LPSN - Earnings call transcript Q3 2017

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Operator

Good afternoon. And welcome to the LivePerson's, Third Quarter 2017 Conference Call. My name is Christy and I will be facilitating the audio portion of today’s interactive broadcast. All lines have been placed on mute to prevent any background noise.

For those of you on the stream, please pick with the options available in your event console. would and turn CFO, Founder, I to call Dan time CEO LivePerson’s Rob this like the to over Murphy. At LoCascio, and

begin may your You conference.

Dan Murphy

Thanks much. very

statements today's that Before today's today, to in please including statements as our about conference statements predictions, we assume this differ to current Also, of no during subject forward-looking These other are statements. in we A will we financial section release, and call any today's is in results. obligation press time materially those based reports press risks which factors, other measures will from We projections we time to or call, earnings update Founder turn of the during various note available now of make call, file our discuss included of are to begin, and future Actual non-GAAP Robert meeting the over reconciliation may LivePerson. to is expectations are measures. certain LoCascio, and in and which results assumptions financial to Relations due will this CEO described in GAAP forward-looking website. on comments XX-Ks, Investor the non-GAAP SEC. earnings release, during uncertainties. made with the and XX-Qs, I and

Rob LoCascio

joining for call. conference quarter thank third and LivePerson’s Dan, you Thanks

transition the growth LivePerson to schedule. our are quarter, LivePerson This We revenue for the significant to is in a milestone platform. with LiveEngage and completion third that two excited to ahead is announce which the year-over-year coincides quarters of of returned

steady return and have year for of leading of the enterprise metrics usage care indicators highlighting XXXX. and also on customer are made once are industry customer again We retention. These growth. adoption, the for our dollar same compelling revenue that’s guidance messaging been around to made wins LiveEngage the transformation In platform past the we raising our

our three in the quarter year to of one quarter, digital of traction class providers. a majority deal key We deploying firms customer chose third platform LiveEngage experience of we leading that the in the reflected of figure seven With of wide ERP revenue with Furthermore, is indicators the The on company reported penetration in additional with momentum we strong three one new top are U.S., large competes with continued place these insurance and our competitive results. third vast the an wins leading customer in diversified be it in characterized metrics. brand Several LiveEngage the LivePerson the momentum financial in clearly seeing. as form better market LiveEngage best will online a enterprise vendor. demonstrated our insurance solution as signed generation

expertise financial few lines investment our XXX a an as top Fortune won six the We business and first institution also clearly The demonstrate at in superior process a banks figure year as only that testament one is selection unique months position of we to deal. leader, of sales platform. services ranks a closed our industry rapid LiveEngage four we as cycle, After a the the of capabilities our two world.

the with and signed in banks Australia two messaging. already the first top wise from of that’s expansions region LivePerson addition, tier brought the In bank

company, music telecommunications Luxury approximately premium the financial locations; one brands leading beyond Jewelry extend wins key XXX our services services one and fashion also world’s of course with the Brand. and a Of include subscription multi-national Global of

but customer also now and not more well platform. The this be previously in power ago services, with we online interaction to base. of greater less LiveEngage. continue rapidly rate went reflected of of customer up Mobile APAC one is key Same just LiveEngage customers type metrics expanded the of than messenger. dollar the XX% be chat grow growing only than customer been quarter, is usage. as lift LiverPerson in continues our wins, XX% company as August, the accounting before growth across year and than to messaging driver for messaging into are The live to with in on year-over-year a using plus. Facebook a interactions that $X.XX greater one than XXX% a at from XX% seeing the leading in continue at retention in new has the example for travel in-app and and For Approximately our had both the customers sites XX% enterprise interactions one-third through are third which mid-market on

win to with hundreds LiveEngage times we from customer platform. several customer bot any agents offering have AI, of this seamlessly savings. years know, mobile from through to businesses messaging and can the shifted We superior the enterprise direct infrastructure of potential early social a These behavior cash card SMS, decades. IVR is now scaled on just messaging customer all of retail. the service, in or in an last by This communication shift the large voice. and embarked messaging globe. message, satisfaction, of years infrastructure old the millions solution on This a higher They in industries a a on win expect expertise messaging with in do for Automated preferences as first have be like feature to productivity voice over dollars Messaging last voice that that they to and the built human make I companies a technology messaging transformation more LivePerson with we multiple June for the our scale centers messaging adequate went and Messenger is legacy lead on LivePerson talking extraordinary our chat LiveEngage past, it and a a As is IVR consumer place this meaningful. are tools. enterprise them any making have is to if agents sales aligns relied of to across enterprise, for that because driver live anything large numerous contact AI. platform, and deployments integrate device and ten and recognized single our versus competitors why on a replacing than of did why around behavior and legacy that seen in attack respond yet Each not using two now AI haven’t the brands around even leading We is the how these ago or

We industry leadership to by LivePerson the our these several over two doing started enterprise built in have retail lead past ground AI deployed year messaging events scale. had large the only, world invitation enter successfully retail We messaging locations. customer in up customer holding and that’s of the summits, out breaking October. of showcased around

leading introducing first centered amazing realized outcomes The tool a as that European Edinburgh by out Telco the on for IVR. a deflecting calls messaging Scotland in of the

basically few only can and same the shifted the in never very months large of they up over we we to this XX% industry, from quickly, that straight are enterprise the Over cut approximately we to of bob’s deflect cost of out was really voice their there an hallmark actually would messaging At [inaudible] big not do voice percentage the volume And calls what we a Telco, calls, half of consumers course the alternative IVR. I but messaging. call with millions voice. do with in take from they a in and AI. conference volume this didn’t is think of showing really This

work to and to We has the proven and integration to that success partnered and enterprise this Edinburgh such have event grade NPS with the with tools bot results have using a review first-hand conversational component optimization, sentiment become participating reporting with transformative how sales AI bots. must and LiveEngage and a at levels messaging training as product analytics, is our optimizing, the PS AI APIs, IBM measurement enterprise of The with platform an our resources marketing on deliver can how tool built. our for deliver with LiveEngage leaders to included and We We launch was win. Watson. through workflows is interface amazing that’s scale, in Watson. from obviously care doing key even our readiness

human enterprise via the and thought The executives assistance back bots on walked from away with summit and to industry scale deliver deploying human blueprint including go how integration out global other automated agents Watson box the than a and the XXX at powerful first with by and scale More messaging. of leaders results can organization they Microsoft.

improve how for how Our of focused the the world’s upcoming connect of senior their second banks, channel with event retailers. a included list executives these messaging an and from leverage This launch leaders radically can industry will large new that several on telcos consumers. event they exclusive

tool more events in of these are our have summits on about who progress origination. as productivity far and a excited to rapid the XXXX following focused are XXXX they one customers are as tied we We were in our so our our over building the continue the and we of pipeline. approving made invest wins past will of sales for to attended majority year becoming or great in The field

This new we a of and they’ve we by ramp through driving. superior spend from world come delivers have development up partners, all are managing at is benefit working extremely ecosystem, These enterprise customer a AI time each to transformation our spur been quarters, AI we there product LivePerson. measurable one developing leaders. will learning’s past and in as to exciting alternative well differentiation to the messaging voice, deliver productivity. customer with deployment I we also true to more on the an even that resources am proving coming that proud years in a a come. as the the robust Similarly the finally will on technology customer that additional increases to With LiveEngage other be investments to the that messaging, messaging in year. we the put expenses Over roadmap formed is bot are are as scale increasing towards

announced want of I Dan change on Finally, CFO Murphy. leadership to comment the in our

positions early earnings an and us I successor. financial infrastructure, with or through will him working with assist on of almost journey. orderly X.X the will the our Dan in be leaving service. thank an LivePerson in identify all wish me role to has contributions with build board to instrumental Dan be all next getting LivePerson transition future. our more the the on its notch to globally want and chapter new story, capital best leaving to year company top next and a solid its stated the Dan and is has organization and a he effect for years than growth developed release, As after scale Dan played

an annual program make turn of I to XX. also our November I Dan, announcement FeedingNYC just Before the call to wanted on

is shelters New over we’ll families New York feeding live X,XXX York area. who be Here in metro the in

website. please and If detail. to make a third the FeedingNYC.org’s Dan, you to quarter in like Dan. over donation go participate turn call now I’ll who results will or discuss our more to outlook

Dan Murphy

opportunities to amazing past presented years. want the my share that for I LivePerson Rob. has Thanks appreciation these six

As to LiveEngage is am foundation with that I to solid new leaving successes. look I for complete. confident am LivePerson transition a challenges, continued forward I LivePerson’s

and thank We the again normal company a to demonstrated are with and Rob, a board solid rewarding perfect I’ll anomies see we once our the our baton again the will effect This with and alongside a quarter, to Rob, position third transition. all execution. time the has tremendously we’ve established in pass to potential. working the been next chapter. our analysts. customers, to a someone I is investors greenfield who leading through the be look growing on employees, Taking experience. This team into our market want our finance

LivePerson selling, Our we new to helped once third raising than quarter on for and exceeded year-over-year return adoption the out solid for anticipated. our growth trends guidance again are revenue along focus XXXX us outlook. we earlier LiveEngage with previously

third market than customer revenue quarter our second guidance wins guidance and in We the consumer delivered our better record second Trailing and Similar holiday results. of continue completed list quarter of to our gain the across into and was BXB prospects. year In $XX.X non-recurring review fourth enterprise to million revenue forward We of from million. quarter. quarter operating average and above reported of of we revenue. AI customers set, quarter during revenue $X.X pull of approximately and $XX million key season I’ll from guided list at months million XXX,XXX the was a there our for that forecasted the revenue with upside XX the transition million new $XX.X messaging consistent target to to revenue XXX,XXX revenue $X the LiveEngage successfully mid pay upgraded market range approximately and Total start of per range a as We share $XX versus upside to XXXX. million quarter. now our of some $X.X this of stemmed typically of the to see third performance we million. issued spend in

The current of improve primarily deals quarter as compared than XXXX. in guidance We the tied XX other our was XXXX quarter to lower signed to to $X.X million third of as versus of transition ended from expected upside third XX LiveEngage. attrition we in the revenue, the

opportunity list targeted reflects the large to LiveEngage increase XX. drive growth deals our is strategy, enterprises find customers New global from focus deals lower with to overall a count which to transformation. XX of on The

in working and strategy as reflected rising contracts. price average Our selling auto new the is for

ended International was of trailing by takes XXX%. XX%, this of breakdown with up months XX%, account at sakes, services in existing XXXX. full rates on XX%. dollar revenue financial revenue quarter auto vertical of base The telecommunications renewals LiveEngage XX%, of the cancellations Operations LiveEngage. of For measure the year, XX%, technology and September impact XX, on in This other the at XX% at at for customer from retention third quarter BXB approximately XXXX the consumer third our X% customers total accounted at line of sales, retail and XX at into exceeded down

million per adjusted net adjusted $X.XX that $X.XX reduction $X.XX, of were share per and all XXX per loss issued costs. XX.X% of legacy a GAAP increased to points of in the include Gross basis previously our net loss for within income year operations in primarily LiveEngage. third quarter $X.X share net our of The to reflects GAAP improvement share XX.X% transitioned cost Third ranges. non-recurring EBITDA we’ve guidance This now litigation ago. quarter does the margin from

Excluding in year operations $X.X $XX.X ago. charges, million third revenue expenditures. the from LivePerson million non-recurring a share. year-over-year. restricted was $XX.X used the to third increased third of $X.X quarter quarter, on $XX.X At cash $X from and or $X.X million third total Deferred spent million LivePerson in million million per end restructuring expenses quarter of capital quarter XX% operating the cash on including the hand cash decreased

The are of for platform XXXX and the our guidance $XXX.X that to vision, points term your execution initial faster AI the growth resources million. revenue Turning of our attention and reviewed such a partnerships XXXX has metrics for channel LivePerson and million growth. million, $XXX.X successful propel is previously million, also guidance continuing to of raising guidance we $XXX returning of and adding selling proof focus referring to on healthy as contributed and growth taking than The range we our $XXX rates. continued revenue our to strong of million from a our outlook, and to $XXX investment issued solid expected $XXX growth include combination on million to to we drivers steps summits expand customer LiveEngage LiveEngage. are enhancement highly These historical path steps in lead long market to towards as

increase meet these are flat we with of to XXXX. we goal holding on as target investments margins our XXXX, Even in

the complete, LiveEngage of quarter. transition we $XXX,XXX final charge the With restructuring fourth anticipate of approximately in the

to total Our unchanged. severance full million ’XX, year restructuring XXXX $X.X view of charges for in $X is million

in which previous expectations. We now with I of in legal tied and in is the non-recurring our will $X.X also litigation quarter, XXXX. detailed quarters IT fourth financial review expenses million expect to line

revenue expect $X.XX share net share. million per the fourth to quarter million of or GAAP $X.XX, share $XX of million. of loss $XX to adjusted income we per $X.X and $X.XX per to EBITDA net $X.XX $X.XX to adjusted million of For to $X.X XXXX zero

to excluding $X.XX net per to XXXX to of Adjusted Furthermore charges, XX.X%, For sales litigation million, R&D LivePersons’ for $XXX.X expectations per revenue are charges. EBITDA This and the a restructuring and percent for year, $XXX.X $X.XX per $XX.X we million XX.X%, $X.XX marketing year release $X.XX million XX%, share earlier loss net today assumptions. be approximately of to XX.X%. non-recurring restructuring as and details share. and issued profit our as of anticipate of to income for G&A of year gross includes was share full the and Please non-recurring share million full XXXX, $X.XX adjusted to refer $XX per to of of earnings $X.XX or GAAP follows: on Revenue $X.XX. our additional

messaging, aligned on our and extending rate of I’ll customer our questions. LiveEngage revenue to improved product that, pipelines in next new the With innovation. fueled a and and quarters. on points supplemental with from the future dollar website. focus to Operator. and through our levers are existing in customers, section predictability chapter the presentation and plus on care published these or earnings We customer on investor and over These to on better the the attrition maintain a company’s mobile return We paired the of profit is the through customer LivePersons’ forward partnerships Growth LiveEngage relations our and to AI open transition with objectives. Across XXXX will and expanding strong retention our key look consistent growth. priorities, to executed for of have of entered complete provide to events plan foundation lead adoption on progress each Year-to-date normalizing lead messaging margins. XXX% by build our also be LivePerson, achievements call call these teams these with selling, than plan our four reporting on

Operator

ROTH [Operator comes Richard Capital. of the Instructions] first line from of question Baldry The

Richard Baldry

LiveEngage you seeing fourth messaging Is been had I thought the market do they over then the percent in was the have as maybe model under incremental to like side? how below revenues that? know holiday similar the that. seasonality. would earlier about due a of know thought. any fourth prior also, what quarter drove really in and I your strength It particular think X% if tech you the for I Can vertical so historically go about And seemed on the contribution, newer usage talk usage the your on you can is at impact think what we Thanks. quarter? would have you should platform that Thanks. it adopters,

Rob LoCascio

vertical the verticals going broadband Telco we’re is the some on that big travel. side, and Well after and providers Banking

we basically So we got in the Telco, to with each device then and and could used got how has go Telco banking see They you’ve being areas countries around consumers the the were They live the chose leaders, providers leading and or their first messaging those area. followed too. broadband now on it’s world. in

retail So On those now we expense billion its strategically got what there also are calls. matching did phone and on centers voice messaging some coming, along following it areas Telco contact have when the to year is that spend they we average the $X have they’ve a largest that’s calls. and biggest comes over previously in because biggest but the today, could

and So we’re real point paying where the on focused that’s that’s attacking. where is

Dan Murphy

in through second and forward portion, PFP legacy platform what know right for we’ve model that some in of a usage does QX the were direction come seeing and just is you’re the that P&L we increase on some days, used would Rich, and the the the is positive business pull increase additional step to the bookings in revenue. driving had it specifically revenue, fact then our component to is expect question our on increase see in recuing so gave and in drive guidance years seen PFP continuing So second quarter usage you of historically and The thing being that in around for the the we we your that QX. we two and number you and drive forward the the able that previous fourth into the pulled the benefit around part usage

Richard Baldry

setting is platform. will in thing year-over-year. at set know from you It’s to look cost floor more sort XXXX. have restructuring now some down last And that the quarter, or you again sort see expenses of with and exit at top a your legacy will cost one QX we a forward really in Should line of that stub pulled down here level there our the in of higher it’s given as the Thanks. a support as we really be, growth way your the kind the then fourth growth LiveEngage year

Rob LoCascio

Yeah, in to more you our From in bots good we’ve roadmap. upside it invested year revenue the this product the of fill development know and business, and question. and specifically the so around taken partnerships far some adding back resources out in it’s a perspective and AI

So and – sorry, as customer we move events. in and forward events, investing customer

and into move we to top areas top growth. drive to XXXX, and us so continue you forward the help that know as strategic we’ll drive line our growth in that is So those line invest to goal business continue will

Richard Baldry

good luck Dan. and Thanks,

Dan Murphy

Rich. Thanks

Operator

comes from Koji next line The question the of Ikeda.

Koji Ikeda

generation is that and mean think even big your this think – a from does have enterprises up to of technology know on question pretty for millennials grasp focus I is now, such to a wish full Generation out demands, really just there really you Rob do I you questions. think are Dan it, news know of and on coming about well the or them. there picture going taking now think have a behind to you execution, a the engage your millennials adventure how different just right a quickly my next the have about. in you but say thank retirement just you Do and got congrats it’s to question really and want enterprises Dan. for you experience millennials set on big to in right the I Hi, Z

Rob LoCascio

group, last now is year population the people. U.S., millennial and or reducing think they because significant. million this power the XX size the influence as the have of buying XX largest its so million in is are segment of basically I also Yeah, baby in now The which boomers

millennials, look in a they at retailers. beyond other, impact big box in content are They way. different retail we engage a with we but in we see how live and messaging; in. each they world to the way the even how not when communicating that retail on different in are engaging they are engaging with obviously and So going The

for been influencing while. us that’s a So

happened is have what’s our that off digital Now is the and they buying way and and instrumental platform why a power of buying space power them that’s to in to brands in our sort different making significant that’s transformation.

So we’re not starting a a channel in communication, connect we’re starting that consumers are doing with they a normal way way their in lives. to certain

they So service and many have to for tremendous when influencing I that group definitely change got They have our we’re businesses, we a with today think influence consumers. there’s them happen been years obviously such order to of see that’s it in and customers. our

Koji Ikeda

for Got Dan. it, a and question maybe

guess while. what a just the six, at the installed that ARPU biggest both? monetization really some are or I better of seven trailing and or know are XX a is looks Looking more $XXX,XXX past. mean growth? mix quarters like customers signing thinking in from this the your into it a of playing you It levers I base a jobs seeing Is here quarter, healthy about is that here, seen are that ticking at the of of up in month it’s on in platform one it bigger you the been we’ve

Dan Murphy

and of big to and customers about CSAT I you the and improve they customer of consumers mix enterprise our really go mean care their got to scores both. lot a know healthy after centers to they’ve the is as large you’ve I talked got strategy to and got satisfaction. access think access you a it’s

you that it’s think direction, combination to XX right trailing the metric and know its in is of the two see. happy I going month a the we’re So excited

Koji Ikeda

thanks Congrats Dan taking again questions. and on the my for news

Dan Murphy

I Koji, appreciate Thanks it.

Operator

of comes Rhee. Van from The the question next line Jeff

Jeff Van Rhee

thanks. look I growth several guys. Great, really there. guess The Congrats numbers questions. great good;

versus quarter, First, I don’t quarter notable few last you the can provide the little see but with What you stands you see last this color bookings? the side, Did respect characterize in maybe but bookings? acceleration bit quarters. bookings, to any a out? bookings know on ARPU the can on a number, We

Dan Murphy

perspective mean Jeff from where expected our been Yeah, they’ve not them higher. to be I slightly if we

– run attrition some is from third rate quarter, can customers current in in your perspective, to memory, less related know migrating expected than As bookings you over. from of expected the from better in you quarter see current than that is second our the

goal right the is up large that there’s in a customers the we we opportunity and pick ARPU still can you think we’re our as So in before, same, to starting see stated and our enterprise there direction. after going big the

Jeff Van Rhee

as should that the And ’XX, you think into about upside goes business. we back assume all revenue

count down. or namely leverage, but comes So on scenarios don’t maybe margin where don’t assume the also see

Just you more on margins a little color if would.

Dan Murphy

So a good question.

the stated focused have we’ve you have events customer customer high prepared at they been taken ideas those We’re know direction of well senior been a and pipeline level and not customer these those put bookings, Rob as events the in you remarks, and from giving helping back into XXXX and our enterprises. perspective, as on dollars in events executives them the for XXXX, with think but strong I of events end that many closed large of us know are related his are to

So in bot. know LiveEngage to of the product a messaging strong March and the AI we the to roadmap market we’ll continue and to we you continue as in invest over have very said as I a you‘ll in get and and invest lead products X we those mark continue

Rob LoCascio

product product go the we requests. the when customer, Jeff very we see side live quickly to XX On with anywhere XX from

from learning this event year a first Telco build more recent with held product Edinburgh, because around know to you still to platform they know probably to to customer And their the IVR. out – a lot so we just we as to of do so came with there even our XX% us scale. amount year’s there’s is roadmap a worth though is product, that are about it, the So a a tremendous that’s lot are much of in the we But live allow you that build so out, much going and ago A customers. and talked to there need it. of sorting get going we’re

to continue growth satisfy customers we’ll the invest in more So in their end we that as and accelerate needs. and get

Jeff Van Rhee

you one-time and Dan last and it, quarter. referenced quarter revenue this Got

recap a quick what was? Just of that

Dan Murphy

Yeah, a the quarter customer this spend some forwarded approximately revenue so of was with the into million $X of fast QX. increase non-recurring, that’s from PSP

similar So this did QX. and we a in spend

Jeff Van Rhee

forward pull was? the quarter last And

Dan Murphy

to went to that related Last professional quarter a billing contracts. we portion into some had and overage had on customers services related their then we

Jeff Van Rhee

great. one two sales; last second, any give enough are some of preliminary sales outbound at time semblance lines. you in ramp, And Okay, some and color this could point you’ve now productivity ’XX thoughts you on and if just one there? thoughts for know for to mode sales have hiring around One, on been

Dan Murphy

now a Yeah right group we our team of is pretty finite sales have very mean focused we – are – a on I customers.

go So as year obviously $XX I finite so $XX group a be need work doing the of said add and think could to they we the very I just size enterprises today at customers I we’re million we’ll million, there the this $XX our if scale could game. have keeping can we be demand, we’re probably $XX before, million, wise doing million, believe change more be after a we’re group. but will more because group that And people, at

that’s making high deals $X over very going year very, know you end our so to strategic. these million big group a very we keep out and doing sales this they guys know were based and expert and top want You are sales

the So that’s question… second come And low. in

Rob LoCascio

sales Outbound mode.

Dan Murphy

– compensation this on the the from going Outbound a we sales we focused to some through on we XXXX, memory, on Jeff That them guys migration. your perspective, XXXX sales selling through an bit and of migration on and again. been We’ve we just to focused had year reported customers refocused refresh in selling their through our back is being go right. mode customers. said, outbound so this

have continue will we customers. in group that those and level XXXX sales end and set we and group right on leverage to are necessary talked as to got is XXXX as some capacity to customers we sell high they about, to end So we Rob that into focused as the move skill the capacity there enterprise and enterprise

Jeff Van Rhee

Great.

Okay thanks Dan. of Best much. so luck

Rob LoCascio

Thanks.

Operator

from of comes The next Mark question line Schappel. the

Mark Schappel

your Hi, next on they starting quarter, six months Rob can you customer to successful. good What retirement. your the to Dan the expect be congratulations with so? evening. just submits, very with and appear Congrats events on on we in or future respect

Dan Murphy

We big doing the in-between. some we’ve about quarter, one ones one then are got and small a

are host So is going a we actually we more as do working speak, path. on eventually that shop at about them plan know up. a brands through mean year. may people next XXX, it, I be you we continue There that customer but about we We are to site. some XXX XX

have customer experience. next on, can are very site, people So customer focused the group high we very they showoff I so end taking our been, to a though what are an they very think they but of are and C-level

But where transformation. do we how because understand great probably we’ll it. from are we’ve they can accelerate from the can results marketing they gotten So

Mark Schappel

Great, or thank about is vertical with and I at the product migration? quarter then kind or that to I where does within business contact and fit XX% down that once. recall auto of respect brings your correctly that fit wondering, not this broader if up LiveEngage was you

Rob LoCascio

is they consumer from direct with a direct weeks are a when manufacture took the happening mean exciting launched deal, to time messaging there. messaging Normally to to some connecting We do you started you and buy This stuff I manufacture place about cars. we first four car ago. consumer messaging for sell. launched we’ve just sell and to a but there

So there of a think stuff there. is I lot

the now. bring businesses to going together are We

just the once, had we’ve new So in lot a manufacturers. deals contacted small markets got that’s and of large but they

We closer on are put going group. leader a together to it’s and put overlap that SMB business, that to got our with because single

in what the deals Nothing going talk go together should the the more seeing of with live. large small we type we coming very they supplement But in that we’ll preliminary enterprise they from and that of about them Once see that manufactures months. are a lot pretty see two We detail, got just as could expect deals to if we advantage these a segment. look again, good. into with in bit but dealership good business we out as to take kind little after pieces went upcoming So then really shifted results could the today. stuff come of I

Mark Schappel

you. thank Great,

Rob LoCascio

got thanks. You it,

Operator

line comes question of the from next The Mike Latimore.

Mike Latimore

Great thanks.

You mentioned percent performance. revenue pay of What for is now? that

Rob LoCascio

Yes, it’s in the digits Mike. high single

to X% that in So X% range.

Mike Latimore

percent with? To would on know what it retention, that very you apply the total revenue of continues then revenue And strong. to

Rob LoCascio

If about it’s on you talking metric a than. XXX% the LiveEngage, greater about are

Mike Latimore

Yeah.

Rob LoCascio

customers Great on on than XXX% LiveEngage.

Mike Latimore

Yeah.

Rob LoCascio

platform We we end on our don’t about LiveEngage talked out of Yeah on just migration. being Mike, LiveEngage. of of revenue actually the revenues XX% the so break specifically as the

of a rate, are had know platform. the year you number customers retention good LiveEngage comparing we perspective, last from QX on we our of when So that

we good there customers more though market is it enterprise with are there comparing was QX where QX customers. maybe customers, So in especially and less significantly

that we’ve got customers of comparison that volume a So we good make to. can

Mike Latimore

figure was seven the ERP deal, did systems? the that on then replacing And you say

Rob LoCascio

the the big that and their, their Oracles we of of you under know category, we Yeah, of implementations of so one world one that it with messaging. put replaced one kind

Dan Murphy

They Technologies are they messaging. and Legacy replacing from Chat with chat have Write-On systems Chat, legacy

Mike Latimore

figure – per was over that a three just year or and Okay, was or then seven that whatever. years more

Rob LoCascio

years. Over three

Mike Latimore

you. thank Great,

Rob LoCascio

Okay, thanks Mike.

Operator

Next from Levine. Peter the comes question of line

Peter Levine

quantify you breaking you the maybe has for this guys maybe just now as enterprise? my the With sales out can cycle to thanks pipeline the Great, so of if question. I Most on willing are booking strategy percentage new talking guess them been of stepping answered, those bookings sales. to changes

Rob LoCascio

to out tell XX% consistent our mid-market, historically customers that can I that’s from new have and break existing pretty you been between Yeah to we books but enterprise XX% the don’t bookings quarter-to-quarter. and been to XX% and customers so

pipeline concern, customer as is goals events summits growing is far As one our and pipeline. that around these of investments in the of customer

for have opportunity been to to about So meetings valuable about the customer the just these in prospects customers pipeline been that in are the go prospects of sorry or the they very some for and how think events, those its customer definitely helpful they to or contracts. in on existing messaging hurdles business they or customers, for closing aren’t also summits it’s building talk helpful to existing to live its and but world, AI through their bots, go had

Peter Levine

the maybe I or entering focused migration your – roadmap Can about came new with talk ’XX. know appetite any to end. on that the Then you for you an areas, M&A are product areas product

Dan Murphy

I of of we we bots, a the is it’s side reality automation, where in lot have what cognitive focus. mean the call on

is there lot of automated agents, know so an of there and things. live two we on a You is types agent and a agent focus have building those

bot Watson the greeter we So a there bots, and bots, like are like are that agent technology other we for NOP processing. some NOU, basic using assist bots built pieces concierge and of teams makers

because we supply part I provide we of think are core strategy, manage so don’t We an our in supply. agent agents. included live the think its I its those areas, agent,

now going it. really can bot with messaging and out customers Our on platform own and manage in actually is the them, but something on automation our is manage implementation we every

and the demystified of year get world that customers So is doing in of go kind voice and how and that’s have it implement questions And messaging how aspect. our in to and call. in XX% it care never we’ve contain an – a AI by you works important intents of what of a you key after will this, world, containment out

world know figured demystified we out need. it and and our we’ve of what So kind we for it

are spending fair of we a there. amount time So

the a on into get we can around spending providers we that an are fair our build better talking we our with about other can part around scale, video, because built put time and where and operations units they there way types platform thousands also of of on out them big and service ecosystem and run AI, platform messaging and like other need are agents and to is customers. those things so so third amount of small We a bots technology our secure bots implement in our startups voice to their technologies environment, in scale

technology that going all things and these have into One XXXX. that is think that’s lot the AI company that’s write their it an one our opportunity game we opportunity we approached have to kind agents success. just they to lack playing believe with applied an been want around their they’ve to customers, to companies and different get get seeing of of by a and one lot of are check I that live we They A check one live a there is was of bots to opportunity and that bots technologies. a the that it. from But I of been that and single big bring many

Peter Levine

assessment impact know, is look year, not your XXX give some Thanks? for Dan. you along what I’m next don’t if you will think are us like. far in highlights of maybe ASC one of you but for the This sure model implementing and how can I

Dan Murphy

First of and call call. your first I know it. all, is thanks for this I the appreciate joining

have been and looking at the from standpoint. through a recognition going XXX, revenue on XXX of process So we

think we any but But any. don’t and done still are the committee have still lot assessment going auditors. impact. through have are with expect it so our I that audit major don’t a or going I We if will impact this, an and through minimal impact with of

Peter Levine

it. appreciate I Great,

Rob LoCascio

you. Thank

Operator

time. There are no at questions audio this

Rob LoCascio

us for you quarter. you see on QX, XXXX joining we thank and Okay, will call the next

Dan Murphy

Thanks everybody.

Operator

for Thank you concludes This all your today’s participation. conference call.

disconnect. now You may all

LivePerson (LPSN) 1 Nov 172017 Q3 Earnings call transcript