LiveRamp delivered a solid QQ1 2025 performance, underscoring the company’s ability to translate a growing data-collaboration market into tangible ARR expansion and operating leverage even as macro headwinds persist. Revenue came in at $176.0 million, up 14% year over year, with ARR advancing to $478 million (up 12% YoY and +$11 million QoQ). Subscription net retention stood at 105%, and data marketplace revenue grew north of 20%+, with data marketplace specifically up ~23% and CTV-driven demand contributing to a 28% rise in Marketplace revenue to $41 million. Management highlighted the continued strength of the network effects in data collaboration, the integration of Habu, and a multi-pronged strategy to simplify use and scale the collaboration network across cloud providers and system integrators (SIs). The Q1 results supported LiveRamp’s objective to become a Rule of 40 company, a framework that blends growth and profitability, as management reiterated a medium-term revenue growth trajectory of 10-15% and ongoing margin discipline.
Management commentary underscored the evolving cookie-deprecation landscape. While Google's Chrome adjustments introduce a period of near-term uncertainty, LiveRamp continues to emphasize authenticated addressability (RampID + ATS) as a superior, cookie-agnostic approach that improves advertising performance, particularly in high-growth channels like connected TV (CTV). The company sees the data-collaboration megatrend as a durable, multi-vertical opportunity beyond advertising, including customer journey mapping, activation, and AI model training. The FY25 guidance was reaffirmed and modestly updated to reflect the Q1 beat, with revenue guidance of $715–$735 million and non-GAAP operating income of $127–$131 million; Q2 revenue is expected near $176 million with an operating margin around 18%. These figures imply a continued, though not linear, expansion path supported by ARR growth, improved retention, and an expanding data marketplace footprint. investors should monitor ARR progression, balance-sheet health, Habu/collaboration-network pipeline, and the pace of SI-driven bookings as macro conditions evolve.