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Investing.com - Benchmark raised its price target on LiveRamp Holdings Inc. (NYSE:RAMP) to $53.00 from $51.00 on Thursday, while maintaining a Buy rating on the stock. The company, currently valued at $1.73 billion, has demonstrated strong financial health with a 70.9% gross profit margin and 12.16% revenue growth over the last twelve months.
The firm cited LiveRamp’s first-quarter performance, which exceeded expectations for subscription revenue and operating income, despite a temporary sequential deceleration in Annual Recurring Revenue (ARR). According to InvestingPro analysis, the company appears undervalued at its current price of $26.26, with a robust financial health score rated as "GOOD."
The ARR slowdown was attributed to two specific account closures during the quarter, including Oracle (NYSE:ORCL) and a project-based customer, which Benchmark estimates detracted approximately $6 million to $10 million in ARR.
LiveRamp’s management emphasized these closures were isolated incidents and projected that new scaled account signings in the second quarter should restore healthy ARR growth and sequential growth in its $1 million-plus customer count metric.
In July, LiveRamp launched a pilot program for up to 40 customers involving a new pricing model that transitions from a high-fixed pricing structure to a lower cost-based usage model, with two new logo wins already secured, including one of the world’s largest quick-service restaurant providers.
In other recent news, LiveRamp Holdings Inc. reported its fiscal first-quarter results, showcasing notable revenue growth. The company achieved a revenue of $197 million, surpassing analyst expectations and marking an increase from previous projections. However, despite the positive revenue performance, LiveRamp’s earnings per share (EPS) came in at $0.35, falling short of the anticipated $0.42. This mixed financial outcome reflects both strong revenue execution and challenges in meeting EPS forecasts. Additionally, Susquehanna reiterated its Positive rating for LiveRamp, maintaining a price target of $50.00, following the company’s strong fiscal performance. The firm’s revenue growth of 11% year-over-year was attributed to effective execution in a favorable macroeconomic environment. These developments highlight LiveRamp’s ongoing financial progress and market positioning.
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