LPSN - Earnings call transcript Q2 2020

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to LivePerson's Second Quarter 2020 Results Conference Call. My name is Rachel and I will be your conference operator today. At this time, all participants are in a listen-only mode. the conference LivePerson instructions participants time. remarks, Q&A conduct at prepared and session will the management will from a that After be given

a and Mr. Matthew I the company's being turn As President conference Please Kempler, conference of go Vice like sir. Finance the to now Relations. to recorded. over call Senior this reminder, Investor would is ahead,

Matthew Kempler

much. very Thanks

Rob. are XX-Ks, earnings financial With that, statements reports that forward-looking this statements. and and Financial CEO; call various I'll those SEC. we obligation the today's release. A any measures update call reconciliation time financial note Joining Rob described non-GAAP and we statements for to section non-GAAP other risks LivePerson's website. in We available Relations during Collins, of is our assume These to will of the and during and we to this today's the certain to assumptions and time predictions, uncertainties. is forward-looking during press slides, in included turn in this comments in will Actual are to call release results. Also Founder call which quarter Both made press today today's factors, with supplemental conference as the highlights including include the measures. from which no filed earnings and me Officer. XX-Qs over discuss GAAP other differ Investor our make expectations the release Chief to of based on LivePerson's LoCascio, John about are results future Please and in and due subject on call statements, today are may current materially projections

Robert LoCascio

our for executed acceleration in outpaced earnings profitability, you LivePerson's million adjusted generated three Thank on as best history. only a of one QX but our million to call. years. margin a EBITDA the Matt. and flow marks to our Revenue also at widely the upside quarters to we XX% strongest Revenue guidance $XX sharp and bottom XXXX XX% was directly growth. is QX double-digit Thanks, margin. return of first year-over-year not line This $X a joining in

from there end-to-end With agents, Live overall this a will customers in of AI Our anomaly, and three over powered is a a to up clear by ago path. what conversations voice it conversational at world was a based of place around have still care that the put to in that is to outcome our available work a vision was shift of around around is QX worlds that think strategy conversations I automating conversations. is years capacity XX% scale, is commerce. be quarter experienced door on dynamic the dramatic the And pre-COVID, we of on to end an not automate to XXXX home a already XX% scale. digital platform. will retail beginning of At shifting rush this we happening mode are that we What and XX% today,

open has speaking If to messaging messaging XX automation filling next because a If step shift and one need live a be then cannot has advantage on need conversations reason you pronounced some the is those coming platform over to to Strategically, or back brand agent at ask is for market reduced more our access human will were the the when what of for home, brands rate a some and could automation. those take legacy is manually automated XX% to really accelerated in voice but not and capacity accessed from systems of technical the back-end form security APIs, a homes through the COVID answer. by a happened see on there their in rely of sent calls machine an systems. is to nearly take end back is agent, question, that voice us months, systems, the we an agents over reasons. accelerated automation. and for Already a

Our power than scale use with our competitive cases. have automation of billion this geographies most and across is starts a the advantage with capacity the to AI data we type -- of in accumulation which market, verticals, conversations dataset at the more

year-end we million the intent that algorithms up alone, a to We engine month are million conversations individual automate at use In a We data that couple at second develop now expanding XXX analytics messages the into of month rapidly dataset. from ingested and that our XXXX. quarter over a scale. just services

customers December human monthly from AI were they commerce XXXX; XX% use these powered times the day where matter an in is center. intervention In of wait automations by their that XXXX, and our costs consumers of for of of at covering going important, to simple human the is no and are the powered win our they between by by the providing and XX% enormous conversations had automation. up that platform space. contact complex the the XXXX capital the eliminating and conversational bots that Equally removing number are meaning June bots that doubled fact fully the believe benefit conversations is nearly from or are We cases, autonomous, required our to that were start were on fact LivePerson customers

all The Conversational AI announcing platform the strategy to this of AI are newest foundational of components, Cloud. availability builder, in Cloud space. We of Conversational and have set functions we conversation powerful and a lead intent manager, Today, platform our our platform called tools solidify The core has four analytics. tools intent market. our the will general built This combines

real-time build, of the agents goal. in to into conversation, do developed We in during code as we live Builder, agent me with well are moved key bots able to that the are development intents they Builder step people tool identified, by once called a their can expresses are of we at Let then workspace, so easily parts Conversation And a AI customers. tag intents phrases powerful Conversation conversations. platform. manager saw recognize Intent technologists what and few be intents every our a to intent and The this machine during the paradigm like low live over Conversational they was by empowers where dramatic to which conversations bot for Builder the being automated that creating We contact COVID, a automation. The from Conversation months for of use the recently at and Manager, change beta a the enables as manage consumer scripting our to agents or enterprise deeper and non-technical environment prepped created. center key to past identify is call the increase several which enables classified new intents the augment capabilities in scale. Cloud dive deploy the in

as are leading all into the third-party Cloud seamlessly data ground enable high core to tool development, other and complex The is the from between which custom real-time platform. power automation Functions you also to our transactions platform systems. components is and actions called systems know it with enables Functions. scaling built of developers because and the enables organically quality LiveEngage, tie the sources connect Functions all integrated up Conversational is at was and messaging work The conversations. back-end

where the towards instance Cloud. deals adoption quarters the our [ph] signed for a X the Our QX opportunities seven-figure recent in instead Highlighted by contract among sales of automation ever several march was and activity weeks and validates strongest need undeniable for of value. conversational signing closed months.

example than want operate the compress normal. one of curves triage as in view with prime to also XX they A seven-figure went the the agents but the customers, and XXX move messaging the new then was helping turned XX-fold and see for to up-sell triple number crisis of of began quickly number us They towards we customers action, volumes, on how platform hit, wait We capacity in more on world. skyrocketed. them to overwhelmed into agent increase more the to guidance a and up-sell is conversational seven-figure by plunged strategic adopts going shifting leading discussions the become true is bank wider mitigated first expect many to and crisis company a we crisis a largest adoption on another in we we and the and times when banks COVID-XX plan continue the this brand automations sought or Like announced a signed that expanding of strategic the to as messaging. on

of to combination tripled leading customer broadband over from both Italian a great nearly the paradigm that during launched creates on management. messaging new sales, provider that it order citing example care relationship consumers. to across moved crisis Another better our and in messaging volumes and serve AI as voice platform a with the to win This automations the customer is AI

agents times faced our the of first first second spiked, number by have XX% vertical, constituents and they also government the used response quarter, six contract sign reduction voice-to-messaging XXX from noted times a scores, to up one volumes expanded, for managed In web at weeks the with how state two quicker voice quickly Within last than their deploying just As about brand. cases represents well the of clients in moves call working months. volumes, messaging we more volumes unemployment agents. phone conversations times the the seen as and highest messaging to we've the and feels unprecedented a its to customer NPS our the US productivity deflection. help -- to in state messaging opened the with NPS of state call partners a three shifted

impact Now deploying out the outreach citizens. automations, direct messagings to state is for proactive building its

restaurant core that provide hide lot the world we've largest least demand stores with action traditional retail in pickup. they seen orders other flows a mortar chains to Facebook through conversational stores, the us, Chipotle, brick store their pickup walk they customer and to It's take cars want to can area of at actually to experience our from but work create that area quick and consumers in as of and stuff virtual a traditional creating Messenger, contactless tremendous amount area service where an a to where curbside delivered we're can't commerce, one for and seeing that get now we're AI or agents. of like wasn't I'd Foodservices come the directly now Pepper, of curbside groundbreaking launched Finally,

out In rapid QX, sales in leveraging pace, a addition to successfully matured pipeline our a of combination direct powerful and progressed created closing the we our in pipeline opportunities at or learning, sales force, go-to-market selling confidently testing effective still marketing and a new world. partner new can I this state have digital channel engine. adapted that virtual to well also teams and our We're

were volumes demonstrating brand are customer commerce, of thought leadership we host of strong QX, more second events, guidance the events. launched summit in in-person opportunities results for marketing brand, hosted of position, planned oversubscribed example, a place elevated our virtual XXXX QX in a the of to entering and initially very guests half to With we targeted healthy a had in one list flagship and conversational each we in these per For where encore by series requiring multiple background, pursue, pipeline record platform of the in us accordingly. are raising summits

revenue a still XXXX which million financial and targeting XX% we success automations a in while to where model efficiencies the invest to flow in Likewise, of internal scalable bottom to now in upside more is line. continue are growth. to growth creating controls $XXX is revenue year-over-year million, capturing tightened to $XXX drivers operating key enabling our can range through XX% We

firmly on on adjusted As in breakeven quarter's company key backtrack again, of capture again LivePerson To to brands improve experience our they are physical our the and be and happening customer guidance lower guidance in seeing labor at to believe AI at accomplishments, $XX a With strategy and improving the we of guidance right a year. macroenvironment range to and our that simply the executing Once to color its to This EBITDA strategy going increasing that, target. is the once inflection our and our a to then the center to In commerce are it automation with position vision and and LivePerson increase in the revenue around once profit the uncertain raising highlight contact are the I'll increasing also the an quarter conversational the improvement call to of scalability marked outlook setting time is the business that shifts a inefficient are second result isn't John? turn are adaptability permanent. over $XX the calls. start a which million is voice right investing desirable provide the unlikely result, from the and model. an and strength of cost, of fortuitous, we long-term million, proved now update in more I guidance. expensive, operational right place John and put platforms. of

John Collins

of pleased stronger Rob. couldn't Conversational revenue how new the our relationships environment on as inflection its more adapting combination XXX% planned drove expertly be selling successfully for We crisis channels. key and We the than all guiding through the and our them on go-to-market by with and customers too sharply messaging. our to Thanks, executed retention profitability the maintain XXX%. pipeline better delivered above well continuity of progressed AI accelerated I adapted helping enhancing sales the company with LivePerson strategy to our Cloud. revenue the and rate business generation, LivePerson business. increased a and to strategy our through demand built even partner and This capitalize by range to them cash of target and facets growth virtual

people signed in controls revenue and in that operational maintaining line. through the leverage The quarter. Rob strong the results of model increased were opportunities stated home resulted capitalize efficiencies dropped rigor million transition in the the incremental among regions drove second contract teams. on expense EBITDA in adjusted to across and As quarter and $XX our bottom automation record business we We and organization, the helped healthy majority ever. around This quarter. alignment in highest a work adaptability increase enhanced from of straight to We productivity us year-over-year the seamlessly second from and our values

guidance platform. fueled increased for a messaging as As $X came revenue trends increased record the for prior favorable signings, Approximately the our conversational monetize XX% usage share revenue in a of million contract range. of adoption gain the by The first AI our was other and midpoint those results, typically million, the models, XX% various are overages, from of business accelerated above higher $XX.X which nearly of our reminder, which to was to upside types contract remaining consumer timing streams.

X% while year-over-year, The last hosted doubled Within and grew the revenue X%. year-over-year of quarter From telcos accelerated software for grew of of terms growth, an sequentially. the nearly revenue US up XX% grew In XX% XX% year-over-year and contribution retail accounted XX% consumer year-over-year and and for financial accounted by consumer grew BXB BXB revenue. industry XX% rate and made year grew revenue. perspective, the XX% second of International to XX%. XX%, services grew technology, growth. year-over-year followed and services strongest

across we However, board. demand saw increased the

the record in verticals We in our with the deals than in volumes quarter monthly second higher Consistent total. June of then pre-pandemic. seven-figure All X in XXX deals reported and strategy discussed key the continued on the with for several XXX%, Conversation target dimensions. increased to XX% prior conversations nearly pandemic. second successfully XX%. LiveEngage return to base XXX% counts more customers trailing Revenue XX% XX-month in the increased deals mid-market year-over-year the enterprise range in than XX% ARPU March than upgraded pandemic year-over-year driven number began $XXX,XXX. in exceeded since by retention of of customer Existing increased signed. bot-based enterprise doubling our and greater navigate to yielded customers call, a in The LivePerson the helping quarter, on prioritize and securing our volumes a focus high existing signed deal

year-over-year line deals was expectations. a logos, As closed for XX% new our decline with in in

in and Fortune OEM. packaged automotive retailer, high-profile logos, a top a a of dollar XXX consumer including Although a goods we brought new company multi-billion number beauty XX

existing was crisis. the customers on focus in Our quarter navigate the helping second

and confident we second and generated secure the quarter Looking third pipeline quarter, a ahead activity. with the strong in our customer new to customer in anticipate base rebound considering the

quarter upside of with by Moving through cash with by the and LivePerson's adjusted balance adaptability reflecting a driven on prior $X.X $XXX efficiency the with the profit strong generation ended guidance to automation. revenue up revenue, scalability $X execution million, million of was and of bottom is quarter. midpoint to line, EBITDA carries The as model. the discipline million, fueled strong by million from The internal range outperformance of combination and along nearly exceeded cash we the operating the $X of expense our also rigorous

more across meaningful engage confidence is performance I there that my business, the room it with closely to build As my colleagues this on intermediate the reinforces to over long-term.

applying operations. to scientists previously and key data low As value uncertainties. me to in work the brought ago discussed, lens Rob AI CFO role areas modernize by our enhanced leveraging automating are the quarters My focus decision-making of two under to repetitive

moving progressing entire FD&A. support, steadily internal that effort and We teams with and we're field production accounting are initiatives from

For more give and data more that of and our standardize sales team which and recently of and selling. that valuable delivered the we systems sophisticated also and feeds accessible financial only proposals commission not time clean and sales enables enhance systems operational planning, business. these is focus in calculations but supports back the This creative scale more and increases example, their in information, people to readily new data. connected work, product case A actionable efficiently, the to byproduct us timeliness pricing decision-making on of of predictability algorithms strategic our quality

our and that have far quarter react plan us XX% have predictive been the the third for work. these $XX forecast let's an growth. year-over-year anticipate For financing the we turn we to such range in positive the attainment to of signings as field For contract algorithms past. can to the million, able revenue nimbly of million quarter, and backdrop, the quarterly representing in this to year, built accurately outlook to With XX% per $XX example, we remainder Tools more ability Rep gives than than more

revenue combination million or growth range year-to-date million guidance guidance entering $XXX strong raising $XXX to of XXXX. second we half XX% For revision growth. our contract to reflects XX% to $XXX or the of $XXX full the year and XX% previous of to a XXXX, platform signed, to million up from a to of are XX% volumes The on better pipeline upward robust the guidance expected conversational than million

respect what inflection macro balance a with a platform see to our demand enthusiasm continue evolving our healthy uncertainties. as We for for we for

rapid on and We've for profitability drivers, mutually investments for and think view I go in a core innovation, capacity AI, infrastructure. reducing and do most raised meaningful higher bar a companies progress budgetary without vigilance As exclusive, as the to made growth margins front investing we're in product in while position driving the including to market automation both. platform growth

a $X As to guiding in result, of we range third are million. quarter a for EBITDA million $X adjusted

For we from EBITDA of of $XX.X prior $XX million year the $X.X million, up to anticipate million. adjusted a range to million full XXXX, in $XX guidance

cash cash benefiting to half the expertise agents about points brands continue cutting a burn also our We leverage on I'll leading of $XXX summarizing million with by XXXX in to in LivePerson key minimum business. from as remote platform automation. target inflection few hand. demand a the a ending year in and of power and close is

single G&A sales expenses to to and of the improved. raise operator consecutively your strong also call trajectory compress course the raised a a outperformed scale revenue. combination and to percentage volumes, Our surge profitability guidance on impactful for The With of profit to to functions efficiently, reduce digit has go-to-market second I'll the take we've over our path execution. due us helped support We our generation. We've automating technology guidance growth plot and for adoption G&A and quarter progress sustainable but questions. that, has cash made back curves to XXXX hand long-term accelerated early, expectations and revenue platform

Operator

do We a Panigrahi. from Siti have [Operator question Instructions]

live. now You're

Unidentified Analyst

productivity from where talk have sales I half? wanted expectations second the this far, [indiscernible] of of Hi, ask why could the capacity about for about so Siti. just you Thank in doubled to as to almost in last is you. sales number the sales reps, the year reps reps don't saw ramp your

John Collins

Sure.

their remainder last quarter. as the relative are to So expect called out, the XXXX number and about ramped previously of On of in in year. of the of ramps terms we the remain of end [indiscernible] terms ability, as flat have in approximately throughout carriers, we around to had we XX% we second quarter the that our, of enterprise capacity

Unidentified Analyst

you. Thank

Operator

from Next William one is Bhatia line Blair. on the Arjun

You live. are now

Arjun Bhatia

range Thanks upside for for the for the you, you're relative where you momentum you maybe the are what narrowed. the and of that on that confidence meaningfully year in And for thought just full-year sense you and to quarter. taking are a second in versus you on the Can additional overages guide, us guidance give take seeing one's what to much have XX half the also place congrats half? most values is visibility my that of great the question relative calls gained knew maybe in upsells the -- that previously John, of counting this share the is increased days gives you ago? and to second contract how going continuing some of and

John Collins

Sure.

is So XX% discussed the quarter, due models, share gain as and us with share, recognize upside revenue increases. key volume our regard models to gain of the share immediately definitely last to as enable gain almost to component, a it's about

of into elevated business quarter. upsells to regard the of volumes revenue for of expected continue though really and expect other some balance, to we during contract remaining overages types. types, to bookings dimensions, the So increase the With kind second timing is course different a other quarter, translate the other variety Over that XX% the as including to of streams. time of upside volumes contract consumer the in and tied we of

Arjun Bhatia

just launching what's service a main so the automation and into objectives is of the different for is And AI maybe But this us introduce give to messaging what launch kind sense use it today? that? you. for than can and there more agents Got of Is can it you objective one customer of Conversational The it, thanks. maybe democratize then business Cloud, the this just of give volumes the Rob solution?

Robert LoCascio

Yes.

Apple is messaging that. LiveEngage the of, Messenger lot at have about messaging, voice and so and really of we LiveEngage, endpoints seeing on look a Chat Business we But like we're focus how messaging there do we to lot conversation. is automate what Facebook when is and So a

So a we intents Intent about then and which new to once Cloud, include which services together can democratizing again builder. service with a automate set talk and basically goals them in ingest for and of Manager, bot consumers data -- looking The and democratically of built put Conversational is transcript then building conversation you

into and you functions So group we with -- is or group and there to one pretty together systems agent you're need then that capability platform and put the back-end to technology experience. the really integrate whether much unified what single you're gives single you automations, so in an scale one it

intent intent can and So you in conversation and builder conversation an and create analyze then you automation that the then can into it's flows it. launched, of straight then

about was is to idea lot tool AI position Agent take which on LiveEngage. separate a the and a really So really then harder the automation Live set, and out

Arjun Bhatia

you and congrats again. thank Perfect,

Robert LoCascio

much. very you Thank

Operator

one Next is the Peter line on Evercore. from Levine

You are now live.

Peter Levine

and taking for my a great congrats you on thank Great, questions quarter.

So just me. two from

come I deploying in deals of deals this How it did were business usage this So pipeline in how or deals you these upgrades seven-figure the was long kind about? those the long was -- units? had across really how how do deal companies these more -- and -- other towards a is when higher was so messaging or cycle they quarter, long mean the upgrade --

John Collins

Sure.

a of land expand to Certainly accounts. is all of the these our and strategy it's of big kind above. So mix

in happening. and deals at verticals the the for are Conversational into The the base Cloud precisely seven-figure new you adding cases, we so additional said, volume, renewing some within cases and from existing of products expanding enterprise. other departments In what's as within higher baselines that's And we're

Peter Levine

then it talk per quarter. monetize the you Great. off -- curious to customers you just and that going seat Cloud? LiveEngage? charge, on Commerce it Thank from maybe know on piggyback maybe rep just just a how last can differs congrats Is question, to how is And you're the about to

John Collins

of pricing per move with moment, certainly our it's a structure. have sort the at we interaction to currently not structure. So cost of more per room structure, it's seat But a

obviously, tap and demand have it's service we well. as product to a into by various is associated So increased the right. And these driven databases, there our a functions the have charge great usage, use API customers feature to -- with as those among

it's a usage-based model, really So not model. seat-based

Peter Levine

you. Thank

Operator

on to only Please the line Baldry ROTH Next limit one and follow-up. from one is Richard question one Capital.

now live. You are

Richard Baldry

to your I years IPO days. you from amount, Thanks. last note the that, XX increase you in it revenue the took wanted to X.X to did same

as challenges are that in given against So backdrop see as like acceleration strong not pretty challenges environment? rapid to what working to a you of talk scaling sort So remote hiring much a curious, be there's looks of that can what may about the face-to-face their your what to educating, you in growth?

Robert LoCascio

So, little if I unfold that a bit.

First is, we are not going to offices. return to

working a quite we're and working us. well as how company we for decided change have obviously, it's So to

the at we when would sure wasn't call, play look activity things I activity out. I last marketing sales So said and on quarter's how

our closed. customers a they platforms, the But Our to in and a and is it's lot and we face-to-face drive marketing are be face-to-face demand referenceable our seeing that the good events, such the outweighing lot deals then need mean our just products events of base. for we have

doing for As you and know that. that they're like webinars us stuff

so prospects. So about basis globalized we've of our point, distributed to mode a really because employees. of as set can their at learning set we, for moving things I go last played can don't We I can very just see and we have we're quite after, different us, are this our Israel say strategy the we we we let's we've distributed, work a and way. customer to access at up figured, innovation end our are we're working want forces, feel And side went I continue we're we you don't also been partners because concept and don't thinking about different the the able engage after we where XXXX, of lot remember, know, them. well different year well at very since go of customers. one and but was We of a have good tech to how just -- been that's going face-to-face, forward lot operating think marketing in because more this on you're partner-focused into moving

partners So go-to-market mix. we the strategically product I of nailed on kind the just right think and with it

The Cloud, So, the all of kind Conversational out. it's playing of launch

So...

Richard Baldry

on but done. into, to change names things and you you how look get follow-up might be doors you are open willing recognizing have the of seen early prior, success? but changing indications you that or things people some pipeline, have seen that to A wanted were that into been Thanks. any that to like, their have have resistant noticeable maybe When

Robert LoCascio

that's really play thing because want and a is they And it's usually The exciting been to Yes. retail products, to place put retail. don't never it. for in labor us very just low-margin was

the stores, whole we our a go improvement to retail stores. don't come So home that now like to their We've our they stores can companies, people virtualization with box one transformation table is there customers with of one of enter the piloting big of been as automations much, and world. of of

who messaging Republic your QR QR into, now So phone who a you code, can is servicing actually store York. are there's agent automation every and the hit New start you in offshore, code a or store Dominican in in walk in you remote product is a with they New York, there the and is

been of this and the pick works very to it. in doing we've up a and for have somebody technology with it's -- months They go face-to-face it store. well. got we've curbside too. doing with running at the Consumers don't been So We're love couple

for really announced we're with us Obviously, So, doing that we is them. I is think exciting. Chipotle, retail the what something

right in more now, they're dislocation action that because in than business of game. and looking to for lot the the we've of past a there there's of had the So something change

Richard Baldry

Thanks, congrats, Rob.

Robert LoCascio

Thanks lot. a Thanks.

Operator

[Operator on Next one Steve Instructions] the is from KeyBanc. Enders line

You are now live.

Steve Enders

and reps Hi, incentivizing great, gain are guys. It better business you're thanks to of of they of the agreements? the push accelerating these are get seems side revenue and on just you to like what how you. share for a more I exciting more wanted understanding seeing

Robert LoCascio

Yes.

that. all very different live in and the business but actually business. us very who say, go used a bat, use what think in we we'll trying to it little a past so what's and BPO. for gain we have and agents, But is, off so interesting get bring labor to So, a maybe to handle as can customer We're get right out it's like it we up something I than messages going we a into not competing look unfold gain the is platform way best. is partner can we're I share the really capacity, the our The bit, share to -- agent and has quickly present be break

is labor to goal trained specialized we've take is Our that work on automations. and that this and they very labor

the look automate. look at [ph] using to going like, about you starts the all of walk toolset have, but share we're we goal then gain programs, automate indoors agents taking XX% learning we and if intents to flows, So it the and when messages with these the human

what's start out, months equal that and XX of half We a the to over about price have then we'll conversations. the over so a a and we're volume per agents competitive down huge cost we'll because here. not automated of but getting more and rate quarter They strategy. a advantage. on being let's at exciting for to we create fits say only then to message, it used XX We're looking are So our drive BPO months, cost price, it that's an live because automate it

Steve Enders

better get helpful. like Okay, saying, uptick And quite sound just does of to it usage. an sense a you then great. That's in are guys want

better get back from of and better contracts have that and you're handle uptick of trying seen, more sense when flow those renegotiate seeing we customers to the coming revenue? table some Just you usage and that seeing to some a of beginning start to that what to

John Collins

So and and the been has customers. the we general of rolling quarter are we've usage those trend we've those contracts couple need think interaction is, I enterprise that agreements course standpoint wins highlighted over continued over cost in historically in that had key contracts a license from of prior into all-you-can per essentially a upselling that and

volume given telegraphed. lot of on expect, in contracts the in CPI we've in that, of top we at course, volume strategy. baselines many they volumes, renewing today increases had success the of might the so, and particular baseline that base And we've as have higher of were increased On that you a considering

Steve Enders

really That's great, thanks. Okay, helpful.

Operator

one is from the Next line Rhee Van on Craig-Hallum. Jeff

now You're live.

Jeff Van Rhee

what from Great, in into of the couple refocusing how precisely, just elsewhere of Were dive a A we thanks. the underpinnings deal read expectations just deals? looking that existing To understand back? with to on those you counts through going those of migrating deal sort where kind flow, think can new trying hit to your on congrats. moving more I customers, it my normal from deals come pace? in of I'll exactly those new a customers month-by-month Was and progressed now add it you back to little better and kind deals? dealing on me terms guys. Just function just pre-COVID messaged at on you of you had head the of are now your existing was down for

John Collins

Jeff. Hey,

we prior described and So base. to we the the on an what is in really that intentional strategy is focus story the that had call

levels really XXX%. higher a XX% I a think important As of we them XX%, crisis target of that continuity and it's I there XXX% note that business guide and than ARPU to range to of strategy prepared for high need described retention And in my help to remarks, us maintain customer our the in to was needed, service. increase through drove sort a revenue

as result customer existing So, that strategy. of I'd that XX% a also deals up were add year-over-year

in and So to new regard that some deal question. and remarks one an retail, is strength we're to a would related prepared of would the of really, clearly we say logos, With I counts. prior had Rob quarter to those say reasons the lot various described strong a I a in for on dimensions verticals answer

base generate would of second I in expect and think amount been third we've there pick logo of movement, and amount have in pipeline already that of meaningfully the the up has in the quarter. activity considering ground to addition we now the in quarter the we covered we new the sort to secure pipeline that

say, certainly pushed another were canceled the increased activity that to will slow, reason things not into deals I up is some logo your there quarter, whether have were on, and new logo As which time. certainly confidence at were that why third is slow, -- we but question pick there new would

Jeff Van Rhee

a Okay. [indiscernible] kinds now your And revenues one where just brief those a have follow-up, as share, on it the programs? many percent of customers of just magnitude, and are programs, of roughly how sense gain is

John Collins

say moment of customers. and It's would the of revenue about dozens generally XX% I at

Jeff Van Rhee

it, Got for okay. Thanks questions. Dozens. taking my

Operator

the Next from one Mike on Northland Latimore queue is Capital.

You are now live.

Michael Latimore

the two, contributing how awesome quarter. how bookings few I guess color Yes, on a things, partners since more the to little a you've of has two maybe one grown quantify much Thanks. the you give And then start times, just is, pipeline year? can pipeline mentioned partners in now? the maybe are

John Collins

Yes.

described. the growth record. described, second pipeline that And develop as to progressing addition strong close as to a to we So was previously entering -- really in the previously throughout continued quarter we've quarter a pipe pipe

the moment. of at with So the health the happy we're really pipeline

Michael Latimore

bookings little And quarter how contributing then, you can the and they Great. a the on to in bit, partners; talk are pipeline?

John Collins

dimensions. different on really two They contributing Yes.

boots partner through tap customers. are one into on have to obviously those network be, also partners the that's more of lot a the services ground on we importantly and us They today. helping professional So us existing allowing base would work

through in leverage support that and had for that's work margin do both we've to professional to services that the on partners, have field we of ourselves. strategy So the model get the low additional part historically reps the

Michael Latimore

they drive of big the deals any the Did in quarter?

John Collins

deals. driving definitely They're

deals This responsible -- discussed. quarter, the that not we they're X not seven-figure for

Michael Latimore

Thanks. right. All

Operator

is Next one on Sterling from queue JPMorgan. Auty the

You live. are now

Sterling Auty

question. on the Thanks guys, Hi for for this is taking Matt Sterling.

of how going in do the XX% the it of this guide? EBITDA savings the in terms previous to EBITDA next expenses and think years in So of X% to from quarter? EBITDA you you're I'm the where How of think do context from cost about out the really reinvest the cost much the asking lower business in margin, margin you terms couple finished of on savings

John Collins

adjusted there in the out the third back down there business going some support is we step during XXXX on be Well, or implied couple EBITDA have all, as contemplating to is quarter in I record some our quarter. And had relative reinvestment won't we of suggested, think of that call, infrastructure. into to commenting guidance and which also a we're our our that the I have level given strong, previously this years but that need We're it's we growth that magnitude in and in After a say and the second the a platform include engineering, stability customers. of the investment for reinvest business, the kind I so to to on volumes is But reflected go-to-market the those to core continue would and is capacity. that in be the of that science service drivers guidance. of investing again of ensure high

Sterling Auty

Got me. it. for And then follow-up one

the how fully increase is customers terms more XX% from conversations coming ARPU now In automation? of adopting that are the much automated, of of

John Collins

the said, So as levels in base and driven it's adopting really we've to our relative ARPU, base by terms history. of unprecedented the obviously is at automation

is increased driving clearly that So ARPU.

Sterling Auty

guys. Got thanks it,

Operator

Ikeda line the Oppenheimer. Koji from Next on is one

are now You live.

Koji Ikeda

any you really sounds could take hold ability our sales a quarter. to department if Hey, back-office guys, commentary provide on to about be too. the ask and are automation introduced on beginning automation automation I automation strategies. the and they high-level was those seeing like we the great could those finance should wanted productize how start bit on back-office the I really, to to we there, little thinking wondering being in when technologies market? really especially just It out congratulations with department, a

John Collins

Koji. Hey,

certainly not radar. on at to to moment. I it's you put would But on give prepared on that our love an a timeline it's something the So we're answer and

Koji Ikeda

And just one Okay, then, got follow-up from it. me.

the could maybe During coming may if a magnitude or were up up the quarter, renegotiations. past? due be renegotiations was overage that threshold of some my questions. did to quarter contract the this put wondering quarter for bumping you in contract taking you I talk the against versus Thank you the upside years customers on about

John Collins

the include is short and seven-figure the the and that would to answer Yes, summer distribution in range. this right that quarter is a question falling distribution, there throughout that

Operator

Next Group. Summit question Jonathan from from is Insights Kees

You live. now are

Jonathan Kees

hear Hello, you me? can

John Collins

Yes.

Jonathan Kees

about seemed seeing results your across super. quarter a ask to to Okay, business follow-up. my second. by kudos of they in I'll if terms are terms the XX% spending you patterns? they normal, It's first have back more you're you -- kind quarter but that you're the are I improving great every Didn't impacted revenues have reach guess more the give color terms that, wonder strength and been quarter. in all wanted could there I yes, Last and was I color especially guess they rebounded SMB afflicted you the for your been all their can to some of think industries of from just, that a COVID? month, add seeing, the some I that afflicted industries in it's COVID. about with here. of has industries this for verticals, talked they the normalized bottom to of

Robert LoCascio

Yes.

or customers of talk there -- thing about we've going and the or on customer one platform, the trying think business statement by they're our didn't to not it be means this in future their out mean we if anyway. to may is I that have paying transform of they're was, So business bold us I recognized defaulting

and So change platform automate to airlines we work the on game. a platform the our have that the they're doing I even and lot think of on now

a customers, stops see paying connected of and walking to a some -- So more scale, and I ones to to have want they the in think conversation stay stores get at relationship. them and how you they're especially kind this of want platform, stores. this engage close with beyond we're where us, the conversations create some platforms in on local the website And to scale and investing unlike that even their are now they're store. if our these into -- past group SMB and have consumer, if because the have the we're relationship deeper have They and we people with a area they capabilities are physical are they really even and other platform want the SMB,

the are I board transitioning, people and businesses up right on as across think good just seeing So, their are transforming. now we just they're platform stuff our

Jonathan Kees

said helpful like are payment Okay, not when all the previous I And for was you think right. that asking quarters. in they deferrals

great. also guess to My quarter. is that's relate last follow-up, I So

sales brought EMEA You in from new a force. had one,

this quarter, X% International about You year-over-year. grew for talked

when the quarter you in like international of terms terms picking last of new impact up, decreased start wondering the in when expect and to Just EMEA year-over-year there? head growth you it's see the efforts

Robert LoCascio

I mean, they did job. a very good

Sorry, Go John. ahead.

John Collins

ahead, Rob. go No,

Robert LoCascio

John. No,

first. go You

John Collins

is there over going making actually that, leader of investment onboarded the the Yes. new changes that that in some of slight is while the to revenue, quarters. ahead a were that see expect couple that down we're the Bookings EMEA, schedule step additional we in capacity, given play out we have results next of

Jonathan Kees

Okay, great. right. All That was gentlemen. Thanks helpful.

Robert LoCascio

Thank you.

Operator

from is queue FBRs. B. Riley the Zach one Cummins Next

now are You live.

Zach Cummins

thanks my afternoon. good on and question. quarter Congrats Hi, taking strong a Yes. for

uptick XX%, volume? about since the for as of in us seen And capacity conversational to the volume this of we year? the you conversational volume be into insight can needed maybe into on give in some made onset expectations uptick Rob, hosting in for of the you the Focusing second you've half investments go talk pandemic, can

Robert LoCascio

Yes.

growth. So see we continue to

and up nicely. So but week-over-week, XX% at massive up have quite that month-over-month, growth continues continuing not we that rate, we're so still grow then going to

public add capacity. to cloud looking are We

say, and and cages who there's we in I seeing, we going than the It's capacity the a to they're everything, put the a they in of data putting all we mid-sized X,XXX this shipping. South agents generate to And shortly. be know can or in not who As automation. past and that we're run their not very company, a the to And a it's spikes very on we're we name this you public public in seeing. so of and customer I don't we're but to get handle one a get top What's ordering are. logistics know, of amount flexibility agents America our and supplement spikes know is of our it need your because, want even, but clouds. I'm would down they're to the hardware big efficient. cloud around platform us, back don't known they we'll of company -- and because interesting the running saw the XX to world South choosing at tremendous the just different seeing, more and we volume providers I our into up X,XXX because around is logistics sign with But a level ramp America, platform, past volume, clouds And they're we'll more goes then in today, own our our level automations cloud Basically customer security X that. volume,

it's have platform. don't agent a on a tool. our much driving so just agent they and live have pool so And volume They bot

So want it's we what's large a drive whether of it. telco happening to these on a or it matter, huge have they in spikes obviously now mid-market don't traffic. is, we ways doesn't And a cap put lot to control and don't

we're with capacity be So spike that. on focused able to

public the we'll it and talking in with in and I we'll then or pieces that. be next that we're of on to not putting -- a as then that, we'll in everyone massive and add then it forward. adding But their do don't quarter so, cloud on it move about to customers in to migrating migration, we or going want So capacity start to what do business and add on we

Zach Cummins

about for new into breaking helpful. on the with opportunities side the of into And other Statewide That's the is, Understood. talk there you Contract? mean, then verticals? some government with I me newer can specifically just these question a you

Robert LoCascio

mean, had and to up COVID government. with going people they they're between to can't tried -- human insurance fire testing they and quick labor, they I can't lot unemployment obviously And on with hire centers they contact Yes, do there's these and enough. just a and still

with up the big one of Northeast, partners, to benefits. states their with unemployment response one on the fired we our of So, whole

around think lot like that. I area, partner so, be And going this we'll more seeing a we're we're demand with doing to and cases that be used more in

the transitioning right work really well of doing quite -- quite now. vertical amazing going retail said, quite I that's on Like the Telco telcos exciting. is their a are verticals into volume lot So automation.

we're board, a around different telco sort verticals. that lot across that doing cases So but of now seeing with of right customers, the there's our interesting use large we're

Zach Cummins

and quarter. again congrats thanks strong Well, Great. on

Robert LoCascio

lot. a Thanks

Operator

one from Benchmark. on Next Schappel queue a is Mark

You are on live.

Mark Schappel

on quarter. good afternoon. job Hi, Nice the

John Collins

Mark. you, Thank

Mark Schappel

My question for you.

Following up due your Europe seeing the automations? slower curve growth to just on internal on you're international behind in prior just issues business, operational the messaging overseas having or is the is you're question and

Robert LoCascio

in Yes. that got We market the and just little felt it But over was it's a leadership over Asia. in issue things not Europe, there. - a slow demand

Now the over ground But bookings new numbers for in they have there, on QX. America. feet we exceeded South also their head the

in got in Europe's Like now a he's going came have Europe's -- it in in we've three I there's cases impact telcos lot there's ahead not way no, of versus think player. US. behind, more lot But in Europe, it So a to an and because some competing, more telcos is the us, markets. competition

a like, last shift. each there's want So five beat lot of seen I've they to the in other years, always huge a out

So of should we obviously Europe XX% very, we the a upcoming the quarters same and to growth in growing very And should see the start above seeing well. growth there. in is the to same they're U.S. doing But beyond. see market and I'd over sort growth, return like

Mark Schappel

little sounds bit, shifting the but like was the Conversational solution, the there's Cloud with LivePerson what meaningful per to then benefits are platform And benefits customer in that gears a respect great. se? announced, to Okay, it some

Robert LoCascio

which the are conversational the in e-commerce, believe not driven scale and agents our will and we strategy, benefits by be from chatting. is automation, the by will that automation. human of conversational It -- transition that will messaging driven win win The be Yes. commerce, the is commerce, which commerce

conversations it to And of there, can about to move talk allows e-commerce after we so retail, us, will but we're tap for weren't that's volumes conversation that out us commerce. in like the that volume really retail before, I tapping from

saw drove It it's going going So saw drive we quarter. do. of really strategy. the to is to we the results it's future that's and the quarter our this This in what in what's

what business multi-billion basically foundation in the -- it's dollar is So for say a again this I revenues. is

Mark Schappel

you. Thank Great. it. Appreciate

Robert LoCascio

Thank you.

Operator

Needham For next question, Ryan from we the & do MacDonald Company. have

on are live. You

Unidentified Analyst

approximately a it A $XX,XXX this workplace. away Hi, company few Ryan. centric to ago, for Alex weeks per And employee the moving year from discussed traditional per costs you that is in be on office office. mentioned

of remain percent forward? about workforce should the expect So home those do how then and savings we you to what working think cost going from

Robert LoCascio

Out So field working some in just color put so it. home people. already pre-COVID. facing half are to of our their around yes, or so employees, These before X,XXX

And about that so year were in about a working And million space. on we year million a there's $XX offices. to XXX on $XX spend million $XX -- office

We employees -- group without are frameworks as for of office with the this create are physical now that working space. through working environment in operating internally to

do. But that's then they and week together of we're a that to going then want push Now, months, maybe right of work. down them to money sort work it's more on maybe six much to what something some for be next of I may in physical my to Like in for And a now. to going work that one to well, this we're like of hands, I working to days employee's person get let they're home. probably, be going the them as decide where six environment certain people to and to into and three have or location a they group, an we for it's flexible think office says, want amount I want want a

people and now, at the So XXX% We made to the Because back And seeing commitment, what they put they get of in single right to I'll we why not were again, is a best January. living people false of will about back the did are unless hope Right ourselves going city our this until move a and but somewhere go Especially would that's them come found in for savings to world. it's I we still. life are hang make that. cities best choice it back. open have a in small else to operate If we way just is to be budget not the allowing people office. on a home, who want kidding to we cost who think telling the September, the are We're the and in have the you hands don't like not then I for employees weren't of there families our kids challenging and to apartments, a that and out employees we we're don't can and live we think's distancing. go I to made now. we're commitment important. office migration vaccine. tell social thinking take no not. and we're There their

people a world opened up recruiting, also different places it's thought world. about best you of in from whole So find can the the

into work. about probably so employees And really a I'm the to back well it's savings pretty cost And put money this it. of excited not make more fair a now. that measure amount right It's

today. should at we it that's so how shareholders, And as look

Unidentified Analyst

makes early any one-time in Okay, will that sense. that for result And termination? then lease charges

Robert LoCascio

will they're into to and to our work to today, and harm figure not one just but which negotiating just safe. allowing thing offices going safe, pay of -- potentially us is, we're willing us all, put money landlords and they and come to to out built The And cannot back our that first go that's our be good out them not landlords. these offices do. to they our want the that Potentially, it's make we're offices we to that they safe. are with day, problem employees, have make not don't back have put And it

and long XXXX. of -- XXXX, we one I almost were almost hurt got estate estate in the with the back So, personally, is, them, the but and since bankrupted long we're went company negotiating company, we on real things it real on we got never

we a We we have built that. don't have don't don't of So some lot exposure with giant something big have we thing, this tower.

landlords our forced alternative measures we're now of like as cannot to out said, speak. our go safe take and I negotiating But provide to we're So so... leases and a space we

Unidentified Analyst

you. thank Okay,

Robert LoCascio

Thank you.

Operator

queue the is Berenberg. Knoblauch Brett on one Next from

are You now live.

Brett Knoblauch

mixing Hope Maybe quarter looks bit dynamic like the Hi, that John. for services. accelerated of talk guys. expect Can remainder for call. well. relative would in really are my taking Thanks a news? guys to It about you all continue of something Is you to to hosting one for BXB cloud the the year?

John Collins

Hey, of is leverage strategy have partners. model more through in we get the because it the yes, to

work We our they increasing will going services handle of professional expect size that forward.

Brett Knoblauch

have an completed And it perfect. February. payment update on then half investments related of in progressing Okay, one thus investments what been the guys percentage you maybe those highlighted and in the there, first Yes, how just far? is maybe

John Collins

so with we and with begun after we'll testing to products as third have be discussed information Yes, able some the release the customers, payments quarter. previously more live we

Brett Knoblauch

Okay, much. so perfect. Thanks

Operator

on Next queue Samana Samad one from is the Jefferies.

You live. are now

Samad Samana

Hi, good afternoon. saw hosted if sure I'm I'll us growth, guys a give taking I one. breakout you I or revenue maybe curious then quarter for echo materials asked, was on the heard question. in services the could the And the just that not Are my slightly also of the maybe customer of geographies Thanks strong the housekeeping have the my call. been comments. but in questions business of moving and have behavior on of similar seeing US Thanks to taking experience gone where countries. of in other change in started have and work geo for or the my for back different, people to kind pipeline? any questions. you reopening question again Most outside that side, a but just out

John Collins

to latter answer general, no. question, I is, think regard the in the With

that previously, we've as earlier. new the been As in we've the build discussed, that overcome with think those quarter will XQ there's progress said gives overcoming seen, we confidence us the and I logos some pipe we're saw now. And second frictions that friction we

Robert LoCascio

the to services year-over-year. regards in versus hosted in up And Professional year-over-year second services, the hosted X% professional XX% were were services up quarter.

Samad Samana

Great, thank you.

Operator

you may a question on no There further continue. queue,

Robert LoCascio

Thank you, operator.

few I'll key a reemphasizing points. end by the call So

this sit is I've they world they've turn a under and widget where to voice from the and their Obviously, as each like Our is navigate, every coronavirus a of minutes talked of the model They're think legacy centers really before. the brands in factories, has growth inadequacies those feet expanding inflecting now our and and conditions. that massive contact two I And about that sent leading happened revenue five work home. in have with can't people expected get been exposed call and LivePerson ear to other changes the change. they're to

our to stuff the of is capabilities must So really the We believe to components. that just of now, to It's The the LiveEngage. platform be ultimately, have. now we platform market part Cloud, also that have not obviously, is I generated what's Conversational going conversational take off think, AI AI obviously, and stuff win a put as is about in our that's out will AI interesting data all that set, because our our that and automate in must

going different cloud, They Our that be different and be conversational they many then one Cloud around can customers even messaging will they in Conversational ingest platform, may sets power tool conversations. able to to aren't use as a using AI's day, AI's into The the our that. to and build

much to shift, didn't a Many role And Crisis, we role, to, is but I sort happening called about CFO the wrote and time. that they have have and analytics-driven. in far phenomenal -- there's staying that our an very about how role, impact someone I delivering done just day from Andreessen on I'm on of is about thank I'm talk play in focused, he's just And a business are as think all conversational website excited very and on working his in definitely employees article we've and AI of in has John in environment one if but job. will to a difficult And then very even for through John as shifts a doing be player I and just has vision background the Horowitz you job everyone processes. a have be our many that a about an massive definitely quarter. going will So, greatest automations one the we it's title. to driven work on home of very with think proud the And done changes vision, conversational executed open delivering of through job. to the space, a hard or it the of from data-science CFO great this c-commerce the I that's the lot And we you what charted an so and a the staying a want think how and macro and which finally, it I commerce, said and who commerce impact the of focused -- CFO knows And enterprise. lofty was short extraordinary goal period bigger had who risk, being we it's want that team system. charted e-commerce which owning of more the putting a are

QX. of you. we in So Thank thank you time your and in each that, with hopefully will -- see for you

Operator

conference and today's Ladies gentlemen, concludes this call.

may You disconnect. now

LivePerson (LPSN) 4 Aug 202020 Q2 Earnings call transcript