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Market Sentiment Around Loss-Making LiveRamp Holdings, Inc. (NYSE:RAMP)

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·3 min read
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With the business potentially at an important milestone, we thought we'd take a closer look at LiveRamp Holdings, Inc.'s (NYSE:RAMP) future prospects. LiveRamp Holdings, Inc., a technology company, provides enterprise data connectivity platform solutions in the United States, Europe, and the Asia-Pacific. The US$5.4b market-cap company’s loss lessened since it announced a US$125m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$89m, as it approaches breakeven. The most pressing concern for investors is LiveRamp Holdings' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for LiveRamp Holdings

Consensus from 12 of the American IT analysts is that LiveRamp Holdings is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$346m in 2024. So, the company is predicted to breakeven approximately 3 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 71% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving LiveRamp Holdings' growth isn’t the focus of this broad overview, but, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that LiveRamp Holdings has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on LiveRamp Holdings, so if you are interested in understanding the company at a deeper level, take a look at LiveRamp Holdings' company page on Simply Wall St. We've also put together a list of important aspects you should further examine:

  1. Valuation: What is LiveRamp Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether LiveRamp Holdings is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on LiveRamp Holdings’s board and the CEO’s background.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.