LPSN - Earnings call transcript Q4 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon ladies and gentlemen, thank you for standing by. Welcome to LivePerson's Fourth Quarter 2019 results conference call. My name is Ian and I will be your conference operator today. [Operator Instructions] After the prepared remarks the management from LivePerson will conduct a question-and-answer session. And conference call participants will be given instructions at that time.

conference being this reminder, a call recorded. is As

ahead, turn over Senior to would Please President now Matthew conference to like go Planning. and Company's I Mr. the Kempler, Investor Relations sir. of Vice the

Matthew Kempler

Thank you much, very Ian.

Robert me and LivePerson's Chief Officer; CEO; Joining Collins. our Founder and Greiner, LoCascio, John today Chris the call Financial on is and

we expectations future Actual note factors, and risks on due projections or from predictions, with that which time SEC. statements, this various are release, based today call, time in We of during in Please comments the obligation to as assume differ and are including statements assumptions statements. to today's reports today's forward-looking results. about and forward-looking our to conference statements call current earnings XX-Qs press update file results we'll those described make subject XX-Ks, any and to materially These during other are may made in no the other and uncertainties.

call, Investor earnings of LivePerson's today's GAAP which of are Also, during financial supplemental reconciliation measures, this release in non-GAAP included in of and the we financial non-GAAP this highlights press is available slides, measures release. to Relations a Both press section include certain discuss website. quarter, will

will that, With I Rob. over to turn the call

Robert LoCascio

commerce for Matt. you starting conversational create a LivePerson, capped milestone quarter to LivePerson's leadership. around for yet QX joining marked XXXX new year Thanks, demand another Thank inflecting and and customer fourth earnings call. that The a market demonstrated industry

signed in X-figure XX goal in fourth points X organic the target deals LivePerson quarter entirety increase XX% that over in We set five of from XXXX. growth. the delivered percentage a we XXXX. on XXXX, accelerating ago, We of year XX% growth for and One XXX% QX, hitting

term and growing nature XXXX the nearly backlog. our by offerings a XX dollar alone, enterprise the in year-over-year. our weighted of values to increasing contract XX% strategic Within was signed average months, Annual grew testament

XXXX acceleration We invested XXXX. of momentum at continued with least at product reaffirm in growth XX% in least our needed the to toward sales and goals in generating XX% growth

the and a and Among up in with global the provider. vendor we warrants the signed Fortune biopharma contracts in efficiency success our improved QX, top-X agent call many The Facebook. XXX replacing opening out. U.S. new chat by health consumer company healthcare and wins seeking messaging with a We former experience the legacy powered web insurance enhanced vertical over had

our The create XXXX leveraging to engagement. dashboards leaping latter and autonomous healthcare start. promising as I'm LiveIntent a new key and consumer we automation, sights LiveEngage set straight is with highly on scalable to a a thrilled vertical

of deploy experience will and full the of Maven broken XXs AI path with millions XXXX true our eliminates high-end conversational differentiated travel. the And that and of aim assist agent brand Another LiveIntent provide become had This pleased is in was global on to X figure conversational vertical report expansion targeted we in airline. suite They an leading a offerings, to phone with I'm experiences. airline. builder, a top-X web a including calls analytics, year to

two in retail services, continued of telco, in demand mission exemplifies and Our past technology. traction and strong wins their success also core years. LiveEngage the new expansions as with verticals key quarter had financial the over strong The we fourth our

endpoints, obviously platform we the that and in traditional even have in and messaging, of During automation, cases retail, proactive the care, And sales, we've increased our integrations use email. contact center. disrupted marketing the voice AI, time, rest social into and whitespace in

powerful millions as calls, Approximately lives of improving wasting notifications. preferred hundreds around a a make time our of We're payback XXX on customers. of the to world's XXXX to the with delivering one-way websites to leading now LiveEngage depend clicking of available email, brands and consumers alternative and messaging

With strategy, trusted focused our to make now leg is on messaging momentum the life of to driving delivering conversational new strong AI. second are everywhere, and a which a brands we as channel, easier communication in for people

demanding feel are according can't to than respond one increasingly And real study, XX/X time. consumers they personalized expensive Forrester high-touch that third of inefficient adding confident our challenges these less in to labor. experiences. Consumers automating solving keep the can Brands of experience brands customer a With built messaging each messaging, complete top will customers the tools superior the we give of help with their millions conversations on day. conversational they AI journey, brands create at with scale them have by to

and contact purchases centers. the way websites' of seek to that win the I position pole e-commerce traditional advertising, transform disrupt consumers content in make creation, this LivePerson believe will space and conversational traditional market. information The course, is

in invested have purposely over consumer the analytics bots now direction leading that X past years, and this portfolio powerful of operationalize automations. AI We've facing better assist enterprise a and span agent to products

deploying for conversational and our platform builder these wider is Many offering Hundreds and with began are Assist XXXX of AI deeper the platforms to of launch. LiveIntent our adding and automation customers offering the several and first Agent our small developing deployed We'll the customers go impressive adoption year and well. in business enterprises, years. over as This our next work with automations. and also of mid-market customers

an strong also to do the drive on past kept can marketing the eye been what and focusing growth we've we driving on scale go-to but on bottom real year, leverage line. have Over

conversational and business We the largest they embrace AI own transforming that evangelized that to We industry. their vision our operations. change want lead in company companies the internal way with will is world, radically that of two the

concluded instance, to fully There will for general operations, and democracy, that where a communication revenue information disbursement, at everybody. accounting data was activities, cash finance is automated available, Global to anytime, manage anywhere of management business processes within Institute least an the that to be and learn XX% CFO from how and that and for article McKinsey need

areas AI in many leader over being in a the XX we're recently what I'm especially really past space. proud the years, of doing LivePerson

to engineers AI power use that going lead CFO data of and find to in all you'll of finance machine we're data being learning the transform will and of scientists by predictive put and role employees. our who the algorithms, take led hands operations, capabilities the a think I the and

large Last strategy internal scalable of deliver finance strong to as rare of platforms. growth. He to accelerate regulated with year and brought City-based that finance automation used SVP background Collins systems worked Stock create using financial a leader Exchange entrepreneur of we and of in industry. next quantitative service the of predictive phase financial our also equity He combination learning the scientist, New Suisse. machine predictive predictive co-founded to creates scale company firms Credit a trading most previously seasoned in Thasos, a on of and learning algorithms AI New on business use intelligence He's a and leverage York John and recently York intelligence analytics data our machine

John has vision taking a growth using done have and AI us. next within our I'm of and John automate since and to joining great driving company excited our work the in about our we operations. over CFO as scale drive

alongside exciting Thank in well, over his as Chris years he be John transition, Chris. want endeavors. well working the during this his him during I X thank wish at as his we time new past you, service LivePerson, for will to

of business conversational messaging expect ongoing our funding innovations efforts AI. to We in expand allocate to efficiency these a gains portion of

and to challenges obstacles payment has build messaging these we're For across through both example, face platforms. position consumer transactions all within in to seamless brands all XXXX, remove commerce LivePerson a going messaging and the unique within capability to LiveEngage. a platforms messaging the endpoints. Today, handle brands transacting commerce within make The across

where investment the commerce, a platform of world commerce this innovations. going year $XX in commerce this development a this In for dominate payment of will We're conversational other overall us. significant million around allocate and to conversational presents related opportunity

I closing, points. reiterate want key In two to

LiveEngage past communicate brands. the over the growth in First, to a to bringing I the of achieved the of months. believe messaging in out XXX of LivePerson transform the we the on leading to the way set nearly XX% process mission, -- XX world's past people with brands with turning that we power mission

are for we're a space. is brands the bar the now massive strategy, step we opportunity the of true We offering, journey customers investments conversational what in leaders toward next focusing we uptake for raise on our that Second, showing on our conversational believe is that as on market deliver. The to executing a strong new this emerge on taking AI. there the

that, Chris? I Chris and an turn with to to over update highlights. And our will on provide financial the operational call

Chris Greiner

next record CFO. alignment in and want him the John I steps with toward its analytics the the to key another in my execution years. to expertise take take and efforts. strong AI to for year view the a place could last team automation strong ground first to for put it journey, LivePerson all X Rob. by process John track strong the addition our to I several justice has John's contributions to months. leverage of with the made hit applying running and corporate data, confident last I'm and vision recruited will enabled be we engines and the management echo as internal our step next company Thanks, personally decision

to contributed the As momentum we our detail, discuss dimensions to in our recall increasing that performance two our the year. it's helpful and XXXX financial more outlook primary underpinned throughout

on engineering our by capacity. in And plan opportunity robust of pipeline revenue aggressive grow XX% an activity to was capitalizing the quarter the sales second contract first The fourth and investment for to growth to accelerate XXXX. rapidly called and increase

XX% our both business. we executed measures On punctuate segment to four point, in And well. extremely key we different delivered of the fronts, growth

Further XX% hosted XX%, year-on-year consumer on last also once our BXB performance, up again up total and fourth services the points line XXX finally, back software BXB up quarter strong our that, First, XX% segment, from in up the XX.X% third the sequentially. quarter LivePerson was growth basis up growth year. in grew or XX% our revenue was the drilling is quarter. in top year-to-year. segment And delivered into over Peeling

into backdrop, let's as strong these With to headlines that our the dive cap details year. propelled the deeper the

and again at Our seventh trend enterprise across within into We target markets consecutive America. quarter. as of healthy for our Revenue with XQ had mark geographies of and dedicated our once XXX% our discussed in growth with up the sales our team growth fourth XX%. least of mid-market and markets to up Investor international and held at high-water we're ARPU strong U.S. Latin hit $XXX,XXX And we in retention Day, emerging office its highlighted quarter, the another XX% to also continued new XXX%. range expanding leadership our XX% the year-on-year

our year the enterprise of XX% nearly faster customers services, telecom led year-over-year. XX% key the verticals, and year-over-year, in throughout conversations for Contributing on results As customer XX% now wins. messaging way, usage again, are technology fueled very XX% each in deal than by messaging rely automation. perspective, strong platform growing XX% in From and XXXX growth once financial of the on overall and Wins customers XX% were increased these to count. existing growth new

We've our also investments. from seen go-to-market and strong product traction

terms exiting of an we we is the XX% growth than enterprise and approximately mid-year In year. capacity, acceleration supporting second year-end the the More from XXX of XXX% XX% goal quota carriers of quota distribution quota productivity sales XX% XXXX, The half with by at mid-market to these approximately of of increase carriers exiting continued our XX% carriers, had be SMB. productivity at reached and expect in XXXX we're of XX% had XXXX.

and where leading global ability foodservice, we we a healthcare provider; open large like healthcare, pharma Travel, provider. second restaurant U.S. XXXX top-X global signed and and hospitality the also our a airlines. a where signed we proved Spirit, leading up to launched In top-X chain in Delta, new where and verticals

events to driving highly Our customer be in success. continue key executive our tailored asset a

fact, as seven journey recent their audience event Impressively, ago. never started of of a In of all before. eight at customers of less XX presenting the our member than in the at spoken one had them Dallas, months most events our conversational

TTEC, and North Regarding Emerge. partnerships, deals focused DMI with we America our channel in our on signed efforts and strengthening XXXX in

joint the small commenced with go-to-market these deal early, partners already strategy. and our Although we've TTEC, closed training even first validating with

with LivePerson And comments use and invested a these standouts a wide the across mentioning. capabilities and worth cases on already XXXX finally, endpoints. product. new few deeper solutions, In are new in with go there XXXX, few new platform we

a Proactive and have with embracing off customers dozen to conversational conversation discussed, nearly than a we first rapidly of in Rob builder. the XXX also strong already now live quarter using As AI just customers messaging is start its introduction. customers more are

the on seeing Apple Apple of well, a launch Chat XX and more tripled of exited testament consumers with demand adopting. Suggest The customers is the Business conversations and has solid more Chat customers. to since click-through Chat than XXXX we as rates high Suggest,

Moving goal execution controls free higher We place, in of on with timing and positive December. ended From the million flow than equivalents. profitability. new generating in on million delivered and XXXX With in company QX. due cash to the $XX strong cash the of use contracting anticipated EBITDA a financial to activity in strong building adjusted its of was $XXX quarter perspective,

We bring DSO same quarter the first The which influenced forces back XX% to historical anticipate in also increased healthy revenue, collections positively year-over-year. to deferred levels.

in In our to of sales we're of growth With positioning least market stated previously revenue productivity strong adoption. to with product and we in guidance, XXXX terms this enter of goal XX% XXXX and growth guiding XX% backdrop, us at momentum XXXX. achieve demand XX%, for

be carriers of of this to second late these increasing driver same to key XX% acceleration in expect improvement of close first Similar hired the XXXX, quarter. XXXX. opportunities to we half The the year. anticipate first the second the quarter we second many first in for into reps and We expect will XX% in guiding and their We're productivity quarter quarter steady quota of growth growth of range. revenue the

the accelerate, least at stack XXXX. second we expect would growth half supports to XX% growth up, in rate us exit wins an at As revenue that putting

we fewer pace. AI profitability, providing more, to even in our LivePerson, As business focus expect critical for within material on faster efficiencies do to internal at automation while insights drive people enabling

objectives, to while our Tied in to drive flat essentially core meet growth XXXX set leverage we've a year-over-year. turn goal should maintaining headcount this our in This material initiative, business.

negative we million improve our a XXXX and $XX $XX million EBITDA for adjusted XXXX. from $XX segments million to fact, in on In Consumer in that now estimate core to BXB combined positive will a basis

there in we XXXX. be such discussed, minus of We're conversational to And are offer Payments, the on $X approximately meaningful combined a innovations for to that million. think Rob EBITDA million this innovations catalysts. to $XX million range XXXX commerce $X allocating positive new brings adjusted our As several basis, potential as these guidance a to

me let final few a remarks. wrap Now, up with

product plan with First, increasing the executing sales capacity we time, and entered right velocity at scaling on acceleration fronts. our we're right the with XXXX and underpin both strategy precision growth

core meaningful and business on efficiencies and Second, even operating us scale that to while we're flow now in higher plan a drive drive new innovation. will allow profitability our cash funding

John John this And inward. that finance areas in expertise in is that a and future organizations And with with domain we can that can he of attest great to external the position exceptional, across turn vision. leadership leader put finally, time I expertise is hired multifaceted our the and AI automation myself. numerous intersect and recruited mission an

ensure John, of I ramping and for his successful. finance again, partner in to friend. want excited Board, to Once and Senior thank my play leadership personally Management team my congratulations role smooth continued to expansion to Rob, scaling and with am the HR the company. and John, our I the opportunity great the is

John Collins

and embracing employees, and our very the machine grateful and Thank I'm analysts, partners vision to the and to you, opportunity for hello the deploy the and finance and Chris transform learning shareholders, Rob to organization business. customers. on impact to its for automation Chris,

and leverage invest and processes market driven LivePerson's is near-term that will in enhance the Considering accelerate opportunities, optimal to time the operational model size now growth.

organization of machine engineers vast systems. that And Yet, learning and The feed are enterprise deployed scientists could center changing at of most data ROI. lives uncertainty reveal organized is meaningful the into departments. has useful a in data used reduce CFO My and and already and to the finance that are in scientists an data information and be of rare data automations engineers delivering sight team finance We're that. disconnected opportunity.

people of The value. finance its accelerate as steward making and evolution the a task opportunities. to under the and on will effectiveness and partner repetitive to in support and function goals natural are long-term decision company making of the redeploy uncertainty maximize main capital creation in a and changes These strategic transactional them we're free of resources from order strategic innovative

to you. and acquainted all forward look coming in better I of the weeks Thank months. you getting with

Robert LoCascio

questions. we'll With right, to All it for over operator. that, turn the audience

Operator

[Operator you. Thank Instructions]

is from Samana Your Jefferies. the of question Samad? first line Samad from

Samad Samana

Thanks evening. Rob, you. for Maybe questions. question taking my good for Hi, one

So, payment being is on there the to side. investment put of a big with seen the other coalition We've vendors. and payments software

have with company's color So, a payment maybe investing you you're what there, if the partner could bit, going a plans? how the and little to bit just you more that investments I then expand Just on processor? give on one will us little be a follow-up. Are

Robert LoCascio

we see are platform. dollars of running around what so hundreds Yes, millions of is today our

take place of or our So, web the even then the in some off takes of our nearly place experience messaging. on conversations form transaction and web sort a platform

millions platform, So, platform our there to and we work payment. as analyze providers an opportunity it, and secure we'll an the within opportunity we of a do through payment create the of we see other with -- is to process hundreds think dollars to running

But they that platforms, as tokenize brand but consumers, platforms. services on including it and be or conversational transactional the in building debit can pure can authentication that the through we're it it invoke with invoke authentication the they then And different a secure on element can then then we'll so used can then the it our all so credit can it messaging to app a payment. two-factor of card, other customer And and handle of do across a and messaging with web, and use card the tokenize basically going the we UI. we're

the without here have did that up that people ago, is leading It's attacking we're who really see. and leading we'll build us in there's are X payment's leading looking now payments opportunity. beyond group X where services and start start. space, big who today. that's and with is the And part from platform. the to banking hard now team months the hire we to the the ex-banking that's joined we'll pretty a other and conversational he it's there, at that, We'll a of we're commerce company. that He We think effort or about commerce effort at I part someone So, do but

Samad Samana

business to maybe XQ how guidance give if from services -- color Great, maybe if hosted more bit that's revenue we is the then one services? the like the side. of cadence The maybe down XQ. on a revenue decline the XXXX? Chris, or And helpful. it think professional points and trying Can little a ticking for what seasonality that's you should part what's financial us that's to understand you XQ to it looks driving of that and Just in better about

Chris Greiner

Samad. company, the underlying the Day. half that back first talk consistent follow good And hosted our software thanks with the actually just to you The overall growth as so we've to Investor growth of of revenue second internal dating our is Yes, growth skew revenue to The half again. the should models services had, an principle. versus

if they're mentioned full think half productivity. about our you force, the carriers remarks, So, at today, I about quota the our is as ramping prepared of sales in of

in year, Rob, group XX/X over heard group figure that drove, That for the from been us. is outstanding the ACV deals. They've XX% you growth

-- end fully our to online We of the carriers in XX% by by of have about mid-year. quota expect

growth scale the in to in years immediate half. first. then XXXX. past out to productivity, terms that quarter, share the start we of of this and fourth peaks seeing on in layer quarter the like seasonally, second that some first reach gain has But business in we're play tends and the they And just in down as more trend in the first So, quarter had our will

Operator

line Siti? question is And Siti our of Panigrahi Mizuho. next from from

Siti Panigrahi

Hey, thanks question. my for taking

sales increasing into self-service your I or XX% So, baked ASP? of growth even productivity terms into just that more dig guidance XXXX. for want to about process, your What's adding in increasing expectation

Robert LoCascio

will that have momentum XXXX at us put we we to now, we at to know exit that reach with the longer-term We when of into again, achieve range them models sales growth. XX% Sure. from And productivity right XXXX. in capacity an know least profile going expect our our the

hiring Now, imply maintain headcount, flat this year, won't not to won't in in and there hiring while that we're that's be be there ranks the relatively sales ranks. the able engineering to

John's middle be hire to beginning through able to to us that and company board, simply overall layer the it be the that headcount doesn't require or in that and we'll to bring is It's as expertise just but free way our the will, drive team done office, on back you efficiencies allow his funding, in year, able doesn't of up he the take us, in do to up. throughout a if to we've

Siti Panigrahi

throughout year? investment second we the then And next million, going we should what think payment the then, further How versus $XX it or need And even about think first that half we more in the right. about about should should half? All the you on EBITDA is year? talked you Is how think that forward? for about

Robert LoCascio

there. team that's where be it are there It we in from as and LiveEngage go platform. It's people just we'll And us of we it's a that market that speak. embedded want give grows will a we technology time, to in to then going go the chunk to good need over building to right see team So, now. the

it all way basically can our to take the of as invoke thousands brands it's a payment on platform. So, of

outside not today. it's platform the So, writing

platform So, start. promoting will like the we're not within It an to technology. facing be consumer payment external

Operator

question next Arjun? from our line William from of Arjun Bhatia And is Blair.

Arjun Bhatia

question. taking Hey guys, thanks my for

highest excited But get a available just what from funnel to increasing your most opening to would in of Just perspective? motion adopting now on love is seems terms there opportunities endpoints. like where wanted lies avenues. It a thoughts pipeline, force built bit. It to fully you go-to-market as the the ROI But XXXX, -- seems you growth what to curious, into just the out. are you're you're go-to-market to of sales maybe looking like touch plenty the and is about on prioritizing maybe what on little the

Robert LoCascio

new get and there a key verticals of few we think One like end I is, some the have toward couple areas. we vertical, really did to the So, year. healthcare we of a the want is brands in,

I so, the will opening got vertical that be And think We've travel up. vertical.

but globally. about a we've now other know, U.S. and talked you the of is As there now signed Delta, airlines we number in

up, We're South as mentioned, America. Chris opening

some So, nice we're pipe develop. seeing

many As of may how in the Mexico, know, you Brazil, WhatsApp of are channels people in like, main are communicating brands. these

market. So, we're coming a got AI we're platform. within -- bringing then, in that end of that And kind front base under conversational our when we to in lot our of expansion opportunities comes it

is we scale. up hit found, moved to the onto as started real real I do automate or what mentioning, we over the need XX% Because of which is we conversations wanted was voice So, of at year was about really last focus calls the of messaging. platform, automate the get I we communication, as channel scale. -- you XX% at end And as the months focus on how the to now really what XX LiveEngage

our to focus customers, them. a to that's get So, expand

Our they're goal is have all some be always are through platform. And who contacts customer to to get XX% scale. going of to automated our at running like

will a focus that perspective. the So product from be

couple a AI the changes in and marketing conversational the the whole. of platform of see we're positioning months as how in You'll next our some even

focused. AI more be will conversational AI, that So,

Arjun Bhatia

with like here, overlap the payment into you're out That's that it. payments, thanks. what Apple Facebook? does building to and just helpful, applications? the the Got on Google real some functionality and of already role wanted endpoints then And their fast, endpoints incorporated have play maybe And the that functionality very did follow-up,

Robert LoCascio

device the on other on is on U.S. iOS, is is have -- Android obviously, uses it But in Pay consumer actually, the chance we that every Yes, so world use on. on and Obviously, cross-device. devices, -- platform. is Apple payment see is of nor Android, so all the an and endpoints greatest it about world a there who forth XX% Android, not -- in can't the so have, the I the the XX% these XX:XX half Half

so web But, and invoke just a we And payment time experience. we tough take found very is consumer of to we the it's messaging. a do for brand within most what a

It that's form form. certain the So, a encrypted. for security. It's principles secure experience. It's cumbersome invoked, a has PCI to very called it it's

invoking got So, hearing just having I've got customers, shown feel -- from -- on conversation just the and and which there's be the card in. to service way. we our that We're a product. I'm

so, put perspective, without that having a they also, in use and to see platform, versus once from tokenize every card they a it constantly card their and time put in again over into they over consumer have put the do it can in again. it then the And we transaction we'll to ever

So, that's kind on on, of what the payment side. we're focused

Operator

from And is question from the Lenschow line our next of Raimo? Raimo Barclays.

Mohit Gogia

for guys. Raimo. Gogia Thanks taking Mohit my for It's Thanks, question. on

wanted -- So, to with platform. this start I'll stay on topic with the payments

motion about. you there bit about more initially thinking that if little can I you're wondering a was the go-to-market So, talk

vertical maybe ideal or platform? first to going probably move is the like So, on sort that there with this customer profile of payments a you're make

can the then And early this to And new potential question I about I that? stages, was you and I but do you know think so pricing how its upside from about think uplift and ASP speak also, you about have if the how functionality a follow-up ASPs for wondering Chris?

Robert LoCascio

I go million say we're and the think will month go-to-market, doing to that close of our too all that. brands have thousands Yes, I through a we it's conversations on early platform. on to $XX

there's conversations commerce those a based. fair majority So, are -- of

it the our to platform, to in make embedded the go-to-market are customers. so, And -- going is available we

it payment process. then then in of then transaction You let and that consumer tokenize invoke the start their a their and card

it come card once or -- still can can tokenized is on again, then once brands we -- then other and the that brand we at And again and LiveEngage. that are can back use

it we're to of really yet. So, don't I business talk going that's pricing to really where or about the start. want model

year, in to more we'll later bring it talk the think as do on we I market.

It go then end customers bring of to looks large it be it the some like toward We'll the with market. we'll from of testing year enterprise the there. and we'll

Mohit Gogia

follow-up a question. have Understood. And I then

headcount the end sure use So, the know sort mentioned number can to headcount of around to leverage next make expect terms that to like like that AI on efficiency overall you there. But you the right of just trying million, to that same be $XX some year, right? machine sort of of leverage the and learning I you areas invest in are in you

$XX provide can R&D color sales to million investment you breakdown the additional helpful. more or $XX is the on the anymore will this So, to headcount platform? more -- of So, functionality be it functions? you're which as you make to to But is to that made that just million going grow as

Chris Greiner

important to it's want Consumer out I area a that versus being change obviously core the we're new key It's is of EBITDA profitability highlight meaningful, year-over-year positive I XX. in going breaking core BXB our and Yes. a first innovations, in from purposeful positive XX to the -- payments think that. range in to right? to negative very adjusted of segments The XX a

So, improvement midpoint, a year-over-year. at $XX the almost million

that in be been AI vision G&A, exciting will the today of processes extension of are question, you highlight to of sales which that free But internal inside what and now to up, many of focus. our our better. inroads, not a is office because obviously sales, prioritize us enterprise there is was an just as continue the time even has external in more impact can to from and the make And ability, your automation allowing

generated you of than functional up it by areas. be thought we'll as play give But be wider precision being definite free G&A. it will I wouldn't to as what should that. not and to want how just

Operator

KeyBanc. line And Steve? of our from Steve the question next is from Enders

Steve Enders

I marketing seeing to And kind know I of has seeing you're you. Thanks just want a in better any that great that, been get wondering working great. mix But Hi, there on Chris, coming question. customer driven? taking with historically, for in. been more change more sense that's the side. you're it's care if deals focus of the there the

Robert LoCascio

the Yes, in have marketing platform. proactive mean, I now we capabilities the

and So, that. are we more customers starting more sign around to

cases. and use we So, I as think, year, into care and fanning said, marketing obviously customer heading out into the we mid are beach sales last then

that area. in product pickup So, we're starting to see a

Steve Enders

great. follow-up. And quick just Okay,

wondering better Oregon, about what a the the bit Just think I as how the and want changes you might are little could to new what what early put in change on finance this, to processes that? I automate think in that. but can kind that the are think place understand core -- that you mean, areas of are help and you the just guys about be be you

Robert LoCascio

sell wrote a But vision a AI conversational case. we and them, our our to test important remarks, these thing lead my take couple One company leading should a in and when I and whole. Yes, sort is, I with of that one own around great it's us, vision I customers they results. and get of as we implement be you the the things. our platform think we at AI It's as think look

next finance, The at the there of was if and a areas whole are step in we look a really data lines the these flows. thinking G&A as lot central where

XX% would today science best background the leader a X% now, X%, can data one thinking someone spend also be like and can just is leverage would if XX% we business has be world-class. I on on we revenues that if were alone the right think that between and we who for our data of massive we a there X%. get G&A, background, so And that in drive

can the then with it. finance, have stuff our on do it us, just in, it like, John brought look we'll what And now do we'll commerce business we we run things of we bought But HR and at automation do very one if you some it when for customers, platform productize is here and when limited him can this for told take conversational we our you out about not stuff. and like, we an use internal. -- also and we it's in have about sell Because is it,

of and think largest a spend I on like But they between probably $XXX $XXX million G&A. enterprise, our million company

talking we I You're talk about giant And to what these know brands. on goes them. there,

scale a way world to machine on line by way bringing as we we the gets momentum conversational can and the use also the bottom show So, experience. business that and the transform to really and growth ourselves AI learning want

takeover. future be about who that I you leader a in should take many place, something really the it a and about to data-centric will a see but position It's articles believe that. Not on, about now a CFO leadership the we're going to So, it Chris to There's change. will let's that's written John vision, taking can how really really job. once we're on put have Chris, change drive done position saying about, a great exciting pretty have not but has it's again, we it's And leadership. this why go

Operator

line Macdonald And & Needham from Company. Ryan question our Ryan? of next is from

Ryan Macdonald

the Yes, one, good you're of made also versus expansion number perhaps that AI adopting? and volume improvements benefit that looking guess increases endpoints I the support the at ARPU year. the are Can the you're afternoon. messaging that the you from: talk interaction customers of seeing you've back with mix about this in of at pipeline as of

Chris Greiner

to talk Chris. me data in don't let look it Ryan, it's you. answer Hey, way. that on forward Good externally. to We different maybe But a

deal about If a the right this full year, year. over you contributed was think where volume

So, it's of opportunity pretty good on pipeline. the swap execution

counts the about I customers. year, XX% was and from deal existing customers mentioned, from Our and new XX%, up as about XX% were for

attached the being its We about talked ACV over XX%. volumes, up deal those to

builder, that our that customers when ARPUs and say, the We But and much what on peel on wider. that's selling over continues automations the we're what AI past, volumes you within seeing conversation evidence what from strategy but also present is now new?" then the "Okay, the in continue So, we've growth the we've grow, deeper XXX messaging business or grow. said had standard how is we are to goes that endpoint to is. ARPU we are have commented existing a we twice be out our It seen, continue to over versus

a So, focused automation leveraging lot more execution of core of technologies and our AI. exciting on even and of growth pipeline our

Ryan Macdonald

pacing customer our for is I in XXXX, going summit start the Thanks just a cadence and bit as Should is that a XXXX? generator of that. into what lead little forward? big we sales And past. they've role we been obviously look moderate terms the Thanks. to in of investment Great. marketing then see in moving know to play

Robert LoCascio

I doing it We're cadence. XXXX. we're amount hold of a -- right now. mean, in increase fair Yes, did the We'll to sort we have not of going

will, America, in There's but one the while we Some good, in did it's a there York. up have in now mean, a New one new month Diego they're South like event. markets month a We like once very I lot we coming running. San is more than just

a quality good lot and So, would ones I add going we're I the now. and need don't think have we we because think -- think, got the process of we've happening. accelerate dilute a It it, to I we got just,

Operator

And our Peter line Peter? Levine from the of next Evercore. question is from

Peter Levine

taking best And, questions. for Chris, thanks Yes, luck. my of

here is of of sales I of average. carry hiring, industry -- get the concurrent that deals more down goal to the number think, one the with reps First kind was to an

do So, if newer productivity to of the I'm -- just your benchmark. you're if you of a working, get quantify as reps how more the your a sense reps? funnel looking at really, senior of And trying is

so with sales the deals XX mean that the is Meaning, it deals XX turn force? across getting if kind distribution to have a of I closing the a you of or two funnel senior close reps dispersed more month, does rep

Chris Greiner

office of linked you heard speak of to couple terms much A to Sure. the evolution finance. very what Rob in And different forces. of one of the

the return. in the how just it's burden an are heavily in seller also less not as canvas they to should more and quantity, emphasis but turn market, individual of on quality. And the coming are and scrutinizing an the funnel revolving where emphasis SDRs on filter much deals we how to First, what's it's many top on a provide that just

XX about opportunities talked We a average XXX concurrently. carrying on

John able length to more but route too best commentary even the add truly bring free an is granular John, the his to excited bring that, process. to scientists to any about team What far will actually data are on curate the what and data able many. can you that's feel to think we're And more deals. You be be and can what

Peter Levine

it? on sales larger sales of at confidence in Is simple as deliver -- in is with Great. can these on are to your And of trying I'm kind sense to a of get SR's? of point, your any one a just conversation or final have Thanks. going is, mile? some on your get Or to number here writers? your the deals, or some I updates of what to the SIs you're are kind just rely getting you last deals guess,

Robert LoCascio

integration. a in the there shift, other to especially people Yes. is I to and starting model implementations we're XXXX mean, where doing

is when CEO this interesting, we trying built we're have about really that some part for they're very world. of it's group, year and work never the seeing -- partnership So, many BPO. being and -- known about the now, which But other pipeline any years -- around talked we But TTEC, they end and ones their we technical had together. the to is obviously at I've part implementation last crafted good right what of implementation, really business technical seeing we're

the platform. on the our the SIs now, us So, the platform us business. also to right, to working I'd inking hard capacity them for about more those of focusing you're with on because and right just do happen work, we're toward move services around that versus some deals all the having we're add it's like transaction the the into

that's around strong. We're technology it. if build company, services, doing where very we're Implementing do think and better have I ecosystem ourselves. But to a an we it's we

So, do aggressive and partner. know We messaging how that to a that. have can and that. be pass more to learnings we'll we 'XX of sort operationalize Plus, 'XX XXXX, about a from of that we lot now

Operator

of Sterling? question is from Sterling next line JPMorgan. Auty the our from And

Sahil Agarwal

Hey, my is for you Thank guys. Sahil This taking for Sterling. on question.

-- And anymore that opportunity? summits on gone live be the conversational bigger we the are XXXX? the seeing then the they of revenue getting to client in going in have there customers summits, in terms So, are year, past commerce are in

Chris Greiner

clear the our and Rob signed roughly are be through Those do We've and us, we're launch. full that going two summits hefty comes from pilot XXXX pretty to customer to ways. in increase success a hold before XXXX. get bigger we've -- to onboarded seen that different initially scaling Sahil, that year-over-year. And program. We answered customers with a them that see flat Yes, nice with in us pilot was XXXX to hey, signed

and are ticket for in volumes compelling center, starting platform diverted cost messaging. aligned endpoints much how to volume savings in you is contact new away or, if their up conversions grow them the proposition, customers or will, scores, value voice messaging from this higher see the whether as sales its open add CSAT to And and gets

seeing are from new we growth So, customers.

Sahil Agarwal

Thank you.

Operator

And from ROTH Richard? is our Baldry Capital. next from question of Richard line

Richard Baldry

or to do two some you bring delta Is you U.S. of rate you're really because increasing XX%? up over Does talk exiting the 'XX fiscal U.S. XX% there could the think example, catch-up natural rate, the structural to next growth U.S. some up to international really up that Thanks. like about the that on degree? the two? counting the or of between accelerate feel difference it that the in For Can XX%, both growth of year to in growth the between will Thanks. year RCS in demand what on get a the rollout basis? sort growth

Chris Greiner

we've we overall right? and programs we a exciting that rate, we're high talent that don't be that commented have optimistic, marketing by enables really will And the the America, -- business the in on in it's driven North America has and rate is grow continues the attached it. higher enterprise the and many are inside continue about in Materially Hey, believe pipeline but The we're America, calls not it optimistic company. than businesses really within have U.S. I on several at it. we're counting very of pace. should to RCS. North North Rich. the that We're What sellers, excited that

the grow. profile. segment the slower and also had it consumer inside slightly think U.S., is business that consumer The will of largely a We growth

overall growing as of the think in XXXX. company equal with should You

it's are of International, in still penetrated that in the we're the But growth we Asia the Australia, Pacific. over term happy market a about -- are there really We're largely Pacific. young Japan. It's longer performance with mostly a us. optimistic prospects for in Asia

Richard Baldry

up be Thanks. of the kind receivables be, will the one throughout last anything stepped Is better trend should just year starting there to substantially. in and And the XXXX? understand what that fairly quarter

Chris Greiner

we in No, return Yes. to quarter. I think to first the levels DSO regular anticipate

if the aging year better fact, it our it's at a was than ago. today look of you In customers,

on So, job activity contracting a good billings execution in really quarter. just and the

Operator

line question our is next from Van of from Rhee the And Craig-Hallum. Jeff Jeff?

Jeff Van Rhee

Thank you.

bringing I So, to peers a substantial Rob, with TAM take your market you. view, maybe start what given a could you've you're a outlined over I longer-term If if billion lead $XX now. and

Given or the a limited to resources make as a sales incremental capacity incremental products. between company, you've got decision

and sales the I'm TAM been had capacity, new back billion product development, burner seemed it the leadership $XX the Given which burner position, curious, like front decision the priority. to

you how through those me walk Just weigh two?

Robert LoCascio

Yes, -- it's at still have amount. fair if still a you look we overall spend, our

headcount. engineering in field a look But when as equal they XX:XX. almost are whole, at group it's say as and whole a the you Let's

are new the some we side. So, innovation funding on product

are a product-led We company.

They that's and So, have sell can't to unique. something innovative sell air. sales

always we to on maintain product leadership have side. our the so, And

And the But, some little of like a once the looking added mean, we areas I a we capacity gave payments. last year. about of lot color again, field we're

South in a market added now we America. so, And

now. add terrible right want capacity I So, And we to really trade the to we'll throughout that start but then, hit. it just more don't see as a year,

competitors. I think just steps got feel the product always we've we of like XX to ahead keep

there's a real it's and big don't product really lot past. line. the is the I from to TAM But a the fill change out And think we know

Jeff Van Rhee

the deep the do part decisions sales comment in capacity and year of some a the and think sort I was into to real like last latter of the come year happened what on of make were dive call, over full going about additions. that in the the course you

cohort are in you you the As sales what tell well? curious did sales, dive on analysis What that doing execution? you deep and not about you're what What you went I'm learned? well, doing did

importantly, and working they what the guess year dive, that learn more in what's hit is, and you for in did you plan did the deep did I when But there quarter? inherent quota what's not?

Chris Greiner

ahead the We did didn't others I'll that learnings. Chris. in have certainly we -- It's and well. of till year take as can Jeff. end the go wait and Hey, jump have to

began the carriers, to when really whether it event our farmers, marketing we whether was year monthly ROI. during particular, our even hunters at, whether it fact, look investments, looking investments, ramp sales the to they'd In be SDRs our we started and quota was in at

and North first question, We respond a throughout in? it well. we've profile So, efforts to the was events. evolved, just invested leadership put market in And to with in continued America for has is XXXX obviously is does paid talent hot the late our that come to us. So year hunters the their SDR exceptional. to our team continue there off of learning, strategy resources key strategy in farmers that marketing data And and complemented and behind your

other business. of we terms our were in validate key In able enterprise learnings, to that

quota ramped productivity carriers Our about to in XX months.

eyes in X, overall making that of X an expert, can area opened aggressively it, the done we're months but AI only You native. that call company, AI of is another spend it's everybody for reps, reps. be profile the companies, But this on should not training inside specifically rethinking with of shave, up off the investment that's making how commercial to business, what and our year

were bearing to the board our the not and we coming to and it And progressed, So, better taken left it high how their for aging, a a through on even on quality, key the being how all quickly as believe, of of deals investment our the are on was we're I we it's being employees, that to And then effect SDR about just going reps. see that sales in was get were that ROI started learning and quantity quota-carrier. us, training has opportunities at there front, they train behind.

the be new to and in quality we be on we lens his starting putting will we're it. this maybe top will well. disqualified, opportunities the don't quarter on a AEs, even faster the of down shave that potential has of that are to each XX XX chase, of a cycle be And we do or instrumental off layer when that or faster it the have and that sales we But deals able of progressed go to team a John put kind XX to so X.

Operator

line next Cummins is from Zach Riley question from Zach? B. FBR. And our of

Zach Cummins

Hi, afternoon. taking good Yes. question. Thanks my for

in spread guess than little any through of guidance more to can color for adjusted Is capability current that the investments the year? provide or what EBITDA out you the be Thanks. new estimates are more year, payments so QX? I over spread With kind the the be major a there expected the happening rest around there would out of

Chris Greiner

Yes.

it. into cadence First that of timing year. are some the of terms for should over couple thought forces These has the are the and profit play how of quarter in of course be us different in built

in that terms of in behind first first the off the in the in XXXX. heavy with of third in you've what present the of salaries, of The comes annualization is, lifting in right? hiring got annualization those begins more a lot quarter. that's fall us But quarter, is the continued second, to and the fourth So present certainly

to Those are treat payment, quarter terms XQ of sales accruals healthcare tend items, like to the we vacation quarter that. in commissions, timing that benefit here, how those heavy In are in things fourth. taxes, related the our XQ aren't dynamics all first payroll, present that bonus as cost,

continued in year profit second those will loss turn and positive the in the losses across the So, first, cadence get trimmed the then and quarter. fourth be of the will a by

Operator

Northland line from Mike Mike? question of the our from is next Latimore And Capital.

Mike Latimore

Yes. Thanks a lot.

just across up board, was mid enterprise? is small ACV of the XX%, On meaning, end that that the or sort end mid enterprise

Chris Greiner

enterprise both, more The count deal growth driven healthy certainly ACV was both. on volume the nice by was the contributed by But side.

with think of signed exciting year-over-year. are These in deals scratch XX/X but that surface being the XXXX, transformational down in could you deals it's If figure up what XXX% done the we future. were the still enterprises, about take probably

Mike Latimore

going on back forward, are AI AI What Okay. tailoring you attachment attachment that's it strategy core or what sales that strategy, a elements kind of or conversational is obviously of verticals that the to ARPU is And up? the the of gets improving it with have conversational and focus. double then

Chris Greiner

Yes.

mean, which LiveIntent we at is piece technology pretty called a of I built So, year-end, analyzers. major around the

voice into conversations So, in also the can that we the organization. things that. in we maps have be taking platforms, that calls conversations. to could outside -- emails, of and happening messaging picking We're are the going intents take expand like ability in We're process to all

built use cases. models of those Then, we have matching we intents data based on the to

a So, bank, in let's we can bill matched paying to, see intents that card conversations at credit the certain payment. are say, a

pre-put populate we're that that, So, and able organize. we to

conversations, of this we're we to grouping can something based "Okay, prepackaged intents. XX% has related sort something Now, of intents a say. down And those and customer about the is tool get like rest, of this else." on XX%, to the to

actually change The they console automation that can the real-time a next then at they on they're the platform it. and is, the conversations performing watching the and step automation is And agent conversation actual in builder. they the that becomes that's deploy then where a conversations, when improve build the place they because actually

and our AI released that here. of year pieces spend here major it and the So, powerful. is use and built Facebook. the it optimize We're keyword the piece moment there platform conversational actually we using it's Google the was with and at end quite three to the of to last intent We

to them. in intense happening see So -- the to in in use are that what look do through company to to at map at with come look them the then at we those our and that automate and employees in it the we intense and our with all we're our customers company, where intense trying looking actually now company, can can

technology of major last pretty was a it's So built piece that year.

Operator

next Berenberg from Brett of Brett? line Capital from is question And Knoblauch our Markets.

Brett Knoblauch

contribution thanks customers information from mid large, giving Do to out guys, my respective for that kind for in taking plan broke you of their Investor question. XXXX? small and On also on ARPUs. you addition revenue Hi Day,

Chris Greiner

of be part If it's our now. do plan as not Day, of right of another but we will Investor part it

Brett Knoblauch

forward digest, Okay. year like, you the of of of and turns XX and of how out. you bulk kind a of should announcement And see going talked seat and step process just the another lot a guys table then or this kind pull of And about, then to investments or of on maybe of everything is the incremental or kind really the take investments call, see it another last the kind investments million this to going of year? for kind off quarter, we be you think thought announced rest the

Chris Greiner

I of was being consumer second XXXX the we as first innovations. and important the you're it's Core XXXX right think, core. investments new of our about $XX based quite should we devoted think a innovation upon all, the activity -- I difference to and The platform. that a BXB first core segment profitability million distinguish hand our Yes is we between versus the material, see an year-over-year can half to And payment it exciting right is opportunity talked that the side, that witness but improvement, and on truly whereas across throughout we almost behind. invest were

sight we have to right important distinction. That of So, an I think is that's line what just now.

flat. think commitment to made clear we've pretty a headcount I holding

Brett Knoblauch

Yes.

Chris Greiner

didn't We wouldn't right. mean say that it, if we

So, XX the headcount backwards. have we you took if gone now, would

we're to And innovations. these keep so going basically added and focused it down flat we've on --

you we some capital, know, can 'XX. and we that why think that's million all we close I believe that grow organically raised $XXX in. to in build We and bought capital

buy places stuff. We and of and to good going innovating where we're a on muscle have we can't market a innovating lot

we are So gap. the AI and that's providing larger ones it the there out Can't why see Conversational no platform the is find in today. there payment it, not start-up,

focused conversational So to -- platform win and the market the space we space. filling gap the in this in to do on this stay want

Operator

the from is line Schappel Our next Mark? of Mark from question Benchmark.

Mark Schappel

thank for of though been Chris, around and XXXX. them Most the expect one my for have in that taking I answered, question. you growth a Hi, revenue question have you you just XX% number

you growth? little to around of average expect clarity XX% XXXX the to XX% that, year revenue a just with that -- do during to during XXXX Just or average exit

Chris Greiner

right in lot being rate what we we is the of least exit we The think invested but the it, acceleration in playing point that just closer cadence we'll the like to and what first then exact how that growth high-teens XXXX, XXXX, and half, see to did 'XX us I -- the XX%. and latter, of and with obviously went the out Day at long-term into achieve position Investor our beyond for XXXX will communicated model our at XXXX

Operator

And our line from of next question Ikeda Oppenheimer. from Koji is Koji?

Koji Ikeda

Thanks my Hey, working Chris it was taking for with. questions, great thanks guys. and

same really landscape players? here now there BXC year out you a sort Are the of guess, you be still hot is on messaging seeing would Any landscape right out categorize there new helpful? days. these how would the Just the Are maybe seeing I a anybody competitive color versus you question there? topic ago. competitive

Chris Greiner

the guys out contact I Yes, were pretty the the much it's software mean major competitors same there. big players, that are center well,

the competitive year. force So last changed hasn't over much that the

not much yet. change So really

Koji Ikeda

Okay.

Chris Greiner

just sorry, for one the full making Okay, on clarification -- XX% target growth is the the year. XXXX

Koji Ikeda

XXXX. there. is just I the in really, keeping place, the up is at to and messaging night It the a the needs for place perspective, the from Rob you like is really it where high-level BXC what's right sounds opportunity real mean, big Seattle profound It guess I picture sales the guess, Rob And be in technology follow these really like sounds then is I out days? here, elsewhere. up And in for perspective. capacity right R&D Okay.

Robert LoCascio

a that The big other like will in will fact, natural assume the a greatest as I is in conversational social, buy. space we or as as know we space. it's call will worry it's I fundamentally things good question. going think space. be I and operating it My and be to They are search way believe consumers which commerce Matter commerce. any be of will Conversational C e-commerce.

through now, buy fundamentally -- a now, So and I want kind easy. what night at also says, I and believe OK, we should we be car is, me like already, in keeps I in experience to up what we talking X to and that's machines from saying, right years believe you our also machine go car believe of and have minds that buying

and of the a company that's as the a So payments. in enterprises, that's and got years, I've that's consumer experiences, to shorten signing X user facing, us. collective to mind the as up consciousness commerce leader timeframe of it's building

world because in are space, biggest the this it. know is also And there the we after companies tech

got So but I've back Apple, although are we're the them contact And times, many and about Facebook, all companies be Google winner said competing will game. the there with a of you've in providing Amazon, talk this end center the we we today, the space. into

to that. we've And we years, and can is the at night timeframe the done, X deliver we work quickly what so, just shorten can up the how for all me keeps

another I And today, XXXX it year it's on really really exciting big doing. then sleep so. for but what wish vision. can we're us to fundamentally that's be that just peacefully, we I get So and through could I believe getting -- will

Operator

remarks. I'm this have that we further time, LoCascio closing it back showing Rob at I And would no to questions. to turn like for

Robert LoCascio

remark, I'll closing little like expand that a I was felt a but bit.

this box, XX% couple for QX. then know strong through we big of what years, in very year. end XXXX, probably I'm and now of at and the the at XXXX about last did you XX% in excited we the went hit we're the this the transition goal reaching So And that you looking our and in follow if 'XX. Especially came we of out we

Conversational talked use very We focused use they our it, transformation going Leading messaging the brands conversations not now, channel. about as how it. weren't consumers, And this and only people it. it scale love know much it's we those second now we've phase We're We sure about a with now, AI. strategy. do love of even on people to

we Many especially out team and great value he built Amazon. has in of globally from hired know, Alexa, you a from Alex, a Seattle.

to technology there that So think important The technology I it's for same. change how run their as here. the transform we is we've own to got their tremendous opportunity And companies company. this use a this just us think great and as talent And best then, do we company. I

a us so show LiveEngage AI as for XXXX can do. look the and AI in that things Conversational whole to And and

how whole only as once talk opportunity again Board to the and that about all company John an a internally, have about sell technology excited we use AI not world, the and is I'm to but being going on it We change fundamentally and company.

the next and So very thank you call. XXXX, for excited see on support. you And for the all we'll

Operator

once and disconnect. Results concludes for Call. we LivePerson's thank you gentlemen XXXX you This Conference Fourth Quarter now us for joining and the again call Ladies may

LivePerson (LPSN) 14 Feb 202019 Q4 Earnings call transcript