Q4 Revenue Up 19% and Subscription Revenue Up 22%

Q4 GAAP Gross Margin of 72% and Non-GAAP Gross Margin of 76%

$78 Million of Operating Cash Flow for Full Year

LiveRamp Intends to Repurchase $150 Million of Stock by December 31, 2022

LiveRamp^® (NYSE:RAMP), the leading global data enablement platform, today announced its financial results for the quarter and fiscal year ended March 31, 2022.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220524006020/en/

Fourth Quarter Financial Highlights

All metrics compared to the prior year fourth quarter

Total revenue was $142 million, up 19%.

Subscription revenue was $116 million, up 22%, and contributed 82% of total revenue.

Marketplace & Other revenue was $26 million, up 6%.

GAAP gross profit was $102 million, up 25%, and GAAP gross margin of 72% expanded 4 percentage points. Non-GAAP gross profit was $108 million, up 22%, and non-GAAP gross margin of 76% expanded 2 percentage points.

GAAP operating loss was $28 million compared to a GAAP operating loss of $52 million in the prior year period. Non-GAAP operating income was $3 million compared to non-GAAP operating income of $1 million in the prior year period.

GAAP loss per share was $0.43, and non-GAAP loss per share was $0.01.

Net cash provided by operating activities was $59 million compared to net cash used in operating activities of $18 million in the prior year period.

Fiscal Year Financial Highlights

All metrics compared to the prior fiscal year

Total revenue was $529 million, up 19%.

Subscription revenue was $429 million, up 20%, and contributed 81% of total revenue.

Marketplace & Other revenue was $100 million, up 16%.

GAAP gross profit was $381 million, up 27%, and GAAP gross margin of 72% expanded 5 percentage points. Non-GAAP gross profit was $404 million, up 25%, and non-GAAP gross margin of 76% expanded 4 percentage points.

GAAP operating loss was $66 million compared to a GAAP operating loss of $121 million in the prior year period. Non-GAAP operating income was $42 million compared to non-GAAP operating income of $16 million.

GAAP loss per share was $0.50, and non-GAAP earnings per share were $0.48.

Net cash provided by operating activities was $78 million compared to net cash used in operating activities of $21 million in the prior fiscal year.

In fiscal 2022, LiveRamp repurchased approximately 1.3 million shares for $59 million, including approximately 220,000 shares for $9 million in the fourth quarter. In total, since the inception of the share repurchase program in August 2011, the Company has returned over $1.2 billion in capital to shareholders.

A reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release.

"We delivered another solid quarter and our results underscore the critical value our Safe Haven^® enterprise platform delivers to customers," said LiveRamp CEO Scott Howe. "We ended the year with 87 customers paying $1 million or more in annual revenue and with approximately $400 million of ARR. Despite the macroenvironment, we enter FY23 with confidence in our forward outlook. We are executing on our growth strategy, expanding internationally and delivering category-creating innovation to our customers."

"Our operating trends remain strong," added LiveRamp President and CFO Warren Jenson. "Our revenue growth was solid, non-GAAP gross margin was 76%, and we were profitable on a non-GAAP operating income basis for the eighth quarter in a row. In addition, we generated $78 million of operating cash flow for fiscal 2022. We are well positioned to deliver both revenue growth and continued operating profit expansion in fiscal 2023."

GAAP and Non-GAAP Results

The following table summarizes the Company's financial results for its fourth quarter and fiscal year ($ in millions):

	Q4 Fiscal 2022		Full Year Fiscal 2022
	Results		Results
	GAAP	Non-GAAP	GAAP	Non-GAAP
Subscription revenue	$116	—	$429	—
YoY change %	22%		20%
Marketplace & other revenue	$26	—	$100	—
YoY change %	6%		16%
Total revenue	$142	—	$529	—
YoY change %	19%		19%

Gross profit	$102	$108	$381	$404
% Gross margin	72%	76%	72%	76%
YoY change, pts	4 pts	2 pts	5 pts	4 pts

Operating income (loss)	($28)	$3	($66)	$42
% Operating margin	(20%)	2%	(12%)	8%
YoY change, pts	24 pts	1 pts	15 pts	4 pts

Net earnings (loss)	($29)	($1)	($34)	$34
Earnings (loss) per share	($0.43)	($0.01)	($0.50)	$0.48

Shares to Calculate EPS	68.3	68.3	68.2	69.6
YoY change %	2%	(2%)	3%	1%
Net operating cash flow	$59	—	$78	—
Free cash flow to equity	—	$57	—	$74

Totals may not sum due to rounding.

A detailed discussion of our non-GAAP financial measures and a reconciliation between GAAP and non-GAAP results is provided in the schedules to this press release.

Additional Business Highlights & Metrics

The Company's Authenticated Traffic Solution (ATS) has reached global scale. There are currently more than 125 supply-side platforms (SSPs) and demand-side platforms (DSPs) live or committed to bid on RampID™ and ATS, including The Trade Desk, Amobee, Criteo, dataxu, and MediaMath. Further, in March 2022, LiveRamp announced an expanded partnership with The Trade Desk to power European Unified ID (EUID) via our ATS infrastructure.

To date, over 1,500 publishers, representing more than 11,000 deployed domains, have integrated ATS worldwide, including Amazon Publisher Services, Microsoft, CafeMedia, Leaf Group, Prisma Media and Burda. Through these integrations, LiveRamp is now connected to over 85% of consumer time spent online in the U.S.

LiveRamp added 15 net new direct subscription customers in the fourth quarter. Customer count at quarter end was 905, up from 825 a year ago.

LiveRamp has 87 customers whose subscription contracts exceed $1 million in annual revenue, up 24% compared to the prior year period.

During the fourth quarter, subscription net retention was 111%, and platform net retention was 110%.

Current remaining performance obligations (CRPO), which is contracted and committed revenue expected to be recognized over the next 12 months, was $309 million, up 21% compared to the prior year period.

Financial Outlook

LiveRamp's non-GAAP guidance excludes the impact of non-cash stock compensation, purchased intangible asset amortization, and restructuring charges.

For the first quarter of fiscal 2023, LiveRamp expects to report:

● Revenue of approximately $139 million, an increase of 17% year-over-year

● GAAP operating loss of approximately $33 million

● Non-GAAP operating income of approximately $1 million

For fiscal 2023, LiveRamp expects to report:

● Revenue of between $608 million and $625 million, an increase of between 15% and 18% year-over-year

● GAAP operating loss of approximately $93 million

● Non-GAAP operating income of approximately $49 million

Share Repurchase

LiveRamp today also announced that it intends to repurchase approximately $150 million of its common stock by the end of the third quarter of fiscal 2023.

Share repurchases will be made under the Company's existing share repurchase program that extends through December 31, 2022. Under its share repurchase program, LiveRamp is authorized to repurchase outstanding shares in the open market or privately negotiated transactions depending on prevailing market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors.

"This announcement demonstrates our confidence in LiveRamp, the strength of our operating cash flow, and our commitment to continue delivering value to shareholders," continued Howe. "Upon completion of the $150 million buyback, LiveRamp will have returned roughly $1.4 billion of capital to shareholders since the inception of its share repurchase program."

Conference Call

LiveRamp will hold a conference call at 1:30 p.m. PT today to further discuss this information. Interested parties are invited to listen to the call which will be broadcast via the Internet and can be found on LiveRamp's investor site. A slide presentation will be referenced during the call and can be accessed here.

About LiveRamp

LiveRamp is the leading data enablement platform for the safe and effective use of data. Powered by core identity capabilities and an unparalleled network, LiveRamp enables companies and their partners to better connect, control, and activate data to transform customer experiences and generate more valuable business outcomes. LiveRamp's fully interoperable and neutral infrastructure delivers end-to-end addressability for the world's top brands, agencies, and publishers. For more information, visit www.LiveRamp.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended (the "PSLRA"), including statements regarding financial guidance for the first quarter of fiscal 2023 and the full year ended March 31, 2023. These statements, which are not statements of historical fact, may contain estimates, assumptions, projections and/or expectations regarding the Company's financial position, results of operations, market position, product development, growth opportunities, economic conditions, and other similar forecasts and statements of expectation. Forward-looking statements are often identified by words or phrases such as "anticipate," "estimate," "plan," "expect," "believe," "intend," "foresee," or the negative of these terms or other similar variations thereof.

These forward-looking statements are not guarantees of future performance and are subject to a number of factors and uncertainties that could cause the Company's actual results and experiences to differ materially from the anticipated results and expectations expressed in the forward-looking statements.

Among the factors that may cause actual results and expectations to differ from anticipated results and expectations expressed in forward-looking statements are uncertainties related to COVID-19 and the associated impact on our suppliers, customers and partners; the Company's dependence upon customer renewals; new customer additions and upsell within our subscription business; our reliance upon partners, including data suppliers; competition; and attracting and retaining talent. Additional risks include maintaining our culture and our ability to innovate and evolve while working remotely and within a rapidly changing industry, while also avoiding disruption from acquisition and divestiture activities. Our international operations are also subject to risks, including war and civil unrest, that may harm the Company's business. The risk of a significant breach of the confidentiality of the information or the security of our or our customers', suppliers', or other partners' computer systems could be detrimental to our business, reputation and results of operations. Other business risks include unfavorable publicity and negative public perception about our industry; interruptions or delays in service from data center hosting vendors we rely upon; and our dependence on the continued availability of third-party data hosting and transmission services. Our clients' ability to use data on our platform could be restricted if the industry's use of third-party cookies and tracking technology declines due to technology platform changes, regulation or increased user controls. Changes in regulations relating to information collection and use represents a risk, as well as changes in tax laws and regulations that are applied to our customers which could cause enterprise software budget tightening. In addition, third parties may claim that we are infringing their intellectual property or may infringe our intellectual property which could result in competitive injury and / or the incurrence of significant costs and draining of our resources.

For a discussion of these and other risks and uncertainties, please refer to LiveRamp's Annual Report on Form 10-K for our fiscal year 2021 ended March 31, 2021, and LiveRamp's Quarterly Reports on Form 10-Q issued in fiscal year 2022.

The financial information set forth in this press release reflects estimates based on information available at this time.

The forward-looking statements contained in this press release are made as of the date hereof, and LiveRamp assumes no obligation and does not currently intend to update these forward-looking statements.

To automatically receive LiveRamp financial news by email, please visit www.LiveRamp.com and subscribe to email alerts.

LiveRamp^Ⓡ, RampID^TM, Abilitec^Ⓡ, Safe Haven^Ⓡ and all other LiveRamp marks contained herein are trademarks or service marks of LiveRamp, Inc. All other marks are the property of their respective owners.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)


	For the Three Months Ended
	March 31,
					$		%
	2022		2021		Variance		Variance

Revenues	141,725		119,175		22,550		18.9	%

Cost of revenue	39,476		37,557		1,919		5.1	%
Gross profit	102,249		81,618		20,631		25.3	%
% Gross margin	72.1	%	68.5	%

Operating expenses:
Research and development	45,501		46,479		(978	)	(2.1	%)
Sales and marketing	54,951		53,307		1,644		3.1	%
General and administrative	29,583		32,395		(2,812	)	(8.7	%)
Gains, losses and other items, net	183		1,345		(1,162	)	(86.4	%)
Total operating expenses	130,218		133,526		(3,308	)	(2.5	%)

Loss from operations	(27,969	)	(51,908	)	23,939		46.1	%
% Margin	-19.7	%	-43.6	%

Total other expense, net	(47	)	(404	)	357		88.4	%

Loss before income taxes	(28,016	)	(52,312	)	24,296		46.4	%

Income tax expense (benefit)	1,376		(19,465	)	20,841		107.1	%

Net loss	(29,392	)	(32,847	)	3,455		10.5	%

Basic loss per share	(0.43	)	(0.49	)	0.06		12.1	%

Diluted loss per share:	(0.43	)	(0.49	)	0.06		12.1	%

Basic weighted average shares	68,283		67,111

Diluted weighted average shares	68,283		67,111

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)


	For the Twelve Months Ended
	March 31,
					$		%
	2022		2021		Variance		Variance

Revenues	528,657		443,026		85,631		19.3	%

Cost of revenue	147,427		144,004		3,423		2.4	%
Gross profit	381,230		299,022		82,208		27.5	%
% Gross margin	72.1	%	67.5	%

Operating expenses:
Research and development	157,935		135,111		22,824		16.9	%
Sales and marketing	182,763		177,543		5,220		2.9	%
General and administrative	104,591		104,201		390		0.4	%
Gains, losses and other items, net	1,479		2,715		(1,236	)	(45.5	%)
Total operating expenses	446,768		419,570		27,198		6.5	%

Loss from operations	(65,538	)	(120,548	)	55,010		45.6	%
% Margin	-12.4	%	-27.2	%

Total other income (expense), net	30,463		(252	)	30,715		n/a

Loss before income taxes	(35,075	)	(120,800	)	85,725		71.0	%

Income tax benefit	(1,242	)	(30,532	)	29,290		95.9	%

Net loss	(33,833	)	(90,268	)	56,435		62.5	%

Basic loss per share	(0.50	)	(1.36	)	0.87		63.6	%

Diluted loss per share:	(0.50	)	(1.36	)	0.87		63.6	%

Basic weighted average shares	68,211		66,304

Diluted weighted average shares	68,211		66,304


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
(Unaudited)
(Dollars in thousands, except per share amounts)

	For the Three Months Ended				For the Twelve Months Ended
	March 31,				March 31,
	2022		2021		2022		2021


Loss before income taxes	(28,016	)	(52,312	)	(35,075	)	(120,800	)

Income tax expense (benefit)	1,376		(19,465	)	(1,242	)	(30,532	)

Net loss	(29,392	)	(32,847	)	(33,833	)	(90,268	)

Loss per share:
Basic	(0.43	)	(0.49	)	(0.50	)	(1.36	)

Diluted	(0.43	)	(0.49	)	(0.50	)	(1.36	)

Excluded items:
Purchased intangible asset amortization (cost of revenue)	4,807		4,177		18,711		18,046
Non-cash stock compensation (cost of revenue and operating expenses)	25,782		47,124		87,257		111,707
Transformation costs (general and administrative)	-		-		-		3,863
Restructuring and merger charges (gains, losses, and other)	183		1,345		1,479		2,715
Gain on retained profits interest (other income)	-		-		(30,235	)	-

Total excluded items	30,772		52,646		77,212		136,331

Income before income taxes and excluding items	2,756		334		42,137		15,531

Income taxes (2)	3,391		(2,628	)	8,515		(638	)

Non-GAAP net earnings (loss)	(635	)	2,962		33,622		16,169

Non-GAAP earnings per share:
Basic	(0.01	)	0.04		0.49		0.24

Diluted	(0.01	)	0.04		0.48		0.23

Basic weighted average shares	68,283		67,111		68,211		66,304

Diluted weighted average shares	68,283		69,935		69,560		68,963

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures and the material limitations on the usefulness of these measures, please see Appendix A.

(2) Income taxes were calculated by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusting for discrete tax items in the period. The differences between our GAAP and non-GAAP effective tax rates were primarily due to the net tax effects of the excluded items, coupled with larger pre-tax losses for GAAP purposes versus smaller pre-tax losses or income for non-GAAP purposes.


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INCOME (LOSS) FROM OPERATIONS (1)
(Unaudited)
(Dollars in thousands)

	For the Three Months Ended				For the Twelve Months Ended
	March 31,				March 31,
	2022		2021		2022		2021


Loss from operations	(27,969	)	(51,908	)	(65,538	)	(120,548	)

Excluded items:
Purchased intangible asset amortization (cost of revenue)	4,807		4,177		18,711		18,046
Non-cash stock compensation (cost of revenue and operating expenses)	25,782		47,124		87,257		111,707
Transformation costs (general and administrative)	-		-		-		3,863
Restructuring and merger charges (gains, losses, and other)	183		1,345		1,479		2,715

Total excluded items	30,772		52,646		107,447		136,331

Income from operations before excluded items	2,803		738		41,909		15,783

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA (1)
(Unaudited)
(Dollars in thousands)

	For the Three Months Ended				For the Twelve Months Ended
	March 31,				March 31,
	2022		2021		2022		2021


Net loss	(29,392	)	(32,847	)	(33,833	)	(90,268	)

Income tax expense (benefit)	1,376		(19,465	)	(1,242	)	(30,532	)

Other expense (income)	47		404		(30,463	)	252

Loss from operations	(27,969	)	(51,908	)	(65,538	)	(120,548	)

Depreciation and amortization	6,017		6,277		24,248		27,741

EBITDA	(21,952	)	(45,631	)	(41,290	)	(92,807	)

Other adjustments:
Non-cash stock compensation (cost of revenue and operating expenses)	25,782		47,124		87,257		111,707
Transformation costs (general and administrative)	-		-		-		3,863
Restructuring and merger charges (gains, losses, and other)	183		1,345		1,479		2,715

Other adjustments	25,965		48,469		88,736		118,285

Adjusted EBITDA	4,013		2,838		47,446		25,478

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

	March 31,		March 31,		$		%
	2022		2021		Variance		Variance

Assets
Current assets:
Cash and cash equivalents	600,162		572,787		27,375		4.8	%
Restricted cash	-		8,900		(8,900	)	(100.0	%)
Trade accounts receivable, net	148,343		114,284		34,059		29.8	%
Refundable income taxes	30,354		65,692		(35,338	)	(53.8	%)
Other current assets	36,975		64,052		(27,077	)	(42.3	%)

Total current assets	815,834		825,715		(9,881	)	(1.2	%)

Property and equipment	45,001		44,284		717		1.6	%
Less - accumulated depreciation and amortization	33,470		32,327		1,143		3.5	%

Property and equipment, net	11,531		11,957		(426	)	(3.6	%)

Intangible assets, net	26,718		39,730		(13,012	)	(32.8	%)
Goodwill	363,845		357,446		6,399		1.8	%
Deferred commissions, net	30,594		22,619		7,975		35.3	%
Other assets, net	85,214		30,854		54,360		176.2	%

	1,333,736		1,288,321		45,415		3.5	%

Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable	83,197		39,955		43,242		108.2	%
Accrued payroll and related expenses	39,188		46,438		(7,250	)	(15.6	%)
Other accrued expenses	46,067		58,353		(12,286	)	(21.1	%)
Acquisition escrow payable	-		8,900		(8,900	)	(100.0	%)
Deferred revenue	16,114		11,603		4,511		38.9	%

Total current liabilities	184,566		165,249		19,317		11.7	%

Other liabilities	86,110		42,389		43,721		103.1	%

Stockholders' equity:
Preferred stock	-		-		-		n/a
Common stock	14,984		14,781		203		1.4	%
Additional paid-in capital	1,721,118		1,630,072		91,046		5.6	%
Retained earnings	1,420,993		1,454,826		(33,833	)	(2.3	%)
Accumulated other comprehensive income	5,730		7,522		(1,792	)	(23.8	%)
Treasury stock, at cost	(2,099,765	)	(2,026,518	)	(73,247	)	(3.6	%)
Total stockholders' equity	1,063,060		1,080,683		(17,623	)	(1.6	%)

	1,333,736		1,288,321		45,415		3.5	%

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)

	For the Three Months Ended
	March 31,
	2022		2021

Cash flows from operating activities:
Net loss	(29,392	)	(32,847	)
Non-cash operating activities:
Depreciation and amortization	6,017		6,277
Loss on disposal or impairment of assets	41		54
Provision for doubtful accounts	1,090		(431	)
Deferred income taxes	(1,084	)	(1,418	)
Non-cash stock compensation expense	25,782		47,124
Changes in operating assets and liabilities:
Accounts receivable	7,265		1,818
Deferred commissions	(1,111	)	(1,523	)
Other assets	4,786		(26,283	)
Accounts payable and other liabilities	11,321		6,731
Income taxes	32,971		(17,233	)
Deferred revenue	1,258		(156	)
Net cash provided by (used in) operating activities	58,944		(17,887	)
Cash flows from investing activities:
Capital expenditures	(1,880	)	(376	)
Purchases of investments	-		(4,500	)
Cash paid in acquisition, net of cash received	(8,731	)	(58,264	)
Net cash used in investing activities	(10,611	)	(63,140	)
Cash flows from financing activities:
Proceeds related to the issuance of common stock under stock and employee benefit plans	83		61
Shares repurchased for tax withholdings upon vesting of stock-based awards	(410	)	(538	)
Acquisition of treasury stock	(9,397	)	-
Net cash used in financing activities	(9,724	)	(477	)
Effect of exchange rate changes on cash	(137	)	(210	)

Net change in cash and cash equivalents	38,472		(81,714	)
Cash and cash equivalents at beginning of period	561,690		663,401
Cash and cash equivalents at end of period	600,162		581,687

Supplemental cash flow information:
Cash (received) during the period for:
Income taxes	(30,101	)	(819	)

Operating lease assets obtained in exchange for operating lease liabilities	3,280		-

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)

	For the Twelve Months Ended
	March 31,
	2022		2021

Cash flows from operating activities:
Net loss	(33,833	)	(90,268	)
Non-cash operating activities:
Depreciation and amortization	24,248		27,741
Loss on disposal or impairment of assets	183		388
Gain on distribution from retained profits interest	(30,235	)	-
Provision for doubtful accounts	4,217		2,915
Deferred income taxes	(1,540	)	(1,418	)
Non-cash stock compensation expense	87,257		111,707
Changes in operating assets and liabilities:
Accounts receivable	(38,611	)	(24,828	)
Deferred commissions	(7,975	)	(6,605	)
Other assets	26,863		(18,772	)
Accounts payable and other liabilities	8,850		(116	)
Income taxes	33,969		(26,215	)
Deferred revenue	4,684		4,911
Net cash provided by (used in) operating activities	78,077		(20,560	)
Cash flows from investing activities:
Capital expenditures	(4,499	)	(2,182	)
Purchases of investments	-		(7,500	)
Purchases of strategic investments	-		(2,200	)
Distribution from retained profits interest	31,184		-
Cash paid in acquisition, net of cash received	(19,107	)	(76,012	)
Net cash provided by (used in) investing activities	7,578		(87,894	)
Cash flows from financing activities:
Proceeds related to the issuance of common stock under stock and employee benefit plans	6,266		8,737
Shares repurchased for tax withholdings upon vesting of stock-based awards	(14,626	)	(9,920	)
Acquisition of treasury stock	(58,621	)	(42,312	)
Net cash used in financing activities	(66,981	)	(43,495	)
Effect of exchange rate changes on cash	(199	)	1,010

Net change in cash and cash equivalents	18,475		(150,939	)
Cash and cash equivalents at beginning of period	581,687		732,626
Cash and cash equivalents at end of period	600,162		581,687

Supplemental cash flow information:
Cash (received) during the period for:
Income taxes	(32,916	)	(2,911	)

Operating lease assets obtained in exchange for operating lease liabilities	56,182		-

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW TO EQUITY (1)
(Unaudited)
(Dollars in thousands)


		06/30/20		09/30/20		12/31/20		03/31/21		FY2021		06/30/21		09/30/21		12/31/21		03/31/22		FY2022

Net Cash Provided by (Used in) Operating Activities		(23,612	)	6,249		14,690		(17,887	)	(20,560	)	(17,241	)	10,901		25,473		58,944		78,077

Less:
	Capital expenditures	(832	)	(296	)	(678	)	(376	)	(2,182	)	(427	)	(876	)	(1,316	)	(1,880	)	(4,499	)

Free Cash Flow to Equity		(24,444	)	5,953		14,012		(18,263	)	(22,742	)	(17,668	)	10,025		24,157		57,064		73,578

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)

																						FY22 to FY21
		06/30/20		09/30/20		12/31/20		03/31/21		FY2021		06/30/21		09/30/21		12/31/21		03/31/22		FY2022		%		$
	Revenues	99,437		104,661		119,753		119,175		443,026		119,038		127,290		140,604		141,725		528,657		19.3	%	85,631

	Cost of revenue	34,465		34,897		37,085		37,557		144,004		34,315		35,079		38,557		39,476		147,427		2.4	%	3,423
	Gross profit	64,972		69,764		82,668		81,618		299,022		84,723		92,211		102,047		102,249		381,230		27.5	%	82,208
	% Gross margin	65.3	%	66.7	%	69.0	%	68.5	%	67.5	%	71.2	%	72.4	%	72.6	%	72.1	%	72.1	%

	Operating expenses
	Research and development	26,989		31,035		30,608		46,479		135,111		34,776		35,788		41,870		45,501		157,935		16.9	%	22,824
	Sales and marketing	38,627		41,705		43,904		53,307		177,543		41,979		39,509		46,324		54,951		182,763		2.9	%	5,220
	General and administrative	23,368		24,495		23,943		32,395		104,201		24,291		23,078		27,639		29,583		104,591		0.4	%	390
	Gains, losses and other items, net	1,995		(619	)	(6	)	1,345		2,715		1,278		18		-		183		1,479		(45.5	%)	(1,236	)
	Total operating expenses	90,979		96,616		98,449		133,526		419,570		102,324		98,393		115,833		130,218		446,768		6.5	%	27,198

	Loss from operations	(26,007	)	(26,852	)	(15,781	)	(51,908	)	(120,548	)	(17,601	)	(6,182	)	(13,786	)	(27,969	)	(65,538	)	45.6	%	55,010
	% Margin	-26.2	%	-25.7	%	-13.2	%	-43.6	%	-27.2	%	-14.8	%	-4.9	%	-9.8	%	-19.7	%	-12.4	%

	Total other income (expense), net	463		(225	)	(86	)	(404	)	(252	)	30,601		150		(241	)	(47	)	30,463		12188.5	%	30,715

	Loss before income taxes	(25,544	)	(27,077	)	(15,867	)	(52,312	)	(120,800	)	13,000		(6,032	)	(14,027	)	(28,016	)	(35,075	)	71.0	%	85,725

	Income taxes expense (benefit)	(3,816	)	(3,109	)	(4,142	)	(19,465	)	(30,532	)	(4,365	)	399		1,348		1,376		(1,242	)	95.9	%	29,290

	Net earnings (loss)	(21,728	)	(23,968	)	(11,725	)	(32,847	)	(90,268	)	17,365		(6,431	)	(15,375	)	(29,392	)	(33,833	)	62.5	%	56,435

	Diluted earnings (loss) per share	(0.33	)	(0.36	)	(0.18	)	(0.49	)	(1.36	)	0.25		(0.09	)	(0.23	)	(0.43	)	(0.50	)	63.6	%	0.87

	Some earnings (loss) per share amounts may not add due to rounding.

	Basic shares	65,570		66,010		66,523		67,111		66,304		68,328		68,042		68,190		68,283		68,211
	Diluted shares	65,570		66,010		66,523		67,111		66,304		69,605		69,333		69,938		69,354		69,560

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS (1)
(Unaudited)
(Dollars in thousands, except per share amounts)



	06/30/20		09/30/20		12/31/20		03/31/21		FY2021		06/30/21		09/30/21		12/31/21		03/31/22		FY 2022


Income (loss) before income taxes	(25,544	)	(27,077	)	(15,867	)	(52,312	)	(120,800	)	13,000		(6,032	)	(14,027	)	(28,016	)	(35,075	)
Income taxes (benefit)	(3,816	)	(3,109	)	(4,142	)	(19,465	)	(30,532	)	(4,365	)	399		1,348		1,376		(1,242	)
Net earnings (loss)	(21,728	)	(23,968	)	(11,725	)	(32,847	)	(90,268	)	17,365		(6,431	)	(15,375	)	(29,392	)	(33,833	)

Earnings (loss) per share:
Basic	(0.33	)	(0.36	)	(0.18	)	(0.49	)	(1.36	)	0.25		(0.09	)	(0.23	)	(0.43	)	(0.50	)
Diluted	(0.33	)	(0.36	)	(0.18	)	(0.49	)	(1.36	)	0.25		(0.09	)	(0.23	)	(0.43	)	(0.49	)

Excluded items:
Purchased intangible asset amortization (cost of revenue)	5,306		4,350		4,213		4,177		18,046		4,645		4,612		4,647		4,807		18,711
Non-cash stock compensation (cost of revenue and operating expenses)	16,485		24,204		23,894		47,124		111,707		18,496		19,221		23,758		25,782		87,257
Restructuring and merger charges (gains, losses, and other)	1,995		(619	)	(6	)	1,345		2,715		1,278		18		-		183		1,479
Transformation costs (general and administrative)	3,605		258		-		-		3,863		-		-		-		-		-
Gain on retained profits interest (other income)	-		-		-		-		-		(30,052	)	-		(183	)	-		(30,235	)
Total excluded items	27,391		28,193		28,101		52,646		136,331		(5,633	)	23,851		28,222		30,772		77,212

Income before income taxes and excluding items	1,847		1,116		12,234		334		15,531		7,367		17,819		14,195		2,756		42,137
Income taxes expense (benefit)	934		(1,291	)	2,347		(2,628	)	(638	)	865		(12	)	4,271		3,391		8,515
Non-GAAP net earnings (loss)	913		2,407		9,887		2,962		16,169		6,502		17,831		9,924		(635	)	33,622

Non-GAAP earnings (loss) per share:
Basic	0.01		0.04		0.15		0.04		0.24		0.10		0.26		0.15		(0.01	)	0.49
Diluted	0.01		0.03		0.14		0.04		0.23		0.09		0.26		0.14		(0.01	)	0.48

Basic weighted average shares	65,570		66,010		66,523		67,111		66,304		68,328		68,042		68,190		68,283		68,211
Diluted weighted average shares	67,337		68,804		69,775		69,935		68,963		69,605		69,333		69,938		68,283		69,560

Some totals may not add due to rounding

LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EXPENSES (1)
(Unaudited)
(Dollars in thousands)


	06/30/20		09/30/20		12/31/20		03/31/21		FY2021		06/30/21		09/30/21		12/31/21		03/31/22		FY2022

Expenses:
Cost of revenue	34,465		34,897		37,085		37,557		144,004		34,315		35,079		38,557		39,476		147,427
Research and development	26,989		31,035		30,608		46,479		135,111		34,776		35,788		41,870		45,501		157,935
Sales and marketing	38,627		41,705		43,904		53,307		177,543		41,979		39,509		46,324		54,951		182,763
General and administrative	23,368		24,495		23,943		32,395		104,201		24,291		23,078		27,639		29,583		104,591
Gains, losses and other items, net	1,995		(619	)	(6	)	1,345		2,715		1,278		18		-		183		1,479

Gross profit:	64,972		69,764		82,668		81,618		299,022		84,723		92,211		102,047		102,249		381,230
% Gross margin	65.3	%	66.7	%	69.0	%	68.5	%	67.5	%	71.2	%	72.4	%	72.6	%	72.1	%	72.1	%

Excluded items:
Purchased intangible asset amortization (cost of revenue)	5,306		4,350		4,213		4,177		18,046		4,645		4,612		4,647		4,807		18,711
Non-cash stock compensation (cost of revenue)	775		913		988		2,624		5,300		790		948		1,168		1,205		4,111
Non-cash stock compensation (research and development)	5,886		7,713		7,376		17,985		38,960		5,348		7,184		9,264		10,316		32,112
Non-cash stock compensation (sales and marketing)	7,123		9,233		9,212		14,833		40,401		6,793		6,749		7,329		7,715		28,586
Non-cash stock compensation (general and administrative)	2,701		6,345		6,318		11,682		27,046		5,565		4,340		5,997		6,546		22,448
Restructuring and merger charges (gains, losses, and other)	1,995		(619	)	(6	)	1,345		2,715		1,278		18		-		183		1,479
Transformation costs (general and administrative)	3,605		258		-		-		3,863		-		-		-		-		-
Gain on retained profits interest (other income)	-		-		-		-		-		(30,052	)	-		(183	)	-		(30,235	)
Total excluded items	27,391		28,193		28,101		52,646		136,331		(5,633	)	23,851		28,222		30,772		77,212

Expenses, excluding items:
Cost of revenue	28,384		29,634		31,884		30,756		120,658		28,880		29,519		32,742		33,464		124,605
Research and development	21,103		23,322		23,232		28,494		96,151		29,428		28,604		32,606		35,185		125,823
Sales and marketing	31,504		32,472		34,692		38,474		137,142		35,186		32,760		38,995		47,236		154,177
General and administrative	17,062		17,892		17,625		20,713		73,292		18,726		18,738		21,642		23,037		82,143
Gains, losses and other items, net	-		-		-		-		-		-		-		-		-		-

Gross profit, excluding items:	71,053		75,027		87,869		88,419		322,368		90,158		97,771		107,862		108,261		404,052
% Gross margin	71.5	%	71.7	%	73.4	%	74.2	%	72.8	%	75.7	%	76.8	%	76.7	%	76.4	%	76.4	%

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP OPERATING INCOME (LOSS) GUIDANCE (1)
(Unaudited)
(Dollars in thousands)
	For the quarter ending			For the year ending
	June 30, 2022			March 31, 2023


GAAP loss from operations	$	(33,000	)	$	(93,000	)

Excluded items:
Purchased intangible asset amortization		5,000			17,000
Non-cash stock compensation		29,000			125,000
Total excluded items		34,000			142,000

Non-GAAP income from operations	$	1,000		$	49,000

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

APPENDIX A
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
Q4 FISCAL 2022 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES AND OTHER KEY METRICS

To supplement our financial results, we use non-GAAP measures which exclude certain acquisition related expenses, non-cash stock compensation and restructuring charges. We believe these measures are helpful in understanding our past performance and our future results. Our non-GAAP financial measures and schedules are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated GAAP financial statements. Our management regularly uses these non-GAAP financial measures internally to understand, manage and evaluate our business and to make operating decisions. These measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is also based in part on the performance of our business based on these non-GAAP measures.

Our non-GAAP financial measures, including non-GAAP earnings (loss) per share, income (loss) from operations and adjusted EBITDA reflect adjustments based on the following items, as well as the related income tax effects when applicable:

Purchased intangible asset amortization: We incur amortization of purchased intangibles in connection with our acquisitions. Purchased intangibles include (i) developed technology, (ii) customer and publisher relationships, and (iii) trade names. We expect to amortize for accounting purposes the fair value of the purchased intangibles based on the pattern in which the economic benefits of the intangible assets will be consumed as revenue is generated. Although the intangible assets generate revenue for us, we exclude this item because this expense is non-cash in nature and because we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our operational performance.

Non-cash stock compensation: Non-cash stock compensation consists of charges for associate restricted stock units, performance shares and stock options in accordance with current GAAP related to stock-based compensation including expense associated with stock-based compensation related to unvested options assumed in connection with our acquisitions. As we apply stock-based compensation standards, we believe that it is useful to investors to understand the impact of the application of these standards to our operational performance. Although stock-based compensation expense is calculated in accordance with current GAAP and constitutes an ongoing and recurring expense, such expense is excluded from non-GAAP results because it is not an expense that typically requires or will require cash settlement by us and because such expense is not used by us to assess the core profitability of our business operations.

Restructuring charges: During the past several years, we have initiated certain restructuring activities in order to align our costs in connection with both our operating plans and our business strategies based on then-current economic conditions. As a result, we recognized costs related to termination benefits for associates whose positions were eliminated, lease and other contract termination charges, and leasehold improvement write offs. These items, reported as gains, losses, and other items, net, are excluded from non-GAAP results because such amounts are not used by us to assess the core profitability of our business operations.

Transformation costs: In previous years, we incurred significant expenses to separate the financial statements of our operating segments, with particular focus on segment-level balance sheets, and to evaluate portfolio priorities. Our criteria for excluding transformation expenses from our non-GAAP measures is as follows: 1) projects are discrete in nature; 2) excluded expenses consist only of third-party consulting fees that we would not incur otherwise; and 3) we do not exclude employee related expenses or other costs associated with the ongoing operations of our business. We substantially completed those projects during the third quarter of fiscal year 2018. Beginning in the fourth quarter of fiscal 2018, and through most of fiscal 2019, we incurred transaction support expenses and system separation costs related to the Company's announced evaluation of strategic options for its Marketing Solutions (AMS) business. In the first and second quarters of fiscal 2021 in response to the potential COVID-19 pandemic impact on our business, we incurred significant costs associated with the assessment of strategic and operating plans, including our long-term location strategy, and assistance in implementing the restructuring activities as a result of this assessment. Our criteria for excluding these costs are the same. We believe excluding these items from our non-GAAP financial measures is useful for investors and provides meaningful supplemental information.

Our non-GAAP financial schedules are:

Non-GAAP EPS, Non-GAAP Income from Operations, and Non-GAAP expenses: Our Non-GAAP earnings per share, Non-GAAP income from operations, and Non-GAAP expenses reflect adjustments as described above, as well as the related tax effects where applicable.

Adjusted EBITDA: Adjusted EBITDA is defined as net income from continuing operations before income taxes, other expenses, depreciation and amortization, and including adjustments as described above. We use Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as within our operating segments and to compare our results to those of our competitors. We believe that the inclusion of Adjusted EBITDA provides useful supplementary information to and facilitates analysis by investors in evaluating the Company's performance and trends. The presentation of Adjusted EBITDA is not meant to be considered in isolation or as an alternative to net earnings as an indicator of our performance.

Free Cash Flow to Equity: To supplement our statement of cash flows, we use a non-GAAP measure of cash flow to analyze cash flows generated from operations. Free cash flow to equity is defined as operating cash flow less cash used by investing activities (excluding the impact of cash paid in acquisitions), less required payments of debt, and excluding the impact of discontinued operations. Management believes that this measure of cash flow is meaningful since it represents the amount of money available from continuing operations for the Company's discretionary spending after funding all required obligations including scheduled debt payments. The presentation of non-GAAP free cash flow to equity is not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.

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LiveRamp Announces Fourth Quarter and Fiscal Year Results