Q4 2025 LiveRamp Holdings Inc Earnings Call

Operator: Good afternoon, ladies and gentlemen, and welcome to LiveRamp's fiscal 2025 fourth quarter earnings call. All lines have been placed on mute to prevent any background noise.

Good afternoon, ladies and gentlemen, and welcome to life ramps fiscal 'twenty 25 fourth quarter earnings call. All lines have been placed on mute to prevent any background noise.

Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. As a reminder, this conference call is being recorded.

The speaker's remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question Press Star One again in Q as a reminder, this conference call is being recorded.

drew Borst: I would now like to turn the call over to your host, Drew Borst, Vice President of Investor Relations. Thank you, Operator.

Speaker Change: I would now like to turn the call over to your host drew Borst, Vice President of Investor Relations.

drew Borst: Thank you operator, good afternoon, everyone and thank you for joining our fiscal 2025 fourth quarter earnings call with.

drew Borst: Good afternoon, everyone, and thank you for joining our fiscal 2025 fourth quarter earnings call. With me today are Scott Howe, our CEO, and Lauren Dillard, our 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.

Scott Howe: With me today are Scott Howe, our CEO and Lauren Dillard our CFO.

Scott Howe: 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.

drew Borst: For a detailed description of these risks, please read the Risk Factors section of our public islings and the press release.

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

drew Borst: A copy of our press release and financial schedules, including any reconciliations to non-GAAP financial measures, is available at investors.liveramp.com. Also during the call today, we'll be referring to the slide deck that is also available on our IR website.

Scott Howe: A copy of our press release and financial schedules, including any reconciliation to non-GAAP financial measures is available at investors don't lie ramp dot com.

Scott Howe: Also during the call today will be referring to the slide deck that is also available on our IR website with that I'll turn the call over to Scott.

Scott Howe: With that, I'll turn the call over to Scott. Thanks, Drew, and thank you to everyone joining us today. We had a strong financial performance in Q4. We beat on the top and bottom line. For the fifth consecutive quarter, revenue increased by a double-digit rate. The operating margin expanded by three points, driving 43% growth in operating income, and we had a record-free cash flow quarter.

Speaker Change: Thanks drew and thank.

Speaker Change: You to everyone joining us today we.

Scott Howe: We had a strong financial performance in Q4, we'd be on the top and bottom line for the fifth consecutive quarter revenue increased by a double digit rate.

Scott Howe: The operating margin expanded by three points driving 43% growth in operating income and we had a record free cash flow quarter.

Scott Howe: These, in my view, are the standout achievements in the quarter. Lauren will provide an in-depth look at the numbers shortly.

Scott Howe: These in my view one of the standout achievements in the quarter.

Scott Howe: Lauren will provide an in depth look at the numbers shortly.

Scott Howe: I'll be focusing my comments on the key takeaways from the fiscal year just completed and then diving into the exciting opportunities that lie ahead in FY26. FY25 was a year of strong progress and achievement. First, we delivered 13% revenue growth, marking the third consecutive year that we hit our 10 to 15% revenue growth target. This was propelled by double-digit growth in both subscription revenue, which grew 11%, and marketplace and other, which surged 21%. This growth was driven by our ongoing ability to win with the largest customers. We added 13 $1 million plus subscription customers during the year, including three in Q4.

Speaker Change: I'll be focusing my comments on the key takeaways from the fiscal year, just completed and then diving into the exciting opportunities that lie ahead in FY 'twenty six.

Scott Howe: FY 'twenty five was a year of strong progress and achievement.

Scott Howe: First we delivered 13% revenue growth, marking the third consecutive year that we hit our 10% to 15% revenue growth target.

Scott Howe: This was propelled by double digit growth in both subscription revenue, which grew 11% and marketplace and other which surged 21%.

Scott Howe: This growth was driven by our ongoing ability to win with the largest customers. We added 13 $1 million plus subscription customers during the year, including three in Q4.

Scott Howe: This crucial customer cohort saw aggregate revenue increase 13% in FY25, exceeding our overall subscription revenue growth rate. Notably, in the fourth quarter, we signed two new $1 million plus customers from the financial services sector to support their emerging commerce media network. These additions include a leading global digital payments platform and the nation's largest bank and credit card issuer. Furthermore, we continue to successfully upsell existing clients into the $1 million plus cohort. For example, a leading global security software provider signed on to leverage our CleanRoom solution for enhanced collaboration with its PC partners, achieving a more comprehensive understanding of its customer base across its indirect and direct sales channels.

Scott Howe: This crucial customer cohort so aggregate revenue increased 13% in FY 'twenty five.

Scott Howe: <unk>, our overall subscription revenue growth rate.

Scott Howe: Notably in the fourth quarter, we signed two new 1 million plus customers from the financial services sector to support their emerging Commerce media networks. These additions include a leading global digital payments platform.

Scott Howe: And the nation's largest bank and credit card issuer.

Scott Howe: Furthermore, we continued to successfully upsell existing clients into the $1 million plus cohort.

Scott Howe: For example, a leading global security software provider signed on to leverage our clean room solution for enhanced collaboration with its PC partners.

Scott Howe: Assuming a more comprehensive understanding of its customer base across its indirect and direct sales channels.

Scott Howe: We also celebrated a record-setting quarter for renewals, securing 20 multi-million dollar ACV contracts, of which roughly half are multi-year contracts. Among these renewals is IPG, one of our largest customers. As a result of these signings, we had substantial growth in our remaining performance obligations, which helped secure future revenue generation. Another driver of our revenue growth in FY25 was a reduction in our contraction rate, which includes both dollar churn and down sell, to the lowest level ever. This achievement is the culmination of a sustained effort to enhance our service capabilities and modernize our platform, on both the front and back end.

Scott Howe: We also celebrated a record setting quarter for renewals securing 20, multimillion dollar HCV contracts of which roughly half our multiyear contracts. Among these renewals as IPG one of our largest customers as a result of these signings we had substantial growth in our <unk>.

Scott Howe: <unk> performance obligations, which helps secure future revenue generation.

Scott Howe: Another driver of our revenue growth in FY 'twenty five was a reduction in our contraction rate, which includes both dollar churn and down sell to the lowest level ever.

Scott Howe: This achievement is the culmination of a sustained effort to enhance our service capabilities and modernize our platform on both the front and back end <unk>.

Scott Howe: Key initiatives included two platform refreshes last year that significantly improved the UI and the ongoing migration to an upgraded backend, which is yielding substantial improvements in stability and processing speed. With half of customer workflows already migrated and the remainder slated for this year, we are confident in sustaining these lowered contraction rates. Given our scale and favorable fall-through rates, this top-line growth translated into impressive bottom-line gain. Our operating margin expanded by two percentage points to 18%, marking our sixth consecutive year of margin expansion. Additionally, we achieved a record $153 million in free cash flow, a 51% year-over-year increase, driven partly by tighter management of working capital.

Scott Howe: Key initiatives included two platform refreshes last year that significantly improve the UI and the ongoing migration to an upgraded backend, which is yielding substantial improvements in stability and processing speed.

Scott Howe: With half of customer workflows already migrated and the remainder slated for this year, we are confident in sustaining these lowered contraction rates.

Scott Howe: Given our scale and favorable fall through rates. This topline growth translated into impressive bottom line gains our operating margin expanded by two percentage points to 18%, marking our sixth consecutive year of margin expansion.

Scott Howe: Additionally, we achieved a record $153 million in free cash flow.

Scott Howe: 51% year over year increase driven partly by tighter management of working capital.

Scott Howe: Demonstrating our commitment to shareholder value, we returned $101 million in cash to shareholders through our share repurchase program. We concluded the fiscal year with $421 million in cash in short-term investments, according to over $6 per diluted share. Finally, bringing this all together, we proudly join the Rule of 30 Club in FY25, or more accurately, Rule of 31, with 13% revenue growth and an 18% operating margin, a significant four-point improvement from FY24's Rule of 27.

Scott Howe: Demonstrating our commitment to shareholder value, we returned 101 million in cash to shareholders through our share repurchase program. We concluded the fiscal year with $421 million in cash and short term investments occurring to over $6 per diluted share.

Scott Howe: Finally, bringing this all together we proudly joined the rule of 30 club in FY 'twenty, five or more accurately rule of 31 with 13% revenue growth and an 18% operating margin.

Scott Howe: A significant four point improvement from FY 'twenty four is rule of 27.

Scott Howe: And while this is a nice milestone, we remain focused on our ambition to achieve the Rule of 40 by FY28. targeting 10-15% revenue growth and 25-30% operating margin.

Scott Howe: And while this is a nice milestone we remain focused on our ambition to achieve the rule of 40 by FY 'twenty eight.

Scott Howe: Targeting 10% to 15% revenue growth and 25% to 30% operating margin.

Scott Howe: FY26 Opportunity While FY25 was an exceptional year, what excites me even more is the immense potential I see in FY26. In February, we hosted our annual user and partner conference, Ramp-Up, in San Francisco. This event, without a doubt, is the highlight of my year. Ramp-Up has evolved into the definitive collaboration catalyst for leaders at the intersection of marketing, technology, and data science. It's remarkable to reflect on how, a decade ago, when this event first started, Ramp-Up only drew a few hundred attendees, and almost exclusively from the ad tech world. This year, we welcomed approximately 2,500 participants, including not only ad tech leaders, but also representatives from hundreds of global brand powerhouses.

Scott Howe: FY 'twenty six opportunities.

Scott Howe: FY 'twenty five with an exceptional year, what excites me, even more is the immense potential IC in FY 'twenty six.

Scott Howe: In February we hosted our annual user and partner conference ramp up in San Francisco.

Scott Howe: This event without a doubt is the highlight of my year ramp up has evolved into the definitive collaboration catalyst for leaders at the intersection of marketing technology and data science, it's remarkable to reflect on how a decade ago. When this event first started ramp up only drew a few hundred <unk>.

Speaker Change: Wendy's and almost exclusively from the AD Tech World.

Speaker Change: This year, we welcomed approximately 2500 participants, including not only AD Tech leaders, but also representatives from hundreds of global brand powerhouses companies like Disney Procter and Gamble, Uber and Delta amongst many others.

Scott Howe: Companies like Disney, Procter & Gamble, Uber, and Delta, amongst many others. Ramp-Up serves as a critical catalyst for our sales engine and jumpstarts the fiscal year ahead.

Speaker Change: Ramp up serves as a critical catalyst for our sales engine and jumpstarts the fiscal year ahead.

Scott Howe: At this year's conference, we spotlighted four transformative themes. First, LiveRamp's data collaboration network, comprised of over 900 leading advertisers, data platforms, publishers, data providers, and commerce media networks, has unparalleled scale, neutrality, interoperability, and connectivity necessary to deliver the outcomes marketers and media owners need. Our primary focus is to amplify the network's density by continuing to add more nodes and, even more importantly, increasing the number of edges or connections between these nodes. This will not only exponentially increase the value of the network for all participants, but also significantly bolsters our revenue generation.

Scott Howe: This year's conference, we spotlighted for transformative themes.

Scott Howe: First <unk> data collaboration network comprised of over 900, leading advertisers data platforms publishers data providers and Commerce media networks has unparalleled scale neutrality interoperability and connectivity necessary to deliver the outcomes marketers and media owner.

Scott Howe: There is need.

Scott Howe: Our primary focus is to amplify the network's density by continuing to add more nodes and even more importantly, increasing the number of edges or connections between these nodes.

Scott Howe: This will not only exponentially increase the value of the network for all participants, but also significantly bolsters our revenue generation.

Scott Howe: Second, we are transforming media measurement with the industry's only scalable solution, enabling seamless marketing insights from a single platform. We announced the launch of cross-media intelligence, a new capability that enables marketers to better measure and optimize advertising campaigns anywhere its customers are, with access to unified, de-duplicated reporting across screens and platforms. We see this measurement use case as a primary mechanism near term for increasing the density of our network, more nodes and more edges. We will dive deeper into this in a moment.

Scott Howe: Second we are transforming media measurement with the industry's only scalable solution, enabling seamless marketing insights from a single platform.

Scott Howe: We announced the launch of cross media intelligence, a new capability that enables marketers to better measure and optimize advertising campaigns anywhere if customers are with access to unified de duplicated reporting across screens and platforms.

Scott Howe: We see this measurement is used case as a primary mechanism near term for increasing the density of our network more nodes and more edges.

Scott Howe: We will dive deeper into this in a moment.

Scott Howe: Third, commerce media networks are scaling to new industries beyond retail. More and more companies across a variety of sectors are realizing the benefits of data collaboration to more accurately measure business outcomes. LiveRamp can enhance the value and effectiveness of the ad inventory on commerce media networks through improved targeting and measurement capabilities. We have discussed this trend for some time now, but the proof points continue to accumulate. Earlier, I highlighted the account wins with the digital payments platform and the leading U.S. bank to build new commerce media networks. Over the past year, our platform has helped launch an airline media network with United, a casino media network with Mohegan, and a real estate media network with REMAX.

Scott Howe: Third Commerce media networks are scaling the new industries beyond retail.

Scott Howe: More and more companies across a variety of sectors are realizing the benefits of data collaboration to more accurately measure business outcomes lie.

Scott Howe: <unk> can enhance the value and effectiveness of the AD inventory on commerce media networks through improved targeting and measurement capabilities.

Scott Howe: We have discussed this trend for some time now, but the proof points continue to accumulate.

Scott Howe: Earlier, I highlighted the account wins with a digital payments platform and the leading U S bank to build new Commerce media networks.

Scott Howe: Over the past year, our platform has helped launch an airline media network with United.

Scott Howe: Female media network with Mohegan, and our real estate media network with the Remax.

Scott Howe: We expect this trend to continue as companies look to better leverage their data assets to drive both efficiencies and incremental revenue.

Scott Howe: We expect this trend to continue as companies look to better leverage their data assets to drive both efficiencies and incremental revenue.

Scott Howe: Fourth and finally, data collaboration with strong governance is foundational for AI and agentic marketing solutions. Data collaboration helps partners safely leverage important data sets, audiences, impressions, transactions, to power agentic AI across all advertising channels so they can deliver and optimize outcomes-based marketing. Importantly, the LiveRamp data collaboration platform also provides governance tools that allow data owners to control how their data is accessed and used, ensuring control and transparency.

Scott Howe: Fourth and finally data collaboration with strong governance is foundational for AI and agenda marketing solutions.

Scott Howe: Data collaboration helps partners safely leverage important datasets audiences impressions transactions.

Speaker Change: Power agenda Guy.

Speaker Change: Across all advertising channels, so they can deliver and optimize outcomes based marketing.

Scott Howe: Importantly, the live ramped data collaboration platform also provides governance tools that allow data owners to control how their data is accessed and used ensuring control and transparency.

Scott Howe: All of these trends are pivotal to our growth trajectory in FY26 and beyond.

Speaker Change: All of these trends are pivotal to our growth trajectory in FY, 'twenty, six and beyond but what truly ignites my excitement is our ground breaking cross media intelligence solution.

Scott Howe: But what truly ignites my excitement is our groundbreaking cross-media intelligence solution. The long-standing multi-touch attribution and panel-based measurement methods are faltering in today's complex, multi-platform digital ecosystem. Relying on outdated tools, flawed metrics, and fragmented third-party data provides only a distorted view of consumer behavior, leaving marketers to make critical decisions with incomplete and unreliable information. These antiquated approaches simply lack the precision and granularity demanded by effective cross-media advertising strategies. This often results in misallocated resources and skewed perceptions of campaign performance across platforms. As our industry navigates increasingly stringent privacy regulations and the erosion of third-party cookies, the imperative for a robust privacy-centric measurement solution has never been greater.

Speaker Change: The longstanding multi touch attribution and panel based measurement methods are faltering in today's complex multi platform digital ecosystem.

Speaker Change: An outdated tools flawed metrics and fragmented third party data provides only a distorted view of consumer behavior.

Speaker Change: <unk> marketers to make critical decisions with incomplete and unreliable information.

Scott Howe: These antiquated approaches simply lack the precision and granularity demanded by effective cross media advertising strategies.

Scott Howe: This often results in mis allocated resources.

Scott Howe: Skewed perceptions of campaign performance across platforms.

Scott Howe: As our industry navigates increasingly stringent privacy regulations and the erosion of third party cookies, the imperative for a robust privacy centric measurement solution has never been greater.

Scott Howe: Data collaboration, powered by our state-of-the-art cleanroom technology, is the definitive solution to this measurement challenge. It represents a fundamental paradigm shift, enabling marketers to revolutionize their measurement strategies. Our solution equips them with unparalleled capabilities, seamless connectivity to a vast and diverse network of partners, the agility and control to enforce their unique data sharing policies, and remarkable adaptability in the face of evolving regulations. This data collaboration framework dramatically reduces risk and supercharges cross-media measurement, empowering marketers to confidently navigate the complexity of the digital landscape without compromising privacy or data quality.

Scott Howe: Data collaboration powered by our state of the art clean room technology is the definitive solution to this measurement challenge. It represents a fundamental paradigm shift enabling marketers to revolutionize their measurement strategies are.

Scott Howe: Our solution equips them with unparalleled capabilities seamless connectivity to a vast and diverse network of partners the agility and control to enforce their unique data sharing policies and remarkable adaptability in the face of evolving regulations.

Scott Howe: This data collaboration framework dramatically reduces risk and Supercharging Cross media measurement empowering marketers to confidently navigate the complexity of the digital landscape without compromising privacy for data quality.

Scott Howe: LiveRamp is uniquely positioned to deliver this transformative measurement vision. We've established the industry's most extensive data collaboration network, seamlessly connecting all key players, from advertisers and publishers to retail media networks, data providers, and measurement partners. A robust identity foundation enables privacy-preserving data connectivity across this network. Finally, our network solutions ensure seamless interoperability across all major cloud environments. We've already secured commitments from dozens of premier publishers for cross-media intelligence, including the largest social walled garden. Everyone wants to know that their efforts are generating impact. In good markets, it's a priority, but in uncertain macroeconomic markets, it's a necessity.

Scott Howe: <unk> is uniquely positioned to deliver this transformative measurement vision, we've established the industry's most extensive data collaboration network seamlessly connecting all key players from advertisers and publishers to retail media Networks' data providers and measurement partners are robust identity Foundation enables <unk>.

Scott Howe: Private see preserving data connectivity across this network.

Scott Howe: Finally, our network solutions ensure seamless interoperability across all major cloud environments.

Scott Howe: We've already secured commitments from dozens of Premier publishers for cross media intelligence, including the largest social walled gardens.

Scott Howe: Everyone wants to know that their efforts are generating impact.

Scott Howe: In good markets Thats, the priority, but an uncertain macro economic markets is a necessity.

Scott Howe: In addition, there is a serendipitous and important additional benefit. Collecting signals from a wider variety of partners feeds the proprietary AI models that we believe are foundational for long-term success. Increasingly, we're seeing the distance between measurement and optimization narrow with the rise of agentic optimization and curation.

Scott Howe: In addition, there is a serendipitous an important additional benefit collecting signals from a wider variety of partners feeds the proprietary AI models that we believe are foundational for long term success.

Scott Howe: Increasingly we are seeing the distance between measurement and optimization narrow with the rise of a gentex optimization and curation.

Scott Howe: We're investing to power the emerging generation of data-driven optimization with Agents. Industry enthusiasm with both publishers and advertisers has been palpable, and cross-media intelligence could be one of the key levers in driving more meaningful sales acceleration in FY26.

Scott Howe: We're investing to power the emerging generation of data driven optimization with agents.

Scott Howe: Industry enthusiasm with both publishers and advertisers has been palpable and cross media intelligence could be one of the key levers in driving more meaningful sales acceleration in FY 'twenty six.

Scott Howe: While measurement is not the only use case for our Clean Room Insights product, we think it is the most compelling one in the near term. As we discussed on Investor Day last February, today only 25% of existing brand customers are utilizing a clean room from us today. But we think a significant majority of the remaining 75% will require one in the coming few years. Furthermore, the ARR for customers with a clean room is approximately four times larger than customers without a clean room. demonstrating the sizable revenue opportunity from successfully upselling these customers. We also see this cleanroom measurement use case as a driver of new logo signing.

Scott Howe: While measurement is not the only use case for our clean room insights product. We think it is the most compelling one in the near term.

Scott Howe: As we discussed on Investor Day last February today, only 25% of existing brand customers are utilizing a clean room from us today, but.

Scott Howe: But we think a significant majority of the remaining 75%.

Scott Howe: We will require one in the coming few years.

Scott Howe: Furthermore, the IRR for customers with a clean room is approximately four times larger than customers without a clean room.

Scott Howe: Demonstrating this sizable revenue opportunity from successfully Upselling these customers.

Scott Howe: We also see this clean room measurement use case as a driver of new logo signings.

Scott Howe: Enhanced measurement helps marketers optimize ROI and maximize every advertising dollar. This is always important, but even more so in a more tepid macroeconomic environment when all expenses are under more scrutiny.

Scott Howe: Enhanced measurement helps marketers optimize ROI and maximize every advertising dollar. This is always important but even more so in a more tepid macro economic environment. When all expenses are under more scrutiny. We look forward to updating you on our progress in the quarters ahead.

Scott Howe: We look forward to updating you on our progress in the quarters ahead.

Scott Howe: In closing, let me reiterate my key point. First, we delivered strong financial results in Q4, beating on the top and bottom line, delivering double-digit revenue growth for the fifth consecutive quarter, 43% operating income growth, and a record free cash flow quarter. Second, FY25 marked our entry into the Rule of 31 Club, with 13% revenue growth and 18% operating margin.

Scott Howe: In closing, let me reiterate my key points.

Speaker Change: First we delivered strong financial results in Q4, leading on the top and Bottomline Dilip.

Speaker Change: Delivering double digit revenue growth for the fifth consecutive quarter, 43% operating income growth and a record free cash flow quarter.

Speaker Change: Second FY 'twenty five marked our entry into the rule of 31 club with 13% revenue growth and 18% operating margin.

Scott Howe: The achievement was fueled by our continued success with our largest customers, coupled with a historic reduction in our contraction rate, but we're not satisfied. Looking forward, we remain confident that we will achieve our Rule of 40 by FY28, with 10-15% revenue growth and 25-30% operating margin. and are working on initiatives to help us achieve these ambitions.

Speaker Change: <unk> was fueled by our continued success with our largest customers coupled with the historic reduction and our contraction rate, but we're not satisfied.

Speaker Change: Looking forward, we remain confident that we will achieve our rule of 40 by FY 'twenty eight with 10% to 15% revenue growth and 25% to 30% operating margin and are working on initiatives to help us achieve these ambitions.

Scott Howe: Third, we anticipate meaningful incremental growth in FY26 and beyond, propelled by our innovative cross-media intelligence capability that enables marketers to better measure and optimize advertising campaigns anywhere their customers are, with access to unified, deduplicated reporting across screens and platforms. Thank you again for joining us today.

Speaker Change: Third we anticipate meaningful incremental growth in FY, 'twenty, six and beyond propelled by our innovative cross media intelligence capability that enables marketers to better measure and optimize advertising campaigns anywhere there customers are with access to unify deep duplicated reporting across screen.

Speaker Change: And platforms.

Speaker Change: Thank you again for joining us today I also want to thank our exceptional customers partners at all live reimbursed for their ongoing hard work and support we look forward to updating you on our continued progress in the coming quarters.

Scott Howe: I also want to thank our exceptional customers, partners, and all LiveRampers for their ongoing hard work and support. We look forward to updating you on our continued progress in the coming quarters.

Lauren Dillard: With that, I'll turn the call over to Lauren. Thanks, Scott, and thank you all for joining us. Today, I'll review our Q4 financial results and then provide our outlook for FY26 and Q1. Unless otherwise indicated, my remarks pertain to non-GAAP results and growth as relative to the year-ago period. I will be referring to the earnings slide deck that is available on our IR website.

Speaker Change: With that I will turn the call over to Lauren.

Lauren: Thanks, Scott and thank you all for joining US today I'll review, our Q4 financial results and then provide our outlook for FY 'twenty and Q1.

Lauren: Unless otherwise indicated my remarks pertain to non-GAAP results and growth is relative to the year ago period.

Lauren: I will be referring to the earnings slide deck that is available on our IR website.

Lauren Dillard: Starting with Q4, in summary, we delivered strong results above our expectations, highlighting another quarter of solid performance and rounding out another year of forward progress. Revenue came in at $189 million, $4 million above our guide. And operating income was $23 million, $1 million above our guide. Operating margin expanded by three points to 12%. ARR increased by 12 million quarter-on-quarter, the second highest increase in the past 12 quarters on a like-for-like basis.

Lauren: Starting with Q4 in summary, we delivered strong results above our expectations.

Lauren: Another quarter of solid performance and rounding out another year for progress.

Lauren: Revenue came in at $189 million 4 million above our guide.

Lauren: Operating income was $23 million 1 million above our guidance.

Lauren: Operating margin expanded by three points to 12%.

Lauren: <unk> increased by $12 million quarter on quarter, the second highest increase in the past 12 quarters on a like for like basis.

Lauren Dillard: And finally, free cash flow more than doubled to a record quarterly high.

Lauren: And finally free cash flow more than doubled to a record quarterly high.

Lauren Dillard: Let me provide some additional details, please turn to slide 5. Total revenue was $189 million, up 10%, with both subscription and marketplace above our expectations. Subscription revenue is $145 million, up 9%. Fixed Subscription Revenue was up 8%, in line with our high single-digit expectation. Subscription usage was up 10%. Usage Revenue as a Percentage of Total Subscription Revenue was 15% in line with the mid-teens trend. ARR was $504 million, up 8% year-on-year, and as I mentioned, quarter-on-quarter grew by $12 million, driven by net upsell and new logo. Subscription net retention was 104% in line with our 100 to 105% expectation.

Lauren: Let me provide some additional details please turn to slide five.

Lauren: Total revenue was $189 million up 10% with both subscription and marketplace above our expectations.

Lauren: Subscription revenue was $145 million up 9% fixed.

Lauren: Fixed subscription revenue was up 8%.

Lauren: In line with our high single digit expectation.

Lauren: Subscription usage was up 10%.

Lauren: Usage revenue as a percentage of total subscription revenue was 15% in line with the mid teens trend.

Lauren: <unk> was $504 million up 8% year on year.

Lauren: And as I mentioned quarter on quarter grew by $12 million, driven by net upsell and new logo.

Lauren: Subscription net retention was 104% in line with our 100% to 105% expectation.

Lauren Dillard: The decrease quarter-on-quarter was driven primarily by lower usage revenue associated with political advertising in Q3, and to a lesser extent, the lapping of the HABU acquisition. Total RPO, or contracted backlog, was up 25% to $710 million. And current RPO was up 14% to $471 million. Total RPO reflects the renewal of several multi-year, million dollar plus contracts, including a renewal with one of our largest customers, IPG.

Lauren: The decrease quarter on quarter was driven primarily by lower usage revenue associated with political advertising in Q3 and to a lesser extent the lapping of the hydro acquisition.

Lauren: Total RPM or contracted backlog was up 25% to $710 million.

Lauren: <unk> current Rps was up 14% to $471 million.

Lauren: Total RPM reflects the renewal of several multiyear million dollar plus contracts, including a renewal with one of our largest customers IPG.

Lauren Dillard: We're very pleased with our recent renewal activity, which underscores the mission-critical nature of the solutions we provide.

Lauren: We're very pleased with our recent renewal activity, which underscores the mission critical nature of the solutions we provide.

Lauren Dillard: Turning to the selling environment, I characterize the quarter as generally positive, though with a note of caution. As mentioned, we saw strong performance in large contract renewals and expansion with existing customers. However, new logo signings proved more challenging. While our pipeline conversion rate remained consistent with historical averages, we did see a modest lengthening of our average deal cycle. We believe this was partly due to the ongoing need to educate the market on our newer cleanroom solution. In addition to that, late in the quarter, we did observe some customer hesitancy tied to macro uncertainty.

Lauren: Turning to the selling environment.

Lauren: Characterize the quarter as generally positive, though with a note of caution.

Lauren: As mentioned, we saw strong performance in large contract renewals and expansion with existing customers.

Lauren: However, new logo signings proved more challenging.

Lauren: While our pipeline conversion rate remained consistent with historical averages we did see a modest lengthening of our average deal cycle.

Lauren: We believe this is partly due to the ongoing need to educate the market on our newer cleaner installations in.

Lauren: Listen to that late in the quarter, we did observe some customer hesitancy tied to macro uncertainty.

Lauren Dillard: Looking ahead, we continue to see strong demand signals, and our sales pipeline is robust, and we remain cautiously optimistic that sales momentum will accelerate if current macro conditions hold. Notably, a couple of the large deals that slipped out of Q4 have already closed in the early weeks of Q1, giving us a solid start to the new fiscal year. Marketplace and Other Revenue increased 14% to $44 million. Data Marketplace, which accounted for 77% of Marketplace and Other Revenue, grew by 13%, reflecting continued strength in U.S. digital ad spending.

Lauren: Looking ahead, we continue to see strong demand signals in our sales pipeline is robust and we remain cautiously optimistic that sales momentum will accelerate if current macro conditions hold.

Lauren: Notably a couple of the large deals that slipped out of Q4 have already closed in the early weeks of Q1, giving us a solid start to the new fiscal year.

Lauren: Marketplace and other revenue increased 14% to 44 million data marketplace, which accounted for 77% of marketplace and other revenue grew by 13%, reflecting continued strength in U S digital ad spending.

Lauren Dillard: Here we did not detect any change in customer behavior in either the fourth quarter or in April as a result of the macro.

Lauren: Here, we did not detect any change in customer behavior, either in the fourth quarter or in April as a result of the macro.

Lauren Dillard: Moving beyond revenue, gross margin was approximately 72%, down three points year on year due to temporarily higher cloud hosting expenses related to our platform modernization. As discussed at our recent Investor Day, this initiative has been a big focus of our product and engineering team, and we will be nearing completion as we enter the fiscal second half. Operating expenses were $113 million, flat year-on-year and in line with our expectations. Operating income was $23 million, up from $16 million a year ago, and our operating margin expanded by 3 points to 12%.

Lauren: Moving beyond revenue gross margin was approximately 72% down three points year on year due to temporarily higher cloud hosting expenses related to our platform modernization.

Lauren: As discussed at our recent Investor Day. This initiative has been a big focus of our product and engineering teams and we will be nearing completion as we enter the fiscal second half.

Lauren: Operating expenses were 113 million flat year on year and in line with our expectations.

Lauren: Operating income was $23 million up from $16 million, a year ago, and our operating margin expanded by three points to 12%.

Lauren Dillard: GAAP operating loss was $12 million, reflecting the impact of restructuring charges associated with the 5% reduction in force announced in March, as well as stock-based comp and purchased intangible asset amortization. Stock Comp was $24 million, down 2% year-on-year. Free cash flow was a record $62 million, more than double a year ago, reflecting growth in adjusted EBITDA and improved working capital efficiency, particularly on collections. It was also a record year for free cash flow at $153 million, up over 50% year-on-year. We repurchased $25 million in stock in the fourth quarter, bringing the FY25 total to just north of $100 million.

Lauren: GAAP operating loss was $12 million, reflecting the impact of restructuring charges associated with the 5% reduction in force announced in March as well as stock based comp and purchased intangible asset amortization.

Lauren: Stock comp was $24 million down 2% year on year.

Lauren: Free cash flow was a record 62 million more than double a year ago, reflecting growth in adjusted EBITDA and improved working capital efficiency, particularly on collections.

Lauren: He was also a record year for free cash flow at $153 million up over 50% year on year.

Lauren: We repurchased.

Lauren: $25 million in stock in the fourth quarter, bringing the FY 'twenty five total to just north of $100 million.

Lauren Dillard: As of the end of the fourth quarter, there was approximately $256 million remaining under the current authorization that will expire on December 31, 2026.

Lauren: As of the end of the fourth quarter. There was approximately 256 million remaining under the current authorization that will expire on December 31 2026.

Lauren Dillard: Our balance sheet remains in a very strong position, with zero debt and cash in short-term investments totaling $421 million.

Lauren: Our balance sheet remains in a very strong position with zero debt and cash and short term investments totaling $421 million.

Lauren Dillard: In summary, we delivered strong Q4 results and, despite selling pressure in the first half of the year, closed out another solid fiscal year. Revenue grew by double digits in the fourth quarter and was up 13% for the full year. We expanded operating margin and achieved a Rule of 31 performance for the full year.

Lauren: In summary, we delivered strong Q4 results and despite selling pressure in the first half of the year closed out another solid fiscal year.

Lauren: Revenue grew by double digits in the fourth quarter and was up 13% for the full year.

Lauren: We expanded operating margin and achieved a rule of 31 performance for the full year.

Lauren Dillard: Finally, we posted record cash flow for both the quarter and the year, with free cash flow growing more than 50% year-on-year, underscoring the efficiency and scalability of our business model.

Lauren: Finally, we posted record cash flow for both the quarter and the year with free cash flow growing more than 50% year on year.

Lauren: Underscoring the efficiency and scalability of our business model.

Lauren Dillard: Let me now turn to our Financial Outlook for FY26 and Q1.

Lauren: Let me now turn to our financial outlook for FY 'twenty six in Q1. Please.

Lauren Dillard: Please turn to slide 12. Please keep in mind our non-GAAP guidance excludes intangible amortization, DOT-COMP, and restructuring and related charges. starting with the full year. First, in light of elevated macro uncertainty and the potential impact it may have mostly on our variable revenue, our guidance incorporates a wider-than-normal revenue range. While we have fairly high visibility on 70% of our revenue from contracted fixed subscription and services, the remaining 30% of revenue in data marketplace and subscription usage is variable and is sensitive to macro conditions and so far as softer economic growth typically results in lower advertising activity.

Lauren: Please turn to slide 12.

Lauren: Please keep in mind, our non-GAAP guidance excludes intangible amortization dot com and restructuring and related charges.

Lauren: Starting with the full year.

Lauren: First in light of elevated macro uncertainty and the potential impact it may have mostly on our variable revenue our guidance incorporates a wider than normal revenue range.

Lauren: While we have fairly high visibility on 70% of our revenue from contracted fixed subscription and services. The remaining 30% of revenue in data marketplace and subscription usage is variable and is sensitive to macro conditions and so far as softer economic growth typically.

Lauren: <unk> and lower advertising activity.

Lauren Dillard: With that said, we expect FY26 revenue to be between $787 and $817 million, which is growth of between 6 and 10%. Let me elaborate on the assumptions underpinning the range. Starting with the high-end, we assume a relatively stable economy, broadly consistent with a trend over the trailing quarter or two. More specifically, the high-end assumes subscription revenue grows high single digits, with subscription growth accelerating in the second half. The high end also assumes marketplace and other revenue grows mid-teens. The low end of our range, in contrast, assumes macroeconomic growth decelerates in the fiscal second half, consistent with consensus economist forecasts.

Lauren: With that said, we expect FY 'twenty six revenue to be between 787 and $817 million.

Lauren: Which is growth of between six and 10%.

Lauren: Let me elaborate on the assumptions underpinning the range.

Lauren: Starting with the high end, we assume a relatively stable economy broadly consistent with the trend over the trailing quarter or two.

Lauren: More specifically the high end assumes subscription revenue growth high single digits with subscription growth accelerating in the second half.

Lauren: The high end also assumes marketplace and other revenue growth mid teens.

Lauren: The low end of our range in contrast assumes macroeconomic growth decelerates in the fiscal second half consistent with consensus economists forecast.

Lauren Dillard: This would result in a deceleration in subscription usage and data marketplace growth in the back half of our year. The low-end assumes subscription revenue grows mid-single digits, and that marketplace and other grows high-single digits. In contrast to the high-end, the low-end assumes subscription growth does not accelerate in the second half due to a more difficult selling environment. So to quickly summarize our revenue guidance, the difference between the low and the high end of the range is really the macro environment. Beyond that, it will come down to how well we execute and specifically the sales momentum we generate in the first half with the cleanroom and cross-media intelligence opportunity.

Lauren: This would result in a deceleration in subscription usage and data marketplace growth in the back half of our year.

Lauren: The low end assumes subscription revenue grows mid single digits in that marketplace and other growth high single digits.

Lauren: In contrast to the high end the low end assumes subscription growth does not accelerate in the second half due to a more difficult selling environment.

Lauren: So to quickly summarize our revenue guidance the difference between the low and the high end of the range is really the macro environment.

Lauren: Beyond that it will come down to how well we execute.

Lauren: Specifically the sales momentum we generate in the first half with the clean room and cross media intelligence opportunity.

Lauren Dillard: We think the low end is fairly de-risked, given it assumes a low growth macro environment in the second half and would imply a large step down from current levels. We expect gross margin to be roughly consistent with last fiscal year. We expect first half gross margins to be in the low 70s and in the second half normalized to the mid 70s as we finish migrating customers to our new platform back end. We expect non-GAAP operating income to be between $178,000 and $179,000. and 182 million. At the midpoint, this represents 33% growth and a margin of 22%, up 4 percentage points year-on-year.

Lauren: We think the low end is fairly de risked.

Lauren: It assumes a low growth macro environment in the second half and would imply a large step down from current levels.

Lauren: We expect gross margin to be roughly consistent with last fiscal year.

Lauren: We expect first half gross margins to be in the low 70 and in the second half normalized to the mid 70, as we finished migrating customers to our new platform backend.

Lauren: We expect non-GAAP operating income to be between 178.

Lauren: $182 million.

Lauren: At the midpoint this represents 33% growth and a margin of 22% up four percentage points year on year.

Lauren Dillard: The combination of offshoring and general cost discipline, including leveraging the acquired HABU expense base, is affording us the ability to invest in key growth areas, while at the same time driving margin expansion. The investment areas this year include supporting the expansion of our network and the amount of utilization on it, ensuring a successful rollout of our cross-media intelligence offering, Integrating AI functionality into our platform. And finally, our pricing transformation effort. Stock-based comp is expected to be down 24% year-on-year to $82 million, reflecting a more disciplined approach to share-based compensation over the last couple of years.

Lauren: The combination of offshoring and general cost discipline, including leveraging the acquired hover expense base is affording us the ability to invest in key growth areas. While at the same time driving margin expansion.

Lauren: Key investment areas. This year include supporting the expansion of our network and the amount of utilization on it.

Lauren: Ensuring a successful rollout of our cross media intelligence offering.

Lauren: Integrating AI functionality into our platform.

Lauren: And finally, our pricing transformation effort.

Lauren: Stock based comp is expected to be down 24% year on year to $82 million, reflecting a more disciplined approach to share based compensation over the last couple of years.

Lauren Dillard: We expect GAAP operating income to be between $85 and $89 million, equating to a margin of 10 to 11 percent. Lastly, we expect another year of strong free cash flow. And again, expect to use a substantial portion of this year's free cash flow for shareware purchases. We will continue to be opportunistic depending on market conditions.

Lauren: We expect GAAP operating income to be between 85, and $89 million equating to a margin of 10% to 11%.

Lauren: Lastly, we expect another year of strong free cash flow.

Lauren: And again expect to use a substantial portion of this year's free cash flow for share repurchases, we will continue to be opportunistic depending on market conditions.

Lauren Dillard: Now moving on to Q1. We expect total revenue of approximately $191 million, non-GAAP operating income of $33 million, and an operating margin of 17%, up two points year-on-year. A few other call outs for Q1. We expect subscription revenue to be at mid-single digits. Marketplace and other revenue is expected to be up mid-double digit. And finally, we expect gross margin to be roughly similar to Q4, as we work through the final phases of our platform upgrade and migration efforts.

Lauren: Now moving onto Q1.

Lauren: We expect total revenue of approximately $191 million non-GAAP operating income of $33 million and an operating margin of 17% up two points year on year.

Lauren: A few other call outs for Q1, we expect.

Lauren: Subscription revenue to be up mid single digits.

Lauren: Marketplace and other revenue is expected to be up mid double digits.

Lauren: Finally, we expect gross margin to be roughly similar to Q4 as we work through the final phases of our platform upgrade and migration effort.

Lauren Dillard: Before opening the call to questions, I'll conclude with a few final thoughts. First, we had a strong Q4 ahead of our expectations on the top and bottom line, reflecting strength with existing customers and healthy digital ad market. We like our position and momentum entering Fiscal 26 and believe in our long-term opportunities. That said, given the macro environment, we've built a heavy dose of conservatism into our guidance range, and specifically the low end of the range, to de-risk our back half should macro conditions worsen. And finally, we continue to strategically manage expenses and expect our operating margin to expand by approximately four points.

Lauren: Before opening the call to questions I'll conclude with a few final thoughts.

Lauren: First we had a strong Q4 ahead of our expectations on the top and bottom line, reflecting strength with existing customers and healthy digital ad markets.

Lauren: We like our position and momentum entering fiscal 'twenty six.

Lauren: And believe in our long term opportunity.

Lauren: That said given the macro environment, we have built a heavy dose of conservatism into our guidance range and specifically the low end of the range to derisk, our back half should macro conditions worsen.

Lauren: And finally, we continue to strategically manage expenses and expect our operating margin to expand by approximately four points.

Lauren Dillard: Driving more than 30% growth in operating On behalf of all LiveRampers, thank you again for joining us today, and thank you to our amazing customers and partners.

Lauren: Driving more than 30% growth in operating income.

Speaker Change: On behalf of all <unk>. Thank you again for joining us today and thank you to our amazing customers and partners operator, we will now open the call to questions.

Operator: Operator, we will now open the call to questions.

Speaker Change: Well at this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad. Your first question comes from the line of Sean <unk> with Susquehanna. Please go ahead.

Operator: This time, I would like to remind everyone in order to ask a question, press star, then the number one on your telephone keypad.

Shyam Patil: Your first question comes from the line of Shyam Patil with Susquehanna. Please go ahead. Hey, guys. Congrats on the solid border and the outlook. I had a couple of questions. First one for Scott. Scott, on cross-media intelligence, I know you mentioned that a little bit in the prepared remarks, new product, I think you announced it a few months ago. Can you talk about you know, how the how customer reaction has been so far. And what gives you confidence that it can accelerate growth? And then I have a follow up.

Speaker Change: Hey, guys, congrats on the solid quarter and the outlook.

Speaker Change: Couple of questions.

Speaker Change: First one for Scott Scott.

Speaker Change: Scott on Cross media Intelligence, I know you mentioned that a little bit in the prepared remarks, new product I think you announced that a few months ago can you talk about.

Speaker Change: How the how customer reaction has been so far and what gives you confidence that it can accelerate growth.

Speaker Change: And then I have a follow up.

Speaker Change: Okay.

drew Borst: Hey, this is Drew. Just before we get Scott gets going on that question, I just wanted to clarify, earlier when we posted the earnings press release, there was a mistake with respect Outlook, particularly with Auburn. The current PR that's up on the website. I just wanted to make sure everybody. The guidance that we gave on the call just now. I just wanted to clarify that. I'll pass it back. All right, you gave me more time to prepare.

Speaker Change: Hey, This is drew just before we get Scott gets going on that question I just wanted to clarify.

Speaker Change: Earlier, when we posted the earnings press release, there was a mistake with respect to the outlook, particularly with operating income.

Speaker Change: The current PR, that's up on the website has since been corrected but.

Speaker Change: I just wanted to make sure everybody understood that.

Scott Howe: The guidance that we gave on the call. Just now is accurate and I just wanted to clarify that for everybody I'll pass it back to Scott to answer the question on Cross media intelligence.

Speaker Change: You gave me more time to prepare.

Scott Howe: So Shyam, thanks for the question. First off, I would tell you, I'm really optimistic about our cross-media intelligence solution. To me, it feels like the Holy Grail that I've been chasing for most of my adult life in advertising. Short-term, just to dive into what it is, it allows advertisers to see kind of their holistic media performance, and they really want that. And what I would also say is marquee publishers also want it as they feel they aren't getting enough credit for the results that they're driving, particularly when it comes to in-store sales, things that happen off platform.

Speaker Change: Sean Thanks for the question first off I would tell you.

Speaker Change: I'm really optimistic about our cross media intelligence solution to me it feels like the Holy Grail that had been chasing for most of my adult life.

Speaker Change: And advertising short term just to dive into what it is it allows advertisers to see kind of their holistic media performance and they really want that.

Speaker Change: And what I would also say as Mark key publishers also want it as they feel they aren't getting enough credit for the results that they're driving.

Speaker Change: Particularly when it comes to in store sales things that happen off platform.

Scott Howe: It was designed with the input of both major advertisers and with feedback from key publishers. And we had participation from the Walled Gardens and all the major CTV providers. If you recall at Analyst Day, we talked about how well we are aligned with the secular trends, in particular social, commerce media, and CTV. And those are the publishers that have really leaned into this. And so while we demoed the capability, you saw it at Ramp-Up and we received really strong feedback. We actually formally launched it at our sales kickoff just a couple weeks ago. Early reaction is good, but it's early.

Speaker Change: It was designed with the input of both major advertisers and with feedback from key publishers.

Speaker Change: We had participation from the walled gardens and all the major CTV providers.

Speaker Change: If you recall.

Speaker Change: Analyst day, we talked about how well we are aligned with the secular trends.

Speaker Change: Particular, social Commerce media.

Speaker Change: And CTV and those are the publishers that have really leaned into this effort.

Speaker Change: And so while we demo of the capability you saw it at ramp up.

Speaker Change: And we received really strong feedback.

Speaker Change: We actually formally launched at.

Speaker Change: At our sales kick off just a couple of weeks ago.

Speaker Change: Early reaction is good but it's early.

Scott Howe: We've already had over 30 customer conversations. Our insights and measurement pipeline has more than doubled. And more broadly, I would tell you that, you know, again, it's early, so let me caveat that. Our bookings for the quarter, you know, a month plus in, are up nicely relative to this same period last year. So it suggests we're getting some traction. And then importantly, you know, I think what gives me the most optimism isn't short-term at all, but kind of the longer-term realization that we know that as clients extend into clean room and insights, their spend with us increases and their churn falls dramatically.

Speaker Change: We've already had over 30 customer conversations.

Speaker Change: Our.

Speaker Change: Insights and measurement pipeline has more than doubled.

Speaker Change: And more broadly I would tell you that again, it's early so let me caveat that.

Speaker Change: Our bookings for the quarter.

Speaker Change: A month plus in are up nicely relative to the same period last year. So it suggests we're getting some some traction.

Speaker Change: And then importantly, I think what gives me the most optimism isn't short term at all.

Speaker Change: But kind of the longer term realization that we know that as clients extend into clean room and insights their spend with us increases and their churn falls dramatically.

Shyam Patil: So if we can get traction here, it really bodes well for the second half of the year in our ability to accelerate our top. Thank you, Scott. That was very helpful.

Speaker Change: So if we can get traction here it really bodes well for the second half of the year and our ability to accelerate our top line.

Speaker Change: Thank you Scott.

Lauren Dillard: Lauren, I had a question for you as well, just on the on the guidance on the revenue guidance range. I know you talked about the macro, you know, really being one of the main I was just wondering, can you maybe just talk a little bit more about just what the key factors are, the key swing factors between the low and high end of the revenue range for the year? Thank you. And you called it out. I mean, in short, the biggest swing factor between the low and the high end is the macro environment. At the high end of our range, we're assuming...

Speaker Change: Very helpful.

Speaker Change: Lauren I had a question for you as well just on the on the guidance on the revenue guidance range.

Speaker Change: I know you talked about the macro.

Speaker Change: Being.

Speaker Change: One of the main.

Speaker Change: Okay.

Speaker Change: The main factors impacting the low end versus the high end I was just wondering can you maybe just talk a little bit more about just what that what the key factors are key factors between the low and high end of the of the revenue range for the year. Thank you yeah sure happy to and you called it out I mean in short the biggest.

Speaker Change: Swing factor between the low and the high end is the macro environment.

Speaker Change: The high end of our range, we're assuming a stable macro throughout the fiscal year.

Lauren Dillard: Page PAGE of NUMPAGES www.verbalink.com Page PAGE of NUMPAGES that U.S. macro... and Shelley Celery. in the back half, which would pull down. of our variable revenue. data market. So as an example, in the low- . that subscription usage growth is flat to down in the second half and marketplace growth would moderate. And then the delta between the mid and the high end, or even how we get above the high end, really comes down to execution. sales execution against our clean room strategy in the early the in-year revenue contribution from deals that we closed. Scott just talked about our cross-media intelligence opportunity.

Speaker Change: However on the other hand, the low end assumes that U S macro growth decelerate meaningfully in the back half, which will pull down the growth rates of our variable revenue streams, specifically data marketplace and subscription usage in the second half of the year.

Speaker Change: As an example in the low case, we've assumed that subscription usage growth is flat to down in the second half.

Speaker Change: <unk> marketplace growth would moderate to mid single digits in the second half.

Speaker Change: And then the delta between the mid and the high end or even how we get above the high end really comes down to execution and specifically sales execution against our clean room strategy in the early part of this fiscal year just given the.

Speaker Change: The in year revenue contribution from deals that we closed in Q1 and Q2.

Speaker Change: Scott just talked about our cross media intelligence opportunity. We believe this is a very compelling use case for our clean room and.

Lauren Dillard: case for our clean room. In addition, we continue to add new connectivity parts. AI startups like Perplexity and Chalice, as well as more established platforms like Netflix. which should drive UpCellX. Excellent.

Speaker Change: In addition, we continue to add new connectivity partners.

Speaker Change: I started on site perplexity in Chile, as well as more established platforms like Netflix, which should drive upsell activity in the early part of the year.

Speaker Change: Excellent. Thank you Lauren Thank you Scott.

Lauren Dillard: Thank you, Lauren.

Lauren Dillard: Thank you, Scott.

Speaker Change: Thanks, Sean.

Elizabeth Porter: Your next question comes from the line of Elizabeth Porter with Morgan Stanley. Please go ahead. Great, thank you very much. It's really good to see the strength of existing customers. And when it comes just to the new side of the equation, you guys have done a lot, whether it's HABU or strategic decisions like pricing, it gives you the opportunity to go after that new customer, particularly in the mid-market. So I just wanted to get a better sense for where you are on this opportunity. What steps have you taken that you feel confident on and what might need a little bit more time?

Speaker Change: Your next question comes from the line of Elizabeth quarter with Morgan Stanley. Please go ahead.

Speaker Change: Great. Thank you very much yeah, it's really good to see the strength with existing customers and when it comes to the new side of the equation you guys have done a lot, whether it's <unk> or strategic decisions like pricing could give you the opportunity to go after that new customer, particularly in the mid market. So I just wanted to get a better sense for where you are on this opportunity.

Speaker Change: What steps have you taken that you feel comfortable and confident on and what might need a little bit more time.

Scott Howe: And then just kind of related, if you could sneak in a comment on the logos in Q4, is that just a shift from direct channel relationships or anything else to be aware of? Thank you. Yeah, I'm happy to. And specifically for the quarter, the trends were very similar to past Client and customer count was, again, largely driven by smaller. However, at the same time, our million-dollar-plus customer count Specifically, in the quarter, international was the big driver of the pressure on customer count.

Speaker Change: And then just kind of related if you could sneak in a comment on the logos. In Q4 is that just a shift from direct channel relationships or anything else to be aware of thank you.

Speaker Change: I'm happy to and specifically for the quarter and the trends are very similar to past quarters.

Speaker Change: The decline in customer count was again, largely driven by smaller customers with relatively low ACB.

Speaker Change: However, at the same time, our 1 million plus customer count continues to grow very nicely.

Speaker Change: Specifically in the quarter International was the big driver of the pressure on customer count and contributed to just over half the decline.

Scott Howe: For more information visit www.FEMA.gov And here, and we discussed this on the last call and at Investor Day, we're migrating customers from a direct to reseller. Transcripts by Transcription Outsourcing, LLC. Looking ahead to your point, we're focused on improving this metric. We would expect it to stabilize and then would expect improvement. by a couple of. Use case that that Scott and I discussed as well as new Complexity, Chalice, Netflix, among others. And then second, and this is going to be more medium term to your question. I do believe our new pricing model should help here as it lowers the cost of entry for For more information, visit www.FEMA.gov I wouldn't expect F.Y.

Speaker Change: And here and we discussed this on the last call and at Investor Day, We're migrating customers from a direct to reseller arrangement with one of our large international partners, so keeping the revenue but.

Speaker Change: Pressuring pressuring customer count.

Speaker Change: The good news is we're nearing the end of that migration.

Speaker Change: Looking ahead to your point, we're focused on improving this metric we would expect it to stabilize and then we would expect improvement as we move through the year and we think this will be driven by a couple of factors.

Speaker Change: First new clean room use cases like the cross media intelligence.

Speaker Change: Use case that Scott discussed as well as new connectivity use cases, I just mentioned perplexity childless Netflix among others and then second and this is going to be more medium term.

Elizabeth Quarter: To your question Elizabeth.

Elizabeth Quarter: Our new pricing model should help should help here as it lowers the cost of entry for for mid market customers I want and expect FY 'twenty six to see a lot of benefit from that we intend to pilot our pricing model this summer and roll it out more broadly at the beginning of next fiscal year, but over.

Scott Howe: a lot of benefit from that. Transcripts by Transcription Outsourcing, LLC.

Elizabeth Porter: U Winter Men's Hockey League Coaches Season Teasers Driver of.... And then just a final note on FY26, we would I expect million-dollar-plus customer count to grow as it has in the past. Great. And then just as a follow-up, I was hoping to get some comments on the Google announcement in April about the third-party cookies remaining as current opt-out functionality. You guys had a really helpful blog post, but just hoping you could expand a little bit more on what you're hearing from customers, you know, any sort of reaction to the news. Well, I tell you, Elizabeth, um...

Elizabeth Quarter: The medium term, we certainly believe this will be a driver of improving customer count.

Elizabeth Quarter: And then just a final note on FY 'twenty six we would continue to expect million plus customer count.

Elizabeth Quarter: To grow as it has in the past handful of years.

Speaker Change: Great and then just as a follow up I was hoping to get some comments on the Google announcement in April about the third party cookies remaining its current opt out functionality you guys had a really helpful blog posts, but just hoping you could expand a little bit more on what youre hearing from customers.

Speaker Change: Sort of reaction to the news.

Scott Howe: Well I would tell you Elizabeth.

Scott Howe: for I think with almost out exception from our customers, it was a non-event. Very quietly, but methodically, the world has moved away from cookies since Google first made their announcement, what, four or five years ago. It is now the case that more, we have greater reach through non-cookies than we do through cookies. And that's a function of the fact that so many of our publishers on Netflix, and Meta, Google itself, they require direct authentication. And that direct authentication, which is now the case at virtually all 20 of the 20 largest publishers worldwide, it's just gonna unlock better reach and more granularity.

Scott Howe: For I think almost all of the exception from our customers.

Speaker Change: It was a non event.

Speaker Change: Very quietly.

Elizabeth Quarter: But methodically the world has moved away from cookies since Google first made their announcement, what four or five years ago.

Elizabeth Quarter: It is now the case that.

Elizabeth Quarter: More.

Elizabeth Quarter: Have greater reach.

Elizabeth Quarter: Through non cookies than we do through cookies.

Elizabeth Quarter: And Thats a function of the fact that so many of our publishers on Netflix a matter.

Elizabeth Quarter: Google itself.

Elizabeth Quarter: They require direct authentication and that direct authentication, which is now the case that virtually all 20 of the 20 largest publishers worldwide.

Elizabeth Quarter: It's just going to unlock better reach and more granularity.

Scott Howe: And so a little bit of a yawn, I think that said, it's good news for the industry, because they can take their time with anybody who's not prepared. And they also get the benefit of additional reach through cookies, which we continue to support. And those are gonna be valuable at times when someone's doing more of a broadcast, broad reach campaign. So, our message to our publishers and advertisers alike are, don't worry, regardless of what happens. you're going to be well suppor- Stay here. Thank you very much.

Speaker Change: And so a little bit of a yawn.

Speaker Change: That said.

Speaker Change: It's good news for the industry.

Speaker Change: Because they can take their time with anybody who's not prepared and they also get the benefit of additional reach through cookies, which we continue to support.

Speaker Change: And those are going to be valuable at times, when someone's doing more or abroad.

Speaker Change: Broadcast broad reach campaign, so our message.

Speaker Change: Our publishers and advertisers alike.

Speaker Change: Don't worry.

Speaker Change: Regardless of what happens.

Speaker Change: We're going to be well supported.

Speaker Change: Thank you very much.

Jason Kreyer: Your next question comes from the line of Jason Kreyer with Craig Hallam Capital Group. Please go ahead. Thank you guys. Good job again. Lauren, I wanted to go back to your comments on the sales pipeline.

Speaker Change: Your next question comes from the line of Jason <unk> with Craig Hallum Capital Group. Please go ahead.

Speaker Change: Thank you guys. Good job again, Loren and I wanted to go back to your comments on the sales pipeline.

Scott Howe: So you said you see you've seen some Jason, maybe I'll start and I'll let Lauren speak to the guide, but I would tell you overall, clients like certain... And the past 12 months, we've had anything but certainty, whether it be the election, whether it be tariffs, whether it be more recently, the deficit, or, you know, fears about the impact of AI. But it is always the case that in recessions, great companies take share. And the message here really matters. ROI is always important to our clients and partners. But in times of uncertainty, it is absolutely a necessity.

Speaker Change: You see you have seen some.

Speaker Change: As it station from clients late in Q4 curious if that continued kind of into the first half of Q1, and then kind of that theme of hesitation or longer sales cycles should we assume is that continues is that more midpoint of the guide or would that take us somewhere else in that guidance range.

Elizabeth Quarter: Jason maybe I'll start and I'll, let Laurent speak to the guide.

Elizabeth Quarter: But I would tell you overall clients like certainty.

Speaker Change: In the past 12 months, we've had anything but certainty.

Speaker Change: It would be the election, whether it be tariffs, whether it would be more recently the deficit or fears about the impact of <unk>.

Speaker Change: AI.

Speaker Change: But it is always the case that in recessions.

Speaker Change: <unk> companies take share.

Speaker Change: And the message here really matters.

Roy: Roy is always important to our clients and partners, but in times of uncertainty it is absolutely a necessity.

Scott Howe: So we have really sharpened our ROI models, our value calculators, and we're doing a lot of economic analysis for our clients. Lauren mentioned the elongation in the sales cycle. The good news is we swept all that up in the first few weeks of April. So yeah, flipped into the next quarter, but we were still able to drive it across the line. And I think by paying good attention to our pipeline and the things that clients care about, which are ROI, cross-media insights, preparing for the future and winning, we have a really nice story to tell.

Speaker Change: So we have really sharpened our ROI models are value calculators, and we're doing a lot of economic analysis for our clients.

Speaker Change: Lauren mentioned the elongation in the sales cycle. The good news is we swept all that up in the first few weeks of April so.

Speaker Change: Yes slipped into the next quarter.

Speaker Change: But we were still able to drive it across the line.

Speaker Change: And I think by paying good attention to our pipeline.

Speaker Change: And the things that clients care about which our ROI cross media insights preparing for the future and winning we have a really nice story to tell.

Jason: And Jason just with respect to what's embedded in.

Lauren Dillard: I'm going to go back to what's embedded in the mid kind of point of our. and similar. what we saw in Q4, maybe with. applied in the mid- That said, the location... A pretty material takedown. Again, that is... a much worse macro environment. very helpful commentary.

Speaker Change: The mid point of our guidance range, we have assumed similar conversion rate to what we saw in Q4, maybe with a touch of conservatism applied.

Speaker Change: In the mid case.

Speaker Change: That said the low case assumes.

Speaker Change: Pretty material ticked down in conversion rates as we move through the year and again that is.

Speaker Change: The low case assumes a much worse macro environment.

Speaker Change: We're experiencing sitting here today.

Speaker Change: Very helpful commentary. Thank you.

Lauren Dillard: Thank you.

Scott Howe: I also just wanted to ask, we saw one of your competitors acquired by an agency over the past quarter. Just curious if you think there's opportunity there or any risk there that we wouldn't be thinking about? Well, I certainly don't think there's there's necessarily any heightened risk. You know, listen, all the agencies are our partners. And when we talk to clients, they're always nervous about concentrating their technology spend or their data with folks who directly control their media, whether it's. you know, a media provider or a media buyer. So, NetNet, I think it's an opportunity.

Speaker Change: I also just wanted to ask we saw one of your competitors acquired by an agency over the past quarter. Just curious if you think there is opportunity there any risks there that we wouldn't be thinking about.

Speaker Change: Well I certainly don't think there is there is necessarily any heightened risk.

Speaker Change: Uh huh.

Speaker Change: Listen all the agencies are our partners.

Speaker Change: And when we talk to clients.

Speaker Change: There are always nervous about.

Speaker Change: Concentrating their technology spend or their data with folks who directly control their media whether it would be.

Speaker Change: Media provider or a media buyer.

Speaker Change: So net net I think it's an opportunity.

Scott Howe: We love competition, but it makes us better. And, you know, relative to others in the industry, I kind of joked the other day to our sales team that we're all about AI, always innovating. And if we do that, we're gonna stay ahead of the rest of the industry. I really like the ideas, the innovations that are coming down our pipeline.

Speaker Change: We love competition.

Speaker Change: But it makes us better.

Speaker Change: And relative to others in the industry.

Speaker Change: I kind of joke joke to the other day to our sales team that were all about AI.

Speaker Change: Always innovating.

Speaker Change: And if we do that we're going to stay ahead of the rest of the industry.

Speaker Change: I really like.

Speaker Change: The idea is the innovations that are coming down our pipeline.

Speaker Change: Alright, great. Thank you.

Scott Howe: Great, thank you.

Speaker Change: Thanks, Jason Your next question comes from the line of Peter Berkeley, with Evercore ISI ISI. Please go ahead.

Peter Burkly: Your next question comes from the line of Peter Burkly with Evercore ISI. Please go ahead. Yeah, guys, thanks. This is Pete Burkley. I'm for Kirk Materne. Appreciate you guys taking the questions.

Speaker Change: Yeah, Hi, guys. Thanks. This is Pete Berg on for Kirk <unk> I. Appreciate you guys taking the questions.

Scott Howe: Scott, maybe maybe for you, I'm curious, the clean room solution, you know, you discussed the Forex ARR from customers with that solution, but only 25% of customers currently using it. So I'm curious, is there anything from a from a customer segmentation standpoint that would limit the ability for, you know, some portion of those customers to adopt that solution? Or is it more just a function of time and execution on your part? Well, I think it is time and execution. For the past couple of years, the real driver to cleanroom adoption has just been the need for collaboration.

Speaker Change: Maybe for you I'm curious the clean room solution.

Speaker Change: The Forex IRR from customers with that solution, but only 25% of customers currently using it. So I'm curious is there anything from a from a customer segmentation standpoint that will limit the ability for.

Speaker Change: Some portion of those customers to adopt our solution or is it more just a function of time and execution on your part.

Speaker Change: Well I think it is time and execution for the past couple of years, the real driver to clean room adoption has just been the need for collaboration.

Scott Howe: You have major retailers, for instance, wanting to collaborate with their packaged goods partners. In that situation, everybody wins. But it's been the case that the adoption has proceeded most rapidly with the biggest companies, you know, the largest retailers and the largest packaged goods manufacturers. Over time, I think you'll see greater adoption with everyone. And the obstacle that we've seen in terms of pushing that down, part of it is our own doing. It's about standardization and scalability and education. We talk a lot internally about shortening the time to value, just making things easy to set up and see immediate value.

Speaker Change: Have major retailers for instance, wanting to collaborate with their packaged goods partners in that situation everybody wins, but it's been the case that the adoption is preceded most rapidly with the biggest companies.

Speaker Change: The largest retailers in the largest packaged goods manufacturers over time, I think youll see greater adoption with everyone.

Speaker Change: And the obstacle that we've seen in terms of pushing that down.

Speaker Change: Part of it is our own doing it's about standardization and scalability and education, we talk a lot internally about shortening the time to value, just making things easy to set up and see immediate value.

Scott Howe: And so we've simplified our product. You know, we've standardized our queries.

Speaker Change: And so we've simplified our.

Speaker Change: <unk>.

Speaker Change: We have standardized our queries, we talked about that a little bit on Investor day.

Scott Howe: We talked about that a little bit on Investor Day. AI will make things even more intuitive and easy to use. But we think long term, cleanrooms are going to be the de facto standard for not just the large, but anyone. And the reason I say that is because public models for AI will only go so far. You know, if you train on the world's public information, eventually you get an asymptote on the results that you'll achieve. To break through that and generate better performance, you need to use proprietary data. And that proprietary data is the CRM data that every major company holds.

Speaker Change: I will.

Speaker Change: Make things, even more intuitive and easy to use.

Speaker Change: But we think.

Speaker Change: Long term clean rooms are going to be the de facto standard for not just the large but any one and the reason I say that is because public models for AI will only go so far.

Speaker Change: If you train on the world's public information eventually get an asymptote.

Speaker Change: The results that Youll achieve.

Speaker Change: To break through that.

Speaker Change: Generate better performance you need to use proprietary data.

Speaker Change: And that proprietary data is the CRM data that every major company holds.

Scott Howe: And they want to collaborate with a lot of other companies. And they're only going to do that if they know that their data is secure. And the only way they can ensure the security is to use a cleanroom. So when we talk about AI, we're increasingly talking about how do we standardize the methodology by which AI models can ingest our clients' data safely and securely and ensure that advertisers and publishers maintain control over it. So I think secular trends here are at our Very helpful.

Speaker Change: They don't want to collaborate with a lot of other companies and they are only going to do that if they know that their data is secure and the only way. They can ensure the security is to use a clean room.

Speaker Change: So when we talk about AI, we are increasingly talking about how do we standardize the methodology by which AI models can ingest, our clients' data safely and.

Speaker Change: And securely and ensure that advertisers and publishers maintain control over it. So I think secular trends here are at our back.

Speaker Change: Very helpful. Thank you and Laura maybe just a quick follow up for you just thinking about NR, even directionally I think you mentioned that a large part of the sequential decline was related to the usage portion of subscription and then the lower factor being <unk>.

Scott Howe: Thank you.

Lauren Dillard: And Lauren, maybe just a quick follow-up for you. Just thinking about NRR, even directionally, I think you mentioned that a large part of the sequential decline was related to the usage portion of subscription, and then the lower factor being HABU. So, I'm just curious, mechanically, going forward, and, you know, specifically related to your color with the low end of the guide sort of factoring in that lower usage subscription revenue. So, is there a scenario where the NRR could continue to move lower from here, or do you think we're at the low water mark? Just trying to understand directionally how that trends.

Speaker Change: I'm, just curious mechanically going forward.

Speaker Change: Specifically related to your color with.

Speaker Change: The low end of the guide sort of factoring in that lowers using subscription revenue. So is there a scenario where the NR can continue to move lower from here or do you think we're at the low watermark, just trying to understand directionally how that trends.

Lauren Dillard: Thanks. Thank you for the question, Pete. So, embedded in our guidance and guidance... https://www.liverpool.com Files, So, SNR in the first half of this year. Impacted by the Selling Pressure. 25, but we would expect The End. UW-Minister of Student Affairs Thank you. Transcription by Casting Ways Target 105. https://www.larryweaver.com Transcripts by Transcription Outsourced by Transcription Outsourced by Transcription Outsourced remarks, we made very meaningful progress. We're bringing down contraction in FY25 and we think there's still a little bit more So, in the near term, assume 100 to 105 percent, however we feel comfortable. back above 105 percent. Very helpful.

Pete: Yes, thanks for the question Pete.

Speaker Change: So embedded in our guidance and guidance range is an assumption that subscription net retention is between 101 hundred 5% at least over the near term.

Speaker Change: So <unk> in the first half of this year will be impacted by the selling pressure we experienced in the early part of fiscal 'twenty five, but we would expect improvement in the second half as we execute against the strategies that as Scott laid out.

Speaker Change: Medium term, we continue to target, 105% to 110% net retention.

Speaker Change: The biggest lever.

Speaker Change: The cross sale of our clean room offering in addition, and Scott highlighted this in his prepared remarks.

Speaker Change: We made very meaningful progress in improving gross retention or bringing down contraction in FY 'twenty five and we think there is still a little bit more juice to squeeze here.

Speaker Change: So in the near term assume 100% to 105%.

Speaker Change: However, we feel confident in our ability to get back above 105%.

Speaker Change: Towards the end of this year into next year.

Speaker Change: Very helpful. Thanks, so much.

Lauren Dillard: Thanks much.

Pete: Thanks Pete.

Mark Zgutowicz: Your next question comes from the line of Mark Zgutowicz with Benchmark. Please go ahead. Thank you.

Speaker Change: Your next question comes from the line of Mark <unk> with benchmark. Please go ahead.

Mark: Thank you good evening, Scott and Lauren.

Scott Howe: Good evening, Scott and Lauren. Nice to see the acceleration both on ARR and RPO. The total RPO, it looks like, as far as I can tell, was the strongest sequential you've posted since reporting the metric.

Mark: Just to see the acceleration bolt on <unk>.

Mark: The total our Po.

Mark: It looks like as far as I can tell was the strongest sequential you posted.

Mark: Reporting the metric so im just curious if there were if you could maybe provide some color on what's unique about this renewal cycle and then how.

Scott Howe: So, I'm just curious if there were, if you could maybe provide some color on what's unique about this renewal cycle, and then how We might think about these large contract renewals converting to current RPO over time. Thanks. Yeah, it's a great question and I think our headline would Page PAGE of NUMPAGES www.verbalink.com Page PAGE of NUMPAGES 7% growth in the non-current portion of RPO. I think Scott mentioned in his prepared remarks. 20 deals. More than half of those were on So, kind of the multi- multi-year nature of As we've mentioned, 30% of our subscription now on.

Mark: You might think about these large contract renewals converting to current RP overtime. Thanks.

Scott Howe: Yes, it's a great question and I think our headline would be were really pleased with our progress here, we had a very successful quarter renewing large multiyear deals, which which drove a 57% growth in the non current portion of our PL I think Scott mentioned in his prepared remarks.

Mark: We renewed 20 deals with million dollar plus ACB and more than half of those were on multi year term terms, so kind of the.

Mark: The multi year nature multi year nature of the deal signings were really the biggest driver of this step up.

Mark: As we've mentioned 30% of our subscription revenue is now on a multiyear contract, which we believe is very positive. It's a strong signal of the criticality of what we do for our customers.

Scott Howe: It's positive. It's a strong signal of the criticality. Got it.

Mark: Got it and they didnt marketplace business.

Lauren Dillard: And the data marketplace business, another – it looks like a strong quarter. I'm curious if you think about Oracle contribution there as well as CTV contribution. Was it incremental, this quarter versus past, and just on CTV itself and sort of emerging CTV partnerships?

Mark: Another strong.

Speaker Change: The strong quarter I am curious if you think about Oracle contribution there as well as CTV contribution was it.

Mark: Incremental this quarter versus past and just on CTV.

Mark: Itself and sort of emerging CTV partnerships are you are you, perhaps starting to see.

Lauren Dillard: Are you perhaps starting to see some opportunities there, sort of a tailwind off of Yeah, happy to take both great questions. With respect to Oracle, I think we mentioned this on the last call, Page PAGE of NUMPAGES www.verbalink.com This slide lays out the benefit from Oracle versus other factors. As an example, Oracle had about 45 data providers. Page PAGE of NUMPAGES www.verbalink.com Page PAGE of NUMPAGES That said, our best estimate is that Oracle added a couple, a few points of growth over the past two quarters, and we would expect a similar contract.

Lauren I: Some opportunities there sort of a tailwind of Netflix and Disney If you will thanks, Lauren I appreciate it Scott.

Lauren I: Happy to take both both great questions with respect to Oracle.

Lauren I: And this on the last call just given the scale and breadth of our marketplace business its hard to perfectly tease out the benefit from Oracle versus other factors.

Lauren I: As an example, Oracle had about 45 data providers in its marketplace and we were working with with virtually all of them.

Lauren I: Our marketplace supports just north of 200 data providers.

Lauren I: Et cetera, our best estimate is that Oracle added a couple a few points of growth over the past two quarters and we would expect a similar contract contribution over the next two quarters.

Lauren Dillard: With respect to CTB, I mean, it was a real bright spot in our data marketplace in FY25 for the year. The advertising was up. And as I mentioned in my prepared remarks, We have a handful of big... Marketplace Partnerships that are coming live . next quarter with Sounds great, thank you.

Lauren I: With respect to CTV I mean, it was a real bright spot in our data marketplace in FY 'twenty five.

Lauren I: For the year.

Lauren I: Data bought off our marketplace to support CTV advertising was up.

Lauren I: Nearly 60%.

Lauren I: And as I mentioned in my prepared remarks, we have.

Lauren I: Handful of big New DGB data marketplace partnerships that are coming live this quarter next quarter, which we would expect to.

Lauren I: Support continued strong growth year in FY 'twenty.

Lauren I: Sounds great. Thank you.

Lauren I: Okay.

Alec Brondolo: Your next question comes from the line of Alec Brondolo with Wells Fargo. Please go ahead. Hey, thanks so much for the question. So look, two good quarters of RPO acceleration after the October product refresh. I think the lesson has to be that making the product easier to use are more intuitive jobs bookings.

Speaker Change: Your next question comes from the line of Allison <unk> with Wells Fargo. Please go ahead.

Speaker Change: Hey, Thanks, so much for the question. So look two good quarters of RPM acceleration. After the October product refresh I think their watson has to be that making the product easier to use your more intuitive driving bookings. So I think the natural question. What are the next is what are the next two or three things you could do to continue making the product simpler.

Scott Howe: So I think the natural question, what are the next two or three things you could do to continue making the product simpler for advertisers? That's the first question.

Speaker Change: For advertisers that's the first question and then the second question is on the.

Scott Howe: And the second question is on the cross-media measurement product. You know, there is a group of kind of decent, deterministic, multi-touch attribution platforms. I think Triple Whale is one, Northbeam is one. And so the question is, what's differentiated about LiveRamp's offering there in the market? Thank you. Yeah.

Speaker Change: Cross media measurement product there is a group of kind of decent deterministic multi touch attribution platforms I think triple where it was one north bema is wide.

Speaker Change: So the question is what's differentiated about life ramps offering there in the market. Thank you.

Speaker Change: Yes.

Scott Howe: So, first off, in terms of product priorities, you know, I'll answer it detailed and then I'll bring it up and just talk about it in summary. Depending on which aspect of our portfolio you're talking about, remember we have four pillars, and the priorities for each are a little bit different. On the identity pillar, it's really about expanding cloud interoperability and powering first-party data infrastructure such that our partners can achieve greater accuracy and scale. And that just makes us more ubiquitous. On the access front, which is about access to data, it's increasingly about expanding the different providers in our marketplace, but then also allowing them not just to provide data, but really to provide models.

Speaker Change: So first off in terms of product priorities.

Speaker Change: I'll answer detailed and then I'll bring it up and just talk about it in summary.

Speaker Change: Depending on which aspect of our portfolio you are talking about remember we have four pillars and priorities for each are a little bit different on the identity pillar, it's really about expanding cloud interoperability.

Speaker Change: Powering first party data infrastructure.

Speaker Change: Such that our partners can achieve greater accuracy and scale that just makes us more ubiquitous.

Speaker Change: On the access front.

Speaker Change: Which is about access to data it's increasingly about expanding.

Speaker Change: The different providers in our marketplace, but then also allowing them not just to provide data but really to.

Speaker Change: Provide models I think over time.

Scott Howe: I think over time, you know, five years from now, we're not going to be talking about data elements. We're going to be talking about models. And so over time, I think our marketplace evolves to much more of a model, AI-driven set of capabilities. And so we're thinking hard about that. On the connectivity side, which is activating all the destinations where data can be utilized, well, really there, it's just about accelerating our efforts. expanding to new partners and use cases, Perplexity, for instance, or all the different CTV providers that are now going live. Those are great examples.

Speaker Change: Five years from now we're not going to be talking about data.

Lauren I: Elements, we're going to be talking about models.

Lauren I: And so over time, I think our marketplace evolves to much more of a model AI driven set.

Lauren I: Set of capabilities.

Lauren I: So we're thinking hard about that journey.

Lauren I: On the connectivity side, which is activating all the destinations where data can be utilized well really there. It's just about accelerating our efforts.

Lauren I: Expanding to new partners and use cases.

Lauren I: <unk> for instance, or.

Lauren I: All the different CTV providers that are now going live.

Lauren I: Our great examples, but also international.

Scott Howe: But also international, where our effective reach has been lower in many international markets than the U.S., and we're closing that gap in a way that our clients really are pushing us to do. And then finally, on the insights front, that's about interoperability, AI-driven usability, scalability, getting more partners involved. If there are some mega themes that go across all those things, I would say we are always driving for more usability. We want our products to be extremely usable and intuitive because we know that drives quicker. Scalability. Our power users use our products in ways that we had never imagined, and we see the volume loads, and so we are constantly thinking about how to improve our throughput, our processing, our uptime, and there it's just a constant race to be better.

Lauren I: Where.

Lauren I: Our effective reach has been lower.

Lauren I: In many international markets than the U S and we're closing that gap in a way that our clients really are pushing us to do.

Lauren I: And then finally on the insights front.

Lauren I: That's about interoperability.

Lauren I: AI, driven usability scalability getting more partners involved.

Lauren I: If there are some mega themes that go across all of those things I would say we are always driving for more usability.

Lauren I: Our products to be extremely usable and intuitive because we know that drives quicker adoption.

Lauren I: Scalability.

Lauren I: Our power users use our products in ways that we had never imagined.

Lauren I: We see the volume loads and so we're constantly thinking about how to improve our throughput our processing or uptime.

Lauren I: And their it system, it's a constant race to be better and better.

Scott Howe: And then finally, functionality, where, you know, our clients are always pushing us in ways that we can't even imagine, because they're bringing to us different partners, different use cases, different ideas. And so we're gonna support those kind of quick twitch innovations that our partners want to see. are Our head of product, Matt Karasick, he talks a lot about, hey, we are going to build stuff that our clients and partners want to buy. We're going to build stuff where they generate. uh...

Lauren I: And then finally functionality.

Lauren I: Where.

Lauren I: Our clients are always pushing us in ways that we can't even imagine because they are they are bringing to us different partners different use cases different ideas.

Lauren I: And so we're going to support those kind of quick Twitch innovations that our partners.

Lauren I: Want us to do.

Lauren I: Our.

Lauren I: Our head of product, Matt Caris he.

Lauren I: It talks a lot about hey, we're going to build stuff that our clients and partners want to buy we're going to build stuff where they generate in value.

Scott Howe: and so we are pretty maniacally focused on what our clients and partners tell us they're trying to do and we're always trying to solve You know, on your question about the CrossBD Insights and the competition that we could face there, what I would tell you is that we have always believed that, you know, we didn't, we want to be a measurement enabler, not a measurement solution. And so we've built capabilities that power a lot of different other measurement providers. But what we're hearing from our partners is that what they're trying to do is so collaborative.

Lauren I: And so we are pretty maniacally focused on what our clients and partners tell us. They are trying to do and we're always trying to solve their problems.

Lauren I: On your question about the Crosby, the insights and the competition that we could face there what I would tell you is that we have always believed that we didn't we want to be a measurement enabler not a measurement solution.

Lauren I: So we built capabilities that power a lot of different other measurement providers.

Lauren I: But what we're hearing from our partners.

Lauren I: Is that what they are trying to do.

Lauren I: As so collaborative.

Scott Howe: It is about how does an advertiser place an ad on a publisher and then measure the result of an in-store sale with another partner entirely. And so those lend themselves not to kind of the traditional measurement solutions, but really the clean results. because what people are trying to do is so unique. Now, the configuration is oftentimes very custom, depending on which partners you're talking about, but the number of custom configurations can be pretty easily managed because you know like what a major merchant is trying to do with their different publisher partners and their different package goods partners, the names might change, but the use cases that they're trying to drive look pretty similar.

Lauren I: It is about how does an advertiser place an AD on a publisher and then measure the result of an in store sale with another partner entirely and so those lend themselves not to kind of the traditional.

Lauren I: Measurement solutions, but really to clean rooms.

Lauren I: Because.

Lauren I: What people are trying to do is so unique down the configuration is oftentimes very custom.

Lauren I: Depending on.

Lauren I: Which partners you are talking about but the number of custom configurations.

Lauren I: Can be pretty easily managed because you know like what a a major merchant is trying to do with their different publisher partners and their different packaged goods partners the names might change but.

Lauren I: The use cases that they're trying to drive look pretty similar.

Scott Howe: So the group that you mentioned, quite frankly, we don't come up against them in head-to-head selling. And I would say we'd be far more interested in how can we partner with them and help power their measurement solutions, whatever that is.

Lauren I: So the group that you mentioned quite frankly, we don't come up against them.

Lauren I: Selling and I would say we'd be far more interested in how can we partner with them and help power their measurement solutions whatever they are.

Scott Howe: Alec, maybe just to put a fine point on that, because you asked. what differentiates our cross And I think to summarize what Scott said, it's really our network. If you are trying to measure across multiple partners and on and offline, you need a network And today, no one else. Thanks so much.

Lauren I: Hey, Alex maybe just to put a fine point on that because you asked specifically what differentiates our cross media intelligence offering to that of the companies you just mentioned and I think to summarize what Scott said, it's really our network scale.

Lauren I: Scale of our network if.

Lauren I: If you are trying to measure across multiple partners in on and offline you need.

Lauren I: Our network as big as <unk> ramps and today no one else comes close.

Lauren I: Thanks, so much.

Speaker Change: Jim is there are no further questions I will now turn the call back over to Lauren Dillard for closing remarks.

Lauren Dillard: Seeing as there are no further questions, I will now turn the call back over to Lauren Dillard for closing remarks. Thanks so much. Let me just finish with a few final thoughts. Again, we had a strong Q4 ahead of our expectations on the top and bottom line. We like our position and momentum entering fiscal 26 and believe in our long-term opportunities. That said, given the macro environment, we've built a heavy dose of conservatism into our guidance. and specifically the low end of that.

Lauren Dillard: Thanks, So much let me just finish with a few final thoughts.

Lauren Dillard: Again, we had a strong Q4 ahead of our expectations on the top and bottom line, we like our position and momentum entering fiscal 'twenty six and believe in our long term opportunity.

Lauren Dillard: That said given the macro environment, we built a heavy dose of conservatism into our guidance range and specifically the low end of that range and finally, we continue to strategically manage expenses and expect our operating margin to expand by approximately four points driving more than 30% growth in operating income in fiscal 'twenty.

Lauren Dillard: And finally, we. https://www.liverpool.com With that said, thank you again for joining. We look forward to updating you on our progress.

Lauren Dillard: Thanks.

Lauren Dillard: With that said thank you again for joining we look forward to updating you on our progress in the quarters ahead.

Lauren Dillard: Okay.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining.

Lauren Dillard: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Operator: You may now disconnect.

Lauren Dillard: [music].