8. LiveRamp Holdings, Inc. (NYSE:RAMP)
Share Price: $25.81
Analyst Upside Potential: 60.79%
Forward P/E Ratio: 16.12
Earnings Growth This Year: 11.70%
Number of Hedge Fund Holders: 32
Year-to-Date Decline: 30.51%
LiveRamp Holdings, Inc. (NYSE:RAMP) is a technology company that specializes in data collaboration for marketing purposes. It is recognized as one of the leading adtech companies with more than 900 direct subscription customers and 500 plus advertising activation partners. It provides a platform for businesses to share and connect their customer data security in a manner that protects customer privacy.
LiveRamp Holdings, Inc. (NYSE:RAMP) is an adtech company that seems to be on the right side of the trending advertisement market. Moreover, its high-margin business model and target market put the company in an accelerated growth mode. The first quarter of 2025 was a testimony of just that. The company posted double-digit growth in both total revenue and subscription revenue for the second consecutive quarter.
Revenue grew 14% year-over-year to reach $176 million whereas gross margins were high at 71%. The revenue growth was driven by both its business segments, however, Marketplace revenue took the lead and grew 28% during the same time.
LiveRamp Holdings, Inc. (NYSE:RAMP) has been under some challenges mostly originating from the recent changes in Google’s privacy policy, however, management remains confident that it will be able to take advantage of the changes. CEO, Scott Howe mentioned that the announcement by Google has not been understood properly. He acknowledges that Google is abandoning its original plan of deprecating third-party cookies in early 2025. On the other hand, it is also announcing a new plan that will make it easier for consumers to opt out of third-party tracking and a new IP protection.
Management believes that as cookies are becoming irrelevant for advertising, businesses are moving towards trusted data brands like LiveRamp Holdings, Inc. (NYSE:RAMP) as their content destinations. Moreover, the company has made significant progress with its Authenticated Traffic Solution, a technology designed to help publishers and advertisers effectively connect and utilize user data while maintaining privacy, thereby solidifying its position in a changing environment.
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.”
