Q3 2022 Liveramp Holdings Inc Earnings Call

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Speaker 1: Good afternoon ladies and gentlemen and welcome to LiveRamp's fiscal third quarter 2022 earnings conference call. Your attendee lines will be muted during today's conference. After the speaker's remarks, we will have a question and answer session. To ask a question during that session, simply press star then 1 on your telephone keypad. To withdraw your question, press the pound key.

Good afternoon, ladies and gentlemen, and welcome to library fiscal third quarter 2022 earnings Conference call. Your attendee lines will be muted during today's conference. After the Speakers' remarks, we will have a question and answer session to ask a question during that session simply press Star then one on your telephone keypad.

To withdraw your question press the pound key for.

Speaker 1: For the operator, press star then zero. As a reminder, today's call is being recorded. Now I would like to turn the call over to Senior Vice President of Finance and Investor Relations, Lauren Dillard. Lauren?

Or the operator press Star then zero as a reminder, today's call is being recorded now I would like to turn the call over to senior Vice President of Finance and Investor Relations Lauren Dillard Lauren.

Yes.

Thank you operator, good afternoon and welcome.

Speaker 2: Thank you, operator. Good afternoon and welcome. Thank you for joining us to discuss our fiscal 2022 third quarter results. With me today are Scott Howe, our CEO , and Warren Jensen, President and CFO . Today's press release and this call may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially.

For joining us to discuss our fiscal 2022 third quarter result.

With me today are Scott Howe, our CEO , and Warren Jenson, President and CFO .

Today's press release and this call may contain forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially.

Speaker 2: For a detailed description of these risks, please read the Risk Factors section of our public filings in the press.

For a detailed description of these risks please read the risk factors section of our public filings and the press release a.

Speaker 2: A copy of our press release and financial schedules, including any reconciliation to non-GAAP financial measures, is available at LiveRamp.com. Also, during the call today, we will be referring to the slide deck posted on our website. At this time, I'll turn the call over to Scott.

A copy of our press release and financial schedules, including any reconciliation to non-GAAP financial measures is available at <unk> Dot com.

Also during the call today will be referring to the slide deck posted on our website at this time I'll turn the call over to Scott.

Speaker 3: Thank you, Lauren, and thanks to all of you for joining us today. We delivered another great quarter highlighted by an acceleration in ARR growth.

Thank you Lauren and thanks to all of you for joining us today.

We delivered another great quarter highlighted by an acceleration in our growth.

Speaker 3: strong enterprise momentum and continued operating efficiency.

Strong enterprise momentum.

Continued operating efficiency.

Speaker 3: The market trends we discussed last quarter continue to play out and our results in Q3 are strong validation of the critical value we deliver to our customers.

Market trends, we discussed last quarter continue to play out in our results in Q3, our strong validation of the critical value we deliver to our customers.

Speaker 3: I'll begin today by sharing some highlights from the quarter and then discuss the strength of our position going forward.

I'll begin today by sharing some highlights from the quarter and then discuss the strength of our position going forward.

Third quarter performance Q3 was another strong quarter and we are.

Speaker 3: Q3 was another strong quarter, and we again exceeded our guidance across all metrics.

Again exceeded our guidance across all metrics total revenue grew 17% and subscription revenue was up 19% normalizing for the wholesale contraction total revenue grew 26% and subscription revenue was up 30% exit.

Speaker 3: Total revenue grew 17% and subscription revenue was up 19%. Normalizing for the wholesale contraction, total revenue grew 26% and subscription revenue was up 30%. Exiting ARR was up 26%, excluding wholesale.

A R. R was up 26% excluding wholesale.

Speaker 3: Our Land and Expand selling motion continues to underpin our top line progress. In the quarter, we added 20 net new logos and I remain impressed with the size and caliber of the customers we are adding to our roster.

Our land and expand selling motion continues to underpin our topline progress in the quarter. We added 20, net new logos and I remain impressed with the size and caliber of the customers. We are adding to our roster, notably we are seeing particular strength in our large.

Speaker 3: Notably, we are seeing particular strengths in our large enterprise customer segment as a result of increased safe haven adoption.

Rise customer segment as a result of increased same favorite and adoption.

Speaker 3: Our $500,000 to $1 million customer count was up more than 30 percent. And our $1 million plus customer count grew to 86, an increase of 30 percent compared to prior year.

Our 500000 to 1 million dollar customer count was up more than 30%.

Our 1 million plus customer count grew to 86, an increase of 30% compared to prior year.

Speaker 3: Safe Haven also continues to be a big driver of the Countix family.

Safe Haven also continues to be a big driver of the count expansion given.

Speaker 3: Given the breadth of use cases enabled by the platform, Safe Haven customers have higher ACVs and upgrade at higher price points.

Given the breadth of use cases enabled by the platform safe Haven customers have higher a cvs and upgrade at higher price points.

Speaker 3: They currently account for roughly 20% of ARR, up from 12% a year ago.

They currently account for roughly 20% of our are up from 12% a year ago.

Speaker 3: As we continue to upgrade our customer base to Safe Haven, our enterprise platform, we expect the average length and size of our contracts to continue to increase and churn and contraction to remain lower than what we have typically seen.

As we continue to upgrade our customer base to Safe Haven are enterprise platform, we expect the average length.

Some of our contracts to continue to increase in churn and contraction to remain lower than what we have typically seen.

Speaker 3: Our subscription net retention in the quarter was 110% or 120% normalized for wholesale.

Our subscription net retention in the quarter was 110% or 120% normalized for wholesale.

Speaker 3: Beneath the top line, our gross margin expanded to 77%, and we remain profitable, with operating margin again in the double digits. This performance is a reflection of the leverage in our model and demonstrates our continued ability to drive profitable growth at scale.

But the top line, our gross margin expanded to 77% and we remain profitable with operating margin again in the double digits.

Performance is a reflection of the leverage in our model and demonstrates our continued ability to drive profitable growth at scale.

Strategic position.

Speaker 3: This time of year often brings with it reflection. And as I reflect on our progress so far in FY22, across almost any dimension, I believe our position continues to grow stronger.

This time of year, often brings with it reflection and as I reflect on our progress so far in FY 'twenty two across almost any dimension I believe our position continues to grow stronger.

Speaker 3: Specifically, I would highlight two themes that give us great confidence for the future.

Specifically I would highlight two themes that give us great confidence for the future.

Speaker 3: First, as the world around us evolves, our importance to the ecosystem is increasing.

First as the world around us evolves, our importance to the ecosystem is increasing.

Speaker 3: Second, the investments we've made over the past several years are starting to pay off, and our opportunity is only growing large.

Second the investments we've made over the past several years are starting to pay off and our opportunity is only growing larger.

Speaker 3: First, our importance to the ecosystem is increasing.

First our importance to the ecosystem is increasing.

Speaker 3: LiveRamp's role in the marketplace has never been more important. The global pandemic has significantly accelerated digital transformation timelines and forced organizations to rethink how they engage their customers.

<unk> role in the marketplace has never been more important.

The global pandemic has significantly accelerated digital transformation timelines and forced organizations to rethink how they engage their customers.

Speaker 3: At the same time, consumer behavior and expectations have shifted and the days of one to many engagement are fading quickly.

At the same time consumer behavior and expectations have shifted and the days of one to many engagement are fading quickly personalization with privacy at its core is going to drive future business growth and brands that can deliver on this expectation will be.

Speaker 3: personalization with privacy at its core is going to drive future business growth and brands that can deliver on this expectation will be the new winners in the digital economy.

The new winners in the digital economy.

Critical to this imperative is a strong first party data strategy and while some brands have been able to gain a competitive edge from their investments and first party data most still have not.

Speaker 3: Critical to this imperative is a strong first party data strategy.

Speaker 3: And while some brands have been able to gain a competitive edge from their investments in first party data, most still have not.

Speaker 3: According to the Boston Consulting Group, only about 30% of companies are creating a single customer view across channels. And just 1-2% are using data to deliver a full cross-channel experience for their customers.

According to the Boston consulting group only about 30% of companies are creating a single customer view across channels and just 1% to 2% are using data to deliver a full cross channel experience for their customers.

Speaker 3: with the rise of first-party data, live ramps platform has become an essential buy for sophisticated companies.

With the rise of first party data library amps platform has become an essential bi for sophisticated companies.

Speaker 3: This mega trend has been a key driver of our recent success and the runway here is long.

This mega trend has been a key driver of our recent success in the runway here as long.

Speaker 3: Further, when customers and partners are faced with complexity, whether it be regulatory or ecosystem related, what we do becomes even more important. GDPR,

Further when customers and partners are faced with complexity, whether it be regulatory or ecosystem related what we do becomes even more important.

G D. P. R spurred the development of a safe Haven.

Speaker 3: CCPA drove a six quarter plus period of elevated quarterly book.

CPA drove a six quarter plus period of elevated quarterly bookings.

Speaker 3: and recent changes to the identity landscape have significantly deepened our strategic and competitive advantage.

And recent changes to the identity landscape.

Significantly deepened, our strategic and competitive advantage.

For example, cookie deprecation drove our development of Ats and gave the industry a much better technology then.

Speaker 3: For example, cookie deprecation drove our development of APS and gave the industry a much better technology than what it is replacing.

What it is replacing.

Speaker 3: It has also opened up new markets internationally. ATS is the only scaled solution in the market today. It was architected to meet the more exacting requirements of GDPR. And again, is the only solution available to multinational companies that operate across the world.

It has also opened up new markets internationally Ats as the only scaled solution in the market today. It was architected to meet the more exacting requirements of GDP are and again is the only solution available to multinational companies that operate across the.

World.

Speaker 3: To date, over 500 publishers representing more than 11,000 deployed domains have integrated ATS worldwide.

To date over 500 publishers, representing more than 11000 deployed domains have in it.

Greater to Ats worldwide.

Speaker 3: including Microsoft, Cafe Media, and Leaf.

Including Microsoft Cafe media and leaf group.

Speaker 3: I'm very excited to share that Amazon on Publisher Services has now joined this prestigious group.

I'm very excited to share that Amazon publisher services has now joined this prestigious group.

So what does this mean.

Speaker 3: big deal. Pens of thousands of publishers who use Amazon can now leverage HTS to connect their authenticated inventory to global advertiser demand.

It's a big deal tens of thousands of publishers, who use Amazon can now leverage ats fit connect their authenticated inventory to global advertiser demand.

Speaker 3: Obviously, this meaningfully extends our global reach.

Obviously this meaningfully extends our global reach.

Speaker 3: Our identity momentum continues to be a strategic differentiator and key driver of recent wins.

Our identity momentum continues to be a strategic differentiator and key driver of recent wins.

Speaker 3: For example, in the quarter we signed a new deal with the major multinational transportation and logistics company. That is transforming its first party data strategy.

For example in the quarter, we signed a new deal with a major multinational transportation and logistics company that is transforming its first party data strategy.

Speaker 3: They selected live ramp and part because of our leadership with ATF.

They selected library in part because of our leadership with Ats, Yes.

Speaker 3: This enterprise is leveraging live ramp to integrate its first party data with different advertising tools, display, social, search, as well as customer support and e-commerce enable application.

This enterprise is leveraging live ramp to integrate its first party data with different advertising tools display social search.

Well as customer support and E Commerce enablement applications.

Speaker 3: Their vision is to power the entire customer experience with data. And we are a key partner in helping them achieve this. This is a great example.

Their vision is to power the entire customer experience with data and we are a key partner in helping them achieve this.

This is a great example of where we are going.

Speaker 3: Advertising becomes a first step to a much broader array of data-driven use cases.

Advertising becomes a first step to a much broader array of data driven use cases.

Second.

Speaker 3: Second, the investments we have been making over the past several years are translating into real results. And our market opportunity is only growing, Lord.

The investments we've been making over the past several years are translating into real results and our market opportunity is only growing larger.

Speaker 3: The growing need for first party data and the new use cases we have introduced over the last few years.

The growing need for first party data and the new use cases, we have introduced over the last few years.

Speaker 3: are fueling the growth of our enterprise platform and opening up entirely new markets for us.

Our fueling the growth of our enterprise platform and opening up entirely new markets for us.

Speaker 3: In less than two years, safe haven customers represent more than 20% of our ARR and generate more than two times higher ARR and non-safe haven customer.

In less than two years safe Haven customers represent more than 20% of our a R R and generate more than two times higher.

Our non safe Haven customers.

Speaker 3: And we believe we have the opportunity to upgrade our entire customer base to this enterprise platform over time.

And we believe we have the opportunity to upgrade our entire customer base to this enterprise platform overtime.

Safe Haven has also opened up an entirely new addressable markets for life ramp with retail and packaged goods being the most notable over the past year.

Speaker 3: SafeAven has also opened up entirely new addressable markets for live ramp with retail and package goods being the most notable over the past year. In an effort to

In an effort to out Amazon Amazon retail media networks took off in 2021.

Speaker 3: Retail Media Networks took off in 2021.

Speaker 3: retail media spend is poised to grow over 30% this year to 41 billion.

Retail media spend is poised to grow over 30% this year to 41 billion.

Speaker 3: while retail media is but one data collaboration use case enabled by our across.

While retail media is but one data collaboration use cases enabled by our platform.

Speaker 3: It has been a big catalyst of our recent growth in this space.

It has been a big catalyst of our recent growth in this space.

Speaker 3: for safe collaboration. It is critical retailers and their partners leverage a neutral infrastructure and technology that protects their data, restricts its movement, and governs access.

For safe collaboration.

It is critical retailers and their partners leverage neutral infrastructure and technology that protects their data restricts its movement and governs access.

Speaker 3: The date, we served more than 60% of big box retail in the US. And in the third quarter, I am excited to share that we added Walmart and JD.com as safe haven customers.

To date, we served more than 60% of big box retail in the U S and in the third quarter I am excited to share that we added Walmart and J D Dot com as states and customers.

Speaker 3: Our success is not limited to retail, and we are seeing emerging demand in industries like health care and financial services that regularly manage highly sensitive data. For example, in the quarter, we signed a seven-figure expansion deal with a major financial services provider who is standing up a joint solution with a top health insurer.

Our success is not limited to retail and we are seeing emerging demand in industries like health care and financial services that regularly manage highly sensitive data.

For example in the quarter, we signed a seven figure expansion deal with a major financial services provider, who is standing up a joint solution with a pop health insurer.

Speaker 3: These organizations are leveraging our platform to understand the overlap of their respective customer base.

These organizations are leveraging our platform to understand the overlap of their respective customer bases build new audience models better engage existing and prospective members.

Speaker 3: build new audience models, better engage existing and prospective members, and measure the effectiveness of their co-marketing efforts across all touch points.

And measure the effectiveness of their co marketing efforts across all touch points.

Speaker 3: These are two organizations that take data privacy and security very serious.

These are two organizations that take data privacy and security.

Very seriously.

Speaker 3: and they selected LiveRamp because of our leadership and privacy, as well as our best-in-class identity and collaboration tools. A recent question we've...

And they selected library, because of our leadership and privacy as well as our best in class identity and collaboration tools.

A recent question we've received from many of you.

Speaker 3: Is how safe haven differs from other clean room tech out there?

There's how safe Haven differs from other clean room tech out there.

Speaker 3: Para phrasing what one of our major financial services clients recently told us. There are other clean rooms out there, but we would be forced to work with a separate identity provider. With live ramp, we get the gold standard, data privacy, identity, and collaboration.

Paraphrasing, what one of our major financial services clients recently told US there are other clean rooms out there but.

But we would be forced to work with a separate identity provider.

With Libra, and we get the gold standard data privacy identity and collaboration.

Speaker 3: We're succeeding across industries, and we also intend to succeed across geography.

We're succeeding across industries, and we also intend to succeed across geographies.

Speaker 3: International produced record bookings in Q3 in the global scale and reach of SafeAven combined with ATS has driven an acceleration in global deals.

International produced record bookings in Q3, and the global scale and reach of Safe Haven, combined with Ats has driven an acceleration in global deals.

Speaker 3: For example, in Q3, we signed a six figure new deal with a major multinational hospitality group across five global marks.

For example in Q3, we signed a six figure new deal with a major multinational hospitality group across five global markets.

Speaker 3: This organization selected Libraump to help better leverage and integrate its first party loyalty data within its media buying platforms, display search and social.

This organization selected live ramp to help better leverage and integrate its first party loyalty data within it's media buying platforms display search and social.

Speaker 3: they intend to win back loyal customers ahead of what they believe will be a rebound year for travel.

They intend to win back loyal customers ahead of what they believe will be a rebound year for travel.

And another example.

Speaker 3: Last quarter, we also closed a large expansion deal with a multinational B2B technology company that spans five international markets.

Last quarter, we also closed a large expansion deal with a multinational technology.

Technology company that spans five international markets.

Speaker 3: These aren't one-offs. On an earnings call earlier this fiscal year, Diego, our chief commercial officer shared a goal of 20 global deals in FY22. Today, we are at more than 30 with...

These aren't one offs.

On the earnings call earlier, this fiscal year Diego, our Chief commercial officer shared our goal of 20 global deals in FY 'twenty two.

Today, we are at more than 30.

With additional opportunities in Q4.

Speaker 3: New use cases and capabilities. Industry expansion, global scope, are an opportunity.

New use cases and capabilities industry expansion global scope.

Our opportunity is growing.

Speaker 3: With that, thank you again for joining us today.

With that thank you again for joining us today.

Speaker 3: and a special thanks to our exceptional customers, partners, and to all live rampers across the globe for their ongoing hard work and support.

And a special thanks to our exceptional customers partners and all live wrappers across the globe for their ongoing hard work and support.

Speaker 3: fueled by them, we delivered another strong quarter in Q3 and had our site set on a strong finished FY22. With that, I will now turn the call over to Warren.

Fueled by them, we delivered another strong quarter in Q3 and have our sights set on a strong finish to FY 'twenty two.

With that I will now turn the call over to Warren.

Thanks, Scott and good afternoon, everyone.

Speaker 4: As you listen to my remarks, hopefully you will hear three things emerge. First, durability...

As you listen to my remarks, hopefully you will hear three themes emerge.

First durability and consistency.

Speaker 4: amidst the sea of industry change, there is one constant, and that's that we have delivered.

Let's see of industry change there is one constant and that's that we have delivered.

Speaker 4: Next, we are moving from application to enterprise and playing with competitive advantage. And finally, our enterprise platform, SafeAven, is showing up in our numbers in a big way and is opening up entirely new markets for live RAM.

Next we are moving from application to enterprise and playing with competitive advantage and finally, our enterprise platform Safe Haven is showing up in our numbers in a big way and is opening up entirely new markets for life ramp.

Speaker 4: Q3 highlights, please turn to slide 4.

Q3 highlights please turn to slide four.

Speaker 4: First, performance. We posted another solid quarter. Revenue of 141 million was up 17%. Subscription revenue of 19% while ARR increased 60%.

First performance, we posted another solid quarter revenue of $141 million was up 17% subscription revenue up 19%, while <unk> increased 16.

Speaker 4: Our net new customer account increased by 20 this quarter and our brand AverageACB was up 15%.

Our net new customer account increased by <unk> 20, this quarter and our brand average ACB was up 16%.

Speaker 4: Our $1 million customer count is now 86 of 6 sequentially and up 30% your over a year.

Our $1 million customer count is now 86 of six sequentially and up 30% year over year.

Speaker 4: Net retention was 110 and platform net retention 109 driven by an acceleration in safe haven adoption.

Net retention was 110 and platform net retention one O nine driven by an acceleration in safe Haven adoption.

Speaker 4: CRPO was up 25% and Marketplace was up 12 in line with our expectations.

C. R. P O was up 25% and marketplace was up 12 in line with our expectations.

Speaker 4: As expected, our results continue to be negatively impacted by wholesale contraction, as shown on slide 22. We continue to expect this impact to be 30 million for the year, and it was 8 million for the quarter.

As expected our results continue to be negatively impacted by wholesale contraction as shown on slide 22, we.

We continue to expect this impact to be $30 million for the year and it was $8 million for the quarter.

Speaker 4: This total revenue increased 26% in international of 29.

Excluding this total revenue increased 26% and international up 29.

Speaker 4: Subscription revenue was up 30% in ARR up 28.

Subscription revenue was up 30%.

Our up 28.

Speaker 4: and net retention would have been 120 and platform net retention was 17.

And net retention would have been $1 20 and platform net retention 117.

Speaker 4: In short, while we don't discount the impact of wholesale contraction, our numbers remain solid.

In short, while we don't discount the impact of wholesale contraction our numbers remained solid.

Speaker 4: Operationally, we again demonstrated leverage. Gross margin was 77% of 330 basis points. This was our seventh consecutive quarter.

Operationally, we again demonstrated leverage gross margin was 77% up 330 basis points.

This was our seventh consecutive quarter of profitability.

Speaker 4: Our operating margin was 10% and EBITDA margin 14.

Our operating margin was 10% and EBITDA margin 14.

Speaker 4: And most importantly, operating cash flow with 25 million and your-to-date positive 19 million.

And most importantly, operating cash flow was $25 million and year to date positive $19 million.

Speaker 4: Lastly, we repurchased 5 million of stock in Q3. In addition, we have taken advantage of recent market conditions and repurchased an incremental 9 million so far in Q4.

Lastly, we repurchased $5 million of stock in Q3.

In addition, we have taken advantage of recent market conditions, and repurchased an incremental $9 million so far in Q4.

Speaker 4: Year-to-day, we have repurchased approximately 58 million. Next.

Year to date, we have repurchased approximately $58 million.

Next our trended performance.

Speaker 4: Please turn to slide 5. On the slide we have presented a set of trended metrics. All comparisons are done on a trailing 12 month base.

Please turn to slide five on this slide we have presented a set of trended metrics. All comparisons are done on a trailing 12 month basis.

Speaker 4: Since LiveRamp emerged as a public company, amidst the sea of industry change, there is one constant we have delivered.

Since library emerged as a public company amidst the sea of industry change there is one constant we have delivered.

Speaker 4: We've delivered growth, significant expansion of our million dollar customer count, gross margin expansion, incredible EBITDA growth, and meaningful capital return to our share owner.

We've delivered growth significant expansion of our million dollar customer count.

Gross margin expansion incredible EBIT Doug growth.

And meaningful capital returned to our shareowners.

Speaker 4: Again, while we by no means claim perfection, one thing is for certain. We have delivered on our commitments through second thin. That's durability and consistency.

Again.

Well, we by no means claimed perfection one thing is for certain we have delivered year on honor our commitments through thick and thin.

Its durability and consistency.

Speaker 4: From application to enterprise, a look at Safe Haven, our enterprise platform.

From application to enterprise I look at Safe Haven, our enterprise platform.

Speaker 4: I said this on our last call, but it bears repeating. Our opportunity just keeps getting bigger. The market is embracing our platform. Today, I'd like to highlight three things. First, why we are winning and what's our competitive advantage. Next, international is a growth lever. And finally, I like the global adoption of SafeAven as our enterprise platform. As I said, it's now showing up in our numbers big time.

I said this on our last call, but it bears repeating our opportunity just keeps getting bigger the market is embracing our platform today I'd like to highlight three things first why we are winning and what's our competitive advantage next international isn't growth lever and finally highlight the global adoption.

And a safe Haven as our enterprise platform.

As I said, it's now showing up in our numbers big time.

So why are we winning what's our competitive advantage. Please turn to slide 16.

Speaker 4: So, why are we winning? What's our competitive advantage? Please turn to slides.

Speaker 4: Here's what makes our Safe Haven platform important, unique, and enterprise grade. When it seems there are countless clean room technology.

Here's what makes our safe Haven platform important unique and enterprise grade when it seems there are countless clean room technologies. The answer is simple our safe Haven platform brings together things others cant or they are just learning about.

Speaker 4: The answer is simple. Our Safe Haven platform brings together things others can't, or they are just learning about.

Speaker 4: Neutrality. We don't buy or sell media. We are cross-cloud and enable our safe haven clients to collaborate with anyone regardless of their data infrastructure.

Neutrality, we don't buy or sell media, where cross cloud and enable our safe haven clients to collaborate with anyone regardless of their data infrastructure.

Speaker 4: Privacy. We are the leader in global privacy and privacy enhancing technology.

See we are the leader in global privacy and privacy enhancing technology.

Speaker 4: The sophistication and importance of our data fleet acquisition cannot be overstated. Identity, federated.

Sophistication and importance of our data fleets acquisition cannot be overstated.

Identity Federation and activation.

Speaker 4: Our approach in the scale of our integrations are a hallmark of life.

Our approach and the scale of our integrations are a hallmark of lives around nerf.

Speaker 4: Next, future proof. With ATS, we are helping global brands future proof their approach to identity and allowing them to do this consistently across all geogers.

Next future proof with Ats, we're helping global brands future proof their approach to identity and allowing them to do this consistently across all geographies.

Speaker 4: And finally, scale. We are setting the pace with permission-based collaboration technology. Remember, we created the category and have been building and testing our Safehaven platform for more than five years. So what does this mean to a brand? Please turn to slide 17.

And finally scale, we are setting the pace with permission based collaboration technology remember, we created the category and have been building and testing our safe Haven platform for more than five years. So what does this mean to our brand. Please turn to slide 17.

Speaker 4: These are but a few of the use cases our platform is enabling for a typical retailer.

These are but a few of the use cases are platform is enabling for a typical retailer.

Speaker 4: Safe Haven is not a single application. Rather, a real enterprise offering that provides our clients seamless data connectivity.

St payment is not a single application rather a real enterprise offering that provides our clients seamless data connectivity.

Speaker 4: It creates common identity across their internal data sets. And further, leverage this identity to then connect their data to their advertising, marketing, and customer service application.

It creates a common identity across their internal datasets and further leverages identity to then connect their data to their advertising marketing and customer service applications.

Speaker 4: And finally, it provides a platform for collaboration with our partner, ECO.

And finally, it provides a platform for collaboration with our partner ecosystem.

Speaker 4: This is why we are winning, and why live ramp, safe haven, is becoming essential data infrastructure. No one can do...

This is why we are winning and wildlife ramp safe Haven is becoming a central data infrastructure.

No one can do what we can do.

Speaker 4: Say Pavein and International, a new growth lever is taking shape.

Safe Haven, and international a new growth lever is taking shape.

Speaker 4: Our Safe Haven platform, coupled with ATS, is opened to world to live RAM.

Our safe Haven platform, coupled with Ats has opened the world July ramp.

Speaker 4: Let me share an example of a recent win, JD.com. Please turn to slide 8.

Let me share. An example of a recent win J D. Dot Com, Please turn to slide 18.

Speaker 4: JD.com is the second largest e-commerce platform in the world and is now using our Safe Haven platform to collaborate with their CPG partners.

J D. Dot com is the second largest e-commerce platform in the World and is now using our safe Haven platform to collaborate with their CPG partners are.

Speaker 4: Our solution will be hosted on the JD Cloud and available through their marketplace offering. Again, evidencing our multi-

Our solution will be hosted on the JD cloud and available through their marketplace offering again, evidenced in our multi cloud capability.

Speaker 4: Shady.com will be using ATS and Rampy D to make this possible.

<unk> dot com will be using ats and ramp up to make this possible.

Speaker 4: Like with other international brands, including Carfloor, Boots, Orange, Indeed.com, Unilever, PNG, Kellogg's, and our other safe haven customers, this open-sample world of possibilities for JD.com.

Like with other international brands, including car for Boots, Orange, Indeed, dotcom, Unilever, P&G Kellogg's and our other safe Haven customers. This opens up a world of possibilities for JD Dot com.

Speaker 4: Using the JD Cloud Platform, leading global CPGs can leverage their first party data on JPEG.

You've seen the JD cloud platform, leading global Cpg's can leverage their first party data on JD keep it secure and private using ramp I D link on an online activities.

Speaker 4: Keep it secure and private using Ramp ID. Link on and online to Activate.

Speaker 4: and access the Safe Haven environment for data collaboration. Internationally,

And access to see payment environment for data collaboration.

Internationally. This is now showing up in our numbers.

Speaker 4: Say Pavein, now represents over 50% of our international AR.

Say payment now represents over 50% of our international <unk>.

Speaker 4: Our international ARR is up 17% this quarter, 35% X-Hull sale, and international bookings on a trendling 12-month basis are up close to 100%.

Our international <unk> is up 17% this quarter, 35% ex wholesale and international bookings on a trailing 12 month basis are up close to 100%.

Speaker 4: In summary, international lists have become an important long-term growth lever for live RAM.

In summary international is fast, becoming an important long term growth lever for live Ram.

Global Safe Haven adoption.

Speaker 4: Next, Safe Haven adoption is not just showing up internationally, but also in our overall numbers too. Please turn.

Next safe Haven adoption is not just showing up internationally, but also in our overall numbers too.

Please turn to slide 19.

Speaker 4: In a very short period, say Paveen is working its way into our installed base.

Very short period Safe Haven is working its way into our installed base. It's the data enablement platform of the future and as Scott mentioned, we're thrilled to welcome Walmart as a safe Haven customer.

Speaker 4: It's the data enablement platform of the future. And as Scott mentioned, we're thrilled to welcome Walmart as a safe haven customer.

Speaker 4: Consider the following. SafeAven now represents approximately 20% of our AR. Our average customer AR is over 1 million. And now in the US, we have over 60% share of big box retail. This is particularly important given the explosion in retail media.

Consider the following safe Haven, now represents approximately 20% of our.

Our average customer is.

It's over $1 million and now in the U S. We have over 60% share of Big box retail. This is particularly important given the explosion in retail media and.

Speaker 4: And perhaps most importantly, we are benefiting from a strong global network effect. Again, no one can do what we can do. We are playing with competitive advantage and we are Enterprise Gray. Now, on to guidance. Please turn to slides 13 and

And perhaps most importantly, we are benefiting from a strong global network effect.

Again, no one can do what we can do we are playing with competitive advantage and we're enterprise grade.

Now onto guidance.

Please turn to slides 13 and 14.

For the full year, we are raising our guidance, we now expect revenue of approximately $526 million or roughly 19% growth.

Speaker 4: We now expect revenue of approximately 526 million are roughly 19% growth and non-GAP operating income of approximately 41 billion.

And non-GAAP operating income of approximately $41 million.

Speaker 4: For Q4, this would imply revenue of approximately 139 million and non-gap operating income of roughly 2 million.

For Q4, this would imply revenue of approximately 139 million and non-GAAP operating income of roughly $2 million.

A few other callouts for Q4.

Speaker 4: subscription, that retention to be roughly 106 give or take.

Subscription net retention to be roughly 106 give or take the sequential.

Speaker 4: The sequential decline is being driven by an expected lower relative contribution from usage-based wrench driver. Soundshead?.

Decline is being driven by unexpected lower relative contribution from usage based revenue.

Speaker 4: In Q4, we expect wholesale contraction to impact this metric by roughly 8.

In Q4, we expect wholesale contraction to impact this metric by roughly eight points.

Speaker 4: Gross margin to be roughly 75%. And finally, as you model Q4, the sequential increase in op-ax is largely being driven by one time seasonal items. Now, let me conclude.

Gross margin to be roughly 75%.

And finally as you model Q4, the sequential increase in Opex is largely being driven by one time seasonal items now.

Now.

Let me conclude with a couple of final thoughts.

Speaker 4: First, make no mistake, the trends are clear. Amidst a ton of industry change over the last several years, live rampage delivers.

First <unk>.

No mistake the trends are clear.

Just a ton of industry change over the last several years library is delivered.

Speaker 4: And finally, this was another powerful quarter. Amazon now joins Microsoft and 500 other publishers using ATF. Walmart and JD.com are now safe haven customers. In the exploding world of retail media networks and data collaboration, our safe haven enterprise platform is the global stand.

And finally this was another powerful quarter.

Amazon now joins Microsoft and 500, other publishers using Etfs, Walmart and J D. Dot Com are now safe Haven customers in the exploding World retail media networks and data collaboration our Safe Haven enterprise platform as the global standard.

Speaker 4: On behalf of all my live ramp colleagues, thanks to our customers and to you, our shareholders. Operator, we will now open the call to question.

On behalf of all my library colleagues, thanks to our customers and to you our shareowners operator, we will now open the call to questions.

Speaker 1: Thank you. As a reminder, if you would like to ask a question, simply press star, then one on your telephone keypad. Once again, that is star one to ask a question, to withdraw your question, press the pound key.

Thank you that's it.

A reminder, if you would like to ask a question simply press Star then one on your telephone keypad. Once again that is star one to ask a question to withdraw your question press the pound key.

Speaker 1: And our first question is going to come from the line of Brian Fitzgerald with Wells Fargo.

And our first question is going to come from the line of Brian Fitzgerald with Wells Fargo.

Speaker 5: Thanks guys, Grass on Good Quarter. You know, as some of the walled gardens have experienced declining addressability due to Apple's ATT, we'd imagine your customers are seeing a corresponding decline in in mattress and in those walled garden environments. Can you correct us if we're wrong at that point? And then assuming that's the case and assuming mattress are going down, are you seeing any customers?

Thanks, guys congrats on the good quarter.

And some of the walled gardens have experienced declining addressing ability due to apples.

Apple's ATT, we'd imagine your customers are seeing a corresponding decline in in match rates and those walled garden environment can you correct us if we're wrong on that point and then assuming that's the case and assuming match rates are going down are you seeing any customers.

Speaker 5: showing sensitivity to that in terms of saying, hey, we don't want to pay to light up this segment in Facebook or Instagram, giving what the mat rates are, or hey, we continue to some benefit from addressability that we still have, but we don't want to pay the same amount given the decline in the mat rates. And then maybe last point is that forcing them into other environments outside the world gardens where they can't match better. Thanks.

Showing sensitivity to that in terms of saying Hey, you know.

We don't want to pay to light up the segment in Facebook or Instagram, given what the match rates are or.

We continue to see some benefit from addressed ability that we still have but we don't want to pay the same amount given the decline in the match rates and then maybe.

Last point is that forcing them into.

Other environments outside of the walled gardens, where they can't match better. Thanks.

Speaker 3: yeah there's uh... there's a lot on pack in that question Brian and this is Scott what i would tell you on your second question of are we seeing anybody uh... pullback spend that the answer that isn't a fact that no in fact what we're seeing is that addressability matters now more than ever dollars will flow to destinations that facilitate addressability

Yeah, Theres, a theres a lot to unpack in that question, Brian and this is Scott what I would tell you on your second question of are we seeing anybody.

Pull back spend that the answer to that is an emphatic no.

In fact, what we're seeing is that address ability matters now more than ever and dollars will flow to destinations that facilitate address ability personalization with privacy at the core.

Speaker 3: personalization with privacy at the core is the key to the future.

Is the key to the future.

We support.

Speaker 3: you know, literally hundreds of destinations and

Literally hundreds.

Of destinations and if we really drilled into him I'm sure, we would see underlying mix shifts and be able to tell you who the winners and who the losers were but that's not something we're going to do rather in aggregate I would tell you we're simply not seeing.

Speaker 3: If we really drilled into them, I'm sure we would see underlying mix shifts.

Speaker 3: and be able to tell you who the winners and who the losers were.

Speaker 3: But that's not something we're going to do. Rather an aggregate, I would tell you we're simply not seeing any notable aggregate trends, other than a constant increase in volume as more and more media becomes addressable.

Any notable aggregate trends.

Other than a constant increase in volume as more and more media becomes addressable.

Speaker 3: and you can see that in our usage rates. They've remained remarkably consistent over time, which coupled with the macro trend of, everything becoming addressable gives me a lot of confidence that despite industry winners or losers, our strategy of focusing on neutral addressability is a winner.

And you can see that in our usage rates, they've remained remarkably consistent overtime, which coupled with the macro trend of.

Everything becoming addressable it gives me a lot of confidence.

Despite.

Industry winners or losers, our strategy of focusing on neutral address ability is a winner.

Speaker 5: And maybe I'd one quick follow on if I could just on the 20% ARR from SafeAven. That's an impressive number to us. Seemed to happen pretty quickly as well. When you think of the array of growth opportunities in front of you, how big can SafeAven be as a percentage of ARR or total revenue maybe within three years' time?

Got it and maybe I had one quick follow on if I could just on on the 20% IRR from Safe Haven, that's an impressive number to us.

Seem to happen pretty quickly as well when you think of the array of growth opportunities in front of you how big can safely be as a percentage of either.

Our total revenue maybe within three Years' time.

Speaker 4: You know, that's a great question again, Brian . This is Warren. We're not going to put a stake in the ground today, but we would tell you there is no reason that safe haven is applicable to our entire customer.

I mean, that's a great question again, Brian This is Warren.

We're not going to put a stake in the ground today, but we would tell you. There is no reason that that safe Haven.

Safe Haven is applicable to our entire customer base. So it is not simply limited to retail and CPG and others were already starting to see penetration in other industries and again looking at our entire customer base. It has global applicability.

Speaker 4: So it is not simply limited to retail and CPG and others. We're already starting to see penetration in other industries. And again, looking at our entire customer base, it has a global applicability. Got it. Yeah.

Got it thanks, Scott Thanks, Warren I'm sorry.

Speaker 1: And our next question is going to come from the line of Shiam Patil with Susquehanna.

But.

And our next question is going to come from the line of Shyam Patil with Susquehanna.

Speaker 6: Hey guys, congrats on the on the quarter and the outlook. I had a couple of questions.

Hey, guys congrats on the on the quarter and the outlook I had a couple of question.

Speaker 6: On safe haven, you know, as you guys talk about on the call, you guys are seeing, you know, very impressive momentum.

<unk> Safe Haven.

Guys talk about on the call you guys are seeing very impressive momentum.

Speaker 6: Can you talk a little bit more about the significance of

Can you talk a little bit more about the <unk>.

<unk> of <unk>.

Speaker 6: You know, some of the deals you guys have, everyone, you know, JD, the Walmart relationship, 60% share and big box retail, you know, in relation to kind of how you kind of called it, the explosion of retail media networks. And then second question, we've gotten this a lot from investors hoping you just address it. On Google Topics, can you just talk about how this change?

Some of the deals you guys have won JD Walmart relationship 60% share in big box retail.

Relation to kind of how you are you kind of called it the explosion of retail media network and then second question.

We've gotten this a lot from investors, hoping you just address it on Google topic can you just talk about how this change.

Speaker 6: impact, impact to you guys and you know how you're seeing conversations of all of those clients as that was announced. Thank you.

Impac impacts you guys.

And you know.

How youre seeing conversations evolved with clients.

Is that within out thank you.

Speaker 4: Great, well thank you. Let me go ahead and take the first part, and I know Scott will weigh in to this second. Let me start with the trend toward retail media and retail media networks. Obviously this is explosive. This is what a 30 to 40 billion dollar market today in growing. Well, if you ask yourself, well, what's at the center of this explosion? Well, it's retail data. And who is the global gold standard for managing that retail data? It's live ramps, hey.

Great well. Thank you. Let me go ahead and take the first part and I know Scott our way into the second.

Let me start with the trend toward retail media and retail media networks. Obviously this is explosive this is what a $30 to $40 billion market today and growing well if you ask yourself well what's at the center of this explosion well its retail data and who was the global gold standard for managing that retail data.

It's lybrand safe Haven, So we would in short say that we are at the epicenter of a massive trend because it all starts with retail data.

Speaker 4: So we would in short say that we are at the epicenter of a massive trend because it all starts with retail data. Now if you extend that, you know, the big deal is that's the center of the flywheel. So retail extends to CPG penetration.

Now if you extend that the big deal is that's the center of the flywheel. So retail extends to CPG penetration retail and CPG penetration extends to T. V. And then if you extend it further retail plus CPG plus Ats means this is not a regional opportunity, but a globe.

Speaker 4: retail and CPG penetration extends to TV. And then if you extend it further, retail plus CPG plus ATS means this is not a regional opportunity, but a global opportunity.

Opportunity.

Speaker 4: So in short, you see that in our numbers, whether it's customers in China, whether it's customers in Europe , in Australia, the US, 60% big box retail share in the US, this just puts us at the center of a massive global trend.

In short you see that in our numbers, whether it's lunch whether its our customers in China, whether it is customers in Europe , and Australia. The U S, 60% Big box retail share in the U S. This just puts us at the center of a massive global trend.

And Shawn to your second question about Google topics, you might be surprised I mean, we really haven't had a lot of client conversations rather what our clients are absolutely know to be true and they've seen it in their numbers as that address ability is king.

Speaker 3: and shomtee's second question about google topics you might be surprised i mean we really haven't had a lot of client conversations rather what our clients uh... absolutely no to be true and they've seen it in their numbers is that address ability is king

Speaker 3: You've heard us through some of our ATS case studies show that, you know,

You've heard us through some of our Ats case studies show that.

Speaker 3: APS adopters are getting 50% or more

Ats adopters are getting 50% or more lift in their ROI visa V cookies, which are also addressable.

Speaker 3: lift in their ROI vis-a-vis cookies, which are also addressable.

Speaker 3: relative to untargetable, unaddressable inventory, the lift is even far greater. So advertisers first and foremost, if they are building their own first party CRM file, which most sophisticated advertisers are, are looking for ways to make their spend even more address.

Relative to Untargeted Bull under addressable inventory the lift is even far greater.

Advertisers first and foremost if they are building their own first party CRM file, which most sophisticated advertisers or are looking for ways to make their spend even more addressable.

Speaker 3: Publishers on the other hand, super entrusted in contextual advertising options.

Publishers on the other hand super interested in contextual advertising options because they recognize not every member of their audience is ever gonna be addressable and so to the extent that new ways to target contextually emerge that can generate even incremental lift that's going to be.

Speaker 3: because they recognize not every member of their audience is ever going to be addressable. And so to the extent that new ways to target can textually emerge, that can generate even incremental lift, that's going to be interesting to them. But again, it's just not a conversation that we've fielded a lot of questions about on either the advertiser or the publisher side yet.

Sticking to them.

But again, it's just not a conversation that we've fielded a lot of questions about on either of the advertiser or the publisher side yet.

Speaker 1: Great, thank you guys. Thank you. And our next question is going to come from the line of Stan Lopsky with Morgan Stanley .

Great. Thank you guys. Thank you.

And our next question is going to come from the line of Stan lot ski with Morgan Stanley .

Perfect. Thank you so much guys.

Speaker 4: perfect on thank you so much guys

Yeah.

Speaker 7: Hey, and congratulations on the really nice results here. Just stay with the safe Haven discussion.

Hey.

And congratulations on a really nice results here.

Just staying with a with a safe Haven discussion.

Speaker 7: When somebody the size of and you have to Walmart joining, what does that do as far as, you know, reference ability and you're showing the opportunity for others?

With somebody the size of and you have to Walmart joining.

What does it do as far as.

Our reference ability.

And again, you're showing the opportunity for others.

Speaker 7: from a product like Safe Haven. Does it start up some kind of almost like an ecosystem flywheel effect to get other entities to join the platform and have a quick follow-up?

From a product like Safe Haven does it start up some kind of almost like an ecosystem flywheel effect to get other entities, who joined the platform and I have a quick follow up.

Speaker 4: I mean, a short answer is yes, but I'd ask everybody to kind of back up a little bit is this is not our only reference client. We have 60% big box share in the US. So we have, you know, major retailers will be on Walmart that are using our safe haven plan.

I mean, the short answer is yes, but I'd ask everybody to kind of back up a little bit is this is not our only reference client.

We have 60% big box share in the U S. So we have major retailers will beyond Walmart that are using our safe Haven platform.

Speaker 4: The second thing that's important to note is that we're global.

The second thing that's important to note is that we're global so it's not simply Walmart or another U S. Retailer. It's also somebody like car for or J D Dot com in China or our launch customers in Australia as an example.

Speaker 4: So it's not simply Walmart or another US retailer. It's also somebody like Car4 or JD.com in China or our launch customers in Australia as an example.

Speaker 4: So what that does is it gives us a global presence, which is exactly what every CPG wants.

So what that does is it gives us a global presence, which is exactly what every CPG wants so all of the major CPG is probably operate in 80 9100 different countries in the world and they want to do things the same way with every single retailer and every single market using a common standard in that seat.

Speaker 4: So all of the major CPGs probably operate in 80, 90, a hundred different countries in the world, and they want to do things the same way with every single retailer in every single market, using a common standard in that CTS.

Speaker 4: So the short answer is we are well down the path to reference responsibility with many customers. To it is absolutely a flywheel. And third, you know, I'll repeat something that I said in my prepared remarks is we are playing with competitive advantage. You know, all the things that live ramp is done over the last 10 years have prepared us for today. Neutrality, privacy, identity and federation, future proof with ATS and global scale.

So the short answer is we are well down the path to reference reference ability with many customers to it is absolutely a flywheel.

And third.

Repeat something that I said in my prepared remarks is we are playing with competitive advantage all.

All the things that <unk> has done over the last 10 years have prepared us for today neutrality privacy identity and federation future proof with Ats and global scale.

Got it got it and then I.

Speaker 7: got it got it and then I just want to go back to the comments about the potential impact to Q4 from lower usage. You may make can you can you impact that for me a little bit you know what what do you expect to cause the lower usage especially on the subscription side of the business. That's it for me thank you.

I just wanted to go back to the comments about the potential impact to Q4 from lower usage.

Maybe can you can you unpack that for me a little bit, which what do you expect to caused a lower usage, especially on the on the subscription side of the business.

That's it for me, Thank you and I'll take that one to stand.

Speaker 4: Yeah, and I'll take that one to stand is, I would just say it's actually our being a little bit conservative. We, this is just something we're not gonna forecast because it's used.

I would just say, it's actually are being a little bit conservative.

This is just something we're not going to forecast because it's usage based so when we're putting out our guidance we felt it appropriate to just.

Speaker 4: So when we're putting out our guidance, we felt it appropriate to just bring that down a little bit, make sure we weren't at risk of the usage coming in lower than say it did in.

Bring that down a little bit make sure we weren't at risk of usage coming in lower than say it did in Q3.

Speaker 4: But overall we haven't seen anything in our business per se, which would cause

But overall, we haven't seen anything in our business per se, which would cause this to be zero, but again in setting our guidance. We felt that was the way to go.

Speaker 4: zero but again in setting our guidance we felt that was the way to go.

Got it thank you.

Speaker 1: And our next question is going to come from the line of Kirk Materne with Evercore ISI.

And our next question is going to come from the line of Kirk <unk> with Evercore ISI.

Speaker 5: Oh, yeah, thanks very much and congrats on the quarter. Warren, it would seem that the life or the safe, safe in business, you know, should be a positive, or have a positive impact on sort of NRR over time. These are fairly assuming it seems like that's, you know, one of the classic land and expand stories. And I was also wondering if you just talk about you're somebody's new lands. I assume, you know, they're landing pretty small, but opportunities with Walmart JD, you know, can grow pretty well and should help help that metric over time.

Hi, yes, thanks, very much and congrats on the quarter.

It would seem that the light or the safe safe Haven business should be a positive or have a positive impact on sort of NR over time, I mean is it fair to assume it seems like that's you know one of the like classic land and expand stories and I was also wondering if you can just talk about some of these new lands I assume they're landing pretty small.

But opportunities with Walmart JD.

<unk> can grow pretty well and should help help that metric over time.

Speaker 4: The answer is yes. So if you look at our net retention, for example, for the quarter upsell, you know, we had really

The answer is yes. So if you look at our net retention for example for the quarter upsell.

We had really it was a great story in terms of net retention in every respect this quarter upsell was up strong and that upsell was driven by safe Haven to usage was up and we had lower contraction. So all of those.

Speaker 4: It was a great story in terms of net retention in every respect this quarter. Upsell was up strong, and that upsell was driven by safe ev.

Speaker 4: to usage was up and we had lower contraction.

Speaker 4: So many of those things are really facilitated by the strength of safe haven. So there's no reason, as we look into the future, that we shouldn't continue to see.

Many of those things are really facilitated by the strength.

Safe havens. So there's no reason as we look into the future that we shouldn't continue to see benefit.

Speaker 4: I would also say exactly to your point is we're really at the beginning of this whole world of, you know, retail, I'm going to call it retail-based media, but it extends well beyond retail.

I would also say exactly to your point is we're really at the beginning of this whole world of.

Retail I'm going to call it retail based media, but it extends well beyond retail.

Speaker 4: So we're only really starting with the use cases. Most of the use cases today are honestly focused around the retail media portion of it, but really haven't gotten into collaboration in a big way. So we like you see a world of use cases starting to open up. In our slide deck, we highlighted a few of those things.

So we're only really starting with the use cases most of the use cases today.

Our honestly focused around the retail media portion of it but really haven't gotten into collaboration in a big way.

So we like you see a world of abuse cases, starting to open up.

In our slide deck, we highlighted a few of those things in retail.

Speaker 4: So, if we were sitting here talking even a year ago, maybe 18 months ago, half of those use cases wouldn't have been on the page. But today it seems like every day we wake up there's a new use case and a new application.

So if we were sitting here talking even a year ago, maybe 18 months ago half of those use cases wouldn't have been on the page, but today. It seems like every day, we wake up Theres, a new use case and a new application.

Speaker 5: And one just more follow up, but I think you mentioned in your prepare remarks, sort of moving from your application to enterprise. You know, Q's talk a little bit about how that's maybe changing who you're talking to from a buyer perspective. Are you, you know, starting to land in the office, you know, the C suite more often at this point in time with some of these larger opportunities clearly have shown up in the number of million dollar deals, but I just want to, if you start to see that transition happen in terms of who you're talking to from a buyer perspective.

And one more follow up I think you mentioned in your prepared remarks sort of moving from your application in the enterprise.

Let's talk a little bit about how that maybe changing who you're talking to from a buyer perspective are you.

Starting to land in the office.

The C suite more often at this point in time with some of these larger opportunities clearly it's shown up in the number of million dollar deals and I was just wondering if you're starting to see that transition happening in terms of who you're talking to from a buyer perspective sure Kirk. It's Scott I would tell you that is absolutely the case three specific levers number one.

Speaker 3: Sure, Carket Scott, I would tell you that is absolutely the case. Three specific levers.

Speaker 3: Number one, I would say yes, we are seeing a higher point of entry. Typically a member of the C suite.

I would say, yes, we are seeing a higher point of entry.

Typically a member of the C suite oftentimes the CMO, sometimes the CLO and increasingly the CEO .

Speaker 3: Oftentimes the CMO, sometimes the COO, and increasingly the CEO , is aware of who live ramp is.

Is aware of who live ramp is second thing we're seeing is a high res EV when we go in with the enterprise.

Speaker 3: Second thing we're seeing is a higher ACV. When we go in with the enterprise sale, it tends to be a much higher price point and also higher opportunity for upsell. So higher dollar based net retention.

The sale.

At.

Tends to be a much higher price point.

Also a higher opportunity for up sell so higher dollar based net retention and.

Speaker 3: And, you know, we didn't talk a lot about our new logo wins over the quarter, but I think they bear that out. So, I mentioned 20 net new ads in the quarter.

We didn't talk a whole lot about our new logo wins over the quarter, but I think they bear that out so I mentioned 20 net new.

In the quarter.

Speaker 3: Yes, there's a lot of retail in there, but there's also one of the largest logistics companies in the world. One of the largest financial services companies in the world. One of the largest QSRs in the United States.

Yes, there's a lot of retail in there, but there is also one of the largest logistics companies in the world one of the largest financial services companies in the world one of the largest <unk> in the United States.

Speaker 3: one of the largest hotel chains in the world, and another one of the largest banks in the world. So if you looked at the client roster, the new ads, you would recognize them. They're some of the most sophisticated companies on the planet, and we're on their radar screen now.

One of the largest hotel chains in the world and.

Another one of the largest banks in the world.

So if you looked at the client roster the new ads you would recognize them. There are some of the most sophisticated companies on the planet.

And we are on their radar screen now.

Great. Thanks, guys.

Speaker 1: And once again to ask a question, please press star then one on your telephone keypad. Again, star one to ask a question.

And once again to ask a question. Please press Star then one on your telephone keypad again star one to ask a question.

Speaker 1: And our next question is going to come from the line of Jason Cryer with Craig Hallam.

And our next question is going to come from the line of Jason <unk> with Craig Hallum.

Speaker 5: Great, thanks guys. So you've got roughly 10% of subscription customers are now $1 million customers, and you've really been increasing the penetration rate there. My expectation is safe haven't probably a big part of that, but wondering if you could just talk about, what component of that is usage base or what other specific services are layering into that figure?

Great. Thanks, guys. So you've got roughly 10% of subscription customers are now 1 million customers and you've really been increasing the penetration rate. There my expectation is safe havens, probably a big part of that but wondering if you could just talk about what component of that is usage base or what other specific services are layering into that figure.

Speaker 4: You know, there's always, you know, we could have some ins and outs depending upon usage. So that can affect, you know, the number of $1 million plus customers.

You know theres always we could have some ins and outs depending upon usage, so that can affect the number of $1 million plus customers.

Speaker 4: But I would say, you know, you're really highlighted, I think the answer to the question is that as SafeAven becomes a bigger part of the installed base.

But I would say you really highlighted I think the answer to the question is that as safe Haven becomes a bigger part of the installed base.

Speaker 4: are ACVs are going up. And it's also opening up new use cases. So the short answer, that's the answer to the question, SafeAven is enabling the trend that you're speaking of.

Our <unk> are going up and it's also opening up new new use cases so.

The short answer to that that's the answer to the question say paid minutes, enabling.

Enabling the trend.

Picking up usage at the margin.

Speaker 5: And then the success that you're seeing in Safe Haven, maybe talk about your ability to land new customers to live ramp with Safe Haven versus, how much you're cross-selling into that existing base with success there.

And then the success that Youre seeing in <unk>, So maybe talk about your ability to land new customers.

A live ramp with safe Haven versus how much you're.

Youre cross selling into that existing base with success there.

Well, it's Scott you may want to jump in here I would tell you. It's both so we're landing new logos, but we're also selling a lot of existing customers too. So it's really both and I think this kind of comes back to the question of.

Speaker 4: Well, it's got you may want to jump in here. I would tell you it's both. So we're landing new logos, but we're also upfelling a lot of...

Speaker 4: customers to so it's really both. And I think this kind of comes back to the question of, who are we talking to?

Who are we talking too well.

Speaker 4: Well, you know, if you, if we were to go to the top 100 or 500 companies in the world, we would probably find two words and virtually every one of.

If we were to go to the top 100 or 500 companies in the World, We would probably find.

Two words in virtually every one of those theyre strategic three year strategic plans and those would be the words digital transformation.

Speaker 4: of their strategic three-year strategic plans. And those would be the words digital transformation.

Speaker 4: And when you think of the safe haven platform, again neutrality, privacy, identity, collaboration at scale.

And when you think of the Safe Haven platform again neutrality privacy identity collaboration at scale.

Speaker 4: It's the platform that is helping companies really with their digital transformation. So, you know, not only are we at the center for the epicenter of the massive trends in retail media, we're really at the epicenter of a much, even much larger trend, and that's called digital transformation. So, we see ourselves as being a core enabler of that transformation for our customers.

It's the platform that is helping companies really with their digital transformation. So not only are we at the center to the epicenter of the massive trends in retail media, we're really at the epicenter of a much even much larger trend and that's called digital transformation. So.

We see ourselves as being a core enabler of that transformation for our customers.

Thanks, Warren I appreciate it thank you.

Speaker 1: And our next question is going to come from the line of Daniel Semen with BMO Capital Markets.

And our next question is going to come from the line of Daniel Salmon with BMO capital markets.

Hi, good afternoon, everyone.

I have.

Speaker 5: Hey, Warren. So I've got a few questions about the partnership with Google Cloud that I think you expanded on this time last month. And...

Warren.

So I've got a few questions about the partnership with <unk>.

Cloud.

Thank you expanded on.

At this time last month, and maybe first just firstly, how impactful could that be to revenue over the next fiscal year.

Speaker 5: Maybe first, just firstly, how impactful can that be to revenue over the next fiscal year? Second, how relevant is the integration with Google Marketing Platform to that partnership?

Second.

How relevant is the integration with Google marketing platform to that partnership.

Speaker 5: And lastly, is that partnership something that can be an advantage for live ramp as?

And lastly, as that partnership is something that can be an advantage revive ramp is chrome and Android evolve their cookie data policies.

Speaker 8: Proman, Android, Avolbert, Cookie, and Data Policies. Love to hear.

But that as well.

Sure Dan I would tell you at the core of our strategy is ubiquity.

Speaker 3: Sure Dan, I would tell you at the core of our strategy is you big...

Speaker 3: What we found is that our most sophisticated clients, they have a lot of different needs. They want to activate in a variety of different use cases, open web, DSPs, GAM,

What we found is that our sophisticate, our most sophisticated clients.

A lot of different needs they want to activate and a variety of different use cases open web DSP.

Facebook.

Microsoft.

Speaker 3: They want to extend across multiple geography.

They want to extend across multiple geographies.

Speaker 3: and increasingly when we go in and talk to them.

And increasingly when we go in and talk to them.

Speaker 3: They are asking that we, some cases, integrate with any number of CDPs.

They are asking that we some cases integrate with any number of CD piece.

Speaker 3: and increasingly any number of different marketing cloud providers.

And increasingly any number of different marketing cloud providers.

Speaker 3: uh... and so it's been a real advantage are historical kind of neutrality being agnostic and being flexible uh... because it now serving us increasingly well

And so it's been a real advantage, our historical kind of neutrality being agnostic and being flexible.

Because it's now serving us increasingly well.

Speaker 3: I think it's a tremendous advantage that we have great integrations on the O and O side of Google as well as the cloud side of Google. But the advantage is to our partners because it gives them two sides of what they're looking for and gives them flexibility. You know, I would say we're in the early stages of kind of building out these partner channels.

I think it's a tremendous advantage.

That we have great integrations.

On the O&M side of Google.

As well as the cloud side of Google, but the advantages to our partners because it gives them two sides of what theyre looking for and give them flexibility.

I would say we're in the early stages of kind of building out. These these partner channels.

Speaker 3: And GCP, because they've been one of our historical technology partners was the easiest one to get up and running. But next up, we'll be AWS. And over time, we want to be able to say yes, regardless of who a client wants to use for storage.

And G C P. Because they've been one of our historical technology partners was the easiest one to get up and running but next up will be AWS.

And over time.

We want to be able to say, yes, regardless.

Of who our client wants to use for storage and compute.

Speaker 3: That is going to be a big thing for us over really not just the next 12 months, but really the next 24 months in our product and engineering efforts.

That is going to be a big thing for us over really not just the next 12 months, but really the next 24 months and our product and engineering efforts.

Thank you.

Speaker 1: Thank you and with that we will conclude the Q&A portion of today's call. I'd like to turn the call over to Mr. Warren Jensen for his closing comments.

Thank you and with that we will conclude the Q&A portion of today's call I would like to turn the call over to Mr. Warren Jenson for his closing comments.

Speaker 4: Great, well thank you operator and thanks everybody as usual for joining us today. I'd like to conclude with maybe just three quick thoughts and then a final reminder about ramp up. First of all, highlight number one is this was a solid performance again in the quarter, but you know more importantly this is one quarter in a trend.

Great well, thank you operator, and thanks, everybody as usual for joining us today.

I'd like to conclude with maybe just three quick thoughts and then and then a final reminder, about ramp up.

First of all highlight number one is.

This was a solid performance again in the quarter, but more importantly, this is one quarter and a trend.

Speaker 4: Revenue Web 17%, Rosemarge and 77%, are 7th consecutive quarter of profitability. So again, as I said in a prepared remarks, there's been a lot of change in this industry, but through all that change, there is one constant, and that is we have delivered.

Revenue up 17% gross margin 77%.

Our seventh consecutive quarter of profitability. So again as I said in our prepared remarks.

Been a lot of change in this industry, but through all of that change. There is one constant and that is we have delivered.

Speaker 4: Second, Metapoint is our enterprise platform, Safe Haven, is rolling. 20% of ARR, greater than 120% net retention, now 60%, US Big Box Retail Share, Global Presence, WalmartJD.com, and we're in the sweet spot and right at the epicenter of this massive trend in retail media.

Second meta point is our enterprise platform Safe Haven is rolling.

20% of a R R.

Greater than 120% net retention now, 60% U S Big box retail share global presence Walmart JD Dot com.

And we are in the sweet spot and right at the epicenter of this massive trend in retail media.

Speaker 4: And then third, our global opportunity is really now starting to take shape. You know, it's pretty interesting. We've sat down ahead of this call. And, you know, a year ago we would have said through live ramp, you can reach consumers in 12 countries. Today you can, through live ramp, reach consumers in over 40 countries, 40.

And then third our global opportunity is really now starting to take shape and it's pretty interesting.

Sat down ahead of this call and <unk>.

A year ago, we would've said through live ramp you can reach consumers in 12 countries. Today, you can through live ramp reached consumers in over 40 countries in 40 countries.

Speaker 4: ATS is enabling that kind of opportunity. And we're pleased to have great participants and tens of thousands of publishers now enabled. But today most notably, calling out Microsoft and also calling out Amazon.

Ats is enabling that kind of opportunity.

And we're pleased to have great participants in tens of thousands of publishers now enabled but today, most notably calling out Microsoft and also.

Calling out calling out Amazon.

Speaker 4: And finally, I guess a reminder for everybody. We're thrilled to be hosting our annual event, ramp up on February 28th and March 1st at the Fairmont.

And then finally I guess a reminder for everybody.

We're thrilled to be hosting our.

Our annual event ramp up.

On February 28th in March 1st at the Fairmont.

Speaker 4: We intend for this to be an in-person event, although we will be streaming, so we'll pretty much have a hybrid platform, but we would love to have all of you join us.

We intend for this to be an in person event, although we will be streaming so we'll pretty much have a hybrid platform.

But we would love to have all of you join us.

Speaker 4: We're gonna have a great lineup of thought leadership fire sites

We're going to have a great lineup of thought leadership Fireside chats, probably talk about a lot of the stuff we've talked about today on the call.

Speaker 4: Chad probably talked about a lot of this stuff we've talked about today on the call From the best and the brightest in the industry and beyond

From the best and the brightest in the industry and beyond so please reach out to US we would love to have you join us it's going to be a great event and with that operator.

Speaker 4: So please reach out to us. We would love to have you join us. It's going to be a great.

Speaker 4: And with that operator, thanks to all of you for joining us today and spending a few minutes.

Thanks to all of you for joining us today.

Spending a few minutes.

Speaker 1: Thank you. Once again, I would like to thank you for participating in today's live-brack conference called, You May Now Disconnect.

Thank you once again, if I could thank you for participating in today's my Breath Conference call you may now disconnect.

[music].

Speaker 9: That down.

Speaker 9: I the.

Yes.

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