LiveRamp (RAMP) 24 May 232023 Q4 Earnings call transcript

Good afternoon, ladies and gentlemen and welcome to LiveRamp’s Fiscal 2023 Fourth Quarter Earnings Call. [Operator Instructions] 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. Please go ahead.

Thank you, operator. welcome. and afternoon Good joining XXXX for call. quarter our you fourth fiscal earnings Thank me our CFO. Howe, are and With Scott Interim CEO today Lauren Dillard, Today’s and call are press materially. actual this forward-looking differ release that statements results may to subject that uncertainties contain risks could cause to and

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

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

thanks you all of and call for Drew today. to our Thanks, joining

from Now there are three key take call. today’s points you I hope

First, is our durable. consistent and model business

in results profit strong delivered line our financial and macro expectations, operating challenging QX were expansion. despite environment margin with a Our we growth and broadly

for a have we of consistent in be to historically line we’ve ourselves think double-digit future we aspire achieved top top growth Second, true company line and rates. We acceleration positioned XX Rule quarters.

our now, subscription to our quarters more current fiscal throughout ago. beyond. trajectory leading gradual and the rate are traced to can business, continue the of disappointing Likewise, a As promising we revenue acceleration indicators several if be we leading seeing indicators growth suggest maintain year ‘XX

consistent operating our we revenue, QX, improvement. a on shareholders. have ‘XX our delivered are the ‘XX. programs to continue FY performance with improve to gross to line also are our expect not so We were and results profit financial improvement key margin to capital done, going guidance ensuring in as do we have with to while while we FY we metrics, growth line consistently Finally, and operating top profit accelerate margin in Starting implemented satisfied and return with again including profit, in and significant in operating

nice progress indicators. on to our leading starting are see We

some also those X% today up as share revenue QX grew marketplace of will total by X%. successes and revenue you up and well. So I subscription by revenue X% with with year-on-year, other

revenue past weakness macro turnover QX rate capacity of is While the the during on year’s standards. the in not This QX productivity, calls. in slowdown reflects result with dislocation The in a combined economy. our was guidance, up that Resignation late Great our revenue sales last elevated more our QX we growth in XXXX have challenging staff and with was to the a bookings discussed growth sales following line and

of quarter, XX was count QX enterprise the by customer up from large prior customers XXX above-average Our driven with by ACVs.

agency $X and marketing $X.X X million customers data million digital We increased win had customers a with by client identity by a our while major plus sequentially, products. resolution increased XX. million new $X to six-figure onboarding Our for

what quarter also network. We LiveRamp for a products especially home Haven. formerly customers an six-figure collaboration resolution strong signed was media a retail QX or existing high branded for retailer improvement data our was in X-year their contract use for the national platform to with upselling identity Safe

for was contract signings a the our quarter over fact, this In in strongest collaboration year. platform

national million customer were incremental networks. $X support deals an of had media X retailers retail with of or We more. growing these each X ACV their with upsells to

demonstrating automotive a with The sector, loyalty customer retail improve upsell an collaboration major advertising collaboration complex. We to X not the were and get will upsells customer data CPG dealerships across organizations X The brand effective use the independent X-figure global acquisition outside data travel these limited and that are data corporate related commerce multiyear group. other between deal upsell and the to fortified advertising is and costs. the reduce manufacturer. an networks regional enable more and collaboration auto also OEM, cases and The enable efficient the customer auto experience retail a the hospitality had

This OEMs, business is slides Please of not use of customer most use is XX% especially exciting to additional because XX% customers auto net attrition, being retention it statistic auto non-enterprise net for from platform the disappointing only mostly appendix net retention. franchise and models. on downsell other applicable see also retention the pressured was the to is quarter environment. our this by this case. case in Subscription The this applicable earnings details macro past of our of reflected other

being goal would with XXX% like surpass. the net to want XXX%, We to see retention comfortably we or over a more

so the year, number a our this is Over watermark. have we we past changes, implemented of low think client-facing

speed, On introduced the reliability widely functionality enhancements products. and have the we most our product improve of that used side,

On that our throughout net service FY coverage improved service ‘XX. retention be improve implemented side, highlight early will the us our Recent warning dashboards we our customer rate trends upsell confidence may to that have give tightened risk, at segmentation and clients model. and

the update for beyond Moving on indicators and is primary for of revenue which the focus leading me key you, let an some a us shareholders. our quarter growth, provide our

We us to all think and them. progress top there growth, making back we have are historical multiple of double-digit line across levers that our been can get

drivers capacity. me our increased of have One, Let sales on we now. touch revenue quickly X these meaningfully

months’ the as and least is high X all-time ‘XX, FY experience throughout a XX% at enter our ramped number defined ‘XX. an of rep FY reps average quarterly with is currently at we As over

of ‘XX, below perspective, improvement the fiscal this To FY first XX% approximately were ‘XX the put ramped FY in reps average. half our in

past now one of metrics. to capacity year. our capacity sales right ARR other and bookings, the growth recovered, revenue not it of level stronger which So sales is we drive over the just of key components is have expanded has And the

also pipeline bookings grown that logos. increased our fact Second, the like grown. And with has quality in new and I it seemingly is

our are will that remain we clients for client is Our a higher importantly, confident in tightened ideal haul. FY we the and criteria, An pipeline nearly the sign year have XX% we average clients than new over pipeline. the is logo long highest segmentation the ‘XX because more

our And also Capacity here, required. and pipeline sales Third, encouraging are productivity trends. has productivity sales is accelerate will not we revenue Higher increased. alone growth. seeing

year the year. average half and sales was reps, And higher are the ones Across year who over more fiscal of X these not XX our hires. proportion more QX, better make productivity sales a points points prior with higher sales the half, the to force, limited than the gotten deals continue they strides. quarterly are fiscal bookings improvements signed collective to in than past reps, time have double first and They newest good percentage newest their XX% the first bookings hired than the entire their within from ago. Our predecessors producing also great than

our and early we the was our first meetings. and X,XXX XXXX XXX-plus exclusively annual seeing conference, Fourth, since together XXX-plus are leaders March, from attendees, we customer In our channel. of RampUp partner hosted RampUp, media. world in-person marketing, advertising, attracted bringing momentum client speakers technology This from and and over presenters

important The ultimately growth. make overwhelmingly at integrations We and sales made will partnerships new accessible line covering even customers stimulate several customer was RampUp, and announcements feedback for more help will our top positive. product products that

built to First, are product we on Snowflake that our announced with upgrade expanded their natively an platform. partnership capabilities

the identity Snowflake. Last in year, natively we solutions integrated our

marketing for done hundreds Snowflake. and customers allows the data to we media that of destinations along same solutions, Now interface easy-to-use an easily with directly activation marketer activate user from our have friendly

partnership new a of announced with nearly to we over relationships. customer addition, will that Snowflake’s X,XXX leverage and In Snowflake significant us sales allow sellers scale X,XXX

prospects logo customer XX% are already We our equating with of our customers, relationship to top LiveRamp of new this customers. expect acquisition. be to hundreds especially new helpful Snowflake potential

accelerate will These second partnership our the sales benefits start the of cost our expect half lower and materializing we Additionally, ‘XX. cycle FY should in of acquisition.

Data partnership announced Real-Time is Customer also We Platform. Adobe new a with

via largest DSPs, the SSPs, identifier, market downstream to publishers. other customer will $XX LiveRamp’s In offer data the it to the CDPs their alone, now the just on of premium all year be in activation year generated One including partners, ended, prior. million of from cloud incremental natively we approximately activate CTV bookings and to Marketers partnerships our in destinations able RampID. people-based RampID

expect recent an revenue the will for in given progress the be driver partnership even in months. We coming year, we in made this that stronger us have

are confirmed marketers Web. think brand this more and for a data deprecating to its half cookies our maintain in to line catalyst announced in in across return the engage we Chrome of ATS the fifth, time utility third-party second Recently, previously the will And Google and addressability offering. on core subscription of ad high for We leverage expanding XXXX. collaboration be reach, spend Open

As Google important role. an cookies, Chrome prepares of deprecation LiveRamp is for playing final the

reconcile PAIR. the clean announced their number Last room cookies. in to we allows year, Google’s select use publishers be or Google’s data of a DVXXX, Google advertiser launch one without identity marketing of and advertisers for would securely DSP, of partners use for PAIR first-party publisher, that reconciliation,

month, Earlier securely privately PAIR make We first-party continue able audiences. progress this partners publishers using. reconcile we Google. to to partnership began on testing first-party with be their our PAIR, with and marketer will these Google data publisher with

are seen and destinations these coming. majority authenticated at has has data transact its to and wide different cookies. always final vast meanwhile, clients permission-based the safe LiveRamp LiveRamp is We the variety to that the long third-party to be a migration think destinations for will made and Brands of easy destinations their authenticated it cookies for a able customers, without use addressable. of DVXXX on now from this inflection need for point

RampID, XXX publishers, are over definitive time further work XX,XXX online. of than we industry cookieless over integrations. on migration customers domains. XXX with already Today, ATS U.S. or than LiveRamp XX% will more announcement for XX% DSPs now and more publisher our as standard. of nearly the of XX% our the consumer comScore We spent believe establish buying account SSPs, Google’s top integrations And direct

a think all we macro in thing top are the controlling environment, you. they summarize lot indicator line trends, but leading and direction. growth what can trending But operating shared in just challenging of is a I control. numbers the are improving To are with that right we we I important

knitting expanded a very our built cases. the ecosystem fabric and pipeline, more with created robust a of We into our and the array capacity, have use motion of ever-expanding sales partner channel destinations our LiveRamp

it encouraging. position of operating margins. with rates, want The with indicators second than just strong ARR our are top fiscal if top higher fuel In growth lowered first complemented our growth half. revenue our epitomizes there as LiveRamp Increased the bookings momentum, contraction that the Rule is to statistic We by half, XX% a line fiscal is line XX bookings growth. one double-digit were will this. true for And leading Company along

obviously bottom cash good for line stewardship. lever in XX calculation, growth priority top too of is so a growth a but an reputation Rule building the Revenue and is important and

to reduce let mid So costs strong slower A final growth, expansion. me margin have and wrapping swiftly drive topic. operating and this growth before up, touch acted line revenue we bottom on

We have of and established margin improvement. operating a long record track delivering steady

negative million we years, to from ‘XX FY in operating positive negative margin XX% profit recent or in moved of FY $XX a Over ‘XX. a million $XX non-GAAP

that we are $XXX No, revenue we margin During an approximately translating grew million deliver not $XXX expect ‘XX, basis done. time, profit expansion, by to are we points XX% million. to And increased done. XXX FY of growth. by not operating In year-on-year

in moment. details additional provide a will Lauren

In expanded free continue purchase last excess flow cash was and December. return upsized shareholders addition, our program, which to through we to share

we During in our in resulted diluted $XXX decline shares, ‘XX FY FY our which X% average repurchasing spent ‘XX, shares. million a

year-to-date, XX prudent cash ‘XX, of factoring on discussed, the indicators our repurchased we fiscal a our to At portion progress our substantial free we repurchases. expect we shares levels FY use And already have flow think current a leading investment. repurchasing valuation is have I and for million. for share In

still new bookings macro In summary, delivered quarter importantly, in partnerships with ‘XX stronger integrations we that us But more new confidence enter a we and challenging give economy. FY an in-line we momentum, top we improving same do line and FY and ‘XX. QX, meaningful profit the growth delivered we growth revenue FY deliver operating in slower ‘XX. to in expect Despite margin expansion, in can growth

on thanks to to globe our share partners you us support. ‘XX repurchases. in today. the for cash a flow the Finally, FY we for progress for coming work our quarters. our free across and their Thank LiveRampers exceptional use again a customers hard of to forward amount all look you the We special and And substantial ongoing updating expect joining

that, the with call will to over turn Lauren. I And now

joining I you thank all will two us. and for topics. cover Today, Scott, Thanks,

In generated factored into the our of results, QX with cash operating expanded with we flow. for outlook for in while First, a year-on-year, and QX percentage expectations. by high points was vesting that was our results. midpoint million range, was FY QX. operating financial later. of were adjusting ‘XX guidance in more after end Revenue our margin broadly nearly the our Starting that our review and range at guidance results followed income near the summary, the Operating accelerated the of not $XX RSU X by on line

revenue fill me my details. period. growth to Unless relative is remarks Total in Please to the non-GAAP let Slide Now pertain turn our X. and better-than-expected revenue & was to X%. additional by otherwise in driven some Subscription ago advertising $XXX year environment and March. up ahead, Other results indicated, roughly in was with was a million, Marketplace and February expectations, line slightly

$XXX as with up to the part, including up next such and International in was first and multiyear large backlog our reflects was backlog, quarter Scott mentioned. new on the major was XX-month customers, combination Subscription was half net a FY Subscription to in million customer, salespeople with up environment. XX% both was ramped several these and X%. metrics to point contracted as decline some a million, XX%. was next X%, in if $XXX revenue non-enterprise soft call X our as RPO, million, net discussed incremental a as due $XXX Subscription in last RPO, downsell Total from line X%, currency. up up revenue was largely, activity the as-well-as or X%, inclusive factors our of our expectations of The was $XXX beyond retention Current broadly ‘XX IPG, challenging our contracted ARR platform macro not XX-months, manufacturer, foreign retention bookings a of headwind auto XX%, we largest renewals, due in with million, revenue

drag further, the of our declined by resulting recent XX% the X%, into XX% from trend. Subscription point X% a a quarter. in grew total revenue, down Digging growth, Subscription fixed year revenue represented Subscription total ago in from X usage Subscription Subscription by a revenue on reversal and

a revenue. this This and decline mostly reflects difficult quarterly variability typical comp of that is

market. driven still near of usage the to $XX the X%, XX% revenue down, was Marketplace data which Other with XX% decline Marketplace, consistent roughly the by revenue the March, and of in growth Marketplace segment. While historical This a range. our broadly in and mix the XX% pattern of Other represents increased growth midpoint reflects & million overall February & January performance advertising digital

prior actions investment migration data costs related in Moving business. from million, year, beyond Gross driven primarily revenue. to slightly continued and higher as margin in by customer due down was November. our well use XX%, from as parallel were Operating hosting services customer the down projects approximately taken $XX cost to expenses X% to

expanded million, roughly ‘XX. the million QX Operating $X prior was XX%. This million resulted from savings a decided call. would X year otherwise annualized, was of payroll the and vesting savings the not we an $XX these operating points advantage $XX take $X from the quarter in to expect total cash-tax million that with guidance first which we comments. ago consistent last in with QX, up contemplated our nearly income $X on our months in margin of by which In accelerate RSUs expense to we actions, provided our the million additional tax over was quarter, non-NEO in certain of have to next of X vested FY to

guidance. We $XX million. FY was $XX $XX shares Stock-based year repurchased any not Operating a the expense, approximately from in comp shares X.X million IRS to million, our ‘XX, repurchase down consistent we million ago, tax was for ordinary and the million, with in primarily from quarter. $XXX due of But an stock-based difficult accelerated $XX refund. vesting including comp million million compensation flow $XX from cash a did

to line, coupled uncertain to quarter. our drive meaningful with in summary, year, we the returned repurchased is under authorization. line weighed capital we million said, million first top buyback. XXX the available FY XX and there in-line Additionally, metrics the QX since felt March In pressure was again through stock, macro, shareholders broadly bookings half top we an currently performance in ‘XX, on while the and the beneath of with improvement our expectations, margin in continue fiscal our in That XX, our

Looking ahead, initiatives growth reaccelerate on sales to ‘XX our our by we’re the to nice are year, move momentum QX through segue and encouraged Scott outlined the is perhaps and which financial FY recent we focused a as outlook.

XX Slides keep year. XX. stock-based to our and in with Please related turn and excludes mind, Please amortization, charges. intangible and Starting restructuring full guidance compensation the

We X% year-on-year. up and expect between $XXX million, revenue X% $XXX of million to

inclusive revenue digits, grow to a the ‘XX. to be revenue versus XX% of midpoint subscription to Usage FY subscription just a X-point total expect headwind We expected historic of XX% as below from percentage in range is mid-single of the XX% usage.

Subscription net for be improvement XXX% and retention outlook throughout to in growth for assumes a Our QX. it year steady by the above

stick improved not though the a in growth. benefit integrations new hockey we bookings, in embedded second sales However, Scott optimistic guide and are we the half even Subscription will have discussed the improvement that partnerships and productivity

offset own in Of be our execution, potential the to to macroeconomic benefit, would this conditions. addition course, the

& expect is previous which than Other flat down. be to approximately Marketplace our of We slightly flat, revenue better expectation to

this duration means as name by Marketplace because uncertain less than flat conditions our variable then our results. over on market the of We’re based we true. growth to also December in in upgrading advertising normal, naturally would as however, Subscription our we’re overall of growth and in ‘XX, the with forward with do a on the Marketplace well In February, more Should expect market. economy of ball seen steady the a the seeing demonstrated this Advertising slight in environment, growth softness the which usage. be balanced, performance our crystal recent as business, clear, still does conservatism we we the still short After outlook have strengthened do economy in balance business. better Subscription revenue the ad is March We markets we January, usage. currently year. visibility the market. be the better would Marketplace the macro or a consistent not and and even both digital economy degradation inherently April, and ad inverse the assume hold balance our have fiscal or what and a on current FY To advertising To better over be in is have current in in

margin gross a XX%, expect We ‘XX. of FY line in with approximately

expect and in fiscal to to the half, second improve gross XX%, the half, margin be in XX%. However, first roughly approximately margin we expect to

half The to first payback identity capabilities in cloud support and starting services to the business investments graph in our services margin reflects materialize incremental second half, particularly in hosting. with and in our our

the expect between X up as ongoing well year-on-year $XX points. a XX%, We up to representing Operating margin savings from percentage of of are and million, by the digits, decline as initiatives. million $XX optimization reflecting non-GAAP actions cost year and operating mid-single approximately income prior roughly XX% expenses expected

expect Looking offshoring an second FY out we to to half. implement driven by FY margin similar significant ‘XX, fiscal initiative the ‘XX, year another of expansion, in will that we

to $XX million, We in benefits expect be vesting which stock-based compensation in $XX ‘XX. from accelerated FY the million

operating GAAP positive expect time to $X for $X and million. and between first to the be million income We be

to owners FY forecasted a largely through ‘XX of return great our the to significant and investment dilution. offset expect impact this will we our of a We is Lastly, believe share cash repurchase program. free amount flow

to QX. Now moving

and operating of XX%, X few of an revenue call-outs percentage total expect year-on-year. $XX for of margin A million, non-GAAP up points income $XXX million other We QX. operating

take to approximately In as We roughly margin QX, discussed to flat subscription and expect be approximately million. be to be earlier, gross point. QX, stock-based $XX net expect retention give we to we compensation XX%, we or a expect

quarter questions, a call with I’ll Before solid with conclude had thoughts. We challenging final a opening our despite and choppy expectations, few to the in-line a environment.

‘XX. expanded ‘XX level margin meaningfully, similar again expect and operating further QX X of in points a expansion in FY of we Our FY improvement margin and

coming that bookings line fiscal the and of such as in initiatives Google quarters. traction performance have market should gain new the in and driven Snowflake recent and stronger to sight line PAIR growth by top our second We with partnerships half,

And behalf have upside ‘XX as potential our current you and market for the ad us continue conditions amazing current but cautious on our trends the finally, on and it to be you the joining LiveRampers, hold balance conservative With FY year. for attempted trajectory we thank of bookings to thank to our if fiscal customers. of today, we see outlook, if all relates our that, and

we now Operator, questions. call to open will the

line Thank Susquehanna. of you. [Operator with Instructions] Please Shyam ahead. go Your first question comes the Patil from

Hey, this for Shyam. Thank for is you Aaron question. taking on our

have We two.

PAIR sales you any some the in provide can FY secondly, you you impact length environment be this ‘XX anything sales the the rollout can cycle more on additional would the on now, can specifically, there and of the details beyond? deal on helpful? and Thank could And Google share color have call First, out is and you. of cycle right pipeline

answer and Scott, it’s I those. both Aaron, Sure. of can

just First for off, the above that finally couple has that for deprecation timing PAIR, with respect now. a the was to years all, your question cookies confirmed Google X on was that over had industry because think uncertainty I excited of hanging the we’re an Google eventual

was mean the this is keys far authentication. thinking we’ve longer been And a Now years. than are really I consumer X that the about for our belief last it we’ve future cookieless that. – and been for control preparing for something

Google far, it what they which launch. was on. guess, the that’s couple announced there last identity, of we again us, once And as publisher, for their announced we same When reconciliation, a partners built by the is But are, the so they followed largest. And PAIR, stands for of I advertiser, one quarter, technology our others. And principle.

in have front might share. PAIR And don’t want any want testing been We of get to be in Google alpha news testing. I to to

tell for we’ve one milestones I of that ourselves. single out is testing, set the we But in what you alpha every would hit

line it’s a XXXX, But that it handful with a slow will XX is We’re cookie slow ramp. for calendar time advertisers. we By summer, and currently Google’s no a think live make and publishers. be to expand in will deprecation publishers ramp. of mistake, XXX-plus

real. this. I So see gradual the this you’ll has for on is progress this done think more confirmed than anything that it’s that world I think is What entire

Now DVXXX the of sources planet. one of is volume on media biggest the

so who it to buy with to wants by DVXXX to PAIR. audiences is anybody have on And going addressable to do continue

start year we the gain Every to new one a really could I would of advertisers And their virtually now, don’t advertisers media of traction. all that will world think to with. over benefit But in subscription So we from clients. lot Google our us think plan. of have single and it time on today, be volume them there work are a the

clouds. to a volume front data number of head not That been a more Any for kind this the And will PAIR, time guidance out so be collaboration – public use something this on. that requires, development is think us and our year. I on then of think And second into natural drive And with And inroads also for that’s I spur functionality is the next bigger really that get going and We clean of the the would year. that work is upside. we’ve start cases. comes it baked new it clients. again, demand think for we to this that over more room that is,

the little One historically much as dynamics pretty ways. a terms in of as a and environment macro I a conditions. indicators, little than the months longer, couple been. we’re that would is now. change of sales you say it and And the through pipeline. with has payment it’s right few a And market longer question, is that have bit a we’re generally – in manifested I the second a tell aggressive probably the of in a teams But leading change procurement would said, other being with the is seeing I On addition, sales pipeline itself we it and – think number power are kind changed seeing pleased. a or bit their I more walked

on tough accountability media wants somewhat the times that their marketer the offset in more that’s every and planet fact addressability by plan. Now in

more that have but So a of is hearing the we in sense, we’re actually there and some challenges. anecdote, world. become reps these pure thing across lot procurement headcount space our a what actions more departments but from more Aaron, leverage. but bit final have frontline the departments important is in been broadly have some say, I’ll The And tech in this procurement – staffing little of marketing particular,

And because that’s I it’s responsiveness, and procurement to of hit to a more some get shortage. think a get red little lined department these bit on taken staffing contracts time it’s

So positioned. all I is that, sure. we’re where for this to macro But headwinds despite like say

are direction. things moving think right I in the

helpful. Thank you, Scott. Very

Your next question comes of from the with Please line go ahead. Elizabeth Porter Morgan Stanley.

growth Thank year, Great. NRR QX kind and sales to wanted improving just growing I on opportunity to color and of first X% despite from bit the growth little Lauren, much. contribution full very more both you The for accelerate about versus partners. in revenue a guidance. get the year capacity the for guide

from actually have then was more of to you So are what I difficult some or hoping on guidance the get And follow-up. in a factors what are saw that QX? assuming I you get more less

happy start I’m upside. with believe by high I think is we our in some our as – certainly at a And potential conservative. would acknowledging we that. just remarks, I’m prepared to guidance mentioned Elizabeth. Thanks, Sure. take we is there do level, And

guide. So first, me Subscription the let address

as PAIR it bookings It tough Scott we in not a as example. bookings but improvement. stick improvement, like operating And steady it macro. contribution in discussed, We’re a that initiatives not assume newer an throughout just as our assume still are And also significant from does the pleased guidance does continued hockey we mentioned. acknowledges recent improvement a some Google our of with FY ‘XX, assumes

upside or nice newer traction the progress we’re should whether cloud partners, our So those some year, could be that making present earlier the gained to with our outlook. PAIR in subscription initiatives, market it

to in it remarks, as conservative In Data we appropriately our we’ve shared and subscription be relates here. as to Marketplace, usage addition, prepared attempted

growth of moderates. couple guide does the assume rate we’ve marketplace seen last months Our over the

year, the even would advertising balance should see also we So potentially Subscription and to or trends Data in in some current in strengthen usage. upside hold of throughout the Marketplace expect

that SMB And a headwind. Great. side, like on it the churn then be sounds continues to

of just Or this revenue as might group more stabilization improvement from or understand kind this is should enterprise So channels should accounts? helpful as help as new more ARR you we you a an drag how this to can group continued us we base? expect SMB address prioritize profitable some big be think standpoint? about And

a revenue as of total discussed We one happy reflection to I’m reminder, QX, macro of represent think a this at contraction on less reasons have recessionary the And tech quarter. it. we’ve really very a customer In carefully take pressures Yes. I form XX%. that a our on environment. percentage the than SMBs Elizabeth. was QX calls. of as to contraction the platform for our renewal where here’s really typically with of is downsell felt in And the we look base. good highest and impact past handle

ad-tech kind think advertising. more whose platforms, of So intermediaries, just other ad-tech to models trends are overall in sensitive

the improve in standpoint, initiatives product opportunity business the which In of the this more in continue of That outside increase XX% the fact, we said, as believe we’ve than past, both underway, contraction. an in for quarter, to the I drove through said as we a from will represents contraction and we contraction several have move year. believe believe support and the macro,

it, do we I everything expect So stabilize just mentioned. based on Elizabeth, to

Great. so Thank much. you

the Fitzgerald line of Please Fargo. Your go ahead. next Brian question Wells with comes from

on partnership. Snowflake Maybe more tactical guys. color some Thanks,

think talked about to and And seller-based Snowflake XXX alongside you tell within working or anything approaching you’ve accounts there? to how out the go Thanks. building already pipeline? Anything how could about market Snowflake us tell opportunity us about you could I you’re plans base. client the the large

marketplace. It’s didn’t and at Scott. vast broader from strategy. got with if And and had Hey, I about – look included effort we came incremental year, partner really is $XX it’s Snowflake have over want interesting. ended nothing the we I that’s I we rotate past being on effort also up Yes. really a a because the channel GCP, cloud both going program. in from to you because really channel then bookings, majority don’t their success of the That natively and with said, think up year, million we in last mentioned this Brian, the this

two in that is progress Databricks have AWS, be It to you lot will that followed we up Snowflake each are around those think, see offered collaboration I by GCP really belief cases, with, in. extend clients. In Azure success partners I would with partners tell our forward, of as first our leaning most well. And will Going will and our case, the that a with incentives. starts target and

subscription, an would partner the is were engage if GCP Snowflake that fairly LiveRamp So as it retire themselves typical channel or a to in example, quota from someone quota.

those because that It’s all effectively. require for drive we AI, significant use kind And do pretty massive They a cloud and of amounts things trend. broader of compute to them. of it’s data amounts

were those to that us with of been beneficial there, so know their and And beneficial I partners Brian, And can’t some pretty colleagues, and us were if partners. stage RampUp. to And we’re to it’s clients. on you of the presenting I on high your with radar doing some workshops were I came think remember the screen.

It high-level But really very operational. has very by and become early. it’s just not it’s tactical caveating, a let me contract. So end

We’re sales talking cycles potentially. X-month about to X

really to the as won’t impact the even in the starts into see this won’t see revenue going we back until year, until bookings of scale, next year. half and you So an come in

yes, helpful. Thanks, RampUp. did of a And a lot catch we out at Scott. that Very

appreciate I So it.

of next Your comes go with ahead. question Please line Jason from Craig-Hallum. Kreyer the

around and the puts guys. reconcile you, want growth. Thank to I Subscription just takes

that think kind of over talked look we exiting we sales need Subscription thought just highlight number still was the the as in in outside what that bookings are XXXX cycles? this helpful earlier. cycles the Scott, attrition attrition, to of we’ve quarter. rates and of low I mentioned to takes single-digit to year that kind the higher? higher rate, consider sales about what that growth puts that And outside of that, numbers you the that it And are want with around could push drivers impacting the we are longer I maybe a of kind that last lot other

take I’m to one, happy follow up. Scott, this to and free feel

bookings through of the in ‘XX quarter impacted results the the FY in Our first FY was of felt quarter by and pressure largely the ‘XX. half fourth we

a pressure progress, the I recent business, Subscription as while with to year bookings bookings momentum us top So our few think early to line part for going recent of last to pleased we our for our quarters felt the lap bookings it’s we’re benefit a in take and really results.

rate have And total benefit our Subscription early bookings on could of growth for part in which FY a drive potentially the ‘XX. we talked about the that things would higher year,

would usage, XX% Subscription XX% total does of highlight represent addition, Subscription In revenue. to which

this ‘XX. that is assuming are revenue in down We source FY

forward the to attempted of given visibility conservative. we be As here, mentioned, we’ve lack

earlier of just assuming of go or that both which we to to items is, ‘XX. comment back we trends ‘XX, reflection I benefit in So, benefited or don’t and some which course, of digital some our usage, one-time would improve, see macro macro repeat to an as rate Again, I we upside hold should made, is subscription which down reflection expect FY then which are in advertising also could trends the overall a well. growth, FY would a subscription

Thanks how could with beyond has am late follow-up any tap much sense and an I that to one assuming way is deprecation. any of the is advanced opportunity you targeting the to is And wanted kind opportunity to mechanisms? moved still on Google already of if wondering of some Just Okay. if there into for of big how have there I to be? industry an adopters? just cookie other cookie Curious handicap Lauren.

Yes.

destinations over larger advertisers, moved already For would because that XX% have proofed. fully cookie beyond. are well I of our they say And

social XX-year true or integration. some of on platforms, remember XX either If or XX stat, increasingly but XX also direct It’s you instance, overwhelming. is OpenWeb. authenticated with most be of buy the for publishers the now Comscore it’s top the it’s to That form might I established have can’t want exact it authentication. a XX-year, all

for to authenticated addressable inventory. this it buy easy is all is to increasingly advertisers say so And

may they not advertisers, cookies. to smaller might one use reliant the For still to be DVXXX, likely DSPs just on doing direct more of that that. be go They major heavily are

going have a to to And are from be the migrate. year to forced been so they They now. slowest

there point be of SMBs can we where more success inflection net And the forced to volume to an think wider will a with do so is kind have they a I online simply want. cast get lot because that they

advertisers their they For hundred thinking they but to planet. buy hard sophisticated, how call our are own they platform. have only few other top think have are do I the across on strategies not clean potential and in moved collaborate beyond And addressable, it already about starting driving this. a And companies first-party that they what’s the and first-party collaboration in data rooms that’s interest data. data with good real industry Again, the

So, days brighter ahead. I think

you. Thank

question line Please Macquarie. of next the Your go comes Nollen with ahead. Tim from

everyone. GDPR happens? knew of that just when a I or think follow-up reaction I you at come. quick got market going then a about, do I actually the follow-up will even mean point everyone Hi smaller that freeze market Thanks sort cookie the do think, last a up, the numbers enough take else Do got The even I okay? market XXXX, heard to Lauren. I to in is along will have that for all this response remember really came said. like though you basically, everything be question example, was Google far But just taking be advertisers will Scott, the place, on there for a the some that question, Scott, question. for actually you what when you think may deprecation was be overall

it’s interesting. Well, Yes.

at literally, example I GDPR if internally. mentioned and have covered clients it ground there end even industry months. actually YXK the both you before back because or then I You when in the go of of sprint those just weren’t ready using to GDPR in of final the And the couple was same they – lot because was a was felt a happened. like in And

frankly, I here. for for who a of With any is we going kind on think are relying we similar largest to are might be DVXXX the no they relying about and publishers, prioritizing make sophisticated are so advertisers smaller alpha mistake the not – Google publishers for to testing. ecosystem. anyway advertisers on pattern reach, Quite see advertising The advertisers, are for yield. it, DVXXX important

really about for the this. And paved the so line by having to Google so long way are in industry. migration definitive period think to happen a next I the beta they in to it’s such going minimal has and And alpha occur when first being test and disruption year

upside you quarter ever X% are positive in explain I OI bit growth fiscal question program you still assume that to a OI, most lower? GAAP cost you drivers you today what if the positive it even for are going SBC you your GAAP may that back little maybe here, give you, we And had more terms of in I to Great. the of else? your savings any actually is as My what am be can if implied beyond margins me think towards ‘XX. have for are ‘XX as out it those anything I OI sticks correct you wrong. the much? don’t could it’s GAAP the then ‘XX, helps comes Is that? me color to us looking far talking you Is revenue put that in is Lauren, see, positive like this the X% fiscal Thanks. if through guidance But report number that more a could even? expect the if I and

cost and we operating performance ‘XX, and from internally we part, November of about. quite initiatives proud something in to FY the have took addition large Happy optimization In take in just Yes. non-GAAP our both are that GAAP implemented. benefiting one, thanks question. ongoing actions the for to is Tim It’s we

stock stock-based we In a then from as a note, And final did addition, and this expect charges QX just expense will in guide. restructuring ‘XX. charges accelerated GAAP further restructuring be of in comp incurred in compensation benefit FY not we lower we results contemplated to ‘XX year balanced, some have ‘XX, or our have of the don’t FY result our

you color, from ‘XX, the any ‘XX? upside on up further Anything offer Okay. further could

think would size FY back of continue today, have we expand of ‘XX the to couple Tim. a premature made upside But in in prepared be to remarks. to It I to my kind beyond. would margin Yes. levers comments additional go and We I

mentioned offshoring that the One I of initiative earlier. which is

of margins performance we greater drive year operating optimization we believe and well. the In addition efforts, coming to course that, as in continued have will just which

you I have Thanks. been while. know a that’s something Great. for, striving for

So, look Thanks. to seeing next I year. that forward

Thank you.

Cannonball Karasyov of question ahead. next Your of Vasily Research. line from Please comes the go

networks is retail Thanks on to not said the that media prepared CPG you about remarks, and proved complex. your limited that that good afternoon. media initiatives Scott, retail recent

you here. you about please, on follow-up, I terminology, the clarify when misquote And talk is to media, media you? retail quick different and you the or do elaborate, if you Thank you retail Can separate what think of just is a here? marketing? mean you did shopper I not How do, either that involved those, for you? it And for same thing you. you do get in how

kind all, pretty co-op Well, unlock media. conditions just more retail a And well that think I mean To not are like far retail are has to the effective it’s can we store merchandising significantly could networks. they off, first where They and retailer And data you, are, website thinking far it’s media now. And the it’s a or given tell just limiting collaboration. about would I and same networks commerce Vasily, networks packaged retailers their beyond store, name. for in those goods and concepts retail goods but spending I Yes. see whole take things as natural do right. it, concept extend all be the the place budgets have first were collaboration benefits made alone of beyond sophisticated was about the thinking are providers of packaged information. media data place. could the complementary purchase you that companies how because me, through collaboration,

the think or all almost collaborate. partners Connected travel many would have today the utilize an interfaces buy in the for cars how in we companies, opportunity pretty about instance, for space, airlines them incredible be cars you to cars, might travel hotel whether dashboard. sophisticated what rental user it that So, or

collaborate a incredible for to so OEM the gas your a retailer, And or even I have to of was about station I using we have had network multiple retail. commerce because the car and signed, what extent an shared with new interesting opportunity you example the And that a you the are manufacturer talking to constituencies. manifestation auto really a that’s where earlier,

buys doing and You have the OEM television that national be big planning. might

is buy local see where regional collaborate so you in will. car, they You their don’t I connecting dealership. have financial regions they healthcare. three together have to more what they know this And agencies, go this those can the if this I in services. of the you they the working actual your can working distributors and those – market And call see grouped – have like all then them, I they consolidate kind And groups you spend of can like think are ad that through retail effectively. I themselves, like

in are some already so that retail. are wallet moving of path mean financial I that retailer. have credit clients services many of and financial a our actually down cards co-branded services for the We

isn’t media collaborate have has data results. that TAM the we here with good not is don’t much literally for. I than the agree authenticated market. and that true. a and data networks packaged We And research have of read I may retail goods. generate bigger hey, that so that, better playing company that It’s large So, are that says, companies with other think permission just that’s market any retail can be the some but

you. Thank Okay.

comes ahead. the with Stephens. Please question Zangler Nicholas next line go of Your from

guys. Hey

take deeper provided. metric the here, quarter dive usage I you Solid to on want did a

So, specifically gauge whether May, a in just the until or advertising maybe this kind demand, maybe year, into that on what and that you as likely just trends to next If quarter an number from troughed discuss progressed negative you of that indicator how think maybe has kind quarter January released. softer And to talk down you think you now, actually the environment? I just metric? I metric that has how prior just as ad about as the in means that that metric in think of was or performed of X% use about were can April

take Yes. subscription we I And am directionally environment. to not that, saying, Nicholas. perfectly advertising Marketplace, with digital both of track and by linear, start overall kind Data line happy I would the are usage in just

However, in QX, pretty usage the from a comp was by ago year impacted period. tough

you Data barometer would to especially health, a our the indicator. probably So, I overall terms just in reported advertising Marketplace a quarter better of as in on we digital growth, point

saw growth We March then we then Marketplace, in Data very decline up and growth February growth a saw December January. picked stabled, in and April. in again in and for again in So, modest

trends seen bit. rebound have we a So, there

who buy Data was fairly Marketplace. that few However, off some rebound platforms for our of with our Marketplace, a large concentrated media

ahead our trends As an assume our current kind ‘XX, is of where this attempt we this hold. really guidance the FY we given marketplace growth think does moderate. do as area of to conservative like we feel to And be forward kind And of can again, is here. lack better visibility

if Got it. you And to I very don’t mind. circle then just payers, helpful. back That’s wanted to

on multiple then to if thinking a yourself? providers, is think it’s in in order – involved reliant We been very the clean there rooms solution. And is clean through just then clean willing, about on including how – LiveRamp And selection does PAIR solution? mix. to exploring other done utilize you that DSP DSP, details how by to just how currently room Safe that just on And But that PAIR relationship are then room like how just an it. about seems fundamentals subscriber user I executed? Haven the And heavily if Google more talk how also what – obviously, advertiser be you are are have through like, it Google’s any a happens, as access there that far the So, as fundamentally, how it the that’s just is can that have works, monetized?

Yes.

authentication Google right advertiser side. functionality, think part, clear a it’s is of – and it their outsourced, matching the requires on So, basically kind the and I on decision this

in when are and eliminates party match same. be that publisher bias or and website that neutral encrypt sign is potential we is a are ensure it it doing anything or the of can for about the their or anonymize they loyalty the participate then actually the And yes, middle. on LiveRamp a secure. several I the their garden subscription in any alpha, perhaps it, advertiser we permissions the make security the think its have Perhaps collecting an match, and biggest, sign e-mail. participating wanted is this, privacy having one program because and in to happens data you The like up get to go be So, walled use client. they to if RampID, in To concern someone LiveRamp content in

again, isn’t is so as Google upside by there next some in I until But alpha is this for wins deployment future full-scale potentially, client testing it’s this calendar year. an us scales. now early. So, mean scheduled right and

planned are going learnings of lot lot probably a know is will big those they But the have learnings So, they ultimately how about is that have XXXX. do for they how will migration program and deploy. I we thing a is of think to that there have one the the scale calendar communication as will

run there and as very final as be these a that to a thoughts we calendar? would me, And Got campaigns am don’t think especially start I XXXX for ad this it. the just RAMP solution Understood. then just you. political – spend. XXXX would about mean through, seem mind. thinking Thank about from way useful you but political one ad benefit it to I quick is for this Is if there?

we with something a bump, is XXXX a bump business, election interesting bit. in spend think And whether an up typically that cycle. Sure. both a was happens we who Data today, are our the presidential If do see their of depending ramped about announcement real a to up. obviously, things mean particularly Marketplace us the be work is, when making going it the stuff, are cycle there up during that Americans on big they But really vote it pulled for. a we parties. minds election helps I how know some in little I – seasonal will And calendar lot. get has It

Got you so much. it. Thank

The go We have Zgutowicz Please it and ahead. one the for Company. Benchmark comes Mark time question, from with of more line

you. Thank

able Just was years, into specific put Haven that terms a think with what was a mix bookings RPO point you collaboration a you growth. outside, retail, be couple in look share I could is on or of ARR last contribution care in finer And I Scott, on like quick then interesting And something? of hoping of ICG comments and topic to but that would hoping year? the in quarter. you what that the a looked balance outside data to Safe how your trajectory may was ones, like renewal just share gauge bit, ex look Thanks. growth might real curious, on might CPG of ARR dig your to over an certainly auto and for the get X CPG, the you retail large to sort about if you think just next about one

third. and might second he for me first back let the to I one. And Scott answer circle can Certainly. the Mark, the it pass take to

up So our evolved XX% of and mentioned, data ARR so In metric ARR north the Haven. of Safe our as in XX% data the was as really platform. the and the our moving integrated Scott we unified capabilities to disclose talked formally go-to-market said, have into collaboration formally quarter, represented which as collaboration total quarter, That up-selling expect we we Safe platform, Safe influenced had year-on-year, Haven, forward, year-on-year. customers up nicely about this have to don’t our a strong Haven quarter, we

we you So, the forward for best overall would to forward, moving business. as point growth of growth the indicator ARR

networks really that of tell you sizing commerce growth those don’t the experts to and be would if larger, and terms which going pacing over see valuable It the take like some flight almost hasn’t one those, the are become of much they next and providers, solutions of at faster And in are really couple become of bet universally we think all terms will in have, And years, they compatible are be that I we things. utilized. to the that can I with very of know my that the in I television recognizing last authentication. effectively with been room particular. is publishers, have PAIR. better getting clean data Publishers

how ensure control is their data opportunity. the and And adhered are want utilized, that own broadly. that so to train they data that that misappropriating models. to see an don’t no right want permissions data one just and share using to of their They They it is to

So, how in there seen is media of space, in I interest the think model have of very CTV similar the a we develop. kind particularly lot creating collaboration to networks media a

financial a you is me I even hey, inventory, number I data If am a my the provider, you maybe The it might itself. of of to potential my That kind valuable existing that’s CTV yield second then yield. lever for order, think, for because I exchange are are airline services, in this of just there monetizing data or and me, your seeds three make large miles is travel inventory travel. monetize are a The the more in healthy say, other all across one. appetite two And kind currency no of place would particular already then in and the travel is of partners. is

that will consortiums have currency. that use data exist historically same around those So, the built as been miles increasingly

out that’s to of I markets. years three being probably a interesting think and play really those all very of see couple But I scale.

back, RPO to question. Mark, And circle to the

going that to sequential was say, increase it of roughly million auto also will sequential Scott addition in size had million QX, to impact roughly to to the and million the closed up RPO, deal the would at which the I several I deals at in believe total $XX I $XX $XX RPO. not to size million that QX that $XX data out the improvement mentioned. IPG am Looking of benefited in increase, improvement. multimillion win, the multiyear, QX we in auto collaboration break But large dollar the

it. you. very color. helpful Thank That’s Appreciate

call closing for that, remarks. Dillard With you. I Lauren Thank the will turn to

Thank you.

profit a year. we was deliver strong the execution surface, earlier not sales a line momentous tough quarter operating results from did in weathering on While while macro the QX on and the top challenges

on some ‘XX are positive us that things give down we the heads and we guidance reaccelerate we through conservative As are we to ability in ‘XX, FY our seeing finally, enter and emerge believe and appropriately confidence our as is the focused achievable. we growth can very improve trends move year. And FY

to today. everyone look in So, us you. updating forward We thanks the ahead. quarters for Thank again joining you

for This concludes call. you today’s Thank conference joining.

disconnect now may You lines. your