Shares of LiveRamp Holdings (RAMP 1.34%) plummeted as much as 11% today after the company reported fiscal third-quarter earnings. The results beat expectations, so it's unclear why investors were disappointed. As of 1:15 p.m. EST, the stock had somewhat recovered and was down 7%.
Revenue in the fiscal third quarter came in at $120 million, ahead of the $113.1 million in sales analysts were modeling for. That resulted in adjusted earnings per share of $0.14, compared to the consensus estimate of $0.07 per share in adjusted profits. The technology company, which operates an enterprise data connectivity platform, said subscription revenue comprised 78% of total sales. Remaining performance obligations (RPO), which should be recognized within the next year as revenue, totaled $231 million at the end of the quarter.
"The past quarter has really validated the important role we play in helping our customers and partners safely and securely use data to deliver better customer experiences and ultimately drive growth across their enterprises," CEO Scott Howe said in a statement. "The explosive global adoption of our Authenticated Traffic Solution (or ATS) and new innovation like Safe Haven demonstrate the value we are creating for our customers."
Fiscal fourth-quarter revenue is forecast at $116 million, compared to the $114.2 million that Wall Street is looking for. That should result in adjusted operating income of $1 million. CFO Warren Jenson added that LiveRamp expects to be profitable for the full fiscal year on an adjusted basis.