8. LiveRamp Holdings, Inc. (NYSE:RAMP)
Short % of Float: 2.38
No. of Hedge Funds as of Q2 2024: 32
LiveRamp Holdings (NYSE:RAMP) is a marketing technology company that offers online marketing, digital transformation, data foundation, and analysis services. It services clients worldwide. The company’s enterprise platform provides data collaboration, allowing companies to share first-party consumer data with business partners in a privacy-conscious manner. It supports several data collaboration use cases within organizations, brands, and its global network of partners by offering collaboration flexibility where data lives.
The LiveRamp (NYSE:RAMP) data collaboration platform allows organizations to unify prospect and customer data, including first, second, or third-party. They can then build a single view of the customer, keeping consumer privacy concerns in view. First-party data refers to first-hand data collection managed through a company’s controlled channels. In contrast, second-party data collection is data directly shared by a company with a business partner. In contrast, third-party data is data sold or collected by a company by leveraging an online data marketplace. This is usually conducted with companies with which it does not share a direct relationship.
The company’s Q1 fiscal 2025 exceeded analyst expectations, becoming the second consecutive quarter of double-digit subscription revenue and total revenue growth. In addition, the company’s marketplace revenue also increased by 28%, showing strong consumer demand across digital advertising tactics, including CTV. These trends highlight its strong profitability model in an uncertain macro environment.
Two of the company’s key performance indicators were especially strong: annual recurring revenue and subscription net retention. Annual recurring revenue experienced an increase of $11 million quarter on quarter, making Q1 fiscal 2025 the third consecutive quarter of double-digital millions net new ARR. Subscription net retention also grew by 2 points quarter on quarter, reaching 105% and highlighting its strong standing among existing customers.
LiveRamp Holdings (NYSE:RAMP) also focuses on developing deeper relationships with system integrators and cloud hyperscalers. It is continuing to pursue its Embedded Identity, Activation, and Clean Room capabilities across all major cloud providers. It is also working with an array of specialized firms and full-service IT consultants with the SIs. The stock takes the eighth spot on our worst marketing stocks to buy list.
Meridian Contrarian Fund made the following comment about LiveRamp Holdings, Inc. (NYSE:RAMP) in its Q2 2023 investor letter:
“A holding that warranted an additional investment during the quarter was LiveRamp Holdings, Inc. (NYSE:RAMP), a developer of a data connectivity platform that sharpens targeted advertisement placements while shielding consumer data privacy. The company’s technology allows improved advertising targeting and measurement across internet-based, streaming, and traditional verticals while meeting the ever-shifting data privacy regulations being enacted globally. We initially invested in the first quarter of 2023 following a difficult 2022 in which advertising spending slowed and LiveRamp rolled out new products and brought on new salespeople—which all combined to drive down earnings. In addition to the investments in future growth, however, management also reduced legacy products, which has lowered costs and improved earnings and cash flow through the first part of 2023, despite a still-tough advertising environment. We added to our position during the second quarter as the company’s internally driven earnings turn appeared to take hold, emphasizing our approach to opportunistic value and gaining access to one of the fastest-growing advertising verticals such as streaming television.”
