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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
(Mark One) 
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2022
 OR 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from ----- to -----
 
Commission file number 001-38669
LiveRamp Holdings, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation or Organization)
83-1269307
(I.R.S. Employer Identification No.)
225 Bush Street, Seventeenth Floor
San Francisco, CA
(Address of Principal Executive Offices)
94104
(Zip Code)
(888) 987-6764
(Registrant's Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $.10 Par Value
RAMP
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [X]
No [ ]
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 
Yes [X]
No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. 
Large accelerated filer [X]
Accelerated filer   [ ]
Non-accelerated filer [ ]
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes   
No  [X]

The number of shares of common stock, $ 0.10 par value per share, outstanding as of November 3, 2022 was 66,476,357.

1


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
TABLE OF CONTENTS
REPORT ON FORM 10-Q
September 30, 2022
 
Page No.
Item 1. 
Financial Statements

2


Forward-looking Statements
 
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Private Securities Litigation Report Act of 1995, as amended. These statements, which are not statements of historical fact, may contain estimates, assumptions, projections and/or expectations regarding the Company’s financial position, results of operations, market position, product development, growth opportunities, economic conditions, and other similar forecasts and statements of expectation.  Forward-looking statements are often identified by words or phrases such as “anticipate,” “estimate,” “plan,” “expect,” “believe,” “intend,” “foresee,” or the negative of these terms or other similar variations thereof. These forward-looking statements are not guarantees of future performance and are subject to a number of factors and uncertainties that could cause the Company’s actual results and experiences to differ materially from the anticipated results and expectations expressed in the forward-looking statements.

Forward-looking statements may include but are not limited to the following:
 
management’s expectations about the macro economy and trends within the consumer or business information industries, including the use of data and consumer expectations related thereto;

statements regarding our competitive position within our industry and our differentiation strategies;

our expectations regarding laws, regulations and industry practices governing the collection and use of
personal data;

our expectations regarding the potential impact of the pandemic related to the current and continuing outbreak of a novel strain of coronavirus ("COVID-19") on our business, operations, and the markets in which we and our partners and customers operate;

our expectations regarding the elimination of certain deductions under the Tax Cuts and Jobs Act of 2017 and other tax-related legislation on our tax position;

our estimates, assumptions, projections and/or expectations regarding the Company's annualized future cost savings and expenses associated with the announced reduction in force and real estate footprint reduction;

statements regarding our liquidity needs or containing a projection of revenues, operating income (loss), income (loss), earnings (loss) per share, capital expenditures, dividends, capital structure, or other financial items;
statements of the plans and objectives of management for future operations;
statements of future performance, including, but not limited to, those statements contained in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Quarterly Report on Form 10-Q;
statements regarding future stock-based compensation expense;
statements containing any assumptions underlying or relating to any of the above statements; and
statements containing a projection or estimate.
Among the factors that may cause actual results and expectations to differ from anticipated results and expectations expressed in such forward-looking statements are the following:
 
the risk factors described in Part I, “Item 1A. Risk Factors” included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2022 filed with the Securities and Exchange Commission ("SEC") on May 24, 2022 and those described from time to time in our future reports filed with the SEC;
3


the possibility that, in the event a change of control of the Company is sought, certain clients may attempt to invoke provisions in their contracts allowing for termination upon a change in control, which may result in a decline in revenue and profit;
the possibility that the integration of acquired businesses may not be as successful as planned;
the possibility that the fair value of certain of our assets may not be equal to the carrying value of those assets now or in future time periods;
the possibility that sales cycles may lengthen;
the possibility that we will not be able to properly motivate our sales force or other employees;
the possibility that we may not be able to attract and retain qualified technical and leadership employees, or that we may lose key employees to other organizations;
the possibility that we may not be able to sublease our exited office spaces on favorable terms and rates;
the possibility that competent, competitive products, technologies or services will be introduced into the marketplace by other companies;
the possibility that there will be changes in consumer or business information industries and markets that negatively impact the Company;
the possibility that we will not be able to protect proprietary information and technology or to obtain necessary licenses on commercially reasonable terms;
the possibility that there will be changes in the judicial, legislative, regulatory, accounting, cultural and consumer environments affecting our business, including but not limited to litigation, investigations, legislation, regulations and customs impairing our and our customers' ability to collect, process, manage, aggregate, store and/or use data, in particular that there is increasing momentum in the U.S. Congress towards a comprehensive U.S. data collection and use law;
the possibility that data suppliers might withdraw data from us, leading to our inability to provide certain products and services, in particular that there might be restrictive legislation in the U.S. and other countries that restrict the availability of data;
the possibility that data purchasers will reduce their reliance on us by developing and using their own, or alternative, sources of data generally or with respect to certain data elements or categories;
the possibility that we may enter into short-term contracts that would affect the predictability of our revenues;
the possibility that the amount of volume-based and other transactional-based work will not be as expected;
the possibility that we may experience a loss of data center capacity or capability or interruption of telecommunication links or power sources;
the possibility that we may experience failures or breaches of our network and data security systems, leading to potential adverse publicity, negative customer reaction, or liability to third parties;
the possibility that our clients may cancel or modify their agreements with us, or may not make timely or complete payments due to the COVID-19 pandemic or other factors;
the possibility that we will not successfully meet customer contract requirements or the service levels specified in the contracts, which may result in contract penalties or lost revenue;
the possibility that we experience processing errors that result in credits to customers, re-performance of services or payment of damages to customers;
the possibility that our performance may decline and we lose advertisers and revenue as the use of "third-party cookies" or other tracking technology continues to be pressured by Internet users, restricted or
4


otherwise subject to unfavorable regulation, blocked or limited by technical changes on end users' devices, or our clients' ability to use data on our platform is otherwise restricted;
general and global negative conditions, risk of recession, the COVID-19 pandemic, rising interest rates, the military conflict between Russia and Ukraine, capital markets volatility, cost increases and general inflationary pressure and other related causes; and
our tax rate and other effects of the changes to U.S. federal tax law.

With respect to the provision of products or services outside our primary base of operations in the United States, all of the above factors apply, along with the difficulty of doing business in numerous sovereign jurisdictions due to differences in scale, competition, culture, laws and regulations.
 
Other factors are detailed from time to time in periodic reports and registration statements filed with the SEC.  The Company believes that it has the product and technology offerings, facilities, employees and competitive and financial resources for continued business success, but future revenues, costs, margins and profits are all influenced by a number of factors, including those discussed above, all of which are inherently difficult to forecast.
 
In light of these risks, uncertainties and assumptions, the Company cautions readers not to place undue reliance on any forward-looking statements.  Forward-looking statements and such risks, uncertainties and assumptions speak only as of the date of this Quarterly Report on Form 10-Q, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein, to reflect any change in our expectations with regard thereto, or any other change based on the occurrence of future events, the receipt of new information or otherwise, except to the extent otherwise required by law.
5


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30,March 31,
20222022
ASSETS(unaudited)
Current assets:
Cash and cash equivalents$485,602 $600,162 
Trade accounts receivable, net157,711 148,343 
Refundable income taxes, net29,971 30,354 
Other current assets31,512 36,975 
Total current assets704,796 815,834 
Property and equipment, net of accumulated depreciation and amortization11,041 11,531 
Intangible assets, net17,394 26,718 
Goodwill362,517 363,845 
Deferred commissions, net31,514 30,594 
Other assets, net61,237 85,214 
$1,188,499 $1,333,736 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable$70,312 $83,197 
Accrued payroll and related expenses22,822 39,188 
Other accrued expenses40,667 46,067 
Deferred revenue16,397 16,114 
Total current liabilities150,198 184,566 
Other liabilities78,232 86,110 
Commitments and contingencies (Note 14)
Stockholders' equity:
Preferred stock  
Common stock15,148 14,984 
Additional paid-in capital1,780,803 1,721,118 
Retained earnings1,363,339 1,420,993 
Accumulated other comprehensive income1,925 5,730 
Treasury stock, at cost(2,201,146)(2,099,765)
Total stockholders' equity960,069 1,063,060 
$1,188,499 $1,333,736 

See accompanying notes to condensed consolidated financial statements.
6


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
 
For the three months endedFor the six months ended
September 30,September 30,
2022202120222021
Revenues$147,099 $127,290 $289,342 $246,328 
Cost of revenue42,304 35,079 83,325 69,394 
Gross profit104,795 92,211 206,017 176,934 
Operating expenses:
Research and development46,139 35,788 93,800 70,564 
Sales and marketing45,949 39,509 97,229 81,488 
General and administrative28,718 23,078 55,862 47,369 
Gains, losses and other items, net13,111 18 13,850 1,296 
Total operating expenses133,917 98,393 260,741 200,717 
Loss from operations(29,122)(6,182)(54,724)(23,783)
Total other income, net2,248 150 2,947 30,751 
Income (loss) before income taxes(26,874)(6,032)(51,777)6,968 
Income tax expense (benefit)3,562 399 5,877 (3,966)
Net earnings (loss)$(30,436)$(6,431)$(57,654)$10,934 
Basic earnings (loss) per share$(0.45)$(0.09)$(0.85)$0.16 
Diluted earnings (loss) per share$(0.45)$(0.09)$(0.85)$0.16 
 

See accompanying notes to condensed consolidated financial statements.

7


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(Dollars in thousands)
 
For the three months endedFor the six months ended
September 30,September 30,
2022202120222021
Net earnings (loss)$(30,436)$(6,431)(57,654)10,934 
Other comprehensive loss:
Change in foreign currency translation adjustment(1,876)(994)(3,805)(1,546)
Comprehensive income (loss)$(32,312)$(7,425)(61,459)9,388 
 
See accompanying notes to condensed consolidated financial statements.

8


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2022
(Unaudited)
(Dollars in thousands)
Accumulated
Common StockAdditionalotherTreasury Stock
Numberpaid-inRetainedcomprehensiveNumberTotal
For the three months ended September 30, 2022of sharesAmountCapitalearningsincome (loss)of sharesAmountEquity
Balances at June 30, 2022151,031,716 $15,103 $1,753,468 $1,393,775 $3,801 (83,299,201)$(2,160,400)$1,005,747 
Employee stock awards, benefit plans and other issuances2,957  2 — — (31,465)(708)(706)
Non-cash stock-based compensation13,227 2 26,173 — — — — 26,175 
Restricted stock units vested384,920 38 (38)— — — —  
Liability-classified restricted stock units vested44,796 5 1,198 — — — — 1,203 
Acquisition of treasury stock— — — — — (1,726,665)(40,038)(40,038)
Comprehensive loss:
Foreign currency translation— — — — (1,876)— — (1,876)
Net loss— — — (30,436)— — — (30,436)
Balances at September 30, 2022151,477,616 $15,148 $1,780,803 $1,363,339 $1,925 (85,057,331)$(2,201,146)$960,069 
For the six months ended September 30, 2022
Balances at March 31, 2022149,840,925 $14,984 $1,721,118 $1,420,993 $5,730 (81,205,596)$(2,099,765)$1,063,060 
Employee stock awards, benefit plans and other issuances281,853 28 4,563 — — (53,975)(1,290)3,301 
Non-cash stock-based compensation25,024 3 45,929 — — — — 45,932 
Restricted stock units vested973,150 97 (97)— — — —  
Liability-classified restricted stock units vested356,664 36 9,290 — — — — 9,326 
Acquisition of treasury stock— — — — — (3,797,760)(100,091)(100,091)
Comprehensive loss:
Foreign currency translation— — — — (3,805)— — (3,805)
Net loss— — — (57,654)— — — (57,654)
Balances at September 30, 2022151,477,616 $15,148 $1,780,803 $1,363,339 $1,925 (85,057,331)$(2,201,146)$960,069 
 
See accompanying notes to condensed consolidated financial statements.
9


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2021
(Unaudited)
(Dollars in thousands)
Accumulated
Common StockAdditionalotherTreasury Stock
Numberpaid-inRetainedcomprehensiveNumberTotal
For the three months ended September 30, 2021of sharesAmountCapitalearningsincome (loss)of sharesAmountEquity
Balances at June 30, 2021148,659,703 $14,866 $1,653,525 $1,472,191 $6,970 (80,439,519)$(2,066,956)$1,080,596 
Employee stock awards, benefit plans and other issuances46,675 5 992 — — (25,403)(1,181)(184)
Non-cash stock-based compensation29,538 3 13,256 — — — — 13,259 
Restricted stock units vested96,622 9 (9)— — — —  
Liability-classified restricted stock units vested37,646 4 1,697 — — — — 1,701 
Acquisition of treasury stock— — — — — (366,859)(15,000)(15,000)
Comprehensive loss:
Foreign currency translation— — — — (994)— — (994)
Net loss— — — (6,431)— — — (6,431)
Balances at September 30, 2021148,870,184 $14,887 $1,669,461 $1,465,760 $5,976 (80,831,781)$(2,083,137)$1,072,947 
For the six months ended September 30, 2021
Balances at March 31, 2021147,814,965 $14,781 $1,630,072 $1,454,826 $7,522 (79,585,710)$(2,026,518)$1,080,683 
Employee stock awards, benefit plans and other issuances166,230 17 4,261 — — (249,257)(12,542)(8,264)
Non-cash stock-based compensation37,914 4 25,390 — — — — 25,394 
Restricted stock units vested592,061 59 (59)— — — —  
Acquisition-related restricted stock award40,600 4 (4)— — — —  
Liability-classified restricted stock units vested218,414 22 9,801 — — — — 9,823 
Acquisition of treasury stock— — — — — (996,814)(44,077)(44,077)
Comprehensive income (loss):
Foreign currency translation— — — — (1,546)— — (1,546)
Net earnings— — — 10,934 — — — 10,934 
Balances at September 30, 2021148,870,184 $14,887 $1,669,461 $1,465,760 $5,976 (80,831,781)$(2,083,137)$1,072,947 
 
See accompanying notes to condensed consolidated financial statements.
10


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the six months ended
September 30,
20222021
Cash flows from operating activities:
Net earnings (loss)$(57,654)$10,934 
Non-cash operating activities:
Depreciation and amortization11,430 12,404 
Loss on disposal or impairment of assets(197)142 
Lease impairments12,225  
Gain on distribution from retained profits interest (30,052)
Provision for doubtful accounts1,115 1,282 
Deferred income taxes218 (771)
Non-cash stock compensation expense51,518 37,717 
Changes in operating assets and liabilities:
Accounts receivable, net(11,449)(18,073)
Deferred commissions(920)(5,369)
Other assets8,960 23,408 
Accounts payable and other liabilities(29,477)(36,829)
Income taxes, net1,513 (632)
Deferred revenue724 (501)
Net cash used in operating activities(11,994)(6,340)
Cash flows from investing activities:
Capital expenditures(4,414)(1,303)
Cash paid in acquisitions, net of cash received (8,368)
Distribution from retained profits interest 31,000 
Proceeds from sale of strategic investment400  
Net cash provided by (used in) investing activities(4,014)21,329 
Cash flows from financing activities:
Proceeds related to the issuance of common stock under stock and employee benefit plans4,591 4,278 
Shares repurchased for tax withholdings upon vesting of stock-based awards(1,290)(12,542)
Acquisition of treasury stock(100,091)(44,077)
Net cash used in financing activities(96,790)(52,341)
Effect of exchange rate changes on cash(1,762)(14)
Net change in cash and cash equivalents(114,560)(37,366)
Cash and cash equivalents at beginning of period600,162 581,687 
Cash and cash equivalents at end of period$485,602 $544,321 
11


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the six months ended
September 30,
20222021
Supplemental cash flow information:
Cash (received) for income taxes, net$4,169 $(2,569)
Operating lease assets obtained in exchange for operating lease liabilities 35,691 
Purchases of property, plant and equipment remaining unpaid at period end$187 $195 
 
See accompanying notes to condensed consolidated financial statements.

12


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


1.    BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

These condensed consolidated financial statements have been prepared by LiveRamp Holdings, Inc. ("LiveRamp", "we", "us" or the "Company"), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).  In the opinion of the Company's management, all adjustments necessary for a fair presentation of the results for the periods included have been made, and the disclosures are adequate to make the information presented not misleading.  All such adjustments are of a normal recurring nature.  Certain note information has been omitted because it has not changed significantly from that reflected in Notes 1 through 18 of the Notes to Consolidated Financial Statements filed as part of Item 8 of the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022 (“2022 Annual Report”), as filed with the SEC on May 24, 2022.  This quarterly report and the accompanying condensed consolidated financial statements should be read in connection with the 2022 Annual Report.  The financial information contained in this quarterly report is not necessarily indicative of the results to be expected for any other period or for the full fiscal year ending March 31, 2023.
 
Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”).  Actual results could differ from those estimates. Certain of the accounting policies used in the preparation of these condensed consolidated financial statements are complex and require management to make judgments and/or significant estimates regarding amounts reported or disclosed in these financial statements.  Additionally, the application of certain of these accounting policies is governed by complex accounting principles and their interpretation.  A discussion of the Company’s significant accounting principles and their application is included in Note 1 of the Notes to Consolidated Financial Statements and in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of the Company’s 2022 Annual Report.

Accounting pronouncements adopted during the current year
StandardDescriptionDate of AdoptionEffect on Financial Statements or Other Significant Matters
Accounting Standard Update (“ASU”) 2021-08

Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers
ASU 2021-08 requires companies to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with the revenue recognition guidance as if the acquirer had entered into the original contract at the same time, and on the same terms, as the acquiree. Generally, this will result in the acquirer recognizing contract assets and liabilities at the same amounts recorded by the acquiree as of the acquisition date. Under the previous standard, an acquirer generally recognizes such items at fair value on the acquisition date.
This update is effective for fiscal years beginning after December 15, 2022 with early adoption permitted.
April 1, 2022The adoption of this standard did not have a material impact on our condensed consolidated financial statements and related disclosures.

13


Recent accounting pronouncements not yet adopted
StandardDescriptionDate of AdoptionEffect on Financial Statements or Other Significant Matters
There are no material accounting pronouncements applicable to the Company not yet adopted


2.    EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS’ EQUITY:
 
Earnings (Loss) Per Share
 
A reconciliation of the numerator and denominator of basic and diluted earnings (loss) per share is shown below (in thousands, except per share amounts):
 
For the three months endedFor the six months ended
September 30,September 30,
2022202120222021
Basic earnings (loss) per share:
Net earnings (loss)$(30,436)$(6,431)$(57,654)$10,934 
Basic weighted-average shares outstanding67,096 68,042 67,750 68,185 
Basic earnings (loss) per share$(0.45)$(0.09)$(0.85)$0.16 
Diluted earnings (loss) per share:
Basic weighted-average shares outstanding67,096 68,042 67,750 68,185 
Dilutive effect of common stock options and restricted stock as computed under the treasury stock method (1)   1,288 
Diluted weighted-average shares outstanding67,096 68,042 67,750 69,473 
Diluted earnings (loss) per share$(0.45)$(0.09)$(0.85)$0.16 

(1) The number of common stock options and restricted stock units as computed under the treasury stock method that would have otherwise been dilutive but are excluded from the table above because their effect would have been anti-dilutive due to the net loss position of the Company was 0.5 million and 1.3 million in the three months ended September 30, 2022 and 2021, respectively, and 0.6 million in the six months ended September 30, 2022.

Restricted stock units that were outstanding during the periods presented but were not included in the computation of diluted earnings (loss) per share because their effect would have been anti-dilutive (other than due to the net loss position of the Company) are shown below (shares in thousands):
 
For the three months endedFor the six months ended
September 30,September 30,
2022202120222021
Number of shares underlying restricted stock units5,919 981 3,289 766 
 
14


Stockholders’ Equity

Under the modified common stock repurchase program, the Company may purchase up to $1.0 billion of its common stock through the period ending December 31, 2022. During the six months ended September 30, 2022, the Company repurchased 3.8 million shares of its common stock for $100.1 million under the stock repurchase program.  Through September 30, 2022, the Company had repurchased a total of 33.4 million shares of its stock for $832.3 million under the stock repurchase program, leaving remaining capacity of $167.7 million.
 
Accumulated other comprehensive income balances of $1.9 million and $5.7 million at September 30, 2022 and March 31, 2022, respectively, reflect accumulated foreign currency translation adjustments.
 

3.    REVENUE FROM CONTRACTS WITH CUSTOMERS:

Disaggregation of Revenue

In the following table, revenue is disaggregated by primary geographical market and major service offerings (dollars in thousands):
For the six months ended September 30,
Primary Geographical Markets20222021
United States$269,514 $231,300 
Europe15,955 11,898 
Asia-Pacific ("APAC")3,873 3,130 
$289,342 $246,328 
Major Offerings/Services
Subscription$235,435 $201,930 
Marketplace and Other53,907 44,398 
$289,342 $246,328 

Transaction Price Allocated to the Remaining Performance Obligations

We have performance obligations associated with fixed commitments in customer contracts for future services that have not yet been recognized in our condensed consolidated financial statements. The amount of fixed revenue not yet recognized was $388.8 million as of September 30, 2022, of which $293.1 million will be recognized over the next twelve months. The Company expects to recognize revenue on substantially all of these remaining performance obligations by March 31, 2026.

15



4.    LEASES:

Right-of-use assets and lease liabilities balances consist of the following (dollars in thousands):
September 30, 2022March 31, 2022
Right-of-use assets included in other assets, net$40,359 $59,459 
Short-term lease liabilities included in other accrued expenses$10,256 $8,984 
Long-term lease liabilities included in other liabilities$40,660 $52,241 
Supplemental balance sheet information:
Weighted average remaining lease term6.0 years6.4 years
Weighted average discount rate3.5 %3.6 %

The Company leases its office facilities under non-cancellable operating leases that expire at various dates through fiscal 2030. Certain leases contain provisions for property-related costs that are variable in nature for which the Company is responsible, including common area maintenance and other property operating services. These costs are calculated based on a variety of factors including property values, tax and utility rates, property service fees, and other factors. Operating lease costs were $6.2 million and $5.3 million for the six months ended September 30, 2022 and 2021, respectively.

During the six months ended September 30, 2022, the Company recorded $10.2 million of impairment charges that are included in gains, losses and other items, net in the condensed consolidated statements of operations related to the exit from certain leased office facilities. Please refer to Note 13, Restructuring, Impairment and Other Charges for further details.

Future minimum payments under all operating leases (including operating leases with a duration of one year or less) as of September 30, 2022 are as follows (dollars in thousands):  

Amount
Fiscal 2023$5,063 
Fiscal 20249,691 
Fiscal 20258,448 
Fiscal 20268,935 
Fiscal 20278,017 
Thereafter16,583 
Total undiscounted lease commitments56,737 
Less: Interest and short-term leases5,821 
Total discounted operating lease liabilities$50,916 

Future minimum payments as of September 30, 2022 related to restructuring plans as a result of the Company's exit from certain leased office facilities (see Note 13) are as follows (dollars in thousands): Fiscal 2023: $1,340; Fiscal 2024: $2,698; Fiscal 2025: $2,699; and Fiscal 2026: $1,799.


16



5.    STOCK-BASED COMPENSATION:

Stock-based Compensation Plans

The Company has stock option and equity compensation plans for which a total of 43.6 million shares of the Company’s common stock have been reserved for issuance since the inception of the plans. At September 30, 2022, there were a total of 3.7 million shares available for future grants under the plans.

During the quarter ended June 30, 2022, the Board voted to amend the Amended and Restated 2005 Equity Compensation Plan (the "2005 Plan") to increase the number of shares available under the plan by 4.5 million shares. The amendment received shareholder approval at the August 9, 2022 annual shareholders' meeting (the "2022 Annual Meeting") bringing the plan shares from 37.9 million shares at June 30, 2022 to 42.4 million shares beginning in the quarter ended September 30, 2022. This brings the total number of shares reserved for issuance since inception of all plans from 39.1 million shares at June 30, 2022 to 43.6 million shares beginning in the quarter ended September 30, 2022.

Stock-based Compensation Expense

The Company's stock-based compensation activity for the six months ended September 30, 2022 and 2021, by award type, was (dollars in thousands):
For the six months ended
September 30,
20222021
Stock options$563 $1,039 
Restricted stock units43,420 21,634 
Diablo restricted stock awards249 524 
DPM acquisition consideration holdback2,031 4,061 
Pacific Data Partners ("PDP") assumed performance plan 4,551 
Acuity performance plan531 1,204 
DataFleets acquisition consideration holdback3,021 3,019 
Employee stock purchase plan1,015 871 
Directors stock-based compensation688 814 
Total non-cash stock-based compensation included in the condensed consolidated statements of operations51,518 37,717 
Less expense related to liability-based equity awards(5,586)(12,323)
Total non-cash stock-based compensation included in the condensed consolidated statements of equity$45,932 $25,394 

The effect of stock-based compensation expense on income, by financial statement line item, was (dollars in thousands):
For the six months ended
September 30,
20222021
Cost of revenue$2,456 $1,738 
Research and development24,016 12,532 
Sales and marketing12,000 13,542 
General and administrative13,046 9,905 
Total non-cash stock-based compensation included in the condensed consolidated statements of operations$51,518 $37,717 

17


The following table provides the expected future expense for all of the Company's outstanding equity awards at September 30, 2022, by award type. The amount for 2023 represents the remaining six months ending March 31, 2023. All other periods represent fiscal years ending March 31 (dollars in thousands).
For the years ending March 31,
2023202420252026Total
Stock options$431 $668 $157 $ $1,256 
Restricted stock units45,505 80,700 65,504 15,322 207,031 
Diablo restricted stock awards270 518 89  877 
Acuity performance plan283 165   448 
DataFleets acquisition consideration holdback3,021 5,288   8,309 
Employee stock purchase plan361    361 
Expected future expense$49,871 $87,339 $65,750 $15,322 $218,282 

Stock Options Activity

Stock option activity for the six months ended September 30, 2022 was:  
Weighted-average
Weighted-averageremainingAggregate
Number ofexercise pricecontractual termIntrinsic value
sharesper share(in years)(in thousands)
Outstanding at March 31, 2022730,004 $16.28 
Exercised(171,125)$12.80 $3,058 
Forfeited or canceled(2,397)$3.51 
Outstanding at September 30, 2022556,482 $17.40 2.2$1,369 
Exercisable at September 30, 2022536,509 $18.02 2.0$1,023 

The aggregate intrinsic value at period end represents the total pre-tax intrinsic value (the difference between LiveRamp’s closing stock price on the last trading day of the period and the exercise price for each in-the-money option) that would have been received by the option holders had they exercised their options on September 30, 2022.  This amount changes based upon changes in the fair market value of LiveRamp’s common stock.

A summary of stock options outstanding and exercisable as of September 30, 2022 was:
Options outstandingOptions exercisable
Range ofWeighted-averageWeighted-averageWeighted-average
exercise priceOptionsremainingexercise priceOptionsexercise price
per shareoutstandingcontractual lifeper shareexercisableper share
$ $