LiveRamp Records First Profitable Quarter on Revenue of $99 Million

Bottom line buoyed by subscription business, which increased 21% year over year

Marketers are maintaining their subscription-based services even if they halt campaign spend. iStock
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LiveRamp recorded its first profitable quarter during the three months ending June 30 on revenues of $99 million. Executives are lauding its subscription-based revenue offerings as a key driver of growth.

The numbers contrast with the performance of some of LiveRamp’s peers during the same period—many of whom rely on active campaign spend to generate revenue—as the economic impact of the Covid-19 pandemic took hold.

For instance, Criteo posted a 17% decline while The Trade Desk likewise recorded a 13% dip as many brands held back on their earlier planned ad campaigns.

Meanwhile, LiveRamp offers both subscription-based services, such as Authenticated Traffic Solution (ATS), IdentityLink (IDL) and Safe Haven, as well as a marketplace offering third-party data. 

In a statement, LiveRamp president and CFO Warren Jenson described the company’s business model as “durable” compared to those that generate revenue by charging a commission on media buys.  

Subscription revenue increased 21% during the quarter and totaled $83 million, while those generated by its data marketplace came in at $17 million, an increase of 16% year over year. 

“Our top line grew 21%, and we delivered our first quarterly non-GAAP operating profit,” he said, adding that TV revenue was up 50% while Safe Haven bookings were up 50%. 

LiveRamp’s product uptake in numbers:

  • 40+ demand-side platforms have implemented IDL
  • 20+ supply-side platforms have implemented IDL
  • 125+ publishers have implemented ATS
  • 10+ “primary tenants” in Safe Haven
  • 780 direct subscribers, 60 of whom account for $1 million annually 

According to LiveRamp CEO Scott Howe, a recession-threatened economy leads many companies to maintain such subscriptions as they seek to become more data-led in their operations, even if they do press pause on ad spend. 

“The pace of digitization has accelerated dramatically. Even prior to Covid-19, digital transformation was likely a top priority for most management teams,” he added. 

Recounting a recent conversation with the chief digital officer of a global cosmetics client, Howe explained that many clients are using a lull in campaign activity to improve future capabilities. 

“They were using this sojourn as an opportunity to reset and ensure 100% of their marketing spend is addressable upon reengaging,” he said, adding that “one of the world’s largest restaurant chains” was doing likewise with LiveRamp.  

“Over time, we believe that digital transformation will touch every tactic in the marketing toolkit,” Howe said. 

@ronan_shields Ronan Shields is a programmatic reporter at Adweek, focusing on ad-tech.