LiveRamp Holdings, Inc. Reports Strong Q1 Results, Faces Challenges in Pre-Tax Profit

LiveRamp Holdings, Inc., a leading packaged software company, has recently announced its financial results for the quarter ended March 2024. The company has shown positive growth in its net profit, which has increased by 132.91% year on year. This trend is expected to continue in the near future.

One of the key factors contributing to this growth is the decrease in raw material costs by -2.12% year on year. This has allowed the company to improve its profit margin by passing on the cost savings to its customers. Additionally, the company's investment in assets has also shown positive results, with depreciation growing by 114.53% quarter on quarter.

However, LiveRamp Holdings, Inc. has also faced some challenges in the past quarter. The pre-tax profit has fallen by -164.99% over the average net sales of the previous four periods. This trend is a cause for concern and the company will need to address it in the coming months.

Furthermore, the company's short-term liquidity has deteriorated, with cash and equivalents at its lowest in the last six semi-annual periods. The debt-equity ratio has also increased, indicating that the company is borrowing more to fund its operations. This may put a strain on its liquidity situation.

In conclusion, LiveRamp Holdings, Inc. has shown positive financial performance in the first quarter of 2024. However, there are some areas of concern that the company needs to address in order to maintain its growth and profitability in the future. Based on these factors, Infinhub has given a 'Hold' call for the company's stock.