LiveRamp Holdings, Inc. (NYSE:RAMP) Q2 2023 Results Conference Call November 8, 2022 4:30 PM ET

Company Participants

Drew Borst - Vice President of Investor Relations

Scott Howe - Chief Executive Officer

Warren Jenson - President and Chief Financial Officer

Conference Call Participants

Elizabeth Porter - Morgan Stanley

Kirk Materne - Evercore ISI

Brian Fitzgerald - Wells Fargo

Jared Pomerantz - Susquehanna

Mark Zgutowicz - The Benchmark Company

Operator

Good afternoon, ladies and gentlemen, and welcome to LiveRamp's Fiscal 2023 Second Quarter Earnings Call. 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 second 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 in our public filings and the press release. A copy of our press release and financial schedules, including any reconciliation 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.

With that, I'll turn the call over to Scott.

Scott Howe

Thank you, Drew, and thanks to all of you for joining our call today. My comments today will focus on two areas. First, I will discuss our second quarter performance, providing additional insight into what is going well and where we see opportunities to improve. Second, I want to spend some time on what for many of us has been an ongoing source of frustration, our current share price valuation and what we are doing to unlock greater shareholder returns.

While I am pleased with the team's determination and resilience in the face of the difficult macroeconomic conditions that are impacting our customers and, by extension, us, we aren't satisfied with our top line subscription trends and, obviously, our valuation. Let's start with the recent quarter, which was good on many dimensions, but fell short on others.

Q2 exceeded our guidance across all financial metrics and particularly so on operating profit. Total revenue in the quarter grew 16% year-on-year. Subscription revenue grew by 14%, and Marketplace & Other grew by 25%, driven by our data marketplace business. We ended the quarter with $420 million in ARR, up 15% compared to the year-ago quarter.