LiveRamp to Acquire Data Plus Math to Enable Next-Generation TV Currency

Big Win for the Entire Ecosystem, Providing All Participants With a Better Way to Buy, Sell and Measure Data-Driven TV Extends Lead in Omnichannel Identity and Data Connectivity

LiveRamp, the trusted platform that makes data accessible and meaningful, announced that it has entered into a definitive agreement to acquire Data Plus Math, providing the ecosystem with a more effective way to buy, sell and measure data-driven television.

“The combination of LiveRamp and Data Plus Math is a great thing for the industry and represents an important step toward building an open and flexible model for the next generation of TV advertising.”

Data Plus Math is a media measurement company that works with brands, agencies, cable operators, streaming TV services, and networks to tie cross-screen ad exposure with real-world outcomes. The combination of LiveRamp and Data Plus Math brings together the world’s largest people-based identity graph with unparalleled cross-screen data and key sell-side relationships, resulting in a big win for the entire ecosystem.

TV advertising is the most powerful way for marketers to reach a wide audience, but it has lacked the ability to deliver people-based addressability and measurement across channels. By combining the reach and scale of TV with the outcome-driven capabilities marketers require, brands and agencies can now better coordinate the customer journey, deliver more relevant messaging, and tie TV campaigns to measurable return on investment (ROI). This move strengthens LiveRamp’s network and expands its ability to power experiences across the entire customer journey, all in a privacy-conscious way.

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“While TV continues to be the most engaging screen in the household, the landscape is shifting,” said Scott Howe, CEO of LiveRamp. “Data and technology have transformed the relationship a brand can have with its consumer on TV, creating tremendous opportunities to improve how TV inventory is bought, sold and measured. We are excited for Data Plus Math to join the LiveRamp family and look forward to working closely with its deeply experienced team of industry experts. Together, we will accelerate LiveRamp’s TV efforts and offerings and unlock the amazing power of data-driven TV for the entire ecosystem.”

Brands and Agencies can implement outcome-driven TV buying and measurement to deliver more relevant messages to consumers and generate higher ROI.

“LiveRamp’s identity resolution technology is an integral part of our ability to truly understand our guests and how they’re shopping at Target. As we continue investing in our reimagined media company, Roundel, this addressability plays a key role in our ability to create smart, personalized campaigns that connect our guests to the brands and offers that are most important to them,” said Kristi Argyilan, President, Roundel, Target. “LiveRamp is an important partner that shares our vision for addressable, measurable guest interactions, and the addition of Data Plus Math’s powerful, real-world insights is an exciting next step in our work together to create exceptional guest experiences on any channel or platform.”

“This is an exciting acquisition for LiveRamp,” said Tim Castree, CEO, North America for GroupM. “Our clients are seeking more precise solutions for people-based, cross-platform activation and measurement. The combination of LiveRamp’s identity management capabilities and Data Plus Math’s TV attribution expertise will certainly help us accelerate that.”

“For three decades, Horizon’s business has been built on an integrated business service model,” said Bill Koenigsberg, President, CEO & Founder of Horizon Media. “Data Plus Math is a partner of ours because we trust them as business solution experts. They have been able to integrate TV and digital ad exposure with data analytics, insights, and analysis. Now we’ll look to LiveRamp to elevate what we’ve done with Data Plus Math, incorporating people-based identity into video buys, all within a Safe Haven environment to protect and uphold consumer privacy.”

Networks can better measure reach across multiple consumer screens and deliver outcome-based decisioning to brands and agencies – ultimately improving yields.

“A+E Networks was the first to offer outcome-based guarantees, working to successfully shift the media industry mindset in partnership with Data Plus Math,” said Peter Olsen, EVP, Ad Sales, A+E Networks. “Data Plus Math has been instrumental in our efforts to provide marketers with measurement tools that accurately reflect TV’s unmatched power to drive business outcomes. This deal will continue to help elevate the groundbreaking, foundational work that Data Plus Math and LiveRamp have already done – as neutral constituents – to bolster cross-screen measurement and outcome attribution for advertisers, agencies and media companies.”

“A requirement for growing the market for audience-based buying is campaign measurement that goes beyond reach. We are encouraged by the work Data Plus Math has been doing to go beyond reach and map exposure to business outcomes,” said David Levy, CEO of OpenAP. “Further cementing a relationship with LiveRamp is an important step that creates more opportunities for marketers to better measure and action outcome data across the consumer journey.”

Distributors can more easily tie exposure data to business outcomes to prove ROI for their premium addressable inventory.

“Our mission at NCC is to empower brands to connect with their audiences wherever and whenever they watch content, which is why we are so excited by this news,” said Nicolle Pangis, CEO of NCC Media. “The combination of LiveRamp and Data Plus Math is a great thing for the industry and represents an important step toward building an open and flexible model for the next generation of TV advertising.”

All ecosystem participants will benefit from an independent source of cross-screen, people-based TV measurement and LiveRamp’s Data Safe Haven®.

This acquisition deepens LiveRamp’s commitment to neutrality – a key component to driving adoption of these next-generation measurement capabilities. In addition, it furthers LiveRamp’s ongoing commitment to providing an open and scaled omnichannel identity solution, which includes efforts such as embedding IdentityLink into the bidstream; launching the Open Internet Measurement Initiative; providing LiveRamp’s identity graph to demand-side platforms free of charge via IdentityLink for Real-time Bidding; and expanding that to include cookieless inventory with its Authenticated Traffic Solution.

“On the heels of our strategic partnership announced last year, we’re incredibly excited to now be joining LiveRamp,” said John Hoctor, CEO of Data Plus Math. “TV remains the most effective way for brands to quickly reach their audience, build their brand and drive product sales. Unfortunately as consumer’s viewing habits have evolved, TV measurement has struggled to keep up. With LiveRamp, we’re changing that.”

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Financial Impact and Closing

The addition of Data Plus Math extends LiveRamp’s lead in omnichannel identity and accelerates its TV efforts, driving continued strong growth and value for LiveRamp shareholders.

The deal is expected to close in LiveRamp’s fiscal second quarter.

In fiscal 2020, Data Plus Math is expected to contribute approximately $5 million in revenue and increase non-GAAP operating loss by approximately $8 million. In addition, LiveRamp expects the transaction to increase GAAP operating loss by approximately $27 million due to higher non-cash compensation and estimated purchased intangible asset amortization.

Fiscal 2020 Guidance Update

LiveRamp’s non-GAAP guidance excludes the impact of non-cash stock compensation, purchased intangible asset amortization, and restructuring charges.

For fiscal 2020, LiveRamp now expects to report:

• Revenue of $363 million to $377 million, an increase of between 27% and 32% year-over-year.
• GAAP operating loss from continuing operations of between $192.5 million and $172.5 million. This guidance is subject to final purchase accounting adjustments.
• Non-GAAP operating loss of between $78 million to $58 million.

LiveRamp continues to expect to be profitable on a non-GAAP operating income basis for the full year of fiscal 2021.

A reconciliation between GAAP and non-GAAP guidance is provided in the appendix to this press release.

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