LiveRamp stock holds steady as Susquehanna reiterates Positive rating

Investing.com - LiveRamp Holdings Inc. (NYSE:RAMP), a $2.15 billion market cap data connectivity platform, maintained its Positive rating from Susquehanna, which reiterated its $50.00 price target following the company’s strong fiscal first quarter performance. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculations.

The data connectivity platform reported revenue of $195 million in the first quarter, representing 11% year-over-year growth and exceeding analyst expectations by 2%. This aligns with LiveRamp’s impressive 12.16% revenue growth over the last twelve months, maintaining a robust 70.9% gross margin. LiveRamp attributed this performance to strong execution in what it described as a more favorable macroeconomic environment.

Subscription revenue reached $148 million, up 10% year-over-year, while marketplace revenue grew 13% to $46 million. The company highlighted strong sales momentum across its Cross-Media Intelligence, Commerce Media, and Connected TV offerings during the quarter.

LiveRamp’s adjusted EBITDA came in at $36 million, 7% above analyst estimates, while non-GAAP EBIT of $36 million exceeded expectations by 8-9%. The company’s strong financial health is reflected in its excellent liquidity position, with a current ratio of 2.84. The company also reported improvements in its selling environment, with shorter deal cycles and higher pipeline conversion rates. InvestingPro subscribers can access 8 additional key financial tips and a comprehensive analysis of LiveRamp’s financial health metrics.

The direct subscription count declined by 5 sequentially, aligning with LiveRamp’s strategic focus on larger customers. The company also launched a pilot program for its new flexible pricing model, which management expects could drive new customer acquisition and increase efficiency as soon as the second half of fiscal 2026.

In other recent news, LiveRamp Holdings Inc. announced its first-quarter fiscal 2026 results, highlighting a mixed financial performance. The company reported a revenue of $197 million, which exceeded analysts’ expectations. However, LiveRamp’s earnings per share (EPS) fell short of projections, coming in at $0.35 compared to the anticipated $0.42. Despite the EPS miss, the company’s revenue performance was a positive aspect for investors. Following the earnings release, there was a slight increase in LiveRamp’s stock during aftermarket trading. These developments are part of the latest updates from the company.

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