Q1 FY27
Filed Aug 5, 2026Revenue increased 10% year-over-year; GAAP operating income more than doubled year-over-year and non-GAAP increased 41%; Publicis Groupe transaction still expected to close before the end of CY26.
Total revenue increased 10% year-over-year, GAAP operating income rose to $20 million from $7 million, non-GAAP operating income increased 41% to $50 million, and operating cash flow improved to $17 million from a use of $16 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $214 million | – | 10% |
| Subscription revenueGAAP | $160 million | – | 8% |
| Marketplace & Other revenueGAAP | $54 million | – | 15% |
| GAAP gross profitGAAP | $151 million | – | 11% |
| GAAP gross marginGAAP | 71% | – | stable |
| Non-GAAP gross profitnon-GAAP | $155 million | – | 10% |
| Non-GAAP gross marginnon-GAAP | 72% | – | stable |
| GAAP income from operationsGAAP | $20 million | – | – |
| GAAP operating marginGAAP | 9% | – | 6 pts |
| Non-GAAP operating incomenon-GAAP | $50 million | – | 41% |
| Non-GAAP operating marginnon-GAAP | 24% | – | 5 pts |
| GAAP net earningsGAAP | $18 million | – | – |
| Non-GAAP net earningsnon-GAAP | $40 million | – | – |
| GAAP diluted earnings per shareGAAP | $0.28 | – | – |
| Non-GAAP diluted earnings per sharenon-GAAP | $0.65 | – | – |
| Shares to calculate diluted EPSother | 61.8 | – | (7)% |
| Operating cash flowGAAP | $17 million | – | – |
| Free cash flownon-GAAP | $16 million | – | – |
| Customers whose annualized subscription revenue exceeds $1 millionother | 132 customers | – | – |
| Direct subscription customersother | 845 direct subscription customers | – | – |
| Subscription net retentionother | 103% | – | – |
| Platform net retentionother | 106% | – | – |
| Fixed subscription revenue mixother | Approximately 84% of total subscription revenue | – | – |
| Usage subscription revenue mixother | 16% | – | – |
| Data Marketplace revenueother | $40 million | – | 13% |
| Annualized recurring revenue (ARR)other | $539 million | – | 7% |
| Current remaining performance obligations (CRPO)other | $482 million | – | 7% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Subscription revenueApproximately 84% of total subscription revenue was fixed and 16% was usage. | $160 million | – | 8% |
| Marketplace & Other revenueData Marketplace revenue increased by 13% year-over-year to $40 million. | $54 million | – | 15% |
Capital returns
- Share repurchases in the first quarter totaled approximately 0.6 million shares for $18 million.
What drove it
- Subscription revenue was $160 million, up 8%.
- Marketplace & Other revenue was $54 million, up 15%.
- LiveRamp ended the quarter with 132 customers whose annualized subscription revenue exceeds $1 million, compared to 127 in the prior year period.
- Subscription net retention was 103% and platform net retention was 106%.
- ARR was $539 million, up 7% compared to the prior year period.
- CRPO was $482 million, up 7% compared to the prior year period.
- The company announced AI and agentic initiatives including the LiveRamp Agent Builders Lab and partnerships or integrations with OpenAI, Databricks, Adobe and DoorDash.
Concerns
- LiveRamp will not host an earnings conference call or provide financial guidance in conjunction with this earnings release due to the pending transaction with Publicis Groupe.
- The Publicis Groupe transaction remains subject to customary closing conditions, including approval by LiveRamp shareholders.
- The shareholder vote is scheduled for August 17, 2026.
- ARR and CRPO each increased 7%, compared with 10% total revenue growth.
What to watch
- The shareholder vote scheduled for August 17, 2026.
- Whether the all-cash transaction valuing LiveRamp's equity at $38.50 per share closes before the end of calendar 2026.
- Subscription net retention of 103% and platform net retention of 106%.
- Growth in ARR of 7% and CRPO of 7%.
- Progress of LiveRamp Agent Builders and the announced OpenAI, Databricks, Adobe and DoorDash initiatives.
Balance sheet and cash flow
- Net cash provided by operating activities was $17 million compared to a use of $16 million.
- Free cash flow was $16 million compared to $(16) million.
Analysis
LiveRamp opened fiscal 2027 with $214 million of total revenue, up 10% year-over-year. Subscription revenue increased 8% to $160 million, while Marketplace & Other revenue increased 15% to $54 million. Data Marketplace revenue increased 13% year-over-year to $40 million. The company ended the quarter with 132 customers whose annualized subscription revenue exceeds $1 million and 845 direct subscription customers, compared with 127 and 835, respectively, in the prior-year period.
Profitability improved materially. GAAP gross profit was $151 million, up 11%, and GAAP gross margin was 71%, described as stable. Non-GAAP gross profit was $155 million, up 10%, with non-GAAP gross margin stable at 72%. GAAP income from operations was $20 million compared with $7 million, and GAAP operating margin was 9%, expanding by 6 points. Non-GAAP operating income increased 41% to $50 million and non-GAAP operating margin expanded by 5 points to 24%.
Earnings and cash flow also strengthened. GAAP net earnings were $18 million compared with $8 million, while non-GAAP net earnings were $40 million compared with $30 million. GAAP diluted earnings per share were $0.28 and non-GAAP diluted earnings per share were $0.65. Operating cash flow was $17 million compared with a use of $16 million, and free cash flow was $16 million compared with $(16) million. The company repurchased approximately 0.6 million shares for $18 million during the quarter.
Underlying subscription indicators remained positive but grew more slowly than total revenue. Subscription net retention was 103% and platform net retention was 106%. ARR was $539 million, up 7%, and CRPO was $482 million, up 7%. Approximately 84% of total subscription revenue was fixed and 16% was usage. Management highlighted LiveRamp Agent Builders and new partnerships with OpenAI, Databricks and Adobe, alongside integrations and measurement initiatives involving ChatGPT ad campaigns, Adobe and DoorDash.
The pending Publicis Groupe acquisition dominates the forward setup. The transaction is an all-cash transaction valuing LiveRamp's equity at $38.50 per share and is expected to close before the end of calendar 2026, subject to customary closing conditions including shareholder approval. The shareholder vote is scheduled for August 17, 2026. In light of the pending transaction, LiveRamp will not host an earnings conference call or provide financial guidance with this release.
Management, verbatim
Fiscal 2027 is off to a strong start, with Q1 revenue and operating income ahead of our internal projections. We continue to make good progress with our AI and agentic initiatives with the launch of the LiveRamp Agent Builders Lab and new partnerships with OpenAI, Databricks and Adobe. Finally, our previously announced transaction with Publicis Groupe remains on track to close before the end of calendar 2026.
Scott Howe, CEO
Not in the filing
stated, not guessed- Forward financial guidance for revenue, gross margin, operating expenses, tax rate and other operating metrics was not provided.
- Prior-quarter comparisons were not provided for reported financial metrics.
- Cash balance was not provided.
- Debt balance was not provided.
- Operating expenses were not provided.
- Tax rate was not provided.
- Dividend information was not provided.
- Prior-year values for ARR and CRPO were not provided.
- Prior-year values for subscription net retention and platform net retention were not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.