LiveRamp Holdings, Inc. (NYSE:RAMP) Q4 2023 Earnings Conference Call May 24, 2023 4:30 PM ET

Company Participants

Drew Borst - Vice President, Investor Relations

Scott Howe - Chief Executive Officer

Lauren Dillard - Interim Chief Financial Officer

Conference Call Participants

Elizabeth Porter - Morgan Stanley

Brian Fitzgerald - Wells Fargo

Jason Kreyer - Craig-Hallum

Tim Nollen - Macquarie

Vasily Karasyov - Cannonball Research

Nicholas Zangler - Stephens

Mark Zgutowicz - The Benchmark Company

Operator

Good afternoon, ladies and gentlemen and welcome to LiveRamp’s Fiscal 2023 Fourth Quarter Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over to your host, Drew Borst, Vice President of Investor Relations. Please go ahead.

Drew Borst

Thank you, operator. Good afternoon and welcome. Thank you for joining our fiscal 2023 fourth quarter earnings call. With me today are Scott Howe, our CEO and Lauren Dillard, Interim 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.

At this time, I’ll turn the call over to Scott.

Scott Howe

Thanks, Drew and thanks to all of you for joining our call today. Now there are three key points I hope you take from today’s call. First, our business model is consistent and durable. Our Q4 financial results were broadly in line with our expectations, despite a challenging macro environment and we delivered strong operating profit growth and margin expansion. Second, we think we have positioned ourselves for top line acceleration in future quarters. We aspire to be a true Rule of 40 company and we’ve historically achieved consistent double-digit top line growth rates.

As a subscription business, our current growth rate can be traced to the disappointing leading indicators of several quarters ago. Likewise, the more promising leading indicators we are seeing now, if we continue to maintain our trajectory suggest gradual revenue acceleration throughout fiscal year ‘24 and beyond.

Finally, as we have consistently done, we are going to continue to improve operating profit and return capital to shareholders. We delivered a significant improvement in operating margin in FY ‘23 and we expect to do so again in FY ‘24. Starting with Q4, while results were in line with our guidance on the key financial metrics, including revenue, gross profit and operating profit, we are not satisfied with our performance and have implemented programs to accelerate our top line growth while also ensuring consistent margin improvement.