LiveRamp Holdings, Inc. (NYSE:RAMP) Q3 2023 Results Conference Call February 7, 2023 4:30 PM ET

Company Participants

Drew Borst - VP of IR

Scott Howe - CEO

Warren Jenson - President and CFO

Conference Call Participants

Shyam Patil - Susquehanna

Elizabeth Porter - Morgan Stanley

Peter Burkly - Evercore

Brian Fitzgerald - Wells Fargo

Jason Kreyer - Craig-Hallum

Mark Zgutowicz - Benchmark Company

Dean Sublett - Stephens

Operator

Good afternoon, ladies and gentlemen. And welcome to LiveRamp's Fiscal 2023 Third 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.

Drew Borst

Thank you, operator. Good afternoon, and welcome. Thank you for joining us to discuss our fiscal 2023 third quarter results. With me today are Scott Howe, our CEO; and Warren Jenson, President and 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 will be referring to the slide deck posted on our Web site. At this time, I'll turn the call over to Scott.

Scott Howe

Thank you, Drew, and thanks to all of you for joining our call today. There are three key messages I hope you will take from our time together. First, we delivered another solid quarter, demonstrating the durability of our business model. Second, we are making steady progress with our key initiatives to reaccelerate revenue growth, including an improvement in sales force productivity and two new integrations with the Walt Disney Company and Amazon Web Services. Finally, we made meaningful operating margin improvement in the quarter and we expect the improvement to continue in FY24. Third quarter performance met or exceeded our guidance on the key financial metrics, including revenue, gross profit and operating profit and also demonstrated the durability of our business model. In recent calls, I've talked about our efforts to strengthen our sales force and our broader macroeconomic concerns. Revenue growth, which I characterize as a lagging indicator given the high subscription component of our business came in as we expected in Q3. Total revenue in the quarter grew 13% year-on-year, Subscription revenue grew by 14% and Marketplace and other revenue grew by 9%. The growth in Marketplace and other was less than we expected due to slower growth in third party data sales, reflecting macro pressure on advertising spend.