Why LiveRamp Stock Soared on Wednesday
Shares of advertising technology (adtech) company LiveRamp Holdings (NYSE: RAMP) soared on Wednesday after the company reported financial results for the second quarter of its fiscal 2023. The company beat expectations, despite challenging headwinds, and raised expectations for the rest of the year. That's why LiveRamp stock was up 20% as of 2:20 p.m. ET.
LiveRamp provides middleware software so that companies can anonymize and pool their first-party data and make their ad campaigns more targeted. Many advertising companies are struggling right now, but LiveRamp generated Q2 revenue of $147 million, an increase of 16% year over year and more than the $144 million that management had guided for.
Some other Q2 metrics for LiveRamp were also encouraging. Most of its revenue (81%) is subscription-based, and annual recurring revenue is currently at $420 million, up from $409 million in the prior quarter. Moreover, the company added two new customers, spending at a rate of $1 million per year, increasing its million-dollar customer count to 92. Not bad for a small-cap stock.
Source Fool.com
