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Here's Why LiveRamp Holdings Is Soaring Today

By Chris Neiger – May 22, 2020 at 1:14PM

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The company's fourth-quarter results didn't disappoint.

What happened

LiveRamp Holdings' (RAMP -3.77%) stock skyrocketed today after the company reported its fourth-quarter 2020 results.

As of 2:01 P.M. EST, the company's share price was up 25.4%.

So what

LiveRamp released its fourth-quarter results yesterday, with revenue increasing 35% year over year, to $105.7 million. The sales jump was fueled by the company's subscription revenue segment, which saw its sales spike 28% from the year-ago quarter. The segment now accounts for 79% of LiveRamp's total sales.

Blue and green line graphs on a dark background.

Image source: Getty Images.

The nearly $106 million in revenue in the fourth quarter not only impressed investors, but it also beat Wall Street's consensus estimate of $102.5 million. Additionally, investors were likely impressed that LiveRamp's non-GAAP loss per share of $0.05 was better than analysts' estimate of a loss of $0.14 per share.

The company's full-year financial results didn't disappoint either. Sales climbed 33% compared to the prior year, to $381 million, and LiveRamp's all-important subscription sales popped 29%.

The company's chief financial officer, Warren Jenson, said in a press release, "LiveRamp, along with most companies, is being impacted by the COVID-19 crisis. That said, we are fortunate to be operating from a position of strength."

Now what

LiveRamp said it won't issue full-year guidance right now because of the uncertainty the COVID-19 pandemic is causing, but it did provide a first-quarter outlook. The company's management expects sales to tick up 7% to $88 million and for its non-GAAP operating loss to be about $12 million in the first quarter.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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LiveRamp Holdings, Inc. Stock Quote
LiveRamp Holdings, Inc.
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