LPSN - Earnings call transcript Q4 2020

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to LivePerson’s Fourth Quarter 2020 Earnings Conference Call. My name is Matt, 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, question-and-answer conduct at prepared and session will the management will from a that After be given give limit participate, and To follow-up. opportunity one one to question please the everyone yourself to

recorded. As like would over Mrs. to is go Please call now Idalia conference I Rodriguez. a the ahead. conference reminder, to this being turn

Idalia Rodriguez

Thank you, Matt.

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

Rob LoCascio

our quarters across for for joining strongest profitability earnings for fourth one growth revenue, growth. our quarter. guidance exceeded third quarter quarter XX% Idalia. and our records with plus call. history. the making of We Thank consecutive which first of million the XXXX marked wins. the customer quarter Year-over-year $XXX.X $XXX had in the QX delivered a XX% Revenue an awesome high and quarter LivePerson of was our Thanks million end was range quarter you LivePerson’s revenue

long-term One XX% I For the year-over-year had our a year year grew of XX%. we plan. revenues exceeding growth full

with Our second enhanced increased a continued Rule end automation focus operating new internal which million XX% of EBITDA and deals, discipline record margin QX and QX logo consecutive exceeded ended also of hitting of on adjusted of seven-figure our new range quarter the financial to XX. XX our or four a high of translated the guidance leverage. wins. $XX.X We were

the annual seen contract acquisitions momentum strong have year-over-year base. growth which within logo complementing customer logo in new We with is new our existing doubling value of our return

processing executing like back quarter of our we When any success. brains to starts years going all of leaps I'd rise means the AI terms AI key into the single can processing and data. simple In speak in AI capacity. unique Because what software set of about and at goals the AI Before that outcomes GPU companies Dynamics There's be that and what AI there Amazon general to the applied like ago wins a image take our tool vehicles. sets deeper do AI of shifted step few to make Google like automation. The Conversational share very and focus driving having thoughts of Four strategy enables we on categories. our on a large autonomous to the is normal forward it success a multitude of the or its really strategies makers in technology to AI like central to contribution like several Boston represents and of are can scale companies against things to a beyond across from with one greatest and us. technology Microsoft human its the robotics dominant I'd our purpose like industries. what unpack and we're Nvidia role

set largest can which interactions allowed engagement the to and for is consumer of its that data powerful a a we that world. big the Analyzing itself unequivocally solve exist one processes what in data consumers. exponentially brand think Our set develop and of set to us between had tools in challenges about we

in we to tools end data this and just interprets deliver experiences platform to dollars the a from annotate card own conversations rich to have built create as box in of of conversational and And lot known them created a over years to AT four on a business middle takes with AI enhance tens the of and created to also intellectual example in past AI pay make XX% automation extract space, deliver issuer the bill center numerous data language call and analyze sets and and make For Then that and the like the which NLU includes which the the engineering the competitors millions data to across launched we it those during what we unmatched rely intellectual talent Cyber and tens that average tools data on which transactions Google, automations AI care. a that savings consumer property credit human platform talent, ride announced an annotator of of messaging a year-over-year. the in our had process contact we puts us and on team four-year enabling likes vision our chat Monday And around world. contact in Volume Conversational conversations dataset, to of of therefore of is conversation millions can XX% comes stack. with agents of it an XXX some example by like to Amazon and had peak we to A order things center automations definitely nearly we data capital a make of finally them XXX% company that Friday have automate the telco tag that and Microsoft for we our patents we best deliver like we AI. data rich. Overall, as technology happened when filed and science unique and take scaled points. we customer or yesterday pay build or gives Conversational messaging to all bill any what's do nearly in Black against a bill a the the Cloud lead volume to pay growing that on the the month build normal setting world-class them skyrocketed

and consumer next The shift ad a worldwide years. survey get likely and purchases global shift from they want revealed ability answers can in will with traditional over are base latest Driving web behavior to messaging. that brands, up if browse intensify shopping, of tailwind over the retail a XX% XX% XXXX of the is Conversational Our consumers the to in to make XX% they previous expect more that year message in Commerce. September few say and only we e-commerce in

retail and wins in with our Conversational drive fact, opportunity few Cloud In I’ll quarter. ahead sales to examples illustrate massive the to revenue. a big that a use brands incremental we're seeing want with the of

world's cryptocurrency this a is marking entrance strong growing of notable logo One multi-year largest wins users of new platform with deal our exchanges, one segment. trades a hosts rapidly with billions of Their of millions the into globally.

providers untenable. has online Previously become tremendous frustration. quickly they toolset a operational are are manager channel. of using with like see They they their the human became answer ton issues with As that agents ramp customers of and conversation up use they a such to using a created as using questions to a business one leading vision aligned ticketing because ramp on CRM system customer of of communications inefficiency automations how builder. a email system content primary able can AI focus from created The the were a and of our our and customer

and customers. too William and sports, messaging and with in The to a platform notable the legacy the It goal a consumer advantage of quickly cap Cloud brands and quarter with deal Mr. William dollar William Hill company's Hill The during closed now -- consumer three the Green. top year. of gaming implementing a gaming Hill LivePerson the our platform booking five and William past Hill multi-year reinvasion expand global key take highly companies is to of was millions strategic Another Conversational Group, including per service customer global are marketing solutions With the agreement sales win LivePerson within months. across X% product interactions active product capabilities. we’re will top experience. multi-million replacing LivePerson’s onboard of including company differentiated three

opportunity employees, AI take experience generate the world's to antigen Another bring analyze companies. an powered were an then customers the We exciting safely health its guides a conversational [ph] seeking its existing floor one of a in then home pass. with to who win to to banking branch and is rapid work. one in developed solution employees employees back back the results employee trading this that of test is and COVID through testing our testing QX scalable We top introduced

have of record created the level as work seven a XX-day a a So deploying vaccinations was a figure employee which high deal within back for COVID-XX of This cycle including to offerings around we governments. efficacy. number state of with go part we are can with secured ones sale

quarter. new the with robust the last existing logos we expansion customers addition multiple signed in in to deals momentum In also

tech QX around new the top messaging messaging and to This consumers with to a reach. our partnership platforms capabilities airline our our clients our our go-to-market across like social Our repertoire. highlight solution XXXX. continue upsell in new flagship and industries, Twitter, Partners to AI-based of to platform of and to brand part Global first strengthening Facebook strategy Business effort an expansion consolidate stack IBM LivePerson marketing logos airlines will across their to Services. deliver an represents in five especially social US leverage Instagram. be agent capabilities and signed IBM their in was go-to-market with together media The communicate work key add

XXXX three partner. XXX In of our degree partnership. were first in of key last its kind a fact quarter by this joined Infosys facilitated channel LivePerson

an with Infosys’ and Conversational strong working and PMT with base. We progress during developed logistics vertical client retail We're for are including the Infosys closely consumer seeing the the groups finance key quarter. great Group. within a Cloud We services pipeline

key go XXXX and of be ahead to of payments, and more than cases traditional potential the brands capabilities. advertising and messaging consumer to focus shopping retail and targeting we'll extending marketing opportunities commerce Looking to for these number double AI-based We build and media, our areas in social to continue enhance our and a see out experiences. after including product as platform intelligence and sales look we'll

and acquisitions Our the And approximately the of supporting Cloud that, Conversational in I’ll in these an value logo continue and and the accelerating guidance. growth already latest partner turn we’re and momentum finally update suggest to annual to the strategic getting go-to-market success estimate with renewed gain we're on given share new John? is our transactional operational John our investments $X provide started. just network from And then our more over making channel. color to billion call

John Collins

with Conversational point guidance to profit significant platform Conversational on demonstrating world the of in that ability as billable Thank for from on largest expand taking industries digital to high-end use generating and leader customer estimate accelerated revenue while of $X Overall financial of a approximately the In value I'm performance platform several revenue our average decades Conversational and our We of aggressively as you, key excited transformation experiences our the costs customers XXXX deals and per tools AI and we've the seven-figure accelerating the for usage our our again and records once in our million forward our from to and we We transformation and for but Commerce. results including metrics has broad growing XXXX. With can to been the increased long-term in our quantity all XXXX of and total enhance fourth platform pace saving enabled a undergoing spectrum demand clear exceptional line streams observed exceeded new XXXX ease Commerce cases Cloud be the these including across billion quarter Building bottom latter as developer significantly of platform mentioned usage. gross on the expand the ahead. and closed the surpassing business top with hundred enhancing Rob. which revenue customer a and leverage from range demonstrate momentum several our previous that vision adapted position meet to shape business. geographies. enterprise the for plans results agility market operating reinforce of steady across has year Rob to service the the

reaffirmed growth Before our I teams our XXXX results long-term XXXX across XX% one of shifting context would be to year or think to and quarter call exceptional full to $XXX mind the perspective for at in fourth issued execution into it long-term top that reach full surpassing revenue even XXXX. With year growth year XX% in by advance. midpoint the the drove million the On year guidance helpful year-over-year quarter put plan numbers our company expectations of fourth we to XXXX ago revenue one XX%

a the grew to to alluded the million quarter XX% our $XXX $XX total upside. XX% that I exceeding of of In expansions customer million Commerce ago $XXX XX% into year-over-year to year-over-year. previously bulk issued Conversational or guidance revenue drove moment fourth million As to

As Rob new quarter our contributed XX%-plus logo consecutive upside gained $XXX to demand consumer the million. our revenue marked performance all fourth their results. segment and materially over quarter momentum exceed mentioned to our the growth leverage continued of first network from our those and and share third partner quarter Unpacking by at

record success of on third across doubling of had in quarters by In logo the fourth counts. resumption we're is for annual line XX% performed a terms a driven XX% share and revenue. and a that Gain all software logos Within seven new seeing geographic values pipeline logos year-over-year and the new new year-over-year enterprise quarter. revenue XX% with perspective single figure of hosted normal corresponding approximately grew basis US BXB evidence strategy success have multiplying revenue of total represented new deals of merits grew In year-over-year. contract of at year-over-year to and logo segment total total and consumer integrators. doubled The in The revenue. expectations grew XX% board XX% by in represented revenue. a the From XX continued in this highlighting the our with strong a a fourth the $XXX,XXX. deals materially new per previous high-end XX% target the also our of with year-over-year XX% fourth continue quarter. breaking on the continue contract Average growth. in revenue figure year-over-year in retention seven our a to XXX% grew strategy leverage partner build signings two EMEA of range robust customer we partners of momentum Revenue street quarter our enhanced feet Significantly, systems and surpass XX% our establishing operating reaching contributed to growing over to record of bringing XXX%. ecosystem we've International

platform retail for we technology. accelerate in usage XXXX, retail trends, year-over-year year-over-year. by usage In was industry and the for billable as seasonal terms was watermark revenue customers. led industry in e-commerce during closely demand consumer of by fastest our within platform conversational services XXX% of the financial and growth were followed quarter growing continues the by terms and and Retail driven volumes also up when to set generate high commerce Overall billable nearing peak incremental fourth and consumer

marks the Turning million guidance of quarter quarter third million or and margin. to issued exceeded by was XX% previously of adjusted and fourth the bottom midpoint double-digit our EBITDA the $X $XX margin consecutive line,

throughout a go-to-market rule above line in hiring XX Approximately half early function we a driven previous capacity guidance internal in increased accelerating for expansion of reduced and that R&D discipline Overall the We XXXX. was automation also investments upside which operate budgetary our are was delayed at and the of internal operations. quarter. by consecutive performance second margin top requirements

adjusted translating For the year $XX was in full XXXX million a EBITDA to XX% margin.

burning of million improved in for to cash cash year-over-year to $XX original $X year. the flow by terms XXXX. free we by Compare burn In million cash cut million that on $XX only full our plan

strengthen by $XXX materially also million zero We notes convertible in raising XXXX. maturing interest balance in our sheet

full closed we'll XXXX Turning accelerate that with giving growth. continue forward we momentum confidence to year to the exciting guidance us

$XXX is for range million guidance to year-over-year. revenue our XXXX or result a XX% $XXX As XX% to million

million Our to X% is the expected planned margin adjusted full we $XX.X the we guidance expect guided go-to-market key call to as the to key be full for investments and during million Note this we third the for And Those capacity those $XX.X is product we margin due that are to in similar approximately XXXX range such and as EBITDA X% year are margin. and or development. quarter. accelerating growth quarter in drivers year first XXXX. reason investments X%

to we increase capacity approximately presently go-to-market carriers to XX are of quota XXX. working terms In from

the our $XXX range guidance to to XX% $XXX for XXXX first XX% year-over-year. of revenue for quarter million or As is million

our or margin. $X million for Finally guidance range is adjusted EBITDA million to X% $X to quarter X% first

our several expectations for seasonal contract the Platform taking seven-figure single questions We reiterate continues the previous briefly broke fourth Before approaching quarter for XXXX I’ll success and underpinning with peak. year the levels key in usage factors already accelerate quarter. our to ahead. in signings record XXXX

values once contract again year-over-year and to logo contributing are our materially growth. doubled New

to market has our commerce the are Our and Thank strategy you. expense side through is And the we questions. partner both sales internal with marketing platform to through XXXX. expectations. network importantly upside across our proceed our for now go-to-market most automation leverage perhaps the taken ready vision to conversational continue in and capabilities Operator on enhance expect exceeding root side driving and on we're operating

Operator

from will session. Baldry [Operator Please Capital. with We will Instructions] begin the go now ROTH ahead. question question-and-answer Richard first Our come

Richard Baldry

Thanks.

And gate status the like figure of growth do year for grows you how growth are about you there talk accelerates second sort outperformed heard mature you outperformance is? you feel your of had bit expected. Is would than Do that but than organic Thanks. had and feel you you something beyond headcount half faster you've given your some group faster catch-up there's XXXX? a how because XX gotten XXX is engines? do growth the that about thought? a I Given to to you spur deals the in early Could

Rob LoCascio

Yeah little current of that Richard. very good did year Remember six capacity. last takes it so of Thanks, longer up the year. the And performed them I them to or feel get well we a a to we they lot team. we the hiring team to obviously bit before about or months mean get

we season and very add So is now feel ready to strong have we're of expand because where group the I demand in the market. to another team in the

you know partners. As we have also

So new we a got also very results on good last focused logo year. showing partners that's side. on especially And

So we great that we this just right leadership sell. land want out and and a team. demand about the good I now to we and feel be The there out job to think current doing is see go able

John Collins

And machine probabilities. add data as the payment increase less a addition we course focus allow would and driven credit every I from by in and automations win with -- reps quarter management fully seen correct perspective on optimize addition to XXXX per more of pipeline in rep that proscribed allows model actions In the in entry measured have that that's and playbook on Richard that quarter our bookings in to analysis. that selling and accurate of prediction automated we've terms an increase productivity that sort early

take shape in we continue to capacity. starting increasing machine to go-to-market confidence that with have So our

Richard Baldry

cycle side and the about can look through a you little at deeper an partners and into or maybe maybe of implementation a partnership how economics far And terms the works deployment take can even in sales how that cycle. Okay. you

of guys them. rewards burden the Thanks. much them how to So versus kind And motivated? keep what's on you is

Rob LoCascio

Yeah.

the base. partner credits typically have in of then So presale to the of economics, we will installed the a a receives partner terms They resell those discount. that to their

for our now And to terms into all question on especially a most these our PS well-established hands of does of work is of who In work those of partners. put the later most partners. goal upfront? we've Right putting of PS industries the our through our work which we're playbook

with right that with themselves. implementation and there's the now running healthy LivePerson a balance partners So helping of

for in to is to our is goal Our self-service fully serve platform our for fully be the to goal be self-serviced order our on customers. partners the on those end platform partners

Richard Baldry

the Thanks air. congrats great Great. to on and a close

Operator

Our come Riley. question B. next will with Cummins Please Zach ahead. from go

Unidentified Analyst

Danny could if Hi. wondering Zendesk on guys changes [indiscernible] for in wondering the you you've know as on you I peers started I any was the to could Zach. wondering messaging early I on if landscape on. But like you you was -- mentioned this comment guys seen environment? especially pretty guys investing comment investing I was competitive that is are

Rob LoCascio

ago business I platform Yeah we is four mean messaging it. years released pioneered we the

is the because And AI scale capabilities and as messaging pure platform you I world. is in so -- the customers the explained conversations want best as The automation. what

the so the communication we're automate the at one messaging if them be. level the want predominantly we really interactions in humans they've -- because an are conversations continue of messaging a messaging doing need lot create a They those they world that's And a power some of power one. base replacing they majority business with instance then them all of where strategy And they and cryptocurrency the they're of on millions the use it millions and like yet email channel has can't you treating But this they where automation. winning ticketing capabilities. largest to if and asynchronous messaging that's added as use and And to at look with scale. and want to what for have exchange to that's with but power. customer that conversations and we're strong that they actually They

opening our the continued millions stats said and dollars of have now IP in the remarks unmatched then invest a in side it and to into of sort we of tens data I that of we year. all because my As on every

-- come messaging right is position I in. hot. now a lot I there, a So it’s more leadership we've to got but strong mean expect

business but made and big went a that ago real market hot it's Now owning we like is we the SMS real people doing mostly of the the business entering we bet see small stuff now area years are there's lot but I it's automation that into we -- scale where now. but that's that right money and a and knew

Unidentified Analyst

if the some Got you're could about opportunities seeing of speak wondering it. Thank that outside you. core you And I verticals? your was

Rob LoCascio

Yeah we're where will year I mean the so stuff in care jewelry March retail because transformed and doing powering have it's they're that mentioned and really their definitely is a last that focus we're their interesting CEO year we of -- retail digital laid definitely and this that. biggest operations I online booming there's and the going where marketing things the like seeing But one but just stores whole are changes of that companies a of just we know is in lot this business the the and of talk a quarter and the we lot I ground about in how amazing opportunity that. area focus doing have is we continue on the world saw in on the you Cramer and that the real we're retail sales in

they to back mobile testing in take could the slow one were on doing antigen of like us get we want said to which But instructed largest about see to that one we the be AI needed are side. how employees open they tests get work then a days device. take pass. that PCR They we built customers one to that. and home get three of branch a test. get home, they high report employee gaming week. in our side the COVID up largest in-home the banks with want of I cryptocurrency in it test our came opportunity And the we their the and this health result the to last and and for result, retail efficacy, all the And that exchange tissue lot talked a connective an the So have that launched of

bringing branch seeing we're we're work. to employees -- And so back

cool always automation, its power we it's all really of things. But on really there's right now So things going that because and can different around AI it’s some these messaging.

retail year So is be interesting. the This on it's especially side. going interesting to

Unidentified Analyst

Thanks for the it. and on Got quarter. the congrats color

Operator

Our Bhatia Blair. next come Please William ahead. Arjun with go will question from

Unidentified Analyst

a out was could you little when about see wondering may have that laying you color the into I on give you early to share if then we rolling any success payments might can of if offering seen bit revenue? some expect the in with and Thanks.

Rob LoCascio

we're some of Yeah right platform I mean usage the now. seeing good

opportunities given these think next starts revenues will I We the payments this platform. talk our Commerce on seeing commerce in more I that's whole predicated have is -- usage be after because how some year Conversational of platform. retail going of around ability give examples payments. the some little it and mean some not There that strategy we're some any But impacting that yeah, bacon with opportunities the a we'll year. to the this of bit take And why about good and that's quarter

customer sign feel we -- about But more more of about feel as and good of once up. platform we really can it. the payment how we So driving will types talk is we those

Unidentified Analyst

then could Awesome. so you that have you've pushback to contracts CPI I color you. some just you And to see wanted Thank any if if migrating in far? stand on experienced around check customers on where and the to

UnidentifiedCompany Representative

up in that XXXX. that thirds what renewal about pushback we we No have in XX% Chris. XXXX in for about respect of ahead the two which in and expected its we front was base Arjun migrated Hey of

Unidentified Analyst

you the Thank a again lot. congrats on and quarter. Awesome. Thanks

Operator

Mohit question next from come ahead. Our Gogia will with Barclays. Please go

Mohit Gogia

I'll on a really my strong here. taking offer questions Hey congrats my the guys. end year Thanks and for to

you a new here the mean parameter. with the game woke but right was target the you that of look few land it's beyond customers for to and here last logo the if sustainability expansions so obviously levels sustainability the which here new COVID and good ahead of very it the is Dublin range just and quarters the then can My and to that logo question I and are you I it my like helpful up it on XXXX among into talk follow-up usage if back we secular I adoption a obviously I is it's great mentioned So motion. that beyond to right was the know you if and reality mean wondering on pre-pandemic think quite XXXX expansion question right the to have think see customers can retentions that speak was coming ads that and expansion of question? was the sort ACV growing I been I in the growing accelerated have

Rob LoCascio

way The Sure. at kind the as function digital solutions powering see scale. digital sticky. is those very so discussed is pandemic forcing it to really for we It automation is because that was a adopting and solutions of key we

efficient customer level problem in satisfaction, high into post that a problem a of customer less you're years not from world or So it does pandemic for and human reverse that which the more and is expensive of you've for going hands labor, at solve to brand solved. back to put that or built you and a now, machine when a a problem so effectively a

service highly conversations of into say is messaging, a expansion beginning that And of platform -- automation, voice would terms penetrated the total that in increased on we that, lastly I of on approximately sticky. of we're penetrated standpoint usage the year, that the we today across only XX%. chat fraction from top So, perspective our base from were last our our

XX% Our average in the of across range on our again base. more to have entire that number XX% latest estimates

a leaves expansion. that of for lot So, room further

Mohit Gogia

of of terms That's What question that’s these you I give you or from spend? customer Can what's see very follow-up over color. can -- And second just contract. migrate when an idea CPI side. the And the question was my customers you of -- to the us helpful the the change earlier. CPI of to in it

Rob LoCascio

example off general It varies into typically some revenue of contracted the with and last much initial CPI of any the because how they CPI an There are because there's structure. of our better see figure we platform. rapidly of couple of from coming of we've form year just of the within that volume high-end months a are cite the had we in upsells contracts course we then And an latest to but results that But them upsell a upsell. very take we and place these converted and routed and seven see where outages. they ramp a in topping course as to upsell from usage lighter period of

ourselves. So in for it's tool a general good very

Mohit Gogia

Thanks, guys.

Operator

will question from Siti Mizuho. next ahead. come Please go Panigrahi with Our

Siti Panigrahi

into a you. just impressive great also guidance for that's the want XXXX. guidance quarter to Thank I Congratulation, dig very but

gain your there? a talked in terms other of you XX% XX% guided Do converting to assumptions you But those be growth contract CPI So to are XX% from when coming of sort share. this that ELAs what coming about at that are terms up And what then that on contract. mainly to expect of seeing you CPI renewal you trends level? for in

Rob LoCascio

Sure.

do we large visibility part it into with So have the share a is as we're chasing as equation you've right have that much nonetheless pointed variable but now. a we certainly We of as revenue, as pipeline gain out source revenue. recurring don't of

the friends in it's of for platform. a have revenue our and And customers. and driven The the we're incremental the demand for have major driving here in generating in market part solutions. root revenue use industry is by core all the the And factor. consumers vision in been driving use XXXX. said is that purchase in part and again simply that And then that commerce. a they for consumer us is for conversational product are taking is it's cases We're driven expanding revenue to demand those truly which before the a as conversation cases every overlaying that by that commerce, Another I adoption factor on have almost our our new with

So because of trends those will accelerate that we from have to we where we were. confidence continue

Siti Panigrahi

Okay. And that talk you side go-to-market the investment then on investment. toward

there carrying So you headcount planning rep add to more areas or are investing? quota other sales in is you're any

Rob LoCascio

So yeah we obviously we've got partners.

direct We have reps. quota carrying sales our

of our thousands started to we’ve already where on small we've put working an platform. on with We calling fire are a bunch And a of businesses. cohort bunch that. And have of we we our businesses of a marketplaces partners small have that can up of merchants, part overlay top business

on want three we're there's the those key if So there's those areas are But areas of investing in we're kind that? expand that today. to looking you areas -- some it's that at. John

John Collins

consumer I significant we focus making network. more and or is We're mean say that Sure. implementation of area the there's many our and is for on focused language the necessitates some management collectively of [indiscernible] of too natural the faster there and I we're will dramatically both as enterprise. certainly is enhance automation that And which generation -- remarks AI think highlighted as making for get overall capabilities. to Not the would box on addition throughout partner integrations includes the for experience folks our an investments but also there. for us technical us and easier probably out we

Siti Panigrahi

good. That's

also you site Just terms leveraging the efficiency that want in what you're any on is merely and your kind of also on and seeing remote to clarify now from on from working of know you're sort benefit of his initiative data of working permanently? of that back

Rob LoCascio

sales Yeah that we're we've like mean I things and video because rethinking face-to-face from just have so we're you -- down some I mean being and are sales And a lot a was that. of on we're see have see I not mean so some home all and and video of a that of marketing reps there’s lot how the efficient need that. but obviously stuff changed around if think also travel doing then so you there's we're come cycles strategy selling obviously seeing and all efficiencies traveling the obviously we're all we're I because somebody rethinking working with and from obviously to -- don't things of us but that the to I got planes like conferences maybe obviously for we've shown or big quite it the it to to our remote and implement direct is with customers them use and to the our certain need it's can flying we're in we -- on platform can engagement continue platform just the of this and a folks self-serviceable and obviously prospects model nicely. that going on them doing people be they And year as sales scale solve and having and level old the think -- one we that go everything way future. the that don't make it business more do customers is using

to good up it we're to and and to going offices. our now go place not we've of with where building in back we're middle a back the offices right we're way it's given a but we’re offices -- in not going this so stay work in like to So we're new definitely

Siti Panigrahi

Okay. Great. Thank you.

Operator

Please Our from JPMorgan. with ahead. go next question Audy will come Sterling

Unidentified Analyst

annual through $X is is Hey, the of I clarify guys. wondering Sterling. what on for platform you if the exactly? of GMV the value equivalent commentary the that is that was This billion could or around [indiscernible] moving transactional across

Rob LoCascio

GMV Yeah that’s correct yeah.

John Collins

that’s the Yeah so GMV.

Unidentified Analyst

Got it. Thank you.

Operator

question next MacDonald Ryan Needham Please go with will Our & Company. come ahead. from

Ryan MacDonald

productivity love come seeing sort sort think the and I'd Hey. core increased and AI? taking of demand different have or have point service continued of applications seeming to gentlemen. customer an you. understanding you of that's Conversational for on the as curious guess -- you mix? are sales of I you're Thanks excellent market that end cycles Good evening know in market more the for improved use to you do you the my noticed outside terms do by down. how quarter. the the congrats Rob like questions I sales knowledge Thank And feel to in in you an you're looking driven hitting know end between case we're of inflection success more an mentioned

Rob LoCascio

it's want -- the a very cell scaled couple do there's and to now one and that automations but and mentioned stuff of that's and of they've on very short some cryptocurrency -- them where suffering. it's cycles that got some -- they now past and really that COVID we're like they're the biggest back yeah but just right the one to I and exchange got they're to scaling so come obviously had Yeah there just ones go that -- they it's in we cycle I to sales massively they the go this they're of it's was kind just companies

get And they automation so quickly. just they got got to go to

in -- And radically and messaging. there's only customer are So the like that's launched that. four launched thinking parts When world. a I the in a ago business very messaging years now delivery can important T-Mobile the definitely is that we changed. Remember maturity we mechanism messaging did say and as the actually

that be this way So should it's definitely minds can in a that communicate their consumers. brand with the people's

do are automation. that The instead this box. just in are what rich we set bring. of tools at them So tools we have annotate going gotten of around that that next if we agents can this scale -- and you even better they really have how that We to kind how can to data. messages much annotator whole we've is going announced you agent taking checks use level of you at are And

be in like it a annotators data they So to they can and automated. prepare data that place make and to be

it's like that's up toolsets lot these gotten can test. It's with other the and it. many is and pretty we that of the hold be then matter we to So happening automation you really quickly use different put toolset have cases give a -- and year a we because robust to and do together this solution a AI And I antigen richer in what's really going brought that can interesting pretty market I more as that more very so home opened use industries. take of market has easier and think in in think in we've is cases our weeks

Ryan MacDonald

could very and we've metrics total past the between looked mix general more total new as you and the deal think follow-up provide the a But historically some new housekeeping I as and mix few existing? about out existing. the between saw And talked counts deals. you quarters deal strong you've over Excellent. Obviously seven-figure counts in versus

Rob LoCascio

high Yeah, I'll color level some that maybe regard. in provide

down. I So counts one deal overall while think were

And top while bottom important close. it's greater the deals a number results, to step we right. in our smaller far think of have I those and did significant that and we The that broader value. deals line line were take because is back in in beat consider the

doubled seven-figure deals think in year-over-year and of new new logo four And So logo enterprise were for business the we think and those counts we've mentioned see in contract business on I in average already new a also And that's trend double the within want exactly we however general. I basis. XX logos. a fourth Overall example year-over-year quarter logo kind basis. of our new to values as closed on

well reported. as of So we're line positive seeing that indicators that metrics perspective a course we've lot of top as demand that from of the

Ryan MacDonald

some great Thank again. in Clearly Congrats the business. momentum Excellent. you.

Operator

Jeff Van next Please ahead. Craig-Hallum. question from come Rhee go with will Our

Jeff Van Rhee

Hey go. we guys. There

the I'm a couple Rob maybe with that curious level you. from just issues. the me higher to of start sort So and competitive landscape

to guys suite. is very You this get to at if got move we’ve it's innovative like enterprises got super do good CCaaS part of to best somebody to we've enough at capability messaging. platform is the And in a market is from robust this Zendesk say is versus down there's into for or see just I and some here. what customers varying degrees its things breed enough And a guess go bring of be messaging -- got point smaller what the the is, is point question you

seeing these you bigger very go So down? embedded further obviously and size are -- down interest at get do market because customer you win you -- your just rates is high down better rates in end and rising complex deals yourself the and there the deal win find is or goes

Rob LoCascio

so. us No of after allows I think marketplace introduced firing this don't thousands that go up platform We’ve companies. to

company quite these For Yellow a they property plumber of conversational platform we from then the -- to open they the can tens we so have when transformed I create where the small us digital well built information when like UK gives is there's they've it's gives instance person there are live into but digital And they to basic there. this automation we businesses on all have it a it with and there's thousands a enable the to UK the businesses This -- and -- over because experiences Pages they like those of the have of years. of a in this worked -- message. that where will largest a plumber isn't all me it message a taking and that goes

build the capabilities fall in kind want smaller to don't see automate it's their as any down of automation obviously it they like businesses I companies where messaging even So that's and the but these scale different a a took very this to platforms time that. they're took not you that don't long time on good they know not it it synchronous and well they're long rollout a even

So covered really full I we saying the group I and to have into a voice except feel we we're tools powerful business to no add got messaging to -- get we that we all these we've we that's the do it into feel on else guys messaging are to space got a is All features and some by going we're added so get went have it's platform. from then taking still And after world-class last those the like capabilities platform we've platform. away basically product it to after guys and we're social and platform voice got continue we expand top want a different going and everything of social so and there social on social I going need have horizon. single that's we're but the

surprised voice of of take and I to that something to more us wouldn’t in may just just volume and like an I and because something that that to bring we be really create to like automate our we you so And just automated. want that if platform kind stuff. saw style well, head direction On that that’s I’m from Alexa

So that’s coupled.

So, sales the And then care. that’s the all off we stuff. got finished that of and components all marketing kind and the

So.

Jeff Van Rhee

is you're capability the a in be that to voice would the respect -- I that And question? that developing. with buy something you've guess bill Is on process

Rob LoCascio

obviously platforms think alternatives. to the connect I we're prepared in so then different about and it are put that talk at we'll that the already more there. looking out remarks We but No, voice

team was all and we core team So -- to Alex Amazon engineering more these there's Connect engineering from the that want are think do we Alexa. and CTO that. I even our as have integrations. Obviously our But

brought day -- place going ago where some as at looking And the I out types was talk get we're concept at And to I in we think one three we future. So things. years out the I'll when we more of want power it it. about like a start these we're to more

Jeff Van Rhee

in. other Rob speak want And great If the in a could counts just obviously I great Sure. quick to that I quarter deal context guys. of -- couple

growth of new both you XXXX? but How counts to the as any start think behave count to deal they starting shadow think total over would Should being down, expansions no So up? we pick how in see well in logos that? about deal that you do as

Rob LoCascio

overall mix. there's actually we I really -- count that our as very And them the we are up it -- if now know. know our And we powered but go expect on on counted XX,XXX accounts our deal we but businesses the don't marketplace that on got mean revenue one focus Yeah you I'd enterprise but concept focused to platform you on don't we really as and I one. -- our to say, as focus that take customer

think where and at we obviously the revenue way we what's look I of are the So, that business where bookings look high-end we towards the know overall then it look mix and don't skewed we at as impact the enterprise, so at an will marketplace we still from to something are that is. else. of [indiscernible] part if the or and sweet these like because we reporting our return volume that's on concepts the really But midmarket businesses That's marketplaces individuals spot. where up eventually I fire that's those

feel mix. So the But are where with good I we'll we revenue see. about

Jeff Van Rhee

qualitative? percentage can tell bookings give I bookings tells little value more really up, X or little you it's cuts holistic bookings deal to up or mean Can us helpful last year-over-year the just finer are but that maybe appeals a contract and you new guess And number. the not I so about value something total in put holistic a the quarter talked us a our more I of Okay. much. deferred a somewhat not mean nothing point about on you a

Rob LoCascio

Jeff. I'll take that

lot right, with you're I not for would right. which because Deferred timing proxy of say one, receive demand in and structures didn't in So optimal the cash fourth quarter large deals should contract variance say a the invoicing like of here had for I advance, several or right. of an and is bookings we generally we

So sequentially deferred revenue. increase I better direct that benefit that sorts perspective. view XX% is or a to a did think from of of means there's that metric of all But include and because we just that, impact even the gain shifts doesn't

when think you from it. really and trying that yield So, with momentum we we're indicators demand have generating for that the it the strong perspective we’re about

Operator

next Knoblauch ahead. Brett Berenberg Our will come question Markets. Capital with from Please go

Brett Knoblauch

five of sell AI down on three just Rob provider for my Thanks years questions. being and top maybe guess envision I Body think a have is we over is look as your how doing guys. guess Conversational a Maybe businesses the what space be AI years Hi, about a development service where Bank? LivePerson you're for next you I drive taking think a you you be four fintech one do in or with the whole you great four to do But should the that just to as in or think I example and that? going meaningful

Rob LoCascio

day of that a can payments in get plan and loving like AI and build day they an powering -- pretty to it’s and mentioned I Bella of and five that our a one something long-term -- can trust it. of -- you platform which also this like are intensify talk is the to a in I'd your it how which more and can like to and to compassionate AI -- Alexa trust of people's five would manifested things we that that show like you obviously bank homes people by way course processed put years see off one we we this that built and is I caring platform we're -- Yeah into built something and it we they bank, to actually but we their life but sort has trustful

as at so things important get case. to extraordinary ultimately a that's data want I house. can ask I is [indiscernible] just market you a because how purpose if those people so And we a things learning see we to interesting health to big business a have because -- my top to loan buy for loan loves and get your I we've lot we we I see these markets this for powerful to we it’s banking to spaces fulfilled. shareholders how want yeah so questions, the data of need car get quite humans, around that general they doing this for And Bella how understand which and on got one then you and we asked most insurance but look that is interesting have that millions business buy how a a quantify is check thing shareholders set the use hard and this So healthcare we're can build to have us that AI this to you get of. intents really --

brand. think I have their messaging with commerce to with conversational go this have And that's a got ultimately we'll platforms. I And Facebook where So And for the Amazon's company. want you said Alexa. I've

Siri. got You

but because we We four think we're so these and can vision big ton into You multi-billion deal And time put capital And definitely opportunity. this of fruits I But of at this got didn't small step a why I definitely because raised enterprise a a shot capital. with the start we important. as things step. Google take This the this million the energy something it. Oh! investments. we and We years, that go But although we bigger at taking And a we a we we just leader. a can't in you'll know and to and But have leading one all raised Home. believe that raise a build going years lot we've data our and of have dollar time. we see compete we're mean We is we're by excited that's last of we time area. set to and is over find the of $XXX on type broader see and this biggies. ultimately

We’re hiring against Facebook. Google and

the what company. best we're get against hire but a us And talent able we because world. great have great hire the can makes model actually that's they and that Sometimes business a in we to at level

here being we're after like XX looks excited started. just I'm years So getting

Brett Knoblauch

Could I about from Investor said John. question XXXX was one also am look spectrum? XXXX you excited revenue should to have an coming it enterprise. and you now I large guess maybe and your towards higher you you just when XX-some-percent how of you tended that that I gravitate guys the guys Day maybe find mix the for thinking -- given on is the your of of update guess at end

John Collins

it's Brett still above predominantly we're we're figure, but a not XX little XX not above that it's figure so to -- now X but overwhelming. it's maybe not that enterprise -- it's points

business and about remains base XX% mid-market XX% the is small large a the segment or -- revenue another large so. a still have which in We it is of which and

So for XX% enterprise. approaching about we're

Brett Knoblauch

much guys. Thanks Perfect. so

Operator

Our Peter me be Pardon will from come Levine go your question line with Peter muted. Please Evercore. might next ahead.

Peter Levine

Hey.

would Sorry buyers about with new to an cases organization it guys messaging think after. company opens that. or know guys Great. are the you within for for going about Thanks up wallets question. you you my one across taking your use the just Maybe after me go meeting guys you think

QX months? how much to then your past curious was in these curious driven think mandate C-suite kind just that the know you know won I department versus mix how XX deals and of XXXX to Thanks. and has So from I trended shift throughout calendar that of enterprise

Rob LoCascio

some to I automations. guess been the couple look Yeah areas -- set of seen originally and years tools was care automations, at we IT build shift shifts it to have a to we they deploy I to and we this those use to data a toolset there's we definitely ago in AI because are mean want the focused

in developers that tool activity using the and seeing there. CMO seeing lot know on that And we're So area now the this set. more a year digital websites the and on heads. that's just via We're the opportunity more our lot running and and digital sitting IT a running areas We're of marketing platform sales. the you in had areas, and we

definitely out So, a been putting a it's mix, we're definitely massive focus this year.

is platform purchases very that do us use can product major to nature it's there. and they automation. push around in AI retail, be going the a cases the become and big to so, is technology player sales, on use for to IT there's get lot plan a heavy definitely But Our -- the a of our because in of side marketing a

Operator

go question Enders with from KeyBanc come Please Our Steve next Capital our ahead. will next Markets.

Steve Enders

I going for know Thanks give but forward? my raised to thinking a you preview uses a questions just that I Great. about check ago of you're question. little in the wanted potentially few and you Hi. taking cash that

Rob LoCascio

And ancient get that and but is have over voice. already not But get the voice thing and in looking as everything for in we'd interesting we the context We definitely all interesting interesting. AI is more the that's the to console. thing put technologies stuff capabilities. some I does the with you then obviously voice kind inquisitive, can the an about talent? there's of is AI need want of of said -- can buy an us we're you some channel style the especially side, There's Alexa It basically is in on So, that and area know science run world we're like to out it agent. too we interesting would another Well, we an you deep. at. to leave look obviously our And

voice makes kind interesting an So that's thing. of what

just company. lot are potentially there's we opportunities to a some Like So And there. there's then organically do. very innovative

want We do. We there's just there's can build. keep technology know lot lot have organically we to want We But a reason markets we to a we There's that things open. build. of it within want we of more obviously. to

is the we're of dialed -- that's do what those So where XXX% But it's we'll I think quite in I on that's we kind at. think haven't with buckets cash. -- looking in

Steve Enders

And very -- in kind that the quarter Thanks there out what social helpful. the the of on just just Great. wondering then went called incumbent win against you an the differentiator that social? Okay. platform in of was media LivePerson

Rob LoCascio

That lot single would want with have is experience. would a and social We customer. move that they want more a media big And all that the they a have have thing of in the the player volume we consumer to integrate more. into than lot that volume agent to

where agents where of that's a you ours. be and at set may least they're agents that, the bring of So platforms of on a they we out there you agents and amount social set -- on that times like bring what got they XX that you can can have usually did. the over And can

So big music is a we another of music platform. got company There big airline. this the digital platforms streaming one

have lot a private of don't a there those we product they think into low of team a acquired it. just focus a we're lot on and innovation equity And there's because real volume guys fruit pretty so have there lot So of focused hard area. moving by put we We've an and and it of opportunity. think on hanging and lot there's that I a they wasn't got

and to as expect forward. of more up we So that we more pick go

Steve Enders

question. Hey, my great. taking for Thanks

Operator

next Our Please with Rosenblatt question go Ryan Koontz from come ahead. will Securities.

Ryan Koontz

Could on with of lower impact cloud think Thanks you there Great. kind for how guys. over surging. the the thoughts for of a And public question gross Thank the about update the term? migration you. margins Is we sales you? kind that over medium of should your priority on that

Rob LoCascio

ahead to lower finish we is a the XXXX said. some the fact we're priority say expansion that of related is have two margin in definitely respect. we'll at would into going term to a as investment of to I terms of steam It see in in And early there stocks. in early in in we But medium Ryan. result the of that some some making we’re end on to XXXX margin full migration the not should once start migration Hey, and [indiscernible] hit XXXX the managing that

Ryan Koontz

Super helpful. you. Thank

Operator

Kees will ahead. come Summit go Jonathan Our Insights from Group. with Please next question

Jonathan Kees

and Great. my Thanks taking questions. me for squeezing in

terms beginning hires Amazon. including some So you from projects AI material in the to I talked made was what for I projects? I projects, AI canceled you use couple a remarks you and said also He AI AI you before make a background. you one LivePerson tweet operations about how the guess, in QX a that came he guys guess some during were the your news time. that what canceled was working of what to said at some According of has Thanks. just Rob in does, reports quick. the two have he means have he guys stuff from in on that prepared impressive executive and

Rob LoCascio

clue I have about. no talking what you're

Jonathan Kees

Okay.

Rob LoCascio

like. be And not know you're to confrontational Andrew talking about I Hamill.

Jonathan Kees

Yeah.

Rob LoCascio

we're AI actually. all interesting. Alex's Who we're increased. expanding came so in. he is because doing. I actually but Amazon. over at Who that would know onboard came a lot I don't He have boss is But… was of He running actually mean have It I

Jonathan Kees

Okay.

Rob LoCascio

no about. idea have …I what you’re talking

Jonathan Kees

news Well, I I the that you can read. articles send

fake -- I think don't that's even it's it's not. unfortunate. news or think I

Rob LoCascio

are would, nothing. to all that. There's so we in obviously heavy mean I’m of I investing I sorry that

odd. it's is of So this just kind

ever in that's So I'll nor I I But heard press look. all it me. just a nothing just can send thing investment take the the the weirdest there's doing. to I've or because of we're you -- said

let’s So work first. that

Jonathan Kees

the in during privacy, there's the one in following we're privacy you bias decrease of been to sure heavily that more aspect like with AI the about relying more kind inherent natural sure on making ethical focusing there in talked proms not investment remarks guys going in AI because of said or much not making have but it's the article think and aspect AI that this is because was do problems that mentioned inherent the prepared language of things your I that just so was the with on because that which aspect there AI of out stuff. and bias companies with of this the

So…

Rob LoCascio

prescribed what a think who in great always that's AI we we Equal it talking real directors to about skipping Department I called about yeah or head to it actually start that's that around two years a organization not between proud connection the projects half -- of whole and but that Justice Obama is Equal the I yeah started called organization patient of pretty know also and that of that's part the of you're a I a that now and so over that funded obviously something so it's and Andrew it Vogel get that we but Mary we're maybe sure. really board what are which think two started under didn't we've ago and who we but I is prescribes Yeah much don't discontinuing an it and AI worked the

Operator

the We reached the I of have for call call to LoCascio end closing turn like the would today. Rob to over remarks.

Rob LoCascio

Yeah.

our an So our really obviously thank the who And Conversational globally amazing rapid we that's XXXX in want the just everyone to really in happened the accelerated obviously and have on I delivered has changes Cloud. in just tough work company everything and rapid all of the that hit middle keeping implementations volume results the it and awesome. of and the the our changes a COVID delivering platform was amount platform against of year all scaling

four will and that ago of waiting connection for AI be four is the seven can see how real but demand I for off we continue the what vision year we really So a and what years I'm really kind of just businesses were platform we to was our see only really the going in not and to momentum change proud delivered years the had is years a going XXXX it really can in when everyone's happening. great XXXX think drive ago but done. take it us going we this actually we world to ago continued thing the is how vision to the

next on I to catch Thank you. and the I'm doing will year this you we're looking So everything forward call. and

Operator

today's has The you attending for presentation. conference concluded. now Thank

You may now disconnect.

LivePerson (LPSN) 26 Feb 212020 Q4 Earnings call transcript