LiveRamp Holdings, Inc.

Good afternoon, ladies and gentlemen, and welcome to LiveRamp's fiscal 2020 first quarter earnings call. All lines have been placed on mute to prevent any background noise. 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, then the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. Thank you. As a reminder, this conference call is being recorded. I would now like to turn the call over to your host, Lauren Dillard, Head of Investor Relations.

Thank you, Operator. Good afternoon and welcome. Thank you for joining us to discuss our fiscal 2020 first quarter results. With me today are Scott Howe, our CEO, Warren Jensen, President and CFO, and Anika Gupta, President and Head of Product. Today's press release in this call may contain forward-looking statements that are subject to risk and uncertainties that could cause actual results to differ materially. For detailed description of these risks, please read the risk factors section of our public filings and the press release. LIGRAMP undertakes no obligation to release publicly any revisions to any of our forward-looking statements. A copy of our press release and financial schedules, including any reconciliation to non-GAAP financial measures, is available at LIGRAMP.com. Also during the call today, we will be referring to the slide deck posted on our website. At this time, I'll turn the call over to Scott.

Thank you, Lauren. Good afternoon, and thanks for joining us today. We delivered another solid growth quarter in Q1, building on last year's strong momentum. For the quarter, revenue was up 32% and, excluding the lost revenue from Facebook, up 39%. Our subscription business grew 33%, Driven by our enterprise and agency channel. And Marketplace & Other was up over 70% due to the continued strength of our data marketplace. Beneath the top line, we made continued investments to drive operational excellence and innovation, fuel durable growth, and further solidify our competitive position. We launched Authenticated Traffic Solution, or ATS, to power a safe and transparent way to connect advertisers with publishers and closed our acquisition of Data Plus Math to provide the TV ecosystem with a more effective way to buy, sell, and measure data-driven television. And finally, we doubled down on our commitment to you, our shareholders, buying back nearly $70 million of stock as part of our ongoing share buyback program Since March 31st. During the course of our prepared remarks in today's call, you will hear the following four themes. Number one, our business is strong and the macro trends continue to move in our direction. Number two, our platform is highly defensible and our competitive moats are widening. Number three, Our strategic initiatives remain on track and we have a lot of conviction in our path to $1 billion. Number four, while we are pleased with our progress, we see a lot of areas in which we can do even better and are plotting a course to do just that. The market trends propelling our business remain strong. Data is the key to great customer experiences and our platform plays a critical role in helping customers break down data silos and navigate the growing ecosystem complexity. The use of people-based data creates greater accountability, drives higher ROI, empowers more meaningful experiences for consumers. These capabilities should be available for the good of all. rather than reserved for a few digital giants. We are central to ensuring an open and level playing field for all participants. Finally, at the same time as data protection and consumer data privacy reach a tipping point, we are quickly emerging as the open and safe choice, the safe haven that enables our customers to transform data into value while honoring the privacy and preferences of the consumer. On our last call, I shared our three strategic imperatives for FY20, and I'd like to provide a brief update on each. The first key focus area for us this year involves delighting and growing our customer base, which points directly to the land and expand component of our model. We made good progress on new logo acquisition in Q1, adding over 25 net new direct customers across our different customer verticals. We ended the quarter with over 690 direct subscription customers, up from 585 a year ago. And we are proud to now serve more than 20% of the Fortune 500. Our enterprise and agency channel again was strong. with several larger than average ACV deals getting signed in the quarter. For example, we signed a new deal with a large travel and tourism company to help enable more effective online targeting and measurement. This company has historically been a big direct mailer and was interested in leveraging its customer and prospect data to inform more personalized digital advertising. Since the vast majority of their bookings occur offline, they also wanted to better understand how their online spend drives offline conversions. We are distributing their data to several media platforms for targeting, site personalization, and closed-loop measurement. Another new win this quarter was with a leading fashion brand, this large multinational retailer, selected LiveRamp to help better leverage its purchase data to deliver hyper-targeted digital experiences to its customer segments. We were originally introduced to this brand through a reseller, and as their data strategy became more sophisticated, they went direct with us. They are currently leveraging the Google Customer Match use case, along with sending their customer segments to a variety of social, and display platforms for targeting. As we have for the last eight years, we are always going to be transparent about what is working well and where we see opportunities for even better performance. In the quarter, net dollar retention came down from where it has trended historically. And while we signaled a decline at our last call, we're aiming higher. and view this as an opportunity to generate even stronger growth, higher customer satisfaction and reduce churn. As we scale to 1 billion, upsell is going to become a more important driver of our business. So let me share our plans to strengthen this component of our growth equation. We recently implemented a field strategy function inside sales to drive greater rep effectiveness and productivity. This group is tasked with improving focus on sales training and enablement. Second, we've strengthened our selling efforts to drive greater and more advanced upsells. We've formed a strategic growth team that owns and drives all advanced measurement, analytics, and data lake use cases and continue to invest in subject matter experts to provide overlays for Horizon 2 and 3 growth initiatives. And finally, we are building tighter integration and go-to-market strategies with key technology partners, agencies and consultancies. More complex use cases like advanced analytics, IDL-based data lakes and data sharing strategies require significant customer expertise. and while our more advanced clients have this expertise, many are still building it. By working with key agencies and technology partners to develop turnkey solutions, we can make it easier for our less sophisticated clients to take advantage of these more involved use cases. A great example of this is the work we are doing with Marketing Evolution partners. Marketing Evolution provides a multi-touch attribution platform that is built on IdentityLink. And by creating a very tight technical integration, as well as go-to-market alignment, we are bringing a joint solution to market. This partnership and approach has proven to be really successful, and we have a pipeline of additional partnership opportunities we are pursuing. The second initiative is to establish LiveRamp as the trusted, best, An essential industry standard for connected data. The work we are doing inside our commercial and product teams to drive ubiquity of our identity and improve the extensibility of our platform directly ladders up to this effort. We invented the category of connected data and identity and believe we have a superior product. Annika and her team have worked hard to ensure we're a leader in worldwide data stewardship, and then our graph has ubiquity and redundancy that span multiple channels. But again, this is an area on which we will never rest, and we intend to continue building more automation, easier integrations, and better efficacy in all of our products. And finally, We have several initiatives underway to aggressively expand our addressable market. Our emerging business initiatives fall squarely within this effort, and we continue to be pleased with our progress across this group of growing opportunities. In the quarter, our marketplace business grew by more than 70%, excluding Facebook, driven by growing global demand for ethically sourced, people-based data and a trend towards BeyoD, or Bring Your Own Data. In addition, we continue to be incredibly encouraged by our TV opportunity, which grew multiples with the acquisition of Data Plus Math. The integration is underway and on track, and our role inside this ecosystem is growing in importance. Simply put, there is no other company in this space today that is helping to power all aspects of advanced or data-driven television in the way live ramp is. Excluding data plus math, which will be included in our results beginning in Q2, our TV business grew roughly 30% in the quarter, driven by an increase in addressable TV campaign volumes and our ramping CTV business. Importantly, Our bookings outlook for the remainder of the year gives us even more confidence in this business. We are seeing contract values expand as more homes become addressable. And the growing data enablement of CTV inventory presents another strong tailwind for our business. While these efforts give us optimism for the future, we must continue to evangelize our capabilities across the entire ecosystem. There are thousands of companies who currently advertise on television, and we want all of them to be aware of how data plus math can help them generate even better performance. Likewise, almost any company who is doing any marketing can generate better results by utilizing Datastore. With that, I'll close by thanking our exceptional customers, partners, and live rampers. for their ongoing support and hard work. The market trends driving our business remain intact, and we continue to believe it is early morning for live ramp and our opportunity. We are off to a strong start in FY20 and look forward to updating you on our continued progress in the quarters ahead. I'll now turn the call to Annika to discuss our product strategy in more detail.