Liveramp Holdings Inc (NYSE:RAMP) Q3 2018 Earnings Conference Call Transcript

Feb 11, 2019 • 05:00 pm ET

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Liveramp Holdings Inc (NYSE:RAMP) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and welcome to LiveRamp's Fiscal 2019 Third Quarter Earnings Call. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to turn the call over to your host, Andrew Connor, with Investor Relations.

Executive
Andrew Connor

Thank you, operator. Good afternoon and welcome. Thank you for joining us to discuss our fiscal 2019 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. LiveRamp undertakes no obligation to release publicly any revisions to any of our forward-looking statements.

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.

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

Executive
Scott Howe

Thank you, Andrew. Good afternoon, and thanks for joining us today. This is an exciting time for the Company, and I am very pleased to report an excellent third quarter, highlighted by strong topline growth, a significant return of capital to shareholders and an improved outlook for the remainder of the year.

For the quarter, total revenue was up 35%, and excluding the lost revenue from Facebook, up 49%. Our subscription business grew 42%, driven by the continued strength of our enterprise and agency channels. Marketplace & Other revenue was up 13%, and excluding Facebook, was up more than 90%, driven by Data Store and our industry-leading TV business.

Beneath the topline, as we expected and discussed at our Analyst Day, margins were pressured due to transition-related spend. However, we've made significant progress, hardening our public company infrastructure and expect this spend to abate over the first half of the next fiscal year.

Earnings per share from continuing operations for the quarter were $0.03 and benefited from interest income related to invested proceeds from the AMS sale. Finally, in December, we completed a $500 million tender offer, adding yet another data point to our longstanding track record of returning capital to shareholders.

At LiveRamp, our vision is to provide the trusted platform that transforms connected data into knowledge and remarkable experiences. This vision has never been more relevant. There is not a company in the planet that doesn't want to enable better decisions, improve ROI and deliver better experiences to its customers, and it all begins -- it all begins with data. Our mission is to make that data safe and easy to use. Leveraging our core capabilities in identity resolution, connectivity and data stewardship, we provide a neutral power grid for data, breaking down data silos and creating the foundation through which the ecosystem can deliver