LPSN - Earnings call transcript Q1 2021

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to LivePerson’s First Quarter 2021 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 the LivePerson given conference that remarks, question-and-answer conduct instructions prepared time. and session participants the management will from a at After will be one participate, everyone limit opportunity give one to To yourself the to question and follow-up. please

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

Idalia Rodriguez

good afternoon everyone. and Matt, you, Thank

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

Rob LoCascio

Thanks, Idalia. joining earnings Thank all first call. LivePerson’s for XXXX quarter you

we've years leadership in past clear demonstrated Commerce. LivePerson’s the Conversational Over

in the of year-over-year was Commerce guidance. and first exceeding This high quarter-over-quarter our validates million another approximately grew increased to execution. of deeper XX% contract Revenue with existing a of potential annual and In of XXXX, seven and point massive a new large strategy X% logos. figure four acceleration as were the by strength deals, brands. growing $XXX.X data which the growth QX Conversational of combination eight This value, fueled quarter showcasing we our customers, well end quarter new signed adding as wider and

acceleration. nearly such leading We a increasing as the this during high in on And that Total verticals healthcare an is our customers. accelerated at or than than increased fully XX% their the increased more brands, of volume for on total like QX sales almost highlight that year-over-year. platform volume Messaging contract Volume QX XXXX in government. first opportunities, March A helping year-over-year. Conversational fact to by XXX% season. automated while also XX% more annual into focus quarter-over-quarter about reaching holiday expanded messaging values end our quarter the was future and even target volume the hit for a automation revenue faster conversational marketing and than all-time the I'd signed overall significantly share grew volume Cloud the XX% capturing indicator peak Overall year-over-year reached great create of key high exceeding volume. quarter was partially record massive and journeys

And around execution from cases customer marketing care. own to QX You strong to showed the we strategy. sales these to the customer generating may that entire use remember revenue prioritize lifecycle

environment the a quarters robust to EMEA. notch events. adapt innovative driven share we've solid America marketing top largely as Our marketing for new programs line top developed LivePerson’s and continue this of upcoming remote North a selling virtual across momentum also contributed pipeline gain experienced e-commerce to business by to breed and we

and activities online events every event large community these contract they We XX building quarter, total hold executives possibly leading to a brands signings continue impact quarter XXX the we anticipate retreat. the In During plan joined expert-led and pipeline. masterclasses, multi-day peer-to-peer and added connection. with across will educational to

like leveraging few digital plans LivePerson’s use stories to technology our commerce to additional drive a and highlight I'd expertise care, and cases. of transformation Now innovative across

first immediate calls dollars with generates expenses of the each a to of calls our operating hundreds we business in across the multi-year of three with millions healthcare the of satisfaction scale. cost the The automation by raising companies one and This introducing top of is at their shifting potential messaging lines the assist seven win at key will expansion company in for contract figure future, year. huge of reducing of billions In and brand member world.

robust social long-term Together our proactively strong and giving build and are messaging across were messaging of develop experience AI its is messaging expertise and health. product LivePerson’s platform the the brand for enterprises the by a ready fact will the our between channels unify large consumer in brand connection the transforming key winning factors long-term ability in capabilities logo. end and members. we and new connection intimate customers more suite capabilities that self-manage own the to turnkey to help the them its their conversational the to more asynchronous this Over

one and as brand retail center for employees the companies operate well count hub automotive were churn at OEMs Conversational X,XXX brand's head channels. holistic LivePerson’s across challenged the of Like every and the U.K. the revenue. the a largest customer hurt experience was its manufacturers Cloud central as brands including shutdown creating will a Another for was stakeholder customers new messaging, and global ratings seven-figure dealers the to satisfaction over the due and with and logo of win in as other many quarter deal contact

global which differentiated expand two-way response it. to contact as for use centers rate them brands already XX% high with First, highly we’ll the customer cases retention, to care generate transform commerce customer with a messaging will several product using as our help into

and messaging code of - the AI and million quarter. existing XXXX just large to to their self-service in they experience Incredible AI rate retailer a when expansion signed and into potential We that I'd user place from to to our payments of driven automation represents share the messages powered achieved recognizes for interface, ability when vehicle use drive taking XX give in global expanded need an dually power daily conversational channels. a service QX, easy message within new revenue and months. conversion from that is and have sales message be in to book device to brakes care, the capabilities full outstanding any payment ads, achieves not to XXX,XXX with all this an sales. NLU with both by the customers a messaging that its like $XX powered messaging retailer's take will full connected but conversations be in lets navigate customer average LivePerson’s millions sales few vehicles dollar end started has start sent launching our with outbound want. million this enabling a Key generating proactive drivers anywhere the This that With deal messaging scale consultants meet journeys multi-billion a sales over IVR just QR with of whenever example web taken with sales basic new example deal customers prove opportunity also of To-date messaging results of customer points, to capabilities, that just across kind deflection. messaging they first especially is We advantage will direct for include owner of AI this fixed demand jewelry proactive purchase case also brand and client brand it had and marketing the about globally. dealership. For straight the expanding truly XX%. will

Speaking dollar care our company. of with of expansion customer XXXX their signed XXXX started deflection in operation. with their in North radio journey satellite deals the expansion QX, history They IVR large in American multi-billion LivePerson late for with one the we

but We Over commerce with they will also service migrate not messaging. year their multiple in only our through costly roadmap within into With care, moving deal combined technology voice expansion a by gain our LivePerson expanded product AI product are key onto weeks. the envision share platform. replacing to through with and and latest we and with massively in exciting consumer matter model, with this experience their calls. us powered AI scalability expertise factors expand the us app the messaging LivePerson’s customer fully times of current for

the codes program this download packaging, brand and build was United They're the loyalty from sign my continuous product adding looking code, if the SMS stores the U.S. sent channels program giving bar in the an via launches one of to food on the new in for connections and program chains The for biggest scan quarter of for a is customers the new ability QR the States. of ways rollout easily automated Dunkin, to customers. done we and food up Dunkin the One in and is - over to X,XXX with it starting favorite app fast message packaging loyalty

We of to and AI the in care joint points messaging the demand social. and an that social Several new by conversations vision extending channels and automation the as strong the scale our to Cloud engine believe within roadmaps. now messaging surface of other capabilities part to Brands and messages including capabilities care increasing powered to have and social enabling AI fully integrated We can for only customer when care and continue social from to our marketing including of use plan platform private but match brands or world's the to and brands customer will - our our social the solution long-term message on innovate keep public for automation. our not social Conversational touch largest sphere, a currently experience. platform at find use meet help signed area in also in

and ecosystem our and other has Infosys partners region strengthening sales Our new leaders. Tech introducing both expand We go-to-market Mahindra solutions to Tech that distribution. Business of in including announced industry joint with also go-to-market Global IBM partner T joined recently LivePerson and continues terms Solutions

one fact close a we ramping the the important deals vertical QX. developing in of was pipeline seven-figure - Infosys driven after closed by government targeted In new and in important Simultaneously with we quarter deals a our logo of partner.

offering in Medallia seamlessly with these We partnership consider and with the the respond to also leadership analytics conversations sort position customer employee indicators brands real-time. them Conversational significant help measure a to and ability engagement collaborative AI. integrate a in partnerships customer announced We our of to signals

called can to we create been that has offices would of in the and environment option We're testing that progress customers take of positive enablement have returning experience I'm rapid closely matter to comfortable home for our instrumental Bella goal that our our see with who Conversational in longstanding of user us an AI measures customers centers could Cloud. at to Conversational to this asked to safe approached on they testing. team feel what of by were Bella mitigation the office. workplace. more employees. home within in additional apply banking the we bring testing to at was the help on AI we’ll other COVID digital QX obviously through it create contact help would and to updated app and platform proud can you use our the to delivered an the one They with and create in looking build we opportunities home in getting thousands launched back in Cloud their employees conversationally an solution the weeks app for physical Conversational their Finally level power Citi and would a Siri our - the to of team COVID-XX bring providing that additional AI corporate program. keep confidence, take Working their really and an guided if The That in we employees of testing back privacy working at provide employee experience a day. every boost its rapid

to we of in and e-commerce complete retail, innovating laser all bringing customer continue QX continue use innovate our on continue an experience, customer care. to focused and momentum in to vision the use cases, we Given committed opportunity entered cases, to We're while care. marketing while sales

our Conversational vision in industry pillars for guidance. Commerce as the and and bringing turn John? strategy Commerce Conversational on our call John operational AI update and our And through to share and our to entrusted for for committed complete our to beyond. messaging QX live that, key Conversational we game customers leading over color to and with provide lead offerings AI are remains capacity more I'll We

John Collins

across continued generated increased momentum In deals, seven-figure on build XXXX. we the you, our foundation increased logos. into annual large of our values We for four signed expanded Overall XXX% target reach government and we XXX% the year-over-year were healthcare Thank and we're contract eight, new setting including throughout all which seven-figure verticals segments for year-over-year. We market future growth. counts where Rob. quarter to materially deal first

at to year-over-year U.S. to basis now match an second continued accelerating on and on grow business is a track international in Our growth the quarter. pace

for strategic we've pipelines. Tech signed within partners opportunities Infosys’ As only and we closing growing our and just with Medallia begun deals Mahindra

AI issued million, the $XXX.X first midpoint in a total accelerate considered growth In growth quarter to all market key to In reaching range Conversational and material consecutive line of high the on marked the which again revenue volume in and discuss for increase recapitalizing enhance the the the expected guidance in I'll both first also period. once I'll above contracts bottom a the by comparable robust were first of and leverage discuss our with demand-based in in Rule by shortly. in growth Rob the XX performance revenue of the operate delivering quarter operating Conversational terms AI. Conversational our that XXXX guidance of our and Significantly, consecutive Commerce year-over-year quarter, underscores We for expanding that which to relatively quarter increased range exceeded exceeded for This second to deals. contributors the generally applications overage new operating our accounts quarter primary continued while third of CPI we demand than year's XX% new values metrics, annual pre-pandemic for by $X.X million XX% continuing to quarter for performed described. quarter history. high-end seven-figure The four and Note guidance. plan. last our upstart rapidly grew the line for clearly a Further growing quarter the soft logos of accelerating our share The revenue also changes was logos and for fourth sequential wide dynamic Gain XXX% the previously at March, first first the the particular. unpacking our billable internal improved testing consumer top segment solution and highest COVID-XX also our heavily more year-over-year on first platform magnitude over a beginning year-over-year of in metrics plus. in of data contract at quarter influenced and with growth the new which results revenue at-home signals were

and new annual new enterprise, significantly logo the led mid-market also While contract values by for year-over-year growth were up logos across small was businesses.

services gain the multi-million XX% the deploying each a opportunity. logos new automation guaranteeing sets dollar figure and gain of a share logo for signed labor, playbook we for seven new results As revenue. win winning expansion share number record up a because In first business optimized quarter, expansion of was proven and we've agent and financial

government build closing Our begin foundation seven partner including quarter several Infosys we related adds help network significant And this that deal vertical. AI. a our which build new continues other the service well contributed target government and and for deals a the infrastructure applications also conversational win, and momentum as relationships first as the expect technology logos mentioned in many The to to large figure pipeline. in to will

XX% and From that hosted international BXB again the segments years of grew the year-over-year within XX% and to grew of Driven per represented exceeded strong target total XX% in XX% XX% new end the perspective, in accelerated along relationships revenue which year-over-year XX% a expansion year-over-year we services XX% momentum approximately to year-over-year. In Professional XX% by and revenue both growth grew of revenue. revenue in reaching a represented and range of significantly of software with a once XXX%. of revenue in The BXB, grew our revenue year-over-year year-over-year and XX% year-over-year. geographic reporting first. growth fourth our high revenue over total U.S. grew quarter record posted XX% International segment $XXX,XXX. growth total consumer of from retention, year-over-year both APAC and helped XXX% the EMEA revenue. forged the customer record Average drive our by terms

of driven continues year-over-year usage seasonal industry more the offset during industry quarter’s our terms return next Billable XXXX financial a XX% retail peak. the and Conversational In set watermark double investment fourth platform Commerce high year-over-year and on for trends, of growing was applications. growth to the increasing growth compelling services and by rate accelerate e-commerce fastest surpassing in for than

of In quarter EBITDA our double-digit the $X.X or results at our first of line line, upside fourth by These terms XX. remainder the exceeded guidance on our of third million. to of consecutive previously of the we at the More quarter $XX.X half than the investments. the which top driven and performance of margin and quarter margin was adjusted Rule bottom over midpoint XX.X% by made issued pace was due million operations marked consecutive the

and slightly to to partner capacity quota on to carriers numbers. We focus increased relative continue quarter to and increasing add the network go-to-market continue we our last total

million quarter We closed we the from cash, cash business our an $XX.X strengthen of the million free $XXX with of $XXX to adjusted million increase per in $XX.X range to for X.X% generated or year-over-year. guidance range million of to by XX.X% first $XX.X $XXX quarter expected As driven margin. XXXX to continued on revenue end million cash EBITDA higher adjusted growth raising XX.X% remains XXXX. than million or sheet, X.X% $XXX The the to million million $XX of of in flow $XXX range balance primarily our a to the We've previous for EBITDA. are a new guidance from we to XXXX million

of one $X.X or to range of range EBITDA our on adjusted the a $XXX for that million is X.X% million for revenue guidance testament capacity. function acceleration our and that the growth drivers growth to power X.X% is last a the to second increasingly to top range As continuing platform. And XXXX, in or is transformative margin. induced a both investment quarter is to for including solving year-over-year. go-to-market full-year clear terms invest period of expect and per for in ago that such year incremental of staying the pandemic accelerate we a note, our guidance on commence million AI business And to $X.X lapping quarter business to XX% Conversational underscore the cost on our to Knows guidance want million $XXX and recurring implications that XX% of the the to I second the that year of strong problems revenue. in return our customers fundamental have savings of a

before key sources grow reinforce in Commerce, management XXXX. assisted enabled to the throughout the telehealth, services our media leadership that us AI. and we like I that the taking use innovations which AI expect for themes and with that Conversational several adapt in Now success depth continue are conversational to of diversify key care on in breadth can cases new products were all ease rapidly The growing market revenue position want to quarter customer and and have revenue platforms, first streams. the to conversational social developers of our touch our questions, cloud to and

a match precision. and accelerate a like narrowing offering optimized go-to-market gain on U.S. to to revenue execute In resonates brands model machine continues quarter. we our growth on International with share addition, within motion, repeatable that and growth we've is track in that and with

a reach new contract year-over-year. Our platform for quarter proceed fourth trends a AI of beginning Annual expanding at And to small verticals than new in with conversational those the we're we're all which build like beyond extend our seasonal values is growing partner our from helped market questions. that billable vision. it's lot for enterprise the rapidly accelerate operator, you. exciting to Considering to with peak network XXX% long-term continuing logos that a market with and coupled Thank continues clear of now usage grew segments integrations into business more look to to platform. ready our center with all

Operator

go come Instructions] Siti will first [Operator question with ahead. Our from Please Panigrahi Mizuho.

Michael Berg

fantastic is a for Hi, on on Michael this Congrats Siti. Berg quarter.

to mentioned So conversion a CPI note uplift is On what's and gain there? percentage you're seeing similar program trend the share the we how strong. ELAs about you think can going the contracts from

Rob LoCascio

that. that about total the fourth converted take of I'll CPI we At And of XX%. fraction structures. ELAs at So grew XX% quarter to end about quarter, the the to of first the we end

approximately So structures. by we're end of to be XXXX, expecting the XX% converted to CPI

Michael Berg

think And involved examples into messaging terms you think the okay. your one the your payment platform. in Great, year? solution mentioned about progress - then that of was Is built messaging the in I customer or solution in payment we payments last of that the though can you mentioned that's how

Rob LoCascio

I there had two two-part, examples Yes that's was the hard, pansies. of -

So system platform. on now there payments that's taking that's in right our the the

Operator

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

Unidentified Analyst

of run this is just Sterling. on give rates this quarter Hi, for us about sense change Could the renewal? rate renewal how and a for the in you Maya

John Collins

expectation of are the quarter in Yes, renewals. renewal on seasonal par kind with for rates

As we year. the looked but in first quarter what renewals you the like we’re where with typically see it is fourth may recall par occurring, most period the in on last quarter similar

Unidentified Analyst

Okay you. thank great,

Operator

Foster go Drew Please next Citigroup. with will from Our come question ahead.

Drew Foster

quarter. the you're nice you questions. for guidance full assumptions unpack John guys Hey year up. around the set taking the Thanks can making

pulled that puts flow some in the So Can You help you giving of had you like us other QX there? any the either paused revenue upside million close through that things full of around and didn't than half were raised back less forward you takes year. there the through to parse caution just year was or and business by appear it of that? $X the

John Collins

by above about obviously million. guidance $X our Yes the end top of would say I we're

forth and naturally, think that we core year in on quarter the We the expected seeing set results are it's that execution. early the but are still from we we that executing last we strategy

the also assisted We had some driven AI quarter Citi. upside the experience launched we that telehealth by with in

some that in increase been balance. suggest all into the quarter, we've continuing have first quarter. results, is put second might support the right altogether and we of the the guidance and think the the business a And amount the actual But forward trends pulled core that out

Drew Foster

get Okay thanks. media for mentioned them. you And non-traditional one case. then replicate what thoughts up of just you for social I'm doing could your on curious Could view use for repeatable LivePerson install key case capabilities to you you potentially you're base more new specifically sort management your as you? how unpack customers. of It sounds that like a use your that a opportunities and within open

Rob LoCascio

Yes, automate all to to usually different our they wanted all handful the so, the onto direct platform agents communication platform have, then channels to the our take of us both social our feeds. media they is in stuff public social messaging the to couple bring agents happens it’s customers all capabilities a and against hundred the want and that a those and the and

little features we're building there going good our continue platform. been a set we've we've in so, to And for product a bring. got And to on of bit

channels implementations their to media is an step social large with kind it. You communication shall platform. like brands current some opportunity next that’s digitize that's know those say up so in our - of where move and to bringing you the And we then it's looking we we're the signed at all know channel voice onto are - that very digitization with last voice of

Operator

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

Unidentified Analyst

question the congrats I the is quarter. contract mostly solid of in growth or you so this activity some the migration is by of that Chris driven of ARPU know in is for Arjun a driven dynamic growth where Hi play quick volume this so the yes, that there? you saw, that and kind factors on on have some quarter, part about

Rob LoCascio

the is clearly growth I say ARPU. expansions another intentional structures also changing Yes, to in in of market are the would move factor. the have and strategy contract mid-market we that up part

the landing counts level there. we we've on we're year-over-year than there a in fewer deals as So basis values And significantly are are past. at have but the higher mid-market, up in noted

contributing to ARPU that’s growth. So, the

Unidentified Analyst

thank quick you. a follow-up. it, is this Got And

those You can touched average you on looks contracting versions? us the a give might earlier. have on ACV sense this But percent what uplift like for

Rob LoCascio

provided Yes, certainly more we of have haven't do we I on will average, level when granularity. that But generally, upsells conversion. think we the

Operator

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

Zach Cummins

So as the the easing has like consumer-oriented had in verticals progressed, on retail, that of particular? any impact COVID has restrictions

Rob LoCascio

we're a was mean, use obviously there on major and cases. focused I retail No but use shift, very sales the marketing cases,

that about, it. So, they're store diamond that. and public still buying going and They're largest a doing the and rings really experience And jewelry talked consumers have back. well, they're high-end love not of the like it’s X,XXX company, digital we rivals they I jewel one stores, but all created whole a

a get and though And vaccinated it back. to it. But and So, now even really we it like continue see once people COVID, push. asking we’re like about everyone's consumers brands

just So, behavior were it, years again. and off like down if And consumer QX, big bump of to it's continues we forward. post we of always - back. get is that didn't it off don't it going and see we It look the surprised traffic. really we come be I in seems of - at then I We XX holidays, this come

So, at we were bumped holidays. now higher we and the we're up than -

these, consumer what past. doing of wave in just behavior and using changed than they're really So commerce the that the it's us is were they this tells

Zach Cummins

earlier. or we obviously guys you about I cadence water is guess that it. up blew guess we're out I revenue that to that the - I guess score. Got function earlier wasn't a And have I guess might the But guidance as EBITDA the And was questions have like to back I guess well. guidance. why little expected one of a kind you the investment up moved of going move surprised of of guys like the mentioned EBITDA significantly?

Rob LoCascio

see on we investment the indeed of and It's opportunities the horizon. growth because cadence the

We expected first quarter. to in more invest the

upside we due on carriers number at So beyond. to And investments second quarter a bottom that in brought could the that pace part and quota on big of We the in we of that was just part deploy impacts the which regard capital. board. the line focusing continue the to intend of certainly

think remainder will that the of - spend we what we the during still expected we So year.

Operator

come will from with next ahead. Our question Latimore Northland Markets. Please Capital Mike go

Michael Latimore

great quarter. Yes thanks. Great,

the think Just thought And I mid-market. by idea? in sales to were heavily I million there set that is And some you, on little year-end. is are get also that to more the think you invest $XXX you the about goal? that I is still still headcount would a expected guess

John Collins

Yes, intend to still that be to additional goal. $XXX million the quota we up Most the throughout bring in year both the the on and mid-market. of would are marker carriers

Michael Latimore

And forward? on why mid-market focus enterprises going

Rob LoCascio

for good a have we Well engine right enterprise now.

the And We from also opportunity have the we're course refined winning the playbook is move what we've an network. which upmarket support for We that's to and partner of pursuing. see a mid-market lot in share gain within of deals enterprise.

Operator

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

Unidentified Analyst

these do opportunity far? are is of you your within kind the Jack you plan so customers monetize this capabilities? And Hey What on adoption to seeing payments how for Steve. on

John Collins

mentioned examples as of Yes I gave I it. two

on And an yes to out. CPI we're now for it's tied So rolling pricing. it monetization so pure the our right interaction

a and platform CPI for these the now great And experience burn also and it’s on forms. doors to brand. It that very it's a consumer the next within the take to going just and clunky used the on usage few be but way driving - pricing. a integrated it's secure payment it's to just more down the like So

Unidentified Analyst

channel you your and that customers one target? evolve recent are and Tech with - you follow-up. Mphasis Mahindra initiatives progressing how talk then they did to How and can great Okay

Rob LoCascio

We it still back… get

John Collins

Like ahead noted. as we Go Rob.

Rob LoCascio

Sorry, very We feel going John. good what's with them. on about

them. We also desk companies is traditional for again, us, for goods which like once them. some for but traditional opened not that staff traditional consumer is traditional not is we up There for packaged internal help some is it’s us,

out the them. with So, some traction of we’re good gate seeing

gate. So, we’re we’re of moving out the on focused And it.

it's as opportunities different they outlined, and with but are which - are we kind stuff, they’re good. going where conversational years are adopted is about is, is And launched ones and that didn't envision after, not and many up into of being beyond And really really go AI Dunkin like we we feel the we the traditionally I brought them, of cases, for what's four-and-a-half are even it the opening - So, back stuff first gate. different we now care being use out ago. happening company

with of then, of And these also don't, going got that they kind it's companies they're other well are doing outside that U.S. different So, the all and interesting. after really and mix we they've

So, mid - quite the see long-term. and it's I impactful it’s quite over

Operator

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

Jeff Van Rhee

Rob. Yes, two from real me, briefly,

threshold win? how In get I'm you and when interested the finalist, over the changed? it one yes has stage function the of that the break And gives just feature is the gets platform. it the to you landscape, terms final, down final What you to particularly competitive of the off differentiators fundamental in key boil the of it

Rob LoCascio

it's to now, human And doing it's and the automate right that's most we’re messaging they want conversations. asynchronous, human They automation, to engagements automate the because to truly brings the conversations all of world. best connects they're conversations just front it's but don't automation every Its to capabilities we Obviously, really it the value. what in do AI-led. messaging the platform all ability end to have want and still AI

Jeff Van Rhee

the Is what's starting change Is mid-market? kick conscious it there? I balance new What's to focus have initiatives more a the to getting seem I and fundamentally are on and board And the it. the mean to offset in mean the driving the that from that? counts the customer counts that I mature in a to how referral-based in deals and at think on in ARPUs fewer mentioned customer. absolutely are you drop stay yet the the prior events to gen down is model accounts. your know deal that really you the to larger big your Got do the you then the I that some ARPU drive checks was they of deal in. rise counts from that that it And with platform numbers are marketing at about much those surging obviously balance leads weekend love deal customers our lead

Rob LoCascio

higher really contract small as changes increasing we're annual Jeff. for in Hey, the mid-market but ARPU seeking so businesses. our numerator It's mentioned the mid-market also to that's resulting Within values, driven points reducing strategic and increase denominator. and by and I entry higher earlier go-to-market the motion and counts deal lower dynamic that would

of strategy with from we agreement Cloud similar value the that businesses rather versus marketplace end today. And quarter thousands counts it’s in you at actually with literally all it's that's of tens the factors where Cloud. are tens up single and place values. as are when as to sign deliver small with that and dynamic as that well discussed a the signed Conversational of these getting counts the know taking really of a that the as of businesses partner generally entity reflect the we ARPU than For last the not Conversational our partner marketplace the these the thousands the network our efficiently the small they deal deals we to contract customers total so And all to scale dynamic launched a will businesses contributing

John Collins

years in think small wanted that add I small so it's large a think money these we on so in will us of on I the table AI in value in leaving I to we're the and implementations exciting that the we're business demand and platform leaving millions such for do business. hundreds and of seeing for money the messy do we're scale

- going now a we're look demand messaging. to think There's I start like right there. definitely mean everywhere lot I there's so especially to And of

going more get in we're and think optimizing revenue right there. we're big I But a on growth of So customers the impact our slugs that little and now aggressive an for to big have implementations at be could say moved $X small mid-market million a mid-markets down the mean kind our our opportunity our focus. I in But large I of there's business. up. We will and that's world definitely deal.

are a there's still and the are But folks opportunities. they're a went we've $XX,XXX not our good after but to go really it So moved year. bigger. or enterprise mid-market $XXX able sellers. year because But test good up sales and they're larger There up because even they're grand then mid-markets these some,

everyone's - there's I sort But table business moving after. think money the of that's on small that So the in up. was we go should

Operator

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

Unidentified Analyst

of came the This on about that versus channel? bit direct little taking the on Could indirect from is Thanks congratulations bookings MacDonald. a more you for [indiscernible] and my for question talk quarter. mix Ryan

Rob LoCascio

Yes.

quarter. So there started big the channels coming are drivers clearly from as this time emphasis first some to pipeline within our deals we close growing for mentioned a

so We those also obviously partner deals, landed side deal through network our the the can and by of direct give - you direct and seven-figure on balance seven-figure I partners.

Unidentified Analyst

Great. Okay.

Rob LoCascio

These are seven-figure deals for the quarter.

Unidentified Analyst

you internationally? about could talk then a bit saw more And little you the strength Okay. that

Rob LoCascio

Yeah.

So as by I that contributed EMEA, growth in accelerate growth quarter. APAC within continue mentioned both we a fourth international beyond led to to and EMEA the APAC was regard though

new and region, one We logo. that also closed in expansion one two seven-figure deals

Operator

ahead. Peter from will Our ISI. Please with next Levine come go question Evercore

Unidentified Analyst

to quarter able initial [indiscernible] wanted from to able Congratulations on more loop share? product, go-to-market any to on the about Hi, appreciate back touch any something broadly this payment. you that Peter. and on is Are your customers topic on taking updates you and the on feedback question. I to you're first I the data for the strategy

Rob LoCascio

now use it's I when was in I before and about market mentioned I script. cases my as Yes, doing two the initial talked

were We're we wards more as out a business to dark force it. charge model. so We're with a customers. yeah, now working going there So with

could conversation, payment. expanding take do the We’re actually now payments, a so voice a voice we

expanding we're channel the messaging into into outside So channel. that

we Conversational a we called than somebody is digital credit launched market a to that now have an of payments then continuing which built as extension bank so of We've this also the the Visa also more - we're of so a right yeah, BELLA and actually an So we to that's extension overall. card the a it's and capabilities. that platform connected drive you connectivity know in card and Bank as

and that credit who also great become up banking cards to cards. customer So have customers we you end to be these a know our vision here and on to credit their a have our use us using platform

we than more which So payment built a running. system just is

over support been We days platform so. days the credit accounts XX and checking too also for also our built it’s the in little the market own own that's our savings to the in our so own accounts of use cards, now banking XX market a

Unidentified Analyst

you. Thank

Operator

call today. the closing LoCascio of Rob We've turn remarks. reached the end our to call to like I'd for

Rob LoCascio

we leading vision is I quarters our plus We're this executed XX% customer think And consecutive obviously you. from leverage, outlook ability Four consecutive had demonstrates on an give outside XX. quarters just of we've rapid team enhance world. And Dunkin perspectives being AI few testament reaching operating a want care of cases quarters Conversational obviously now just We've improving. the and the company of Rule beachhead to in of in And team this as our growth the use our financial quarter Thank the to also in-home engineering you quarter of and consecutive double-digit done of three the sharply four our had not that business. Cloud the the I job in margins now to expansion growing while it's an is all aggressively to. have and the to seeing awesome testing growth. the and for to exceptional to history highest the we great COVID they growth is platform having healthcare which the an XX% is of has is even Conversational to just automotive a platform in with continue which thank

this it quite our like for popped us? company there’s within well to a did Conversational is our a employees customers, AI and to city opportunity it's using to that right organization thing they're a have job like bring we we these back grow also you adventure and executing really you can and customers. want like help much and to with tests take the work our We get do every look such good testing with new our go-to-market and And - is work you like a so up weeks. and There's just quarter working and employees can great just it so get do our them now like back

in make to automation ultimate and voice put something on voice Bank this our of starting Care we're Conversational create care. a one our everywhere. this that of And inflection to something not working working beachhead, was type And technology Alexa. so powerful. one just on day company something pony will how and and are we goal this seeing some we our is point know have there innovations can but trick the in out you we're now rival We go as really cool at home really

we'll Thank with you in support. So your all for you. see and that thank QX you

Operator

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

may You now disconnect.

LivePerson (LPSN) 5 May 212021 Q1 Earnings call transcript