LiveRamp (RAMP) 9 Nov 222023 Q2 Earnings call transcript

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.

Thank you, operator. Good afternoon and welcome. us our joining quarter XXXX for results. you to fiscal discuss second Thank are CEO; Howe, President me Scott With today our and and CFO. Jenson, Warren statements risks Today's are differ cause materially. release and call to contain press this actual results subject uncertainties and forward-looking to that could may that

For description and liveramp.com. reconciliation at posted Also, copy the to A of risks, With press release non-GAAP of please Factors available any the financial Risk to over deck release. a is we'll today, in slide the that, call referring our press on during schedules, detailed financial including be section Scott. public these read the measures, filings and call website. to I'll the turn our our

for Thank on you, joining will comments areas. today. two Drew, focus today My and call thanks you of our to all

First, second I additional opportunities what is performance, we well insight to into providing see will and where our going improve. quarter discuss

spend has shareholder and for are to price what valuation to some what on ongoing want our share frustration, greater unlock an I of doing been Second, current time us returns. we of many source

impacting with I customers us, trends with the team's are face of valuation. by determination and, While and, our satisfied the top difficult our am line we conditions obviously, that resilience aren't in extension, macroeconomic and pleased the our subscription

with up on and quarter. to so business. on We fell XX%, start year-ago exceeded XX%, $XXX XX% Let's quarter year-on-year. particularly marketplace on quarter good profit. our by & financial driven with revenue grew our and Other the in recent others. the Marketplace the ARR, QX the short metrics across was dimensions, data XX% in million but Total by quarter, many which guidance by revenue all grew operating compared Subscription ended grew

as of to was Our we non-GAAP more operating post-COVID but plan. profit X% a ahead model, normal return year-on-year declined operating

cost efficiency of every in have programs single to recent greater implemented our closely structure. we and drive across Importantly, months, element examined

As discretionary estate we count have already we're guidance FY initiatives tightening our a real we and result footprint, increasing line pursued, yet. head our optimizing considerably, rethinking done bottom not spend, are of the and 'XX

We meaningfully improve structure. to cost have plan a our comprehensive underway long-term

to QX nearly doubled cash flow million. $XX Our operating

we still quarter, from our and is where historic XX which expect an in run. the improvement new QX During the customers, below added we to be but long trend

new initiatives have in customer place channel improve pipeline, such a and partnerships. developing early-stage growth, our of of number as sales to We accelerating the building reps productivity

a these made have several in progress I discuss with We will moment. of initiatives, which

audience count seven-figure and with of to $X.X had client TV consistent help customer products was customer year-on-year, We segments a campaigns million across XX%, measurement targeted million-plus improved platforms. up create support new can our advertising that to Our our This for XX% million TV is advertisers and a win client increase using $X to identity advertising deployed to company $X targeting. grew be notable count audience XX%. an measured and technology

was from good retention a business roughly of total XXX%, two net XX% was we ahead Subscription percentage growth. new to our with clients, business clients subscription usage guidance. Platform existing was as see subscription continue Turning XXX%. retention percentage and of net expanded points to

link case ability is a to measurement U.S. including streams. the one use new ad use spend This largest new that six-figure of the return we helping a unlock a support U.S. cases campaign uniquely category and enables pharmacy and advertising positioned and expansion to sets. warehouse data privacy is in LiveRamp focus retail In the media and effectiveness anonymously upsells on given retailers chains. on in our of this expansion membership support multiple with six-figure to continue networks, revenue had the club We QX, with

work to there in operating QX, in we improvement efforts momentum. continue to create faster in I've drive on talked margins. While positives there ongoing about greater were to already many also our order are financial even areas some

for The future other focus major of SaaS subscriptions, bookings, lock growth. helped us area is which, our in predictable for

and continued large last concentrated this softness in deals call, discussed continues the booking but international to out also be in our It on expected segments. small seen both QX. U.S., we pressure The push in our in As quarter. past saw markets the and is customer

was the in our weakness However, driven segment. by QX, SMB primarily

and economy new discussions service to is contracts. impact, long-term confirm to reductions clearly budgets the having customer Our an delaying causing IT commitments

bookings. our pipeline, a despite to continue As cycles lower-than-normal pipeline see into result, stronger deal sales of we a a conversion elongated and

questioned driven product or sales have than secular shift in a whether lull cyclical productivity. It's temporary rather is in Some question. fair bookings our and by market misalignment marketplace a a weakness recent investors the factors

So address more I've account it In and closely with I've scrutinized even reviews. own participated of win-loss internal for our also including let me months, data, recent surveys. met and major clients client everyone. one-on-one in reports satisfaction trends, dozens

efficacy and data to the our clients' our a share few me unique never clear needs points. let with ecosystem. it's on evolve. constantly to But investors in of our both going are educate because positioning satisfied clients We need constantly be important also And data products we the

so. our our Of First, feedback and from to remains their telling do customers vital value largest customer are and we initiatives. have, solutions that and proposition But compelling, us We we'll we face have competition? continue always marketing our do course. to direct

dealing Our than the right with more now. customers are just economy

move cloud to and ago or are customers tech stack, This reevaluating is marketing DMPs. to starting databases a platforms, from platforms, marketing to data customer DMPs, their migration decade CDPs. providers largest from data or CRM with akin the the Our transition

through. a So have managing phenomenon experiencing -- we it's

identity upgrade to focus how data justify investment. their foundational technology shifts their LiveRamp's makes to that useful. stack, As more quickly customers

stacks, power the enables and then marketing appliances insights their and companies of Our the to that turnkey buying of the destinations are work as equivalent they the is analogy all grid these effectively. insights optimization. LiveRamp measurement neutral before. power activations to deliver enable capabilities ongoing I've our matter, appliances metaphorical reevaluate used that If grid

business our still for a our in U.S. has level their FY rate. and deep through business. Second, average per tenured, the can than at salespeople, suite needs, This most sales of be obstacles and which experienced bookings are reps, grow environment, the a demonstrates the at in close more rep this average. is ramped there Among above products enterprise 'XX top-tier This bookings clients' managing sell to at U.S. and one. are market the understanding that to more our group the our XX% economic is continue to evolving even resonate healthy product

disruptions to post strong U.S., same of half the Third, continue our growth as the international bookings, throughout the which year. the force did not have sales first

also, and that from as continuing we're we're product But And our our customer Now, will the bookings let data saw to of woven always U.K. industry, incremental improve softness And less our clear. offerings significantly be be the that than U.S. economic of in feedback. U.S. see in fair, We're in we very on conditions. confident fabric to the clients, do, significant. European international into All LiveRamp sales the based and in is market conditions in the the based we more opportunity said, hear remember, rebuilding what remains force pronounced U.S. is our market long-term significantly me deteriorated in the and QX, on we unpredictable than but face

a mind on now, offers transition this last and stock LiveRamp's is the right good market point to everyone's Now valuation. what

demonstrating Rule us disappointed at valuation of of to and our be that company. LiveRamp are are and can by we XX current dependable All investors committed predictable to a

margins give you we sure make any to top want faster Top even accelerate growth. exogenous to efforts strong concerns. improve I operating forward, growth, risk Going line into address our and visibility line

is XX% improve top line are SaaS As of bookings are initiatives subscription the continues I bookings just order visibility. long good there near-term to a line priority. top to economic in be our discussed, pursuing that should growth term. and several longer-term we with top revenue our forward over accelerating uncertainty, Amidst drive growth recurring

First, strengthening U.S. sales we're our team.

experienced of the the factors As driven in Great second normal in half our part sales as attrition fiscal such in XXXX, exogenous Resignation. we above previously, by discussed force,

back among our new levels U.S. new reps. QX. than knowledge and solutions larger normal focused a The LiveRamp, capacity we squarely force our sales our building capacity their with they're and new about challenge sales And sales relationships. to as client normal our proportion are Our on unlocking is sales and productivity developing higher their to is of remain driving still

higher Just We've than ramp still to in programs put that some points reps. 'XX. of QX, approximately to the new sales proportion numbers In on the reps our FY this. number percentage for ramping accelerate time XX our of a implemented was sales U.S. were

has complex skills we some made enterprise our training program For difficult. focus sales more the manage macroeconomic task say, signs. environment example, Needless enhanced are to cycles. to more deal on we this seeing positive Still, building to

example, their first takes have XX% of close time our deal sales the year. to reduced this by we on fiscal For average amount it reps new

number We and years. quarters. on improvement LiveRamp the coming in believe reps right that we're we've last quarter three the have sales the expected Additionally, at their is deals first in signed seen of the the path highest in

stack. companies Our the evaluating marketing and our of known involves cloud an data platforms, It's their also deepen often providers case second as first-party major Across industry, data the evaluation customer sales initiative this are public that channel to partnerships. is CDPs.

we expand DMPs, with to our have too we channel DSPs partnered efforts so previously new as partners. Just SSPs, will and

RampID, our continued collaboration with RampID. DSPs to on network integrations launch partnering accurate on will access of SSPs Genie real-time access to to build with and have we September, the powered more direct by customers CDP Salesforce, in identifier, the example, over their tools Genie. called For and with them new of a audiences XXX people-based our LiveRamp

Another applications and built quarter, Snowflake's our level. in person business to plan announced outcomes measure on at native identity enterprises example. giving resolution the the capabilities we framework, and the ability household Earlier

will expand and And network where in customer the CTV top indispensable greater as to have world By We're data cloud other expansion. We including begin the to the utilized. these international believe us offering channels with reputable leader our platforms, major line for usage and growth and can to initiative is and third AWS and similar establishes with most continue turnkey as destinations, itself websites, our major companies destinations, partnering most of channels the be also LiveRamp providers fosters scale drive partnerships additional scale. they partnership the deployed GCP.

lead to the use on case way expansion. continue We

cookie-less DSP, month, in solutions. simply PAIR, reconcile LiveRamp advertisers XXX, Google For news PAIR, noise of in their Google's Google's the last basis. now for other with XX,XXX the and a all or solutions. publishers is of enables CTV every over publishers around [marketers] measure post-cookie lot DVXXX. across announced DVXXX because Google's announcement we XXX continent. data LiveRamp than top and a and industry marketing Advertiser more Video first-party in privacy-centric DSPs Identity a the been On choice that Publisher can new destination display, interoperable PAIR example, activate other across offering With we're another will mobile, & nearly have of and on There's Display seamlessly reach, to Reconciliation, best and addressable be SSPs,

an publisher with securely other enabling partnership Operating whether products. won't they LiveRamp's we also rapidly. on as continues to connect We're sometimes thousands continued expanded Facebook also some and also marketers different use are all ubiquity but ecosystem. campaigns wherever customers of Instagram. world's reach the industry over But give partnerships efforts important companies always be we and a This on advertising to destinations hundreds as the with upgrading into CTV on XX,XXX first-party face summary, of create their connect we announced identifiers confidence traction, their Facebook's with innovating payoff grow. and channel flight. of We're of activate our identifiers, or gain In can or nearly improvement. brands or are. our we Meta, X.X, supports they the fabric in addition, allows them team, the these long-term these tool destinations confusion identifiers. enable Meta, unique our immediate, destinations, largest sit underneath measures DVXXX, have have, We XXX data to while implementing of privately use PAIR of other Whether to marketers trajectory. U.S. do to domains API, LiveRamp importance In that UID these about sales investors LiveRamp from The creates, knit methodologies believe constantly ourselves certainly some planet. optimizes and media marketers to Conversions of our and growing many we and data they as growth very profitability the with competition, should most and rebuilding

growth. as line us place have economic we redoubled environment on focus efficiency grows more profit improvement equal We course, the can't importance just top Of uncertain. around focus operating and our on on

And operating in posted even six strong period. restructuring, quarters, was five not see including know improvement in have to that our improve of We recently operating at flow million, cash to cash in year-on-year end, the we remotely a our year-ago that And an and opportunities nearly last current reduction we're now organization workforce. We double a satisfied. XX% the flow QX profitability. announced $XX

risk. our the and We reevaluated cash also of and opportunities are profitability. of never whether in find fuel coming months, also improve evaluating companies improve we And evaluating margins to discretionary ourselves Exogenous facilities to our in cost Great continue we regardless future intend flow. levers all we're stop footprint optimizing other spend. areas to recession margin expansion. to a And

expansion top not we protected always but change. most to industry and ensuring top also evaluating risks course, while predictable exogenous generating continued growth mind, of are benefit we and are position for Of from margin is line investors, ourselves only

I to think concerns. but confident repeat, position. I've we LiveRamp's of recessionary for addressed earlier, I questions are good many are hear not anyone, Recessions but most the in frequently

ourselves LiveRamp data the very things marketing knit helps have and achieve. ROI, we've ecosystem, that very of clients into recessions fabric on increasingly our past also and observed have the We emphasis the placed addressability that greater

been embraced to In With for of past improvements. what will has to LiveRamp addition, margin around economic ongoing several a us, deprecation. similar LiveRamp PAIR the regardless has operating pursuing announcement, the Google environment approach years. continue seemingly its Cookie pursue

CTV, with using our of enabled be largest Trade of done activations, them all all can RampID. LiveRamp And Google, Microsoft, All of our Desk, technologies. now publishers Meta, non-cookie are largest

clients utilization as us abreast Taken educated, of that we together, difficult front leader find but they the this confusing post-cookie greater partners believe is in them to is and transparency of It for And a Competition. the of we complexity Regulation. and in consent fuels consumer to regulatory consumer-friendly look the LiveRamp. to LiveRamp and where secure state stay and center. array our global world. world continues evolve, regulations. Data positions regulation keep to and

DMPs integrations, in closing, we In resilience with focus challenging many our pleased am doubled QX, and and and the FY operating Snowflake connectivity. revenue servers players I Conversion to we the Instagram LiveRamp in new ecosystem and the ecosystem: client changing. flow partnership 'XX. capitalize on expanded way which profit is public team's are with Finally, way in wave We making for operate identifiers of a and with clouds, intends giving are deeper Genie to free for the with CDPs, emerging. the our these is cash of XX% partnering raised everyone, In on position and based by nearly Meta constantly our have, outlook partners the improving provider of our delivered environment. PAIR, a Google products growth, our and our with Facebook collaboration capabilities and identity, clients always of we ubiquitous through as continuing as Salesforce trends, with and data the feedback APIs. foundational largest

support that At the All sight to will of help profitability return we line our top shareholder growth. will of we same improve our time, have clear this growth, believe future and line on equity. areas

We initial seeing productivity, more work but we of sales do. are improving to have signs

strides make to continue on margin. improving operating We

With value. work on Warren. in special updating the that, remain, ongoing now to optimizing quarters. you over I customers, will thanks as support. for thank across call on our the forward always, progress their joining for and relentlessly the shareholder exceptional all We look and globe to hard turn coming today to Lastly, partners and us LiveRampers a again, we our focused you, to

good QX and us in afternoon, today. on for was my solid remarks Scott, Today, and line with everyone, another our thanks areas. expectations. and focus to joining I quarter like Thanks, three would

highlights few a quarter. share First, the from

minute full QX Next, and guidance talk to in for profitability. our spend updated long-term the and about business and a And provide our drive finally, increase year. trends

XXX%, partners. XX%. million, FX the revenue, of net And up up our finally, was to International was million. XX% million, shares was next was revenue our consecutive million operating continue customer XX%. year-over-year. Other profitability. platform retention soft the up revenue quarter, quarter, million or Trends of our deliver. counts contracted increased was we were business approximately ended top flow up fiscal Subscription quarter as net in by and income revenue, million, Usage profitability. million. to backlog, subscription Marketplace XX% have and and For was was return Non-GAAP was continues driven XX% year-to-date, XX% Subscription was increased roughly to data ongoing $XXX please $X million, anticipated, Bookings, for million XX-month $XX this Beneath & X.X was XX%. XX Gross we adjusted Marketplace the up to versus our turn XX%. XX%, providers at XX%. subscription for $XX of Marketplace, & prior retention Slides was our year. $XX Current quarter, model And the and ARR up shares which represents capital up the Data repurchased our RPO, was margin XXth $XXX and XXX%. platform $XXX QX. customer count In XX%. quarter Total X. X.X shareowners. in up $XXX by Other we XX% operating while cash million. XX%, for repurchased And line, X

talk thought a about I and might Before things. moving few two spend on I to our minutes guidance,

our business. driving plans the levels into in of seeing in we 'XX. First, year in and our business. what seeing profitability the of we're FY half our next, back higher And are for What

and always is both the As are case, challenges. positives some there

platform, approximately few million about XX% Safe ARR stats. A Safe our well. enterprise of $XXX highlights. perform continues or positive ARR. Haven-influenced Haven, is Some now to

to were strong customers. Today, and Marketplace. collaborating retail Ahold we than tenants data. have pilots over across and social, underway TV, we to Delhaize quarter, fortunate This list brands our more XXX add of XX

watching of we're While not cautiously our accidental. the in the broader strength advertising, marketplace performance trends is

are this easier embed organizations who more we our year we XX in In platforms. their access. now marketplace alone, Specifically, for have buying added embedded within data platforms

We new their buying to social more and have XX%, automation TV Cloud. Safe by customers decisions. closer data own measurement. measurement Marketplace the power Several improving agreements Data power process gardens. in third-party real-time into have for walled buying now and to platforms Data platform, data in buying their bringing integrated Haven XX for use to used to grew signed we've direct Connected customers simplified

We cloud continue to get partners. to our closer

While a being Overall, still are procured through early, uptick we highlights. a in cloud few seeing marketplaces. significant deals

with now cloud have In AWS ATS relationship available with our close This are to Services. LiveRamp in Marketplace. our worked instances Amazon Publisher identity several addition, partners complements services pipeline and we generate subscriptions. in

of Our products we we now Snowflake. the are activation Marketplace, embedded now available Cloud and have in challenges, an version too. in alpha But also have Google

our are pressures and We are bookings business. facing our which impacting most subscription notably

are our durable valuable are A we tightening belts, their profitable activation And and, our related our SMB our product are is the customers. our tough economy. and with What to falloff we the bookings important, our not upsell particular, and customers core pressures we extending new that but positives, is pressure in in From more large summary, also mostly segment new remain our LiveRamp. competencies tightening impacting products. by. feeling There and more, competition our Specifically, do always In the however, are perspective, logo while seeing, a a to and believe is the are are no question new feeling bookings of is we do face acquisition. the we pressure come cycle. several in related conversion customers. most to attract This logos measurement impacting in and sustained ability can sales budgets

to environment more building macroeconomic time began using committed to the a as met slow, we As to a profitable team management and stronger, LiveRamp. this

win; first, efficiency In we are where a resources objectives: simplify into that our and clear opportunities focus tighten two to core to a biggest ensure LiveRamp. profitable our where processes. we growth out right second, laid our competencies to and other focused we have the business build drive have and words, more on Specifically,

in mind, objectives several these With underway. we have initiatives

a Let highlights. me few share

view which customer on their beyond. to focus where First, our a have customers our we've tightened advantage. growth across play areas Providing three advertising, with potential of and we competitive marketing, tools significant true have with customers the service Identity. product and XXX-degree

the data future collaboration. data Next, Haven is collaboration. of Safe

way. Our And platform brings third-party in data marketplace. a and privacy together second- permissioned first-, safe and

Finally, These being our see a rate. point, available it clean or warehouse, public data initiatives resides, made growth are reigniting we CDP all be cloud, our wherever on cloud data room. focused on this products long-term

more an steps Next, journey we streamlined, to build started accelerated and profitable LiveRamp. a focused Several already what will underway. be are

nonproductive our products XX. our efforts. our First, our XXX and of from reducing rationalized We in which product scrutinized leadership SKUs SKUs and product number resulted eliminated to hierarchy,

we better taken Next, approximately impacted workforce. a have our to with our resources align of action head XX% This action count our priorities.

steps our our estate we We from feet XXX,XXX. have reduced than to COGS. less XXX,XXX March real to rationalize context, by have square approximately XX% footprint. provide by taken will To footprint XX, some

and quickly we and to productivity problems team we've solutions a negative focused better is customer drive across steps on In identify touch opportunities customer able and and we're to we've our implemented a system scorecards and, workflows gross data experience. at our thereby ensure customer points, same several experience group, top-notch optimize outcomes. are outcomes. sales taken better areas all help warning deliver our in engineering before implemented triggers the time, re-architecting they to and an solve address improve to Our ingestion concern. our finally, CSMs to customer better And early so result margin. of We've automated In marketing, identify three customer and

industry and customers. and land a both verticalizing focused This supports approach are organization more our develop expertise. We to hiring

say will selling date, particular, million more and, $X our to We've yet. approximately our top pleased cloud or drive into I'm we is ongoing we performance. and are in to and sellers. though, that efforts count our long-term marketing finally, $XX working efficient to efficient and assured, channel $XX million. our expanding produce Included productivity investing of million thereby span both will closed modeling, our in build are taken QX spend. few that billing nine and in sales our business These to already to examples initiatives and create These activities. hired team's a in assist enablement continue we skills new their actions simplifying Further, to FY line our you QX seasonal new pipeline the of expansion. including we bottom to targets. GSIs of our our functions, and in number annualized meaningful increase are be margin combination to a more path an efficient accounts beyond. usage benefit are head efforts In tracking $XX sellers clouds. The LiveRamp we're a long-term and and addition, organization. pricing others are our believe our real In are million customer In your generating with and of automating our we Rest in estate savings, and growth our committed should contracting people accelerated processes, 'XX approximately QX. providers, and standardizing less. OpEx accelerate a streamlined approximately control We And done summary, not commitment to of to margin this of well expect

QX intangible and our FY in compensation excludes for to 'XX. XX. guidance Please amortization, stock-based Slides to guidance and restructuring mind, and and XX Keep Now related turn on charges.

revenue income operating expect we of quarter, approximately third million. million the and $XXX $XX of approximately For non-GAAP

given and And, ask of always, million. and now we of $XX year, setting in you that QX macro call-outs $XXX profit revenue the revised few operating expect full would other your uncertainties, year. full million the and $XXX A For as non-GAAP between for particular, approximately in conservative million models. and be the

in from is million guidance a a $X settlement. onetime impact positive included contractual QX, For stemming our revenue

by being We expect The subscription utilization be XXX% decline XXX%. expect driven roughly margin our be of to a impacting both net to QX, from economy platform sequential contraction. XXX% roughly and to is and an retention softening expectation net XX%. In approximately be gross retention we

primarily we $XXX expect with to initiatives. of of stock And completing $XX repurchase are restructuring in and to additional million the approximately million our expect incur rightsizing real footprint, estate We commitment. associated an These QX, other charges also severance finally, charges. $XX our restructuring million of

subscription and for year, to low increase roughly digits growth & and XX% modest double Other Marketplace from be XX% For the the in the expect a revenue gross full approximately FX. year, margin to we to negative be continue to impact

to call a thoughts. the few now close I'll with opening Before final questions,

Everyone were workforce want grateful this to we thank impacted here colleagues is that by our your support recent you First, our to is in reductions. here for and contributions transition.

sustained, time, expansion. as operating our Next, necessary environment, we time to in margin and the efficient while opportunity create we are after the things this are challenging same using to an do growth a tighten focus, go costs, at and,

'XX big expansion. history profit we have after behalf same to expect going collaboration no to in have the opportunities data we reside. we We FY of different. will are a 'XX. will we And of us joining everyone delivering And doing finally, FY where thanks On right thanks customers. a be marketplace identity, and win; for today, and data LiveRamp, take to at may so terrific wherever now Operator, here questions. do and our

Elizabeth first Your Instructions] question Porter [Operator of Morgan Stanley. comes from

costs you provide I on in customer environment. on Could you some to with have just or the you improvement operating retention through? to the two the How either quarter, those last in deals smaller controlling really net given ask to churn color can what improvement and ability on the customer balanced? adds. the better seeing some improvement you're wanted see And a segment. in just believe get referenced Because great I

get has to if well. smaller on color some if and that just or as remained isolated So wanted improved relatively deteriorated that's segment customer the to

slowdown front, a better I possibility started I in our we out the talking of wish but tell early companies of a front looming last to quarter, would recession. I in had this you news Yes. We on that probably see you cycles. about bit little other deal for were a

close to I past for about what materialize, think our think although has churn. the customers because enterprise the it success way partnerships terms to didn't clients their beneficial spend I has higher do to flag getting changed. think clients where and bit I doing building win early prospects to addressable. would the economically larger be things forecast what to said, in about cautious even to put we've our we to necessarily really of cautious that in had always we're be, little us. future, and a outlook and increasingly ground a to those about a accountable environment don't talking light -- very that's be bend to more front our recession, attractive, of risk all think a I changed is ahead continue how this in more victory. quarter, customers we of we and -- And What proclaim all But in in economic the channel it's too Elizabeth, be of going where

a ahead of platform benefit the as a there. surprised then And mentioned And increase guide. percent to partners were I that you quarter over also it. quarter I of revenue also usage that Got see was and believe

platform. that So usage and partnership sense just sustainable wanted have this that the of moving forward from be a base expanding to benefits you get how could

Elizabeth, And let I'd approach of post-holiday couple given we quarter one. start that me into fourth period said going is going going the taking else on. we're go jump knows what really nobody the with in everything and in off And say, as this a happen quarters. what's particular, cautious probably on that's Scott into to next I'll exactly

and data a to areas, seen little only said, that. bulk But utilization, at say exception with with is bit looking to encourage Would cautious in is have QX everybody what quarter weakness then exactly relatively that our a make with platform me, the one I brand in utilization customers, continue expect performance of is from overall, expect strong be strong. to partners QX. we we would you secondly, two continued also the would ahead. excuse Now our see. to which QX we But our consistent where no -- that in up providers. said, which saw place of The strength

Next from question Fargo. comes Wells Shaw Riya of

over Materne For of Kirk ISI. now, move we Evercore will to

I measures. color at they companies, of you additional having a pipeline now, Yes. you right right for now software just cost talk is little seeing of all all terms landing net new and can when customers, and might where understand than And Scott, you then guess, the follow-up. you with the the it lot the that look talk of where easier expanding on a your you customers other I seems technology. appreciate margin your on Can I front enterprise work the a just in you're you that be some about that have with about expansion, -- first? interplay sort

wrong. got think the Yes, very about time. we time, our Kirk. go kind existing customers. found in we the When completely that we budget, at we back And built that XX-XX versus and had of logo past modeled is, I start X.X I'll what new over years, even pandemic upsell how of the to

last the hair we've in really And the our wrong care a existing it as taken our just from customers. to got right existing under at we quarter, you like if of much way of those were look XX% in bookings Now customers. so

So confidence, that gives just got are are lot would customers our into with me they over number working insight that conversations, knit client And literally don't new that to we're customers about meetings they're I've to of planning all a of lot thinking largest expand of sat view durable. fabric us we dozens our how And got that. gloss in been the improve mean account us. sessions. anything. as really I've I of And good into feel a what about quarter, last our really of the over the to we us. That logos. We've said, think, of doing. an I investor, want I as pretty had

intend expanding Well, do we to how that? partnerships. so really And be reliant our channel going it's do on to

makes increasingly stronger clouds, got decade, integrators us. with with good and like are much they LiveRamp For success we feel to forge products we've them effective. giving the with lot their kind larger and always the of Also of and could DMPs. way for on we've system relationships, much but past be more why agencies, utilizing even we had and where had public with a partnerships to providers. Educate those those Well, DMPs CDPs same

thing So but And a TAM educate. want, then we that could with talked of clients, other I different to that back all lot kind also about the to particularly of we mix. ago, feel years we prepared these in ensuring sell I there. count think expanding just it's we evangelize but And be Whereas there's cylinders. force, is really done a the expansion a of new remarks could my have we to isn't objections, like couple experienced and sellers, sales our through on that the in operating we're there, U.S., head like

people really such got to on we've even good focus hired the more norm. than get otherwise would training be quickly they we've the that that Now

things moving about tell little of was lot bit growth. probably sit optimistic long-term new going. I our you, I'm where going But quarter we're a today, But really So more get to on engine logo about than to where a got I ago I would there. feel good we the a

a Kirk, just on add I of upsell. things might couple

look what customers, see a by at our at SMBs. any really being in relatively you stronger. If larger driven you'd looking basis, fact, weakness numbers, we're And on relative much the again, was is

the quick of with Meta. actually more on fiscal for relationship guess, you in follow-up. Google, opportunity anything That's you is real of a revenue next at helpful. Or generate the partnerships the six months? And construct time? partnership front, just start in to the this then all talked of I there the 'XX point and couple other Scott, Snowflake Can partnership Snowflake with a about a

year, $XX the if partnerships, that don't we've almost this. this will going in I know cloud partnerships, those But disclosed to revenue. million to hate expect I'm we Warren probably. channel do Well,

to become into would one that starting going business. the it's would next of So our real be rapidly more of parts growing we money. year expect And that, that

And like also CDPs, integrators. pretty it's system it's the it. and Azure it's but and not talked optimistic that Snowflake GCP, I AWS and we're and it's just So about on the Salesforce the opportunity Genie

capability a have and than us. there's a companies that's lot great think frankly, mix at that we But of other been particularly historically, an for quite bigger a SaaS comprise area we've good been is not at. their And So it revenue that there.

for opportunity So we see that us. a as nice

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we've that bifurcated that on everything so predicated consent. is done And

chosen that go some ways to this. have other are there Now companies after

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the And matching robust of the pretty identity graph. then most those It's to have largest amazing. network We we're really partners.

want you do can if great, So we work then you help to with that. Facebook,

many with unique the also pretty we're both. the two If mix publishers, DVXXX, provider, throw biggest Then and plus you have only you work who you adopted the XXX to into of gardens work as you the unparalleled. because with is we're ComScore and walled web. the whom our Desk or throw LiveRamp And ones of open want Trade have destinations Google exclusive and their technology ATS then network

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of comes Susquehanna. Patil Shyam question next Your from

just alternative been this remarks. how could that of PAIR type on that flagship of out then is This was you And was trajectory anything a other impact any that's you in broadly? the rollout environment. your you know I you that more there I've on deals and got the mind call IDs? mind. in of you see along think maybe any progressing if on Do do that impacts Carrefour Jared Shyam. couple, for you've industry this further that? the also other don't digging And How there the macro in your wondering just on off, if Starting would bit on Google touched relationship, I prepared and a

Sure. you Maybe, In first for use want going how a a to mean, Warren, were a clean the publisher future, exactly and Carrefour. if did I'll boy, to about LiveRamp in been room quite for the how between PAIR that the a the But that talk similar announced addressable for world. I'm set lot And That's pleased has time, handle Google last they espousing happen, jump direction a then years. they got on ago. the you can the announcement, of on post-cookie weeks in I because really about eliminated very what we've do it's PAIR to has And three and nutshell, uncertainty anonymized past up been working and when few secure, years. you advertising advertiser frankly, to DVXXX, the connection. few their

to talked they and partners. approach And I've embrace entity. us that choice such they is we a of industry about one have a pleased announced of both DVXXX lot clean espousing. to They there's as And in launch large it. publishers so room the their just recognition were are the a but advertisers that that no

Now then significant. XXX of to use any our for are can you kind could room that providers of LiveRamp that traffic can other Desk, with use soon PAIR, XX,XXX you clean Facebook, can for the you as for the you can as our for same Trade do any to URLs. -- publisher expand up to of Because CTV destinations use pretty use different you that, you opportunities set or

world. -- I for so been think tipping really us drive it will the point to that we've post-cookie looking of the kind And

is I think this it.

we're it doesn't mean Now publishers will encouraging there year. take I and embrace clean it about until clients now QX, some it rooms launch. time. them to next well But launch out QX to and talking PAIR before of that calendar

that things Carrefour be and then then I'd in just and And also about seeing. happy some talk jump to other we're

progress remains strong. in or our in across that's also then Brazil. terms Carrefour and relationship beyond, progression making progress Spain European or Our We're very whether Belgium of territories, it's with even very, France, whether the all making

progress, note One that of Google reach, it's really retail it's customer this using whether was addressability important really is we're to when here where about about building. the as latest incredibly Scott API And really the Europe, Latin Delhaize talks and quarter that Asia. or other just and/or it's is whether On about I up America also in Conversion I PAIRs, Ahold that's it's that it's our Haven. reach, signed things ATS our Facebook's Safe map our in not great global overall interesting. pleased think

the and expanding about over XXX remarks internationally the see collaboration we're well. of Further now working and So with top in this think this [indiscernible] now -- that in U.S., as I tenants LiveRamp across set XX that is think think we X have the you can when I sharing, also partner talked network. retailers about brands largest prepared you is up I

statement industries. underway beginning. XX across media data. And remarks, network I a thing see in then this not it days, We pilots prepared finally, retail while brands and the is and most TV, about early pilots In trend, that underway the in the talked was social, about and still was other my but across major across interesting So only modifier, probably interesting. also as effect really it's

the applicability direct So I Haven. Safe of the our and say, is of expansion, would that TAM

So made. more feel to we've about come, we but great the progress

are I you top if the still quarters just Great. uncertainty couple thinking of of And there's but line weakness moment, still fiscal one may. Obviously, be how at a then a and that we bit momentum it's as 'XX? more growth more, there? macro a we lot into about away, good mid-teens top roughly roll line could a think you might see base Do case? Or

you really Why don't very with call, I and we're Scott leave three messages. jump today. in? to And I going approached long-term this clear But wanted guidance as not we to give all

the plays looking Two, drivers. LiveRamp pressures whether at we looking you understand is be our real sales or issues, at it's feeling be absolutely we our with it's to we durability, the first competitive that any clear understand may about that market-related maturity when force Whether market advantage. and macro, confusion. challenges. think understand want We The or we

interaction sales to training add advantages unparalleled. building privacy durability. LiveRamp, some to we action. And is In that of through want can in partnerships. doing martech highlight lot control, a data talked are cloud scale it's can one we we the foundational our do we and finally, then third. only really of It's we it's to can take our ad also we and that the it's satisfaction a things our is our our investing, are and stress collaboration, and I'd partnerships Scott integrated then use LiveRamp identity, are things and what Whether geographical lower And partners Whether have fact, finally, and and relationships, approach which one whether customer our And finally, We're across what no churn. also the for and every channel that do. our we point Those competitive out out of ramping there's truly the to obviously force, are investments footprint in number about single in competitive but not ecosystem, our we're advantage, point identity can customers. can't we're is of control, reach or a It making but and that approach in every to where there that destinations. out in then our customer brand LiveRamp. and advancing support marketplace. to paramount I'd drive again, higher everybody security,

clear. for So believe and our but But for term. short want the next give super to overall, challenges in be we in we guidance again, LiveRamp. long-term We durability understand year, too opportunity the early to

one for question. time have We more

comes Zgutowicz Benchmark Your Mark Company. final The of question from

connecting a maybe made. points just Scott, you couple of

your stock first about of then The the price destinations. we earlier disconnect and of sort scalability if network your with one about the of talk

about Meta, ComScore Google mentioned XXX, with Trade You Desk.

right two interesting. there is, you still partnerships I a think disconnect predominantly what world? of Europe in limitation shine is we're come that EUID in in to? the where connect post-cookie you're that really doing terms But does headed now that pretty is to a today scaling you world with And I and cookie-based in sort that those scalability guess those of if

I let that -- circle kind answer. I Well, of if me around before

company. of ourselves three investors, I number one, of to I view a I Rule mean, XX talk a lot things. a think lot about -- and we hear as

And so on? of expansion; revenue Rule three, risk. the number companies do so and valued what one, of Number two, number predictability, removal get XX margin growth;

I on to If -- And done. structure, can our another cost we an margin past me. That's have profit. ago better year, manage that I in the what new scrutinize. so continue to board at at I mean generated this quarter just about lot we're expect mean, intend go look every 'XX the FY not a I back to step front a goods And because to we've our mean million $XXX think in did We of There sold. this a we journey of things element I not few we in cost that of operating lower in Look the years are additional nearly expansion. story. think things talked call numbers levers. of our we're that as we to technology cost lot this done. not there's a a we

what's really improve to operating get are But like as We bookings things the the all doing. which is million we've been finish do look I got claim the over I we where deals like as right through at was on we of profit. like sitting line the kinds that we there. we've Revenue. And feel sales our getting now, understand with not is there direction we is the But Warren We -- we So had we're our that fact recognize line. we we're at, to get But really can then double-digit them into victory. durable, at just think of some have And couple last things softness third what predictable. some establishing I going you're that said, this before our finish own quarters. we've we've that the force. done And pipeline right is doing our in run that's there of our mean, number where things pipeline COVID. can a $X going. the I like I that because thing, the of headwinds,

think for for of a view whether tailwind. do?" I And that view away, SaaS to respects, in by help off "Hey, mean, things, it serves And industry. And cookies new clients, we're that of or enough regulations for But deprecation. I when then We on states as going some cookie that's looking our we're finally it We what on really that we in an will risks seeing believe, -- can't is we year. implementing U.S. we're a It when going do don't point. -- exogenous improving that working summarize, on PAIR was, And seeing think all. a LiveRamp, could accelerate increase once future. who to we take is important regulatory this QX the Google LiveRamp?" bad to as What us some from clients doesn't in there's and we're in Google Now evolving, Google hearing future soon a But tipping on come they're to talking regulations cookies, are answer from LiveRamp removes both again, saying, that of next everyone to them it we're deprecate importance this. first, "Well, investors was really I We're wave regulation. the again, our we're to these too said, important. headwind. how have deprecate we're certainty revenue, We're the table recession can't uncertainty ways. the if and fear the and we All new dependent the hard exogenous best-in-class are always profits And our be of respect. And be GDPR there's and from And we the until launch getting are now. like a as recession. work cookies? for feel through There those questions be. continue our risks to And delayed, that those operating

closing the conference. for now floor Jenson portion to additional question-and-answer or will any I the of turn remarks. Warren concludes today's This over back

Terrific. you, operator. Well, thank

welcomed Before Louise, a the beautiful And September little concluding, XX, and of most I girl, her call. beautiful into Lauren, that family have world. on husband the Emily important announcement is our probably

you, incredibly and know family. I are us like LiveRamp, for Lauren So her at happy of all here

In from I today. wrap So three with guess really Emily concluding, I'd Louise. welcome, summary up thoughts

we want of we all that of to First understand you issues our clear to be challenges. all, and

action improve our of beginning. actions we today initiative top and increase This just much taking are is are to performance. just performance the the line The materially as part that announced is both bottom larger And said, Scott our at second line in play business then understanding of away competitive considerable today, Thanks you with is, forward us in that joining you the all speaking And and follow-ups. fact, look finally, we advantage. with we durable that today walk to and for LiveRamp. do our a to

call. you. concludes This Thank today's

may You disconnect. now