Liveramp Holdings Stock Earnings Reports

LiveRamp reported a strong start to FY'26 with Q1 revenue of $195M, up 11% YoY, beating guidance by $4M. Subscription revenue grew 10% and subscription usage showed a large one-quarter spike (+~40%) due partly to timing and one-time items. Non-GAAP operating income rose 34%, driving record Q1 non-GAAP operating margin of 18% and GAAP operating margin expansion driven by lower stock-based comp. ARR was up 5% and total RPO rose 29% to $690M. Management raised FY'26 revenue guidance (now $798M–$818M, +7%–10%) and expects materially higher free cash flow this year (benefiting from recent tax legislation), with plans for opportunistic share repurchases. Product momentum centers on Cross-Media Intelligence (new clean-room offering), Commerce Media Networks (expanding beyond retail), and CTV integrations (notably Netflix). A pilot of a new usage-based, tokenized pricing model launched with ~40 customers to improve deal velocity and upsell potential; broader rollout is planned after the FY'27 pilot. Margin expansion is supported by offshoring, platform modernization, automation, and lower stock comp. Management positions LiveRamp as an "AI enabler," emphasizing the company’s data collaboration, governance, and clean-room capabilities as critical infrastructure for AI-driven advertising. Near-term conservatism remains in usage forecasts (guiding subscription usage flat for the remaining quarters), and management will be methodical converting existing customers to the new pricing model.