchased intangibles in connection with our acquisitions. Purchased intangibles include (i) developed technology, (ii) customer and publisher relationships, and (iii) trade names. We expect to amortize for accounting purposes the fair value of the purchased intangibles based on the pattern in which the economic benefits of the intangible assets will be consumed as revenue is generated. Although the intangible assets generate revenue for us, we exclude this item because this expense is non-cash in nature and because we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our operational performance. Non-cash stock compensation: Non-cash stock compensation consists of charges for associate restricted stock units, performance shares and stock options in accordance with current GAAP related to stock-based compensation including expense associated with stock-based compensation related to unvested options assumed in connection with our acquisitions. As we apply stock-based compensation standards, we believe that it is useful to investors to understand the impact of the application of these standards to our operational performance. Although stock-based compensation expense is calculated in accordance with current GAAP and constitutes an ongoing and recurring expense, such expense is excluded from non-GAAP results because it is not an expense that typically requires or will require cash settlement by us and because such expense is not used by us to assess the core profitability of our business operations. Restructuring charges: During the past several years, we have initiated certain restructuring activities in order to align our costs in connection with both our operating plans and our business strategies based on then-current economic conditions. As a result, we recognized costs related to termination benefits for associates whose positions were eliminated, lease and other contract termination charges, and leasehold improvement write offs. These items, reported as gains, losses, and other items, net, are excluded from non-GAAP results because such amounts are not used by us to assess the core profitability of our business operations. Transformation costs: In previous years, we incurred significant expenses to separate the financial statements of our operating segments, with particular focus on segment-level balance sheets, and to evaluate portfolio priorities. Our criteria for excluding transformation expenses from our non-GAAP measures is as follows: 1) projects are discrete in nature; 2) excluded expenses consist only of third-party consulting fees that we would not incur otherwise; and 3) we do not exclude employee related expenses or other costs associated with the ongoing operations of our business. We substantially completed those projects during the third quarter of fiscal year 2018. Beginning in the fourth quarter of fiscal 2018, and through most of fiscal 2019, we incurred transaction support expenses and system separation costs related to the Company's announced evaluation of strategic options for its Marketing Solutions (AMS) business. Beginning in the first quarter of fiscal 2021 in response to the potential COVID-19 pandemic impact on our business, we incurred significant costs associated with the assessment of strategic and operating plans, including our long-term location strategy, and assistance in implementing the restructuring activities as a result of this assessment. Our criteria for excluding these costs are the same. We believe excluding these items from our non-GAAP financial measures is useful for investors and provides meaningful supplemental information. Accelerated depreciation: In the prior year we excluded depreciation costs associated with the reduced useful life of certain IT equipment in connection with the Company's migration to a cloud-based data center solution. This migration was part of our AMS separation strategy. These costs are excluded from our non-GAAP results because of the short-term nature of the incremental expenses and such amounts are not used by us to assess the core profitability of our business operations. Our non-GAAP financial schedules are: Non-GAAP EPS, Non-GAAP Income from Operations, and Non-GAAP expenses: Our Non-GAAP earnings per share, Non-GAAP income from operations, and Non-GAAP expenses reflect adjustments as described above, as well as the related tax effects where applicable. Adjusted EBITDA: Adjusted EBITDA is defined as net income from continuing operations before income taxes, other expenses, depreciation and amortization, and including adjustments as described above. We use Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as within our operating segments and to compare our results to those of our competitors. We believe that the inclusion of Adjusted EBITDA provides useful supplementary information to and facilitates analysis by investors in evaluating the Company's performance and trends. The presentation of Adjusted EBITDA is not meant to be considered in isolation or as an alternative to net earnings as an indicator of our performance. Free Cash Flow to Equity: To supplement our statement of cash flows, we use a non-GAAP measure of cash flow to analyze cash flows generated from operations. Free cash flow to equity is defined as operating cash flow less cash used by investing activities (excluding the impact of cash paid in acquisitions), less required payments of debt, and excluding the impact of discontinued operations. Management believes that this measure of cash flow is meaningful since it represents the amount of money available from continuing operations for the Company's discretionary spending after funding all required obligations including scheduled debt payments. The presentation of non-GAAP free cash flow to equity is not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity. View source version on businesswire.com: https://www.businesswire.com/news/home/20210525005938/en/Contacts Lauren Dillard LiveRamp Investor Relations Investor.Relations@LiveRamp.com ERAMP
Q4 Revenue Up 13% Record Q4 Bookings Q4 GAAP Gross Margin of 68% and Non-GAAP Gross Margin of 74% LiveRamp’s Global Authenticated Traffic Solution (ATS) Adopted by Over 400 Publishers
LiveRamp® (NYSE: RAMP), the leading global data connectivity platform, today announced its financial results for the quarter and fiscal year ended March 31, 2021. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210525005938/en/ Fourth Quarter Financial Highlights All metrics compared to the prior year period Total revenue was $119 million, up 13%. Subscription revenue was $94 million, up 13% and contributed 79% of total revenue. Marketplace & Other revenue was $25 million, up 13%. GAAP gross profit was $82 million, up 19%, and GAAP gross margin of 68% expanded 3 percentage points. Non-GAAP gross profit was $88 million, up 18%, and non-GAAP gross margin of 74% expanded 3 percentage points. GAAP operating loss was $52 million compared to a GAAP operating loss of $41 million in the prior year period. Non-GAAP operating income was $1 million compared to a non-GAAP operating loss of $16 million in the prior year period. GAAP loss per share was $0.49, and non-GAAP earnings per share was $0.04. Net cash used in operating activities was $18 million compared to net cash used in operating activities of $0 million in the prior year period. Fiscal Year Financial Highlights All metrics compared to the prior fiscal year Total revenue was $443 million, up 16%. Subscription revenue was $357 million, up 17% and contributed 80% of total revenue. Marketplace & Other revenue was $86 million, up 15%. GAAP gross profit was $299 million, up 31%, and GAAP gross margin of 67% expanded 8 percentage points. Non-GAAP gross profit was $322 million, up 27%, and Non-GAAP gross margin of 73% expanded 6 percentage points. GAAP operating loss was $121 million compared to a GAAP operating loss of $181 million in the prior fiscal year. Non-GAAP operating income was $16 million compared to a non-GAAP operating loss of $64 million in the prior fiscal year. GAAP loss per share was $1.36, and non-GAAP earnings per share were $0.23. Net cash used from operating activities was $21 million compared to net cash used from operating activities of $29 million in the prior fiscal year. In fiscal 2021, LiveRamp repurchased 1.3 million shares for $42 million. Since March 31, 2021, the Company has repurchased an additional 275 thousand shares for $13.3 million. In total, since the inception of the share repurchase program in August 2011, the Company has returned over $1.19 billion in capital to shareholders. A reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release. “LiveRamp had an exceptional year amidst an unprecedented macro environment. I am proud of how our team showed up for our customers and each other in FY21,” said LiveRamp CEO Scott Howe. “LiveRamp’s Authenticated Traffic Solution has become the industry standard for identity in a post cookie world, and Safe Haven® is game changing for the future of data-driven customer experience.” “LiveRamp again delivered on its commitments in FY21,” said LiveRamp President and CFO Warren Jenson. “Not only did we meaningfully grow our top-line, we delivered a record bottom-line performance, as well. We were profitable on a non-GAAP operating income basis in each quarter of FY21. Further, our record bookings performance positions us well for another strong year in FY22.” GAAP and Non-GAAP Results The following table summarizes the Company’s financial results for its fourth fiscal quarter and fiscal year ($ in millions): Q4 Fiscal 2021 Full Year Fiscal 2021 Results Results GAAP Non-GAAP GAAP Non-GAAP Subscription revenue $94 — $357 — YoY change % 13% 17% Marketplace & other revenue $25 — $86 — YoY change % 13% 15% Total revenue $119 — $443 — YoY change % 13% 16% Gross profit $82 $88 $299 $322 % Gross margin 68% 74% 67% 73% YoY change, pts 3pts 3pts 8pts 6pts Operating income (loss) ($52) $1 ($121) $16 % Operating margin (44%) 1% (27%) 4% YoY change, pts (5pts) 16pts 20pts 20pts Net income (loss) ($33) $3 ($90) $16 Earnings (loss) per share ($0.49) $0.04 ($1.36) $0.23 Shares to Calculate EPS 67.1 69.9 66.3 69.0 YoY change % 0% 4% (2%) 2% Net operating cash flow ($18) — ($21) — Free cash flow to equity — ($18) — ($23) Totals may not sum due to rounding. A detailed discussion of our non-GAAP financial measures and a reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release. Additional Business Highlights & Metrics ATS continues to experience strong global adoption, solidifying its role as the leading post-cookie solution. To date, more than 400 publishers have adopted ATS, including 70% of the U.S Comscore 20 and 65% of the U.S. Comscore 50. In addition, ATS has been adopted by more than 70 leading supply-side and demand-side platforms. Importantly, it is generating results: Brand advertisers are generating better returns. A new Forrester Consulting Total Economic Impact™ (TEI) study, commissioned by LiveRamp, found advertisers who use LiveRamp’s ATS can achieve 343% ROI over three years with payback within only six months of initial investment. Publishers are making more money. Recent case studies with top publishers suggest potential to increase CPM (cost per thousand impression) by over 40% using ATS compared to legacy third-party cookie methods. During the fourth quarter, subscription net retention was 101% and platform net retention was 104%. Current remaining performance obligations (CRPO), which is contracted and committed revenue expected to be recognized over the next 12 months, was $256 million, up 14% compared to the fourth quarter of last year. Sequentially, CRPO was up 11%. LiveRamp has 70 clients whose subscription contracts exceed $1 million in annual revenue, up 32% compared to the prior year. LiveRamp’s direct subscription customer count at quarter end was 825, up from 780 a year ago. Financial Outlook LiveRamp’s non-GAAP guidance excludes the impact of non-cash stock compensation, purchased intangible asset amortization, and restructuring charges. For the first quarter of fiscal 2022, LiveRamp expects to report: Revenue of up to $112 million, an increase of up to 13% year-over-year GAAP operating loss of approximately $30 million Non-GAAP operating loss of up to $2 million For fiscal 2022, LiveRamp expects to report: Revenue of up to $509 million, an increase of up to 15% year-over-year GAAP operating loss of between $119 million and $114 million Non-GAAP operating income of between $0 million and $5 million Conference Call LiveRamp will hold a conference call at 1:30 p.m. PT today to further discuss this information. Interested parties are invited to listen to the call which will be broadcast via the Internet and can be found on LiveRamp’s investor site. A slide presentation will be referenced during the call and can be accessed here. About LiveRamp LiveRamp is the leading data connectivity platform for the safe and effective use of data. Powered by core identity capabilities and an unparalleled network, LiveRamp enables companies and their partners to better connect, control, and activate data to transform customer experiences and generate more valuable business outcomes. LiveRamp’s fully interoperable and neutral infrastructure delivers end-to-end addressability for the world’s top brands, agencies, and publishers. For more information, visit www.LiveRamp.com. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended (the “PSLRA”). These statements, which are not statements of historical fact, may contain estimates, assumptions, projections and/or expectations regarding the Company’s financial position, results of operations, market position, product development, growth opportunities, economic conditions, and other similar forecasts and statements of expectation. Forward-looking statements are often identified by words or phrases such as “anticipate,” “estimate,” “plan,” “expect,” “believe,” “intend,” “foresee,” or the negative of these terms or other similar variations thereof. These forward-looking statements are not guarantees of future performance and are subject to a number of factors and uncertainties that could cause the Company’s actual results and experiences to differ materially from the anticipated results and expectations expressed in the forward-looking statements. Among the factors that may cause actual results and expectations to differ from anticipated results and expectations expressed in forward-looking statements are uncertainties related to COVID-19 and the associated impact on our suppliers, customers and partners; the Company’s dependence upon customer renewals; new customer additions and upsell within our subscription business; our reliance upon partners, including data suppliers; competition; and attracting and retaining talent. Additional risks relate to maintaining our culture and our ability to innovate and evolve while working remotely and within a rapidly changing industry, while also avoiding disruption from acquisition and divestiture activities. Our international operations are also subject to risks that may harm the Company’s business. The risk of a significant breach of the confidentiality of the information or the security of our or our customers’, suppliers’, or other partners’ computer systems could be detrimental to our business, reputation and results of operations. Other business risks include unfavorable publicity and negative public perception about our industry; interruptions or delays in service from data center hosting vendors we rely upon; and our dependence on the continued availability of third-party data hosting and transmission services. Our clients’ ability to use data on our platform could be restricted if the industry’s use of third-party cookies and tracking technology declines due to technology platform changes, regulation or increased user controls. Changes in regulations relating to information collection and use represents a risk, as well as changes in tax laws and regulations that are applied to our customers which could cause enterprise software budget tightening. In addition, third parties may claim that we are infringing their intellectual property or may infringe our intellectual property which could result in competitive injury and / or the incurrence of significant costs and draining of our resources. For a discussion of these and other risks and uncertainties, please refer to LiveRamp’s Annual Report on Form 10-K for our fiscal year 2020 ended March 31, 2020, and LiveRamp's Quarterly Reports on Form 10-Q issued in fiscal year 2021. The financial information set forth in this press release reflects estimates based on information available at this time. LiveRamp assumes no obligation and does not currently intend to update these forward-looking statements. To automatically receive LiveRamp financial news by email, please visit www.LiveRamp.com and subscribe to email alerts. LiveRampⓇ, IdentityLinkTM, AbilitecⓇ, Safe HavenⓇ and all other LiveRamp marks contained herein are trademarks or service marks of LiveRamp, Inc. All other marks are the property of their respective owners. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per share amounts) For the Three Months Ended March 31 $ % 2021 2020 Variance Variance Revenues 119,175 105,701 13,474 12.7 % Cost of revenue 37,557 36,852 705 1.9 % Gross profit 81,618 68,849 12,769 18.5 % % Gross margin 68.5 % 65.1 % Operating expenses: Research and development 46,479 28,411 18,068 63.6 % Sales and marketing 53,307 48,564 4,743 9.8 % General and administrative 32,395 30,216 2,179 7.2 % Gains, losses and other items, net 1,345 2,447 (1,102 ) (45.0 %) Total operating expenses 133,526 109,638 23,888 21.8 % Loss from operations (51,908 ) (40,789 ) (11,119 ) (27.3 %) % Margin -43.6 % -38.6 % Total other income (expense) (404 ) 1,565 (1,969 ) (125.8 %) Loss from continuing operations before income taxes (52,312 ) (39,224 ) (13,088 ) (33.4 %) Income taxes (benefit) (19,465 ) (34,345 ) 14,880 43.3 % Net loss from continuing operations (32,847 ) (4,879 ) (27,968 ) (573.2 %) Earnings from discontinued operations, net of tax - 750 (750 ) (100.0 %) Net loss (32,847 ) (4,129 ) (28,718 ) (695.5 %) Basic earnings (loss) per share: Continuing operations (0.49 ) (0.07 ) (0.42 ) (571.9 %) Discontinued operations - 0.01 (0.01 ) (100.0 %) Basic loss per share (0.49 ) (0.06 ) (0.43 ) (688.7 %) Diluted earnings (loss) per share: Continuing operations (0.49 ) (0.07 ) (0.42 ) (571.9 %) Discontinued operations - 0.01 (0.01 ) (100.0 %) Diluted loss per share (0.49 ) (0.06 ) (0.43 ) (688.7 %) Basic weighted average shares 67,111 66,977 Diluted weighted average shares 67,111 66,977 LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per share amounts) For the Twelve Months Ended March 31 $ % 2021 2020 Variance Variance Revenues 443,026 380,572 62,454 16.4 % Cost of revenue 144,004 152,704 (8,700 ) (5.7 %) Gross profit 299,022 227,868 71,154 31.2 % % Gross margin 67.5 % 59.9 % Operating expenses: Research and development 135,111 105,981 29,130 27.5 % Sales and marketing 177,543 188,905 (11,362 ) (6.0 %) General and administrative 104,201 108,903 (4,702 ) (4.3 %) Gains, losses and other items, net 2,715 5,001 (2,286 ) (45.7 %) Total operating expenses 419,570 408,790 10,780 2.6 % Loss from operations (120,548 ) (180,922 ) 60,374 33.4 % % Margin -27.2 % -47.5 % Total other income (expense) (252 ) 15,385 (15,637 ) (101.6 %) Loss from continuing operations before income taxes (120,800 ) (165,537 ) 44,737 27.0 % Income taxes (benefit) (30,532 ) (40,276 ) 9,744 24.2 % Net loss from continuing operations (90,268 ) (125,261 ) 34,993 27.9 % Earnings from discontinued operations, net of tax - 750 (750 ) (100.0 %) Net loss (90,268 ) (124,511 ) 34,243 27.5 % Basic earnings (loss) per share: Continuing operations (1.36 ) (1.85 ) 0.49 26.4 % Discontinued operations - 0.01 (0.01 ) (100.0 %) Basic loss per share (1.36 ) (1.84 ) 0.48 26.0 % Diluted earnings (loss) per share: Continuing operations (1.36 ) (1.85 ) 0.49 26.4 % Discontinued operations - 0.01 (0.01 ) (100.0 %) Diluted loss per share (1.36 ) (1.84 ) 0.48 26.0 % Basic weighted average shares 66,304 67,760 Diluted weighted average shares 66,304 67,760 LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP EPS (1) (Unaudited) (Dollars in thousands, except per share amounts) For the Three Months Ended For the Twelve Months Ended March 31, March 31, 2021 2020 2021 2020 Loss from continuing operations before income taxes (52,312 ) (39,224 ) (120,800 ) (165,537 ) Income taxes (benefit) (19,465 ) (34,345 ) (30,532 ) (40,276 ) Net loss from continuing operations (32,847 ) (4,879 ) (90,268 ) (125,261 ) Earnings from discontinued operations, net of tax - 750 - 750 Net loss (32,847 ) (4,129 ) (90,268 ) (124,511 ) Loss per share: Basic (0.49 ) (0.06 ) (1.36 ) (1.84 ) Diluted (0.49 ) (0.06 ) (1.36 ) (1.84 ) Excluded items: Purchased intangible asset amortization (cost of revenue) 4,177 5,181 18,046 19,042 Non-cash stock compensation (cost of revenue and operating expenses) 47,124 17,168 111,707 89,447 Accelerated depreciation (cost of revenue and operating expenses) - - - 3,569 Transformation costs (general and administrative) - - 3,863 - Restructuring and merger charges (gains, losses, and other) 1,345 2,447 2,715 5,001 Total excluded items 52,646 24,796 136,331 117,059 Income (loss) from operations before income taxes and excluding items 334 (14,428 ) 15,531 (48,478 ) Income taxes (benefit) (2) (2,628 ) (11,199 ) (638 ) (11,452 ) Non-GAAP net earnings (loss) 2,962 (3,229 ) 16,169 (37,026 ) Non-GAAP earnings (loss) per share: Basic 0.04 (0.05 ) 0.24 (0.55 ) Diluted 0.04 (0.05 ) 0.23 (0.55 ) Basic weighted average shares 67,111 66,977 66,304 67,760 Diluted weighted average shares 69,935 66,977 68,963 67,760 (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A. (2) Income taxes were calculated by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusting for discrete tax items in the period. The differences between our GAAP and non-GAAP effective tax rates were primarily due to the net tax effects of the excluded items, coupled with larger pre-tax losses for GAAP purposes versus smaller pre-tax losses or income for non-GAAP purposes. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP INCOME (LOSS) FROM OPERATIONS (1) (Unaudited) (Dollars in thousands) For the Three Months Ended For the Twelve Months Ended March 31, March 31, 2021 2020 2021 2020 Loss from continuing operations (51,908 ) (40,789 ) (120,548 ) (180,922 ) Excluded items: Purchased intangible asset amortization (cost of revenue) 4,177 5,181 18,046 19,042 Non-cash stock compensation (cost of revenue and operating expenses) 47,124 17,168 111,707 89,447 Accelerated depreciation (cost of revenue and operating expenses) - - - 3,569 Transformation costs (general and administrative) - - 3,863 - Restructuring and merger charges (gains, losses, and other) 1,345 2,447 2,715 5,001 Total excluded items 52,646 24,796 136,331 117,059 Income (loss) from continuing operations before excluded items 738 (15,993 ) 15,783 (63,863 ) (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF ADJUSTED EBITDA (1) (Unaudited) (Dollars in thousands) For the Three Months Ended For the Twelve Months Ended March 31, March 31, 2021 2020 2021 2020 Net loss from continuing operations (32,847 ) (4,879 ) (90,268 ) (125,261 ) Income taxes (benefit) (19,465 ) (34,345 ) (30,532 ) (40,276 ) Other expense (income) 404 (1,565 ) 252 (15,385 ) Loss from operations (51,908 ) (40,789 ) (120,548 ) (180,922 ) Depreciation and amortization 6,277 7,943 27,741 35,901 EBITDA (45,631 ) (32,846 ) (92,807 ) (145,021 ) Other adjustments: Non-cash stock compensation (cost of revenue and operating expenses) 47,124 17,168 111,707 89,447 Transformation costs (general and administrative) - - 3,863 - Restructuring and merger charges (gains, losses, and other) 1,345 2,447 2,715 5,001 Other adjustments 48,469 19,615 118,285 94,448 Adjusted EBITDA 2,838 (13,231 ) 25,478 (50,573 ) (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands) March 31, March 31, $ % 2021 2020 Variance Variance Assets Current assets: Cash and cash equivalents 572,787 717,811 (145,024 ) (20.2 %) Restricted cash 8,900 14,815 (5,915 ) (39.9 %) Trade accounts receivable, net 114,284 92,761 21,523 23.2 % Refundable income taxes 65,692 38,340 27,352 71.3 % Other current assets 64,052 32,666 31,386 96.1 % Total current assets 825,715 896,393 (70,678 ) (7.9 %) Property and equipment 44,284 44,786 (502 ) (1.1 %) Less - accumulated depreciation and amortization 32,327 25,465 6,862 26.9 % Property and equipment, net 11,957 19,321 (7,364 ) (38.1 %) Intangible assets, net 39,730 45,200 (5,470 ) (12.1 %) Goodwill 357,446 297,796 59,650 20.0 % Deferred commissions, net 22,619 16,014 6,605 41.2 % Other assets, net 30,854 27,165 3,689 13.6 % 1,288,321 1,301,889 (13,568 ) (1.0 %) Liabilities and Stockholders' Equity Current liabilities: Trade accounts payable 39,955 42,204 (2,249 ) (5.3 %) Accrued payroll and related expenses 46,438 28,791 17,647 61.3 % Other accrued expenses 58,353 68,991 (10,638 ) (15.4 %) Acquisition escrow payable 8,900 14,815 (5,915 ) (39.9 %) Deferred revenue 11,603 6,581 5,022 76.3 % Total current liabilities 165,249 161,382 3,867 2.4 % Other liabilities 42,389 52,995 (10,606 ) (20.0 %) Stockholders' equity: Preferred stock - - - n/a Common stock 14,781 14,394 387 2.7 % Additional paid-in capital 1,630,072 1,496,565 133,507 8.9 % Retained earnings 1,454,826 1,545,094 (90,268 ) (5.8 %) Accumulated other comprehensive income 7,522 5,745 1,777 30.9 % Treasury stock, at cost (2,026,518 ) (1,974,286 ) (52,232 ) (2.6 %) Total stockholders' equity 1,080,683 1,087,512 (6,829 ) (0.6 %) 1,288,321 1,301,889 (13,568 ) (1.0 %) LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) For the Three Months Ended March 31, 2021 2020 Cash flows from operating activities: Net loss (32,847 ) (4,129 ) Earnings from discontinued operations, net of tax - (750 ) Non-cash operating activities: Depreciation and amortization 6,277 7,943 Loss on disposal or impairment of assets 54 1,865 Provision for doubtful accounts (431 ) 3,450 Deferred income taxes (1,418 ) (8,343 ) Non-cash stock compensation expense 47,124 17,168 Changes in operating assets and liabilities: Accounts receivable 1,818 (8,667 ) Deferred commissions (1,523 ) (2,563 ) Other assets (26,283 ) (8,548 ) Accounts payable and other liabilities 6,731 12,326 Income taxes (17,233 ) (12,030 ) Deferred revenue (156 ) 2,058 Net cash used in operating activities (17,887 ) (220 ) Cash flows from investing activities: Capital expenditures (376 ) (1,409 ) Proceeds from sales of property and equipment - 356 Purchases of investments (4,500 ) - Cash paid in acquisition, net of cash received (58,264 ) - Net cash used in investing activities (63,140 ) (1,053 ) Cash flows from financing activities: Proceeds related to the issuance of common stock under stock and employee benefit plans 61 1,331 Shares repurchased for tax withholdings upon vesting of stock-based awards (538 ) (6,465 ) Acquisition of treasury stock - (61,002 ) Net cash used in financing activities (477 ) (66,136 ) Cash flows from discontinued operations: From operating activities - (207 ) From investing activities - 18,582 Net cash provided by discontinued operations - 18,375 Effect of exchange rate changes on cash (210 ) (355 ) Net change in cash, cash equivalents, and restricted cash (81,714 ) (49,389 ) Cash, cash equivalents, and restricted cash at beginning of period 663,401 782,015 Cash, cash equivalents, and restricted cash at end of period 581,687 732,626 Supplemental cash flow information: Cash paid (received) during the period for: Income taxes (819 ) (13,515 ) LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) For the Twelve Months Ended March 31, 2021 2020 Cash flows from operating activities: Net loss (90,268 ) (124,511 ) Earnings from discontinued operations, net of tax - (750 ) Non-cash operating activities: Depreciation and amortization 27,741 35,901 Loss on disposal or impairment of assets 388 1,725 Provision for doubtful accounts 2,915 7,133 Deferred income taxes (1,418 ) (6,878 ) Non-cash stock compensation expense 111,707 89,447 Changes in operating assets and liabilities: Accounts receivable (24,828 ) (20,518 ) Deferred commissions (6,605 ) (5,273 ) Other assets (18,772 ) (6,144 ) Accounts payable and other liabilities (116 ) 24,923 Income taxes (26,215 ) (25,453 ) Deferred revenue 4,911 1,823 Net cash used in operating activities (20,560 ) (28,575 ) Cash flows from investing activities: Capital expenditures (2,182 ) (11,711 ) Proceeds from sales of property and equipment - 873 Purchases of investments (7,500 ) - Purchases of strategic investments (2,200 ) - Cash paid in acquisition, net of cash received (76,012 ) (105,365 ) Net cash used in investing activities (87,894 ) (116,203 ) Cash flows from financing activities: Proceeds related to the issuance of common stock under stock and employee benefit plans 8,737 4,736 Shares repurchased for tax withholdings upon vesting of stock-based awards (9,920 ) (24,522 ) Acquisition of treasury stock (42,312 ) (182,190 ) Net cash used in financing activities (43,495 ) (201,976 ) Cash flows from discontinued operations: From operating activities - (207 ) From investing activities - 18,582 Net cash provided by discontinued operations - 18,375 Effect of exchange rate changes on cash 1,010 (468 ) Net change in cash, cash equivalents, and restricted cash (150,939 ) (328,847 ) Cash, cash equivalents, and restricted cash at beginning of period 732,626 1,061,473 Cash, cash equivalents, and restricted cash at end of period 581,687 732,626 Supplemental cash flow information: Cash paid (received) during the period for: Income taxes (2,911 ) (7,344 ) LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CALCULATION OF FREE CASH FLOW TO EQUITY (1) (Unaudited) (Dollars in thousands) 06/30/19 09/30/19 12/31/19 03/31/20 FY2020 06/30/20 09/30/20 12/31/20 03/31/21 FY2021 Net Cash Provided by (Used in) Operating Activities (15,408 ) (28,751 ) 15,804 (220 ) (28,575 ) (23,612 ) 6,249 14,690 (17,887 ) (20,560 ) Less: Capital expenditures (4,888 ) (2,641 ) (2,773 ) (1,409 ) (11,711 ) (832 ) (296 ) (678 ) (376 ) (2,182 ) Free Cash Flow to Equity (20,296 ) (31,392 ) 13,031 (1,629 ) (40,286 ) (24,444 ) 5,953 14,012 (18,263 ) (22,742 ) (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per share amounts) FY21 to FY20 06/30/19 09/30/19 12/31/19 03/31/20 FY2020 06/30/20 09/30/20 12/31/20 03/31/21 FY2021 % $ Revenues 82,511 90,143 102,217 105,701 380,572 99,437 104,661 119,753 119,175 443,026 16.4 % 62,454 Cost of revenue 36,426 41,460 37,966 36,852 152,704 34,465 34,897 37,085 37,557 144,004 (5.7 %) (8,700 ) Gross profit 46,085 48,683 64,251 68,849 227,868 64,972 69,764 82,668 81,618 299,022 31.2 % 71,154 % Gross margin 55.9 % 54.0 % 62.9 % 65.1 % 59.9 % 65.3 % 66.7 % 69.0 % 68.5 % 67.5 % Operating expenses Research and development 23,722 26,445 27,403 28,411 105,981 26,989 31,035 30,608 46,479 135,111 27.5 % 29,130 Sales and marketing 43,144 45,204 51,993 48,564 188,905 38,627 41,705 43,904 53,307 177,543 (6.0 %) (11,362 ) General and administrative 25,318 27,262 26,107 30,216 108,903 23,368 24,495 23,943 32,395 104,201 (4.3 %) (4,702 ) Gains, losses and other items, net 2,276 45 233 2,447 5,001 1,995 (619 ) (6 ) 1,345 2,715 (45.7 %) (2,286 ) Total operating expenses 94,460 98,956 105,736 109,638 408,790 90,979 96,616 98,449 133,526 419,570 2.6 % 10,780 Loss from operations (48,375 ) (50,273 ) (41,485 ) (40,789 ) (180,922 ) (26,007 ) (26,852 ) (15,781 ) (51,908 ) (120,548 ) 33.4 % 60,374 % Margin -58.6 % -55.8 % -40.6 % -38.6 % -47.5 % -26.2 % -25.7 % -13.2 % -43.6 % -27.2 % Total other income (expense) 5,882 4,780 3,158 1,565 15,385 463 (225 ) (86 ) (404 ) (252 ) (101.6 %) (15,637 ) Loss from continuing operations before income taxes (42,493 ) (45,493 ) (38,327 ) (39,224 ) (165,537 ) (25,544 ) (27,077 ) (15,867 ) (52,312 ) (120,800 ) 27.0 % 44,737 Income taxes (benefit) (353 ) (5,291 ) (287 ) (34,345 ) (40,276 ) (3,816 ) (3,109 ) (4,142 ) (19,465 ) (30,532 ) 24.2 % 9,744 Net loss from continuing operations (42,140 ) (40,202 ) (38,040 ) (4,879 ) (125,261 ) (21,728 ) (23,968 ) (11,725 ) (32,847 ) (90,268 ) 27.9 % 34,993 Earnings from discontinued operations, net of tax - - - 750 750 - - - - - (100.0 %) (750 ) Net loss (42,140 ) (40,202 ) (38,040 ) (4,129 ) (124,511 ) (21,728 ) (23,968 ) (11,725 ) (32,847 ) (90,268 ) 27.5 % 34,243 Diluted loss per share (0.61 ) (0.59 ) (0.56 ) (0.06 ) (1.84 ) (0.33 ) (0.36 ) (0.18 ) (0.49 ) (1.36 ) 25.9 % 0.48 Diluted loss per share continuing operations (0.61 ) (0.59 ) (0.56 ) (0.07 ) (1.85 ) (0.33 ) (0.36 ) (0.18 ) (0.49 ) (1.36 ) 26.4 % 0.49 Some loss per share amounts may not add due to rounding. Basic shares 68,906 67,684 67,473 66,977 67,760 65,570 66,010 66,523 67,111 66,304 Diluted shares 68,906 67,684 67,473 66,977 67,760 65,570 66,010 66,523 67,111 66,304 LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP EPS (1) (Unaudited) (Dollars in thousands, except per share amounts) 06/30/19 09/30/19 12/31/19 03/31/20 FY2020 06/30/20 09/30/20 12/31/20 03/31/21 FY2021 Loss from continuing operations before income taxes (42,493 ) (45,493 ) (38,327 ) (39,224 ) (165,537 ) (25,544 ) (27,077 ) (15,867 ) (52,312 ) (120,800 ) Income taxes (benefit) (353 ) (5,291 ) (287 ) (34,345 ) (40,276 ) (3,816 ) (3,109 ) (4,142 ) (19,465 ) (30,532 ) Net loss from continuing operations (42,140 ) (40,202 ) (38,040 ) (4,879 ) (125,261 ) (21,728 ) (23,968 ) (11,725 ) (32,847 ) (90,268 ) Earnings from discontinued operations, net of tax - - - 750 750 - - - - - Net loss (42,140 ) (40,202 ) (38,040 ) (4,129 ) (124,511 ) (21,728 ) (23,968 ) (11,725 ) (32,847 ) (90,268 ) Loss per share: Basic (0.61 ) (0.59 ) (0.56 ) (0.06 ) (1.84 ) (0.33 ) (0.36 ) (0.18 ) (0.49 ) (1.36 ) Diluted (0.61 ) (0.59 ) (0.56 ) (0.06 ) (1.84 ) (0.33 ) (0.36 ) (0.18 ) (0.49 ) (1.36 ) Excluded items: Purchased intangible asset amortization (cost of revenue) 3,123 5,369 5,369 5,181 19,042 5,306 4,350 4,213 4,177 18,046 Non-cash stock compensation (cost of revenue and operating expenses) 18,630 23,354 30,295 17,168 89,447 16,485 24,204 23,894 47,124 111,707 Accelerated depreciation (cost of revenue and operating expenses) 1,906 1,663 - - 3,569 - - - - - Restructuring and merger charges (gains, losses, and other) 2,276 45 233 2,447 5,001 1,995 (619 ) (6 ) 1,345 2,715 Transformation costs (general and administrative) - - - - - 3,605 258 - - 3,863 Total excluded items, continuing operations 25,935 30,431 35,897 24,796 117,059 27,391 28,193 28,101 52,646 136,331 Income (loss) from continuing operations before income taxes and excluding items (16,558 ) (15,062 ) (2,430 ) (14,428 ) (48,478 ) 1,847 1,116 12,234 334 15,531 Income taxes (benefit) (216 ) 190 (227 ) (11,199 ) (11,452 ) 934 (1,291 ) 2,347 (2,628 ) (638 ) Non-GAAP net earnings (loss) from continuing operations (16,342 ) (15,252 ) (2,203 ) (3,229 ) (37,026 ) 913 2,407 9,887 2,962 16,169 Non-GAAP earnings (loss) per share from continuing operations: Basic (0.24 ) (0.23 ) (0.03 ) (0.05 ) (0.55 ) 0.01 0.04 0.15 0.04 0.24 Diluted (0.24 ) (0.23 ) (0.03 ) (0.05 ) (0.55 ) 0.01 0.03 0.14 0.04 0.23 Basic weighted average shares 68,906 67,684 67,473 66,977 67,760 65,570 66,010 66,523 67,111 66,304 Diluted weighted average shares 68,906 67,684 67,473 66,977 67,760 67,337 68,804 69,775 69,935 68,963 Some totals may not add due to rounding (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP EXPENSES (1) (Unaudited) (Dollars in thousands) 06/30/19 09/30/19 12/31/19 03/31/20 FY2020 06/30/20 09/30/20 12/31/20 03/31/21 FY2021 Expenses: Cost of revenue 36,426 41,460 37,966 36,852 152,704 34,465 34,897 37,085 37,557 144,004 Research and development 23,722 26,445 27,403 28,411 105,981 26,989 31,035 30,608 46,479 135,111 Sales and marketing 43,144 45,204 51,993 48,564 188,905 38,627 41,705 43,904 53,307 177,543 General and administrative 25,318 27,262 26,107 30,216 108,903 23,368 24,495 23,943 32,395 104,201 Gains, losses and other items, net 2,276 45 233 2,447 5,001 1,995 (619 ) (6 ) 1,345 2,715 Gross profit: 46,085 48,683 64,251 68,849 227,868 64,972 69,764 82,668 81,618 299,022 % Gross margin 55.9 % 54.0 % 62.9 % 65.1 % 59.9 % 65.3 % 66.7 % 69.0 % 68.5 % 67.5 % Excluded items: Purchased intangible asset amortization (cost of revenue) 3,123 5,369 5,369 5,181 19,042 5,306 4,350 4,213 4,177 18,046 Non-cash stock compensation (cost of revenue) 755 1,060 1,028 926 3,769 775 913 988 2,624 5,300 Non-cash stock compensation (research and development) 4,451 6,346 6,462 6,001 23,260 5,886 7,713 7,376 17,985 38,960 Non-cash stock compensation (sales and marketing) 8,920 9,758 15,670 3,678 38,026 7,123 9,233 9,212 14,833 40,401 Non-cash stock compensation (general and administrative) 4,504 6,190 7,135 6,563 24,392 2,701 6,345 6,318 11,682 27,046 Accelerated depreciation (cost of revenue) 1,487 1,245 - - 2,732 - - - - - Accelerated depreciation (general and administrative) 419 418 - - 837 - - - - - Restructuring and merger charges (gains, losses, and other) 2,276 45 233 2,447 5,001 1,995 (619 ) (6 ) 1,345 2,715 Transformation costs (general and administrative) - - - - - 3,605 258 - - 3,863 Total excluded items 25,935 30,431 35,897 24,796 117,059 27,391 28,193 28,101 52,646 136,331 Expenses, excluding items: Cost of revenue 31,061 33,786 31,569 30,745 127,161 28,384 29,634 31,884 30,756 120,658 Research and development 19,271 20,099 20,941 22,410 82,721 21,103 23,322 23,232 28,494 96,151 Sales and marketing 34,224 35,446 36,323 44,886 150,879 31,504 32,472 34,692 38,474 137,142 General and administrative 20,395 20,654 18,972 23,653 83,674 17,062 17,892 17,625 20,713 73,292 Gains, losses and other items, net - - - - - - - - - - Gross profit, excluding items: 51,450 56,357 70,648 74,956 253,411 71,053 75,027 87,869 88,419 322,368 % Gross margin 62.4 % 62.5 % 69.1 % 70.9 % 66.6 % 71.5 % 71.7 % 73.4 % 74.2 % 72.8 % (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A. LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP OPERATING INCOME (LOSS) GUIDANCE (1) (Unaudited) (Dollars in thousands) For the quarter ending For the year ending June 30, 2021 March 31, 2022 GAAP loss from operations (30,000 ) (116,500 ) Excluded items: Purchased intangible asset amortization 5,000 18,000 Non-cash stock compensation 21,000 99,000 Restructuring and merger charges 2,000 2,000 Total excluded items 28,000 119,000 Non-GAAP income (loss) from operations $ (2,000 ) $ 2,500 (1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A. APPENDIX A LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES FISCAL 2021 FINANCIAL RESULTS EXPLANATION OF NON-GAAP MEASURES AND OTHER KEY METRICS To supplement our financial results, we use non-GAAP measures which exclude certain acquisition related expenses, non-cash stock compensation and restructuring charges. We believe these measures are helpful in understanding our past performance and our future results. Our non-GAAP financial measures and schedules are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated GAAP financial statements. Our management regularly uses these non-GAAP financial measures internally to understand, manage and evaluate our business and to make operating decisions. These measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is also based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures, including non-GAAP earnings (loss) per share, income (loss) from operations and adjusted EBITDA reflect adjustments based on the following items, as well as the related income tax effects when applicable: Purchased intangible asset amortization: We incur amortization of purchased intangibles in connection with our acquisitions. Purchased intangibles include (i) developed technology, (ii) customer and publisher relationships, and (iii) trade names. We expect to amortize for accounting purposes the fair value of the purchased intangibles based on the pattern in which the economic benefits of the intangible assets will be consumed as revenue is generated. Although the intangible assets generate revenue for us, we exclude this item because this expense is non-cash in nature and because we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our operational performance. Non-cash stock compensation: Non-cash stock compensation consists of charges for associate restricted stock units, performance shares and stock options in accordance with current GAAP related to stock-based compensation including expense associated with stock-based compensation related to unvested options assumed in connection with our acquisitions. As we apply stock-based compensation standards, we believe that it is useful to investors to understand the impact of the application of these standards to our operational performance. Although stock-based compensation expense is calculated in accordance with current GAAP and constitutes an ongoing and recurring expense, such expense is excluded from non-GAAP results because it is not an expense that typically requires or will require cash settlement by us and because such expense is not used by us to assess the core profitability of our business operations. Restructuring charges: During the past several years, we have initiated certain restructuring activities in order to align our costs in connection with both our operating plans and our business strategies based on then-current economic conditions. As a result, we recognized costs related to termination benefits for associates whose positions were eliminated, lease and other contract termination charges, and leasehold improvement write offs. These items, reported as gains, losses, and other items, net, are excluded from non-GAAP results because such amounts are not used by us to assess the core profitability of our business operations. Transformation costs: In previous years, we incurred significant expenses to separate the financial statements of our operating segments, with particular focus on segment-level balance sheets, and to evaluate portfolio priorities. Our criteria for excluding transformation expenses from our non-GAAP measures is as follows: 1) projects are discrete in nature; 2) excluded expenses consist only of third-party consulting fees that we would not incur otherwise; and 3) we do not exclude employee related expenses or other costs associated with the ongoing operations of our business. We substantially completed those projects during the third quarter of fiscal year 2018. Beginning in the fourth quarter of fiscal 2018, and through most of fiscal 2019, we incurred transaction support expenses and system separation costs related to the Company's announced evaluation of strategic options for its Marketing Solutions (AMS) business. Beginning in the first quarter of fiscal 2021 in response to the potential COVID-19 pandemic impact on our business, we incurred significant costs associated with the assessment of strategic and operating plans, including our long-term location strategy, and assistance in implementing the restructuring activities as a result of this assessment. Our criteria for excluding these costs are the same. We believe excluding these items from our non-GAAP financial measures is useful for investors and provides meaningful supplemental information. Accelerated depreciation: In the prior year we excluded depreciation costs associated with the reduced useful life of certain IT equipment in connection with the Company's migration to a cloud-based data center solution. This migration was part of our AMS separation strategy. These costs are excluded from our non-GAAP results because of the short-term nature of the incremental expenses and such amounts are not used by us to assess the core profitability of our business operations. Our non-GAAP financial schedules are: Non-GAAP EPS, Non-GAAP Income from Operations, and Non-GAAP expenses: Our Non-GAAP earnings per share, Non-GAAP income from operations, and Non-GAAP expenses reflect adjustments as described above, as well as the related tax effects where applicable. Adjusted EBITDA: Adjusted EBITDA is defined as net income from continuing operations before income taxes, other expenses, depreciation and amortization, and including adjustments as described above. We use Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as within our operating segments and to compare our results to those of our competitors. We believe that the inclusion of Adjusted EBITDA provides useful supplementary information to and facilitates analysis by investors in evaluating the Company's performance and trends. The presentation of Adjusted EBITDA is not meant to be considered in isolation or as an alternative to net earnings as an indicator of our performance. Free Cash Flow to Equity: To supplement our statement of cash flows, we use a non-GAAP measure of cash flow to analyze cash flows generated from operations. Free cash flow to equity is defined as operating cash flow less cash used by investing activities (excluding the impact of cash paid in acquisitions), less required payments of debt, and excluding the impact of discontinued operations. Management believes that this measure of cash flow is meaningful since it represents the amount of money available from continuing operations for the Company's discretionary spending after funding all required obligations including scheduled debt payments. The presentation of non-GAAP free cash flow to equity is not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity. View source version on businesswire.com: https://www.businesswire.com/news/home/20210525005938/en/