RAMP - LiveRamp Holdings Inc. (RAMP) Q3 2024 Earnings Call Transcript
2024-02-08 20:52:06 ET
LiveRamp Holdings, Inc. (RAMP)
Q3 2024 Earnings Conference Call
February 08, 2024 04:30 PM ET
Company Participants
Drew Borst - Vice President, Investor Relations
Scott Howe - Chief Executive Officer
Lauren Dillard - Chief Financial Officer
Conference Call Participants
Aaron Samuels - Susquehanna International Group
Elizabeth Porter - Morgan Stanley
Jason Kreyer - Craig Hallum
Mark Zgutowicz - The Benchmark Company
Kirk Materne - Evercore ISI
Presentation
Drew Borst
Good afternoon, and welcome. Thank you for joining our Fiscal 2024 Third Quarter Earnings Call. With me today are Scott Howe, our CEO; and Lauren Dillard, our CFO.
Today's press release and this call may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. For a detailed description of these risks, please read the Risk Factors section of our public filings and the press release. A copy of our press release and financial schedules, including any reconciliations to non-GAAP financial measures, is available at liveramp.com. Also, during the call today, we'll be referring to the slide deck posted on our website.
And with that, let me turn the call over to, Scott.
Scott Howe
Thank you, Drew, and thanks to everyone joining our call today. Q3 represented another quarter of improved momentum for LiveRamp. So my initial remarks today, will focus on our recent accomplishments in greater detail. As we look forward, however, we see a watershed year for the digital marketing industry and a significant opportunity for LiveRamp. So, I'll also spend some time talking about our goals for FY 2025, so that we can revisit our progress against these ambitions in the coming quarters.
Q3 revenue growth exceeded our expectations across the board, with total revenue up 10%, Subscription revenue up 5%, and Marketplace up 29%. Non-GAAP operating income was up 40% year-on-year and was $7 million or 25% ahead of our guidance.
A year ago, you may recall we had a non-recurring contract settlement. Adjusting for this, our underlying Subscription growth was 8%, which is a notable acceleration from the 5% rate we posted in the trailing three quarters. This acceleration reflects the turnaround in sales productivity that has been building over the past several quarters.
As I often say, the gift and curse of a SaaS model is reported revenue growth is slow to decelerate and also slow to accelerate. The quarter seemingly demonstrates that we are now on the upswing and encouragingly the leading indicators of our revenue growth give us increased confidence about the fiscal year ahead....
LiveRamp Holdings, Inc. (RAMP) Q3 2024 Earnings Call Transcript