LiveRamp Announces Third Quarter Results

Total Revenue Increased by 35%
Subscription Revenue Grew 42%
Company Tightens Full Year Guidance
SAN FRANCISCO–(BUSINESS WIRE)–LiveRampⓇ
(NYSE: RAMP), the identity platform powering exceptional
experiences, today announced its financial results for the quarter ended
December 31, 2018.
Third Quarter Financial Highlights
-
Total revenue of $80 million, up 35% compared to the prior year
period. Excluding the impact of Facebook, revenue increased 49%. - Subscription revenue of $65 million, up 42%.
-
Marketplace & Other revenue of $15 million grew 13%. Excluding the
impact of Facebook, Marketplace & Other revenue increased 91%. -
GAAP loss per share from continuing operations was ($0.20) and
non-GAAP earnings per share from continuing operations was $0.03.
Earnings benefited from interest income related to invested proceeds
from the Acxiom Marketing Solutions (AMS) sale. -
Cash flow used in operating activities improved sequentially to $11
million compared to $27 million during the second quarter of fiscal
2019. At quarter end, the Company had cash and cash equivalents
totaling $1.5 billion and no debt. LiveRamp expects to pay taxes of
roughly $450 million during its fiscal fourth quarter as a result of
the gain on the sale of AMS. -
The Company completed a $500 million tender for 11.2 million shares,
reducing its share count by approximately 14%. Additionally, during
the quarter, LiveRamp repurchased 0.4 million shares for $18 million
under its $1 billion stock repurchase program. Since inception of its
share repurchase program in 2011, the Company has repurchased 22.4
million shares for $439 million, leaving remaining capacity of $561
million.
“This was a landmark quarter for LiveRamp,” said LiveRamp CEO Scott
Howe. “During our first official quarter as a stand-alone public
company, we received $2.3 billion from the sale of AMS, completed a $500
million share repurchase, and at the same time, delivered a record
top-line performance. We are excited about the value we bring to our
customers and our role as the neutral and open platform for the safe and
ethical use of data across the ecosystem.”
“Land, expand and extend is our way of life,” said LiveRamp President
and CFO Warren Jenson. “This quarter, we added 30 new direct customers
and meaningfully grew our existing customer relationships. As a result,
subscription revenue was up 42%, and our dollar-based net retention rate
exceeded 115% for the tenth consecutive quarter.”
Third Quarter GAAP and Non-GAAP Results
The following table summarizes the Company’s financial results for its
third fiscal quarter ($ in millions):
Q3 Fiscal 2019 | Q3 Fiscal 2019 | |||||||
GAAP Results | Non-GAAP Results | |||||||
|
YoY | YoY | ||||||
Subscription | $65 | 42% | $65 | 42% | ||||
Marketplace & other |
$15 |
13% |
$15 |
13% |
||||
Total Revenue | $80 | 35% | $80 | 35% | ||||
Gross profit | $45 | 31% | $51 | 24% | ||||
% Gross margin | 56% | (200 bps) | 64% | (590 bps) | ||||
Operating loss | ($48) | nm | ($11) | nm | ||||
% Operating margin | (60%) | (1,340 bps) | (14%) | (710 bps) | ||||
Net earnings (loss) from continuing operations | ($15) | nm | $2 | nm | ||||
Earnings (loss) per share | ($0.20) | nm | $0.03 | nm | ||||
Net cash used in operating activities | ($11) | nm | ($11) | nm | ||||
Free cash flow | nm | nm | ($13) | nm |
A detailed discussion of our non-GAAP financial measures and a
reconciliation between GAAP and non-GAAP results is provided in the
schedules to this press release.
Key Metrics and Business Highlights
-
LiveRamp added 30 new direct customers during the quarter, bringing
its total direct customer count to 640, an increase of 23%
year-over-year. We now serve 19% of the Fortune 500 compared to 15% in
the prior year period. -
LiveRamp has 42 clients whose subscription contracts exceed $1 million
in annual revenue, up from 31 in the prior year period. -
Dollar-based net retention was in excess of 115% for the tenth
consecutive quarter. -
During the quarter, TV related revenue grew 38% year-over-year and
addressable campaign volumes more than doubled. Recent LiveRamp TV
wins included Cox, Turner and iSpot.
Financial Outlook
LiveRamp’s non-GAAP guidance excludes the impact of non-cash stock
compensation, purchased intangible asset amortization, restructuring
charges and business separation costs.
For fiscal 2019, LiveRamp now expects to report:
-
Revenue of up to $284 million, an increase of 29% year-over-year as
compared to the Company’s previous revenue growth guidance of 25% to
30%. -
GAAP operating loss from continuing operations of approximately $181
million as compared to previous GAAP operating loss guidance of $170
million to $158 million. The increased GAAP operating loss is
associated with incremental restructuring charges and higher stock
compensation. -
Non-GAAP operating loss from continuing operations of approximately
$55 million as compared to previous operating loss guidance of $64
million to $52 million.
The Company’s GAAP and non-GAAP operating loss guidance includes
approximately $21 million of transition-related spend associated with
establishing standalone operations at LiveRamp. The $21 million is
broken out as follows: approximately $4 million in the second quarter,
$9 million in the third quarter and $8 million in the fourth quarter.
Transition-related spending is expected to be largely complete by
mid-FY20.
Conference Call
LiveRamp will hold a conference call at 2:00 p.m. PT today to further
discuss this information. Interested parties are invited to listen to
the call which will be broadcast via the Internet and can be found on
our investor
site. A slide presentation will be referenced during the call and
can be accessed here.
Upcoming Conference Attendance
LiveRamp management will be presenting at the 2019 Morgan Stanley TMT
Conference on February 27th at 3:50 p.m. PT in San Francisco, California.
RampUp™ 2019
LiveRamp will be hosting RampUp 2019, the premiere conference for
leaders in MarTech, on February 25th and 26th in San Francisco,
California. This year’s event will include speakers from Cars.com, Dun &
Bradstreet, Macy’s, Spark Foundry, Unity Technologies, and many
more.
About LiveRamp
LiveRamp provides the identity platform leveraged by brands and their
partners to deliver innovative products and exceptional experiences.
LiveRamp IdentityLink connects people, data, and devices across the
digital and physical world, powering the people-based marketing
revolution and allowing consumers to safely connect with the brands and
products they love. For more information, visit www.LiveRamp.com.
Forward-Looking Statements
This release and today’s conference call contain forward-looking
statements including, without limitation, statements regarding expected
levels of revenue and earnings per share. Such forward-looking
statements are subject to certain risks and uncertainties that could
cause actual results to differ materially. The following are factors,
among others, that could cause actual results to differ materially from
these forward-looking statements: the possibility that expected revenue
may not be realized within the expected timeframe; the possibility that
the integration of acquired businesses may not be successful as planned;
the possibility that certain contracts may not generate the anticipated
revenue or profitability or may not be closed within the anticipated
time frames; the possibility that significant customers may experience
extreme, severe economic difficulty or otherwise reduce or cancel the
amount of business they do with us; the possibility that we will not
successfully complete customer contract requirements on time or meet the
service levels specified in the contracts, which may result in contract
penalties or lost revenue; the possibility that data purchasers will
reduce their reliance on us by developing and using their own, or
alternative, sources of data generally or with respect to certain data
elements or categories; the possibility that third-party cookies will be
restricted by regulators and or platform partners, which could impact
the accuracy of our Identity Graph; the possibility that data suppliers
might withdraw data from us, leading to our inability to provide certain
products and services to our clients; the possibility that we may not be
able to attract, retain or motivate qualified technical, sales and
leadership associates, or that we may lose key associates; the
possibility that we may not be able to adequately adapt to rapidly
changing computing environments, technologies and marketing practices;
the possibility that negative changes in economic conditions in general
or other conditions might lead to a reduction in demand for our products
and services; the possibility that there will be changes in consumer or
business information industries and markets that negatively impact the
company; the possibility that the historical seasonality of our business
may change; the possibility that we will not be able to achieve
anticipated cost reductions and avoid unanticipated costs; the
possibility that the fair value of certain of our assets may not be
equal to the carrying value of those assets now or in future time
periods; the possibility that unusual charges may be incurred; the
possibility that changes in accounting pronouncements may occur and may
impact these forward-looking statements; the possibility that we may
encounter difficulties when entering new markets or industries; the
possibility that we could experience loss of data center capacity or
interruption of telecommunication links; the possibility the European
General Data Protection Regulation, which became effective May 25, 2018,
will make it more difficult and/or costly for us to do business in the
EU; the possibility the California Consumer Privacy Act of 2018, which
becomes effective January 1, 2020, will make it more difficult and/or
costly for us to do business in California and other states within the
U.S.; the possibility that new laws may be enacted which limit our
ability to provide services to our clients and/or which limit the use of
data; and the possibility that other risks and uncertainties may emerge,
including those detailed from time to time in our current and periodic
reports filed with the Securities and Exchange Commission, including our
current reports on Form 8-K, quarterly reports on Form 10-Q and annual
reports on Form 10-K, particularly the discussion under the caption
“Item 1A. RISK FACTORS” in our Annual Report on Form 10-K for the year
ended March 31, 2018, which was filed with the Securities and Exchange
Commission on May 25, 2018 and the discussion under the caption “Item
1A. RISK FACTORS” in our Quarterly Report on Form 10-Q for the quarter
ended September 30, 2018, which was filed with the Securities and
Exchange Commission on November 1, 2018.
With respect to the provision of products or services outside our
primary base of operations in the United States, all the above factors
apply, along with the difficulty of doing business in numerous sovereign
jurisdictions due to differences in scale, competition, culture, laws
and regulations.
We undertake no obligation to update the information contained in this
press release or any other forward-looking statement.
To automatically receive LiveRampⓇ financial news by email,
please visit www.LiveRamp.com
and subscribe to email alerts.
LiveRampⓇ, IdentityLink™, Abilitec™ and all other LiveRampⓇ
marks contained herein are trademarks or service marks of LiveRamp, Inc.
All other marks are the property of their respective owners.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||
For the Three Months Ended | |||||||||||||||
December 31, | |||||||||||||||
$ | % | ||||||||||||||
2018 | 2017 | Variance | Variance | ||||||||||||
Revenues | 80,021 | 59,121 | 20,900 | 35.4 | % | ||||||||||
Cost of revenue | 34,838 | 24,526 | 10,312 | 42.0 | % | ||||||||||
Gross profit | 45,183 | 34,595 | 10,588 | 30.6 | % | ||||||||||
% Gross margin | 56.5 | % | 58.5 | % | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 20,469 | 14,311 | 6,158 | 43.0 | % | ||||||||||
Sales and marketing | 40,054 | 27,832 | 12,222 | 43.9 | % | ||||||||||
General and administrative | 27,828 | 20,929 | 6,899 | 33.0 | % | ||||||||||
Gains, losses and other items, net | 5,043 | (788 | ) | 5,831 | 740.0 | % | |||||||||
Total operating expenses | 93,394 | 62,284 | 31,110 | 49.9 | % | ||||||||||
Loss from operations | (48,211 | ) | (27,689 | ) | (20,522 | ) | (74.1 | %) | |||||||
% Margin | -60.2 | % | -46.8 | % | |||||||||||
Total other income | 10,404 | 432 | 9,972 | 2308.3 | % | ||||||||||
Loss from continuing operations before income taxes | (37,807 | ) | (27,257 | ) | (10,550 | ) | (38.7 | %) | |||||||
Income taxes (benefit) | (22,546 | ) | (29,791 | ) | 7,245 | 24.3 | % | ||||||||
Net earnings (loss) from continuing operations | (15,261 | ) | 2,534 | (17,795 | ) | (702.2 | %) | ||||||||
Earnings from discontinued operations, net of tax | 1,071,661 | 20,407 | 1,051,254 | 5151.4 | % | ||||||||||
Net earnings | 1,056,400 | 22,941 | 1,033,459 | 4504.9 | % | ||||||||||
Basic earnings (loss) per share: | |||||||||||||||
Continuing operations | (0.20 | ) | 0.03 | (0.23 | ) | (715.0 | %) | ||||||||
Discontinued operations | 13.85 | 0.26 | 13.59 | 5263.1 | % | ||||||||||
Net earnings | 13.65 | 0.29 | 13.36 | 4602.7 | % | ||||||||||
Diluted earnings (loss) per share: | |||||||||||||||
Continuing operations | (0.20 | ) | 0.03 | (0.23 | ) | (737.0 | %) | ||||||||
Discontinued operations | 13.85 | 0.25 | 13.60 | 5454.8 | % | ||||||||||
Net earnings | 13.65 | 0.28 | 13.37 | 4770.9 | % | ||||||||||
Basic weighted average shares | 77,398 | 79,043 | |||||||||||||
Diluted weighted average shares | 77,398 | 81,869 |
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||
For the Nine Months Ended | |||||||||||||||
December 31, | |||||||||||||||
$ | % | ||||||||||||||
2018 | 2017 | Variance | Variance | ||||||||||||
Revenues | 207,304 | 159,891 | 47,413 | 29.7 | % | ||||||||||
Cost of revenue | 82,958 | 72,596 | 10,362 | 14.3 | % | ||||||||||
Gross profit | 124,346 | 87,295 | 37,051 | 42.4 | % | ||||||||||
% Gross margin | 60.0 | % | 54.6 | % | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 54,379 | 44,750 | 9,629 | 21.5 | % | ||||||||||
Sales and marketing | 109,317 | 77,904 | 31,413 | 40.3 | % | ||||||||||
General and administrative | 71,129 | 68,240 | 2,889 | 4.2 | % | ||||||||||
Gains, losses and other items, net | 5,533 | 2,042 | 3,491 | 171.0 | % | ||||||||||
Total operating expenses | 240,358 | 192,936 | 47,422 | 24.6 | % | ||||||||||
Loss from operations | (116,012 | ) | (105,641 | ) | (10,371 | ) | (9.8 | %) | |||||||
% Margin | -56.0 | % | -66.1 | % | |||||||||||
Total other income | 10,479 | 115 | 10,364 | 9012.2 | % | ||||||||||
Loss from continuing operations before income taxes | (105,533 | ) | (105,526 | ) | (7 | ) | (0.0 | %) | |||||||
Income taxes (benefit) | (21,274 | ) | (54,980 | ) | 33,706 | 61.3 | % | ||||||||
Net loss from continuing operations | (84,259 | ) | (50,546 | ) | (33,713 | ) | (66.7 | %) | |||||||
Earnings from discontinued operations, net of tax | 1,158,267 | 68,851 | 1,089,416 | 1582.3 | % | ||||||||||
Net earnings | 1,074,008 | 18,305 | 1,055,703 | 5767.3 | % | ||||||||||
Basic earnings (loss) per share: | |||||||||||||||
Continuing operations | (1.09 | ) | (0.64 | ) | (0.45 | ) | (70.4 | %) | |||||||
Discontinued operations | 14.99 | 0.87 | 14.12 | 1619.8 | % | ||||||||||
Net earnings | 13.90 | 0.23 | 13.67 | 5898.1 | % | ||||||||||
Diluted earnings (loss) per share: | |||||||||||||||
Continuing operations | (1.09 | ) | (0.64 | ) | (0.45 | ) | (70.4 | %) | |||||||
Discontinued operations | 14.99 | 0.87 | 14.12 | 1619.8 | % | ||||||||||
Net earnings | 13.90 | 0.23 | 13.67 | 5898.1 | % | ||||||||||
Basic weighted average shares | 77,260 | 78,983 | |||||||||||||
Diluted weighted average shares | 77,260 | 78,983 |
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES |
|||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP EPS (1) |
|||||||||||||
(Unaudited) | |||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||
December 31, | December 31, | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Loss from continuing operations before income taxes | (37,807 | ) | (27,257 | ) | (105,533 | ) | (105,526 | ) | |||||
Income taxes (benefit) | (22,546 | ) | (29,791 | ) | (21,274 | ) | (54,980 | ) | |||||
Net earnings (loss) from continuing operations | (15,261 | ) | 2,534 | (84,259 | ) | (50,546 | ) | ||||||
Earnings from discontinued operations, net of tax | 1,071,661 | 20,407 | 1,158,267 | 68,851 | |||||||||
Net earnings | 1,056,400 | 22,941 | 1,074,008 | 18,305 | |||||||||
Earnings per share: | |||||||||||||
Basic | 13.65 | 0.29 | 13.90 | 0.23 | |||||||||
Diluted | 13.65 | 0.28 | 13.90 | 0.23 | |||||||||
Excluded items: | |||||||||||||
Purchased intangible asset amortization (cost of revenue) | 3,359 | 5,965 | 12,877 | 17,939 | |||||||||
Non-cash stock compensation (cost of revenue and operating expenses) | 26,082 | 13,290 | 61,547 | 38,844 | |||||||||
Accelerated depreciation (cost of revenue and operating expenses) | 1,959 | – | 1,959 | – | |||||||||
Restructuring and merger charges (gains, losses, and other) | 5,043 | (788 | ) | 5,533 | 2,042 | ||||||||
Separation and transformation costs (general and administrative) | 700 | 5,214 | 2,822 | 17,786 | |||||||||
Total excluded items, continuing operations | 37,143 | 23,681 | 84,738 | 76,611 | |||||||||
Earnings (loss) from continuing operations before income taxes and |
(664 | ) | (3,576 | ) | (20,795 | ) | (28,915 | ) | |||||
Income taxes (benefit) (2) | (2,941 | ) | (2,514 | ) | (7,809 | ) | (10,234 | ) | |||||
Non-GAAP net earnings (loss) from continuing operations | 2,277 | (1,062 | ) | (12,986 | ) | (18,681 | ) | ||||||
Non-GAAP earnings (loss) per share from continuing operations: | |||||||||||||
Basic | 0.03 | (0.01 | ) | (0.17 | ) | (0.24 | ) | ||||||
Diluted | 0.03 | (0.01 | ) | (0.17 | ) | (0.24 | ) | ||||||
Basic weighted average shares | 77,398 | 79,043 | 77,260 | 78,983 | |||||||||
Diluted weighted average shares | 80,674 | 79,043 | 77,260 | 78,983 |
(1) This presentation includes non-GAAP measures. Our non-GAAP measures
are not meant to be considered in isolation or as a substitute for
comparable GAAP measures, and should be read only in conjunction with
our condensed consolidated financial statements prepared in accordance
with GAAP. For a detailed explanation of the adjustments made to
comparable GAAP measures, the reasons why management uses these measures
and the material limitations on the usefulness of these measures, please
see Appendix A.
(2) Income taxes were calculated using an effective non-GAAP tax rate of
442.9% and 70.3% in the third quarter of fiscal 2019 and 2018,
respectively, and 37.5% and 35.4% for the nine months ended December 31,
2018 and 2017, respectively. The difference between our GAAP and
non-GAAP tax rates were primarily due to the net tax effects of the
excluded items. The rates for the three months and nine months ended
December 31, 2018 reflect the impact of the Tax Acts and Jobs Act.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES |
||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP LOSS FROM |
||||||||||||||
(Unaudited) | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
Loss from continuing operations | (48,211 | ) | (27,689 | ) | (116,012 | ) | (105,641 | ) | ||||||
Excluded items: | ||||||||||||||
Purchased intangible asset amortization (cost of revenue) | 3,359 | 5,965 | 12,877 | 17,939 | ||||||||||
Non-cash stock compensation (cost of revenue and operating expenses) | 26,082 | 13,290 | 61,547 | 38,844 | ||||||||||
Accelerated depreciation (cost of revenue and operating expenses) | 1,959 | – | 1,959 | – | ||||||||||
Restructuring and merger charges (gains, losses, and other) | 5,043 | (788 | ) | 5,533 | 2,042 | |||||||||
Separation and transformation costs (general and administrative) | 700 | 5,214 | 2,822 | 17,786 | ||||||||||
Total excluded items | 37,143 | 23,681 | 84,738 | 76,611 | ||||||||||
Loss from continuing operations before excluded items | (11,068 | ) | (4,008 | ) | (31,274 | ) | (29,030 | ) |
(1) This presentation includes non-GAAP measures. Our non-GAAP measures
are not meant to be considered in isolation or as a substitute for
comparable GAAP measures, and should be read only in conjunction with
our condensed consolidated financial statements prepared in accordance
with GAAP. For a detailed explanation of the adjustments made to
comparable GAAP measures, the reasons why management uses these measures
and the material limitations on the usefulness of these measures, please
see Appendix A.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES |
||||||||||||||
RECONCILIATION OF ADJUSTED EBITDA (1) | ||||||||||||||
(Unaudited) | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
Net loss from continuing operations | (15,261 | ) | 2,534 | (84,259 | ) | (50,546 | ) | |||||||
Income taxes (benefit) | (22,546 | ) | (29,791 | ) | (21,274 | ) | (54,980 | ) | ||||||
Other income (expense) | 10,404 | 432 | 10,479 | 115 | ||||||||||
Loss from operations | (48,211 | ) | (27,689 | ) | (116,012 | ) | (105,641 | ) | ||||||
Depreciation and amortization | 8,853 | 9,297 | 25,274 | 28,255 | ||||||||||
EBITDA | (39,358 | ) | (18,392 | ) | (90,738 | ) | (77,386 | ) | ||||||
Other adjustments: | ||||||||||||||
Non-cash stock compensation (cost of revenue and operating expenses) | 26,082 | 13,290 | 61,547 | 38,844 | ||||||||||
Restructuring and merger charges (gains, losses, and other) | 5,043 | (788 | ) | 5,533 | 2,042 | |||||||||
Separation and transformation costs (general and administrative) | 700 | 5,214 | 2,822 | 17,786 | ||||||||||
Other adjustments | 31,825 | 17,716 | 69,902 | 58,672 | ||||||||||
Adjusted EBITDA | (7,533 | ) | (676 | ) | (20,836 | ) | (18,714 | ) |
(1) This presentation includes non-GAAP measures. Our non-GAAP measures
are not meant to be considered in isolation or as a substitute for
comparable GAAP measures, and should be read only in conjunction with
our condensed consolidated financial statements prepared in accordance
with GAAP. For a detailed explanation of the adjustments made to
comparable GAAP measures, the reasons why management uses these
measures, the usefulness of these measures and the material limitations
on the usefulness of these measures, please see Appendix A.
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES |
||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(Dollars in thousands) | ||||||||||||
December 31, | March 31, | $ | % | |||||||||
2018 | 2018 | Variance | Variance | |||||||||
Assets |
||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | 1,546,774 | 140,018 | 1,406,756 | 1004.7 | % | |||||||
Trade accounts receivable, net | 71,906 | 52,047 | 19,859 | 38.2 | % | |||||||
Refundable income taxes | – | 9,977 | (9,977 | ) | (100.0 | %) | ||||||
Other current assets | 27,366 | 20,173 | 7,193 | 35.7 | % | |||||||
Assets held for sale | – | 138,374 | (138,374 | ) | (100.0 | %) | ||||||
Total current assets | 1,646,046 | 360,589 | 1,285,457 | 356.5 | % | |||||||
Property and equipment | 58,782 | 62,353 | (3,571 | ) | (5.7 | %) | ||||||
Less – accumulated depreciation and amortization | 34,195 | 30,013 | 4,182 | 13.9 | % | |||||||
Property and equipment, net | 24,587 | 32,340 | (7,753 | ) | (24.0 | %) | ||||||
Software, net of accumulated amortization | 8,027 | 13,970 | (5,943 | ) | (42.5 | %) | ||||||
Goodwill | 204,671 | 203,639 | 1,032 | 0.5 | % | |||||||
Deferred income taxes | 149 | 10,703 | (10,554 | ) | (98.6 | %) | ||||||
Deferred commissions, net | 9,478 | – | 9,478 | – | ||||||||
Other assets, net | 34,560 | 37,854 | (3,294 | ) | (8.7 | %) | ||||||
Assets held for sale | – | 550,402 | (550,402 | ) | (100.0 | %) | ||||||
1,927,518 | 1,209,497 | 718,021 | 59.4 | % | ||||||||
Liabilities and Stockholders’ Equity |
||||||||||||
Current liabilities: | ||||||||||||
Current installments of long-term debt | – | 1,583 | (1,583 | ) | (100.0 | %) | ||||||
Trade accounts payable | 25,125 | 18,759 | 6,366 | 33.9 | % | |||||||
Accrued payroll and related expenses | 13,960 | 13,774 | 186 | 1.4 | % | |||||||
Other accrued expenses | 55,135 | 39,624 | 15,511 | 39.1 | % | |||||||
Deferred revenue | 2,929 | 4,506 | (1,577 | ) | (35.0 | %) | ||||||
Income taxes payable | 443,590 | – | 443,590 | – | ||||||||
Liabilities held for sale | – | 100,353 | (100,353 | ) | (100.0 | %) | ||||||
Total current liabilities | 540,739 | 178,599 | 362,140 | 202.8 | % | |||||||
Long-term debt | – | 227,837 | (227,837 | ) | (100.0 | %) | ||||||
Deferred income taxes | 178 | 40,243 | (40,065 | ) | (99.6 | %) | ||||||
Other liabilities | 26,985 | 10,016 | 16,969 | 169.4 | % | |||||||
Other liabilities held for sale | – | 3,707 | – | (100.0 | %) | |||||||
Stockholders’ equity: | ||||||||||||
Common stock | 14,084 | 13,609 | 475 | 3.5 | % | |||||||
Additional paid-in capital | 1,366,221 | 1,235,679 | 130,542 | 10.6 | % | |||||||
Retained earnings | 1,715,066 | 628,331 | 1,086,735 | 173.0 | % | |||||||
Accumulated other comprehensive income | 7,891 | 10,767 | (2,876 | ) | (26.7 | %) | ||||||
Treasury stock, at cost | (1,743,646 | ) | (1,139,291 | ) | (604,355 | ) | (53.0 | %) | ||||
Total stockholders’ equity | 1,359,616 | 749,095 | 610,521 | 81.5 | % | |||||||
1,927,518 | 1,209,497 | 718,021 | 59.4 | % |
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES |
||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(Unaudited) | ||||||
(Dollars in thousands) | ||||||
For the Three Months Ended | ||||||
December 31, | ||||||
2018 | 2017 | |||||
Cash flows from operating activities: | ||||||
Net earnings | 1,056,400 | 22,941 | ||||
Earnings from discontinued operations, net of tax | (1,071,661 | ) | (20,407 | ) | ||
Non-cash operating activities: | ||||||
Depreciation and amortization | 8,853 | 9,297 | ||||
Loss on disposal or impairment of assets | 2,870 | 178 | ||||
Provision for doubtful accounts | 628 | 60 | ||||
Deferred income taxes | 8,279 | (16,793 | ) | |||
Non-cash stock compensation expense | 26,082 | 13,290 | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | (32,362 | ) | (5,143 | ) | ||
Deferred commissions | (988 | ) | – | |||
Other assets | 13,134 | 3,501 | ||||
Accounts payable and other liabilities | (22,117 | ) | 5,505 | |||
Deferred revenue | (40 | ) | 1,667 | |||
Net cash provided by (used in) operating activities | (10,922 | ) | 14,096 | |||
Cash flows from investing activities: | ||||||
Capitalized software | – | (507 | ) | |||
Capital expenditures | (1,938 | ) | (2,562 | ) | ||
Payments for investments | – | (1,000 | ) | |||
Net cash used in investing activities | (1,938 | ) | (4,069 | ) | ||
Cash flows from financing activities: | ||||||
Payments of debt | (230,000 | ) | (582 | ) | ||
Sale of common stock | 9,234 | 3,645 | ||||
Shares repurchased for tax withholdings upon vesting of stock-based awards |
(22,282 | ) | (2,233 | ) | ||
Acquisition of treasury stock | (18,341 | ) | (19,665 | ) | ||
Acquisition of treasury stock from tender offer | (503,393 | ) | – | |||
Net cash used in financing activities | (764,782 | ) | (18,835 | ) | ||
Cash flows from discontinued operations: | ||||||
From operating activities | (13,336 | ) | 29,249 | |||
From investing activities | – | (12,749 | ) | |||
From investing activities – proceeds from sale of AMS | 2,251,032 | – | ||||
Effect of exchange rate changes on cash | – | 64 | ||||
Net cash provided by discontinued operations | 2,237,696 | 16,564 | ||||
Effect of exchange rate changes on cash | (327 | ) | 259 | |||
Net change in cash and cash equivalents | 1,459,727 | 8,015 | ||||
Cash and cash equivalents at beginning of period | 87,047 | 168,352 | ||||
Cash and cash equivalents at end of period | 1,546,774 | 176,367 | ||||
Supplemental cash flow information: | ||||||
Cash (received) during the period for: | ||||||
Income taxes | (124 | ) | (133 | ) | ||
Noncash investing and financing activities: | ||||||
Leasehold improvements paid directly by lessor | – | 978 |
Contacts
LiveRamp Investor Relations
Lauren Dillard, (650) 372-2242
Investor.Relations@LiveRamp.com
ERAMP