LiveRamp Profit Doubles as Growth Cools Ahead of Publicis Deal
LiveRamp Holdings (RAMP) posted GAAP operating income of $20 million in its fiscal first quarter, more than double the year-earlier figure, even as revenue growth slowed to 10%.
LiveRamp Holdings (RAMP) reported fiscal first-quarter revenue of $214 million, up 10% year-over-year, as the data-connectivity company's profitability climbed faster than its top line. GAAP operating income rose 179% to $20 million, pushing GAAP operating margin up 6 points to 9.4%, while non-GAAP operating income increased 41% to $50 million on a non-GAAP margin of 24%.
The quarter marked the first since LiveRamp agreed in June to be acquired by Publicis Groupe in a deal valuing its equity at $2.5 billion, or $38.50 a share. LiveRamp did not hold an earnings call or issue financial guidance with the release, a departure from its usual practice attributed to the pending transaction, expected to close before the end of calendar 2026. Restructuring and merger-related charges climbed to $6.6 million from $423,000 a year earlier, reflecting rising deal costs tied to the acquisition.
Revenue growth continued a gradual deceleration that has run through the past several quarters, slowing from 11% in the third quarter of fiscal 2026 and 9% in the fourth quarter to 10% in the first quarter of fiscal 2027. Subscription revenue, the company's largest segment at $160 million, grew 8%, down from 9% in each of the prior two quarters. Marketplace & Other revenue moved in the opposite direction, accelerating to 15% growth on $54 million in sales, up from 11% in the fourth quarter and 8% in the third. Within that segment, LiveRamp for the first time broke out Data Marketplace revenue as a standalone line, reporting $40 million, up 13%.
Customer metrics showed continued but slowing expansion. The number of customers generating more than $1 million in annualized subscription revenue rose to 132 from 127 a year earlier, while direct subscription customers increased to 845 from 835. Subscription net retention fell to 103% from 107% in the fourth quarter, and annual recurring revenue growth slowed to 7% from 8%. LiveRamp also disclosed current remaining performance obligations of $482 million, up 7% year-over-year, a metric not included in the two preceding quarterly releases.
Operating cash flow turned positive at $17 million, reversing a $16 million outflow in the year-earlier quarter, though it remained well below the $58 million to $67 million generated in each of the three preceding quarters. GAAP and non-GAAP gross margins held steady at 71% and 72%, respectively, matching prior-quarter levels.
LiveRamp repurchased $18 million of stock during the quarter, a fraction of the $194 million spent on buybacks across all of fiscal 2026, but enough to extend a steady decline in diluted share count to 61.8 million from 66.7 million a year earlier. With the Publicis acquisition pending, the company's near-term capital allocation and disclosure practices are likely to remain shaped by the terms of that deal through its expected close.