LPSN - Earnings call transcript Q1 2022

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Operator

Good afternoon ladies and gentlemen. Thank you for standing by. Welcome to LivePerson's First Quarter 2022 Earnings Conference Call. My name is Kyle, 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 Ms. to is call now Jamie conference I Goldstein. a the conference reminder, to this being turn

Jamie Goldstein

you, Good afternoon, joining today. operator. and for Thank us thank you all

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

today everyone about that Finally, of first talk I'd to fiscal our year like we are quarter remind here XXXX. to

in and direct XXXX nominate holdings materials SEC important proxy strongly company's identity their forth to to relating of has file interests, read the Meeting contain aware, their meeting are information. Stockholders by or and of entirety Information definitive announced otherwise, the indirect proxy in company's the Annual definitive they documents will statement, www.sec.gov. these be the materials to participants at security carefully proxy be regarding filed and candidates all documents or set of card, in XXXX as course. company's the a definitive Stockholders the proxy other to may you and the the election company encouraged The through by the filed other annual the or stockholders. intends of As accompanying company company Directors statement through company's for the intent its free due copies with obtain SEC's the website, website of for the with may SEC. shareholder

to not call this this will comment Rob? further the you focused I call. keeping LivePerson's will performance that, We turn your on over and matter results. We questions with And on appreciate on Rob.

Robert LoCascio

of continued our than EBITDA AI top leadership growing revenue first adjusted joining focus guidance range quarter. improvements year-over-year Thanks our for bottom-line We illustrate strong overall count were year-over-year customers with exceeded slightly greater better million space. you'll EBITDA Jamie. what and to We upsells continue including for the earnings higher XX% and million revenue both achievements first XXXX profit and These into these figures These strategy. top guidance ARPU in key and $XXX.X high the XXXX guidance business quarter points are quarter expand the with heading a existing priorities progress year-over-year. end was of year. execution beat clear up been growth call. million, operational range. myself and deals. very Thank by our and for the ACV and proof a strategic of beginning hear goals business John both XX% the on announced deals the of end land TCV profitable signed Revenue the successful reinforce five eight and adjusted strength you $XX.X the driven Many were our of the we We increase $X.X our and operational plus loss plan, two results of across growth strong will deal driving on deals execute to on and had seven-figure efficiencies. additional since as LivePerson's Overall, on making we focused the solid very from we had to large which

get business our our leading the these on priorities that deploying us shareholder help position, laser-focus industry more and will confident are model. maintain on We leverage generate value, strategically capital

remarks, As flow and to XXXX. by line and cover guidance have excited through executing of and for more reflect about generate QX and XXXX operating share EBITDA QX the to to adjusted John improving we're and realignment, our also now sight on we details on his cash I free in John progress will full our continue year them cost beyond. QX are priorities plans our XXXX

conversations. robust cloud during platform quarter see volume with to year-over-year messaging and continue growing messaging conversational for usage AI-based for year-over-year total XX% We XX% the conversations

did As brand grew, so our our relationships. platform usage

first on the progress the call. reflects making noted talked we the great on previous strong As at priorities we're strategic beginning to a operational quarter call, as about we and key the execution focus earnings

last of focus go-to-market our an in spent ramping traction goal think I and our evolving strategy profitable starts these We team focused and team's quarters continued next on our in initiatives as see the few to and we'll of align increase on One few the extraordinary growth. grow. building capacity with sales the quarters, adapting is to

in customer GainShare mission signing a is an model represents offer deal Analytics across device. with already integrated capabilities, we XXXX, an to as we partner and multiple satellite brands as leverage logos. become towards the in great free to of the began for We standing or with including, Whether new receive brand and products. radio platform It's seeing to This relationships renewal new we're the by million them leveraging our IVR the a entertainment XX expansion we to the long to commerce core company capabilities our existing our the with during an help continue each for deflection, journey. this the and conversational then, them calls American quarter. Voice TCV closed up brand experience strategy In Our our an providing and acquired last subscription example eight-figure end support to transferring traction with we Since for addition, a a with partnership cloud manage care some year. voice and entire their year. land and ongoing they expand we've renewed frictionless contracts trial fruit customer assets dollar North strategy our of products multibillion synergies bear market of execute

U.K. in QX, resolve channel manufacturers cloud expanded human its also relationships We almost one to our the customers. its conversational added vehicle virtual of This messaging In the deleveraging largest enable rather is brand to OEM. retailers issues with brands manage to immediately, through a AI every high among partner-led automotive the and assistant agents technicians experience from conversations the involving methods retail we assist an suggesting to quality by

AI-powered with evolved channels. their employees. continued go-to-market distribution is with greater to a indirect help FAQ we're to drive into their HR to on great virtual expansion example also an agent HR as efficiency of execution leverage the their in XX/X model engagement providing focus our working This our forward, of processes, our we chatbot assistance increase strategy Going

they're the We also LivePerson, about the renewal standing messaging our largest quarter revenue with driven spending a the the GainShare with and renewal, volume secured using was converts automation biggest the of for platform, one for brand, -- customers' our capabilities. of by seen which the satisfaction support customers customer recurring XX% strong into

providers We this make vertical, the for messaging and space largest including X care X and as a largest X customer. in Web one to become headway Web the of having growing one continue go-to customer Web exchanges in the the also provider quickly of wallet

a quarter, renewal MetaMask -- the ConsenSys their customer are with During and close powering for their engagement three-year closed offering Wallet. we

million accelerate consumer faster, with million forth resolve without they one As to started users needs. from XX consumer in X email. needs support looking quickly back over capabilities meet to and Wallet to active to their users help a content on bot help monthly We customer to access just MetaMask support year, their were grew

ConsenSys entire leveraging product our continue which collaborate ConsenSys now to support optimizing some XX%. on products AI into the times other our doing teams automation, wait the wallet. their For what -- by platforms use suite beyond reduces lines and LivePerson, quickly NFT the they're of with expanding to like bots

They the continued few with crypto over largest QX. international during new now from exchanges should We see markets. expanding years. our next the We them into are also growth relationship expanded

exciting country's the the courses. messages new month increase in government logos. international markets, new to conversation unemployment seeing To citizens especially government proactive traffic using for more an also a over to partner, LatAm our with with its to built been via and access outbound education help we rate. of APAC Argentina. reduce and a online and continue on LatAm, XXX,XXX WhatsApp closed distribution In the portal, WhatsApp messaging citizens per our with send Some portal capabilities to win enable register The they've educational agency the agency are traction

can of to story, call to wide others, built on be a audience, on and close which this the of along cloud. messages a This projects number many XX% of As cases huge with use proactive incredibly considers that now, target success. reaching the their span government be conversational highlights are represents

on City. past which to year customers. the many events AI in different our in cases. main Executive across and customer in brands stage the New these flow. last software, large presented North We're one-third consumer of York these our expansion. XXX in a our And to the leveraging events addition leading pipeline. to that now meaningful spaces hosted use top in drive participants powerful want since we of week popular and highlight platform and first hosting were new hospitality wins, sales we'll areas London from core existing deal proven It return during and retail, our about working Community the In automations business, two-thirds LivePerson. strength our platform close on are events thrilled on events with healthcare, approximately XXXX the weeks another of with Be few to impact have their of focused brands I to achievements in-person prospects in alignment two America, were we in and our messaging many had Several We to the successes add in was in drive have one they're of

The extending platform voice include to voice our is AI. and first

and platform our brand strategy voice both the across by messaging take and that agent to natural and platform. Solution in foundations conversion natively that conversations a within the by place clients voice VoiceBase combined coaching VoiceBase know and demonstrated NLU and agent our rates organically consumer business voice to We're bringing just and analytics of language reduces consumer The real-time accelerate technology We've channels. to that messaging. global you four and months, across of understanding power services high of quality building our voice experience executing increase into AI-based powerful As and messaging. of XXX% inform VoiceBase or use insights across by today conversational made the assist XX% on acquisition LivePerson is both voice unified attrition been both

area that the be fully into second third-party that our can extending platform of The systems enterprise today. critical it focus so is in exist integrated

integrations. cloud now software can user with and other With this conversational across acquisition workflow automation with Tenfold to Dynamics. to a steps Microsoft of their can we messaging our we're brands. hub, for the to the myriad Microsoft call integration consumer dozens of agent leveraging data ServiceNow. into And leverages connecting and A can acquisition connect example their manual Tenfold's operations is services expand across applications, UI, CRM Dynamics scenarios our amount XXX of flexible customer good extend interface a contextual we agents, of capabilities we in core help of platforms global the the cases greatly and XX% common Fortune By capabilities. leveraging XX% integrate and XXX, of Tenfold's of to thousands Tenfold so for they across hundreds integrate technology communications and use Salesforce is into of like Genesis, workspace focus The automate that case eliminate companies management company systems,

a is interoperability globally. we commerce with Co-Founder acquisition our important fold conversational Tenfold we a us expertise founder strengthened ecosystem. now partner the heading as brands the broader team's to Tenfold potential to in developing of empower integrations and that this team extend of technology benefit And or partners strong -- execute cloud strategy is is Another our with have This and on care systems. to the and up

our to with strategy partners, strategic we opportunity see momentum LivePerson generation to motion consistent in discussed starting drive technology through demand for new a previously, with partners. of technology and more go-to-market are source We the leverage distribution

announced connect own voice a executed interactions. their brands We bring engagements growth are voice strategy have across global we visibility these for unified that and we expertise of ownership demand Tenfold our AI opportunities. offering, Tenfold creating launched integrated profitable and year, that comprehensive together and for and As already widespread uniquely consumer conversational and we connect with these of successfully deeply There's expect sales enablement brands VoiceBase and technology A to We've together. across telco our expansion to prefer us to business. their of for consumers last parts VoiceBase channels, over been VoiceBase, into unified upselling leveraging the the platform. accelerate and with beyond. help turn other is scalable clear LivePerson I a for key brands cross-selling with growth and as seven-figure voice and include with and gain QX of pipeline preference to healthcare. deal voice discussions channels a which quarter Tenfold want win connect all the to a multi-year messaging for drive in XX% the has already and history experiences complete we're

banking the Another build to priority vertical I'd has vertical cloud. continuing and say strategic our telco. conversational our third on largest been behind it's out healthcare

to U.S. telehealth the and market services. expected view care application of the and XX% conversational like AI to extension platform. past core providers natural of And over the at We've over Third-party of two software the $XX our health insurance healthcare of in five build signing customer billion a to by is leading we XXXX, four services. is years, grow space largest CAGR position that solutions consumer American a research and the vertical for estimates been expanding company over this our health just conversational the AI commerce, in to

marketplace the importance overstate a has like BXB platform a for business converting substantial insights. conversational healthcare In to to healthcare dive order our apps. a company our medical and Cut clients vision, uses and flows healthcare named by some to healthcare with and it group increasing best with medical order as having their in that as the believe customer the health strength medical offerings, a We Health accelerate as receive is core LivePerson give Bupa one recently the vertical Company's scalable relationships algorithms the announce for the see interactions. has called service data the was technologists customer well given our line in driven conversations three messaging expertise Clarity, reported to -- and brands most healthcare in platform gather use insurance of demand us technology-driven to ranked built an Innovative excellent the and strong deeper founded compliant cost future broader and Most space, vertical each play particularly prospects guidance, health AI the they to and by base, with Company the a U.S., first AI. today. customer website providers underpin XX on healthcare XXX,XXX continue experience overall of top industries. expansion who -- In was change the focus in Quadrant both who Wild so overestimate opportunity team of broken in a to us Fast really AI also calls to its digital a out a QX. growth this our the year This vertical all mobile underlying to we Wild This way we of by Australia for messaging see we Matrix called in they key healthcare related can IPX providers the care In One are Wild use insurance and platform the Bupa the online to of each other the can Health LivePerson in path intended broader in by U.K. ranked So, global professionals fundamental culture with that helping via insurance medical to to AI AI-based work We're I'm I company so information the health can claim learning vertical, carriers platform insurance platform Number SPARK which leadership engagement. us during cannot into patient of I becoming proud XX to one. scale believe of and closing, Health with machine AI this found have quarter are other continued patient health that our expansion be professionals drive is the who led during excited for of across service World, space. In people referrals, well were would the major family, for recently huge a for region. what vendors secure leader our the part we consumer in potential company day. in conversational as acquired care number offering the solutions, in companies a and number here our was innovative the

edge Built our on our and City Work hub work and testaments In's eight position, cloud. Golden conversational earning in on products. company's off Seattle. be These kicked countrywide, to locations conversational industry-leading back Places Best and XXXX New and of the build our done pushing maintain in a awards once culture, honored the people another ability, the focus York year, and of businesses agility incredible reinforcing last Work AI, accomplishments for were we've These that are Solution are to Best investments Center awards the Stevie to cutting us empowering on brands XXX our with strength Newsweek's entire we Award lists also on to to for Top Place Contact proof-point to XXXX the recognized We again winning our our of and also to representing in

We continue what deeper couple I'm improvements QX with happened what the about on dive next up that, a John, turn of could who overall the And excited in to seeing make the in progress financials and now John? and execution very company. that in we're of our coming do I'll the over call and to quarters. guidance.

John Collins

we growth Rob. growth Thank million executed revenue and end top the was adopt on we the first plans that or of than announced million better balanced profitability. a year-over-year, previously To to our we you, In range. XX% delivered $X.X approach end, which quarter, $XXX.X the in guidance

revenue the analytics, top investments. of As messaging, for post-acquisition range, quarter drivers including efficiencies, cost despite adjusted and fully The acquisitions of absorbing million core was was by including profit, EBITDA go-to-market cost and than realizing fourth guidance and our over our improvement can cost focus narrowing end the driven to R&D, our adjusted both better structure, of AI, prioritize the loaded of optimization EBITDA $X.X integrations. and performance in post-acquisition growth

in continuing trajectory positive we the Beginning the hosted in total adjusted segments, to least we grew XX%. from improving execute expect quarter by program gross to second on XX% reporting year-over-year revenue full elaborate the territory. BXB margin and reduction alter at the quarter our in first our shortly, quarter, within moving with revenue software profit non-GAAP to profit grew into significantly EBITDA year and which initiated first by I'll cost we're As XX%

total While grew year-over-year revenue, year-over-year projects, quarter. expect in XX% XX% revenue U.S. while year-over-year X% PS inflight XX% grew from significant international the revenue timing and professional year-over-year geographic second From perspective, due in declined total increase the the of to sequential a and revenue. several represented services XX% revenue of a of we and represented revenue

were year-over-year. Finally, with was the in brands partnerships approximately consumer first seven was growth X% worth theme Consistent least We a at expanding quarter, our with the deals five segment quarters, ACV four in flat signed in in expansion. past of the which figures key at existing quarter.

compositional target As last we primarily deal customer eight-figure increased TCV up per healthcare messaging and XX% wins, revenue million, and in record by call, XXth range XXX,XXX, is cloud was On of of Rod Revenue hospitality, year-over-year, that financial we're the XX% continued XX% AI-powered $XXX Average one to XXX%, range. extraordinary on an volume above primarily healthcare. that integration eight-figure which enterprise retention messaging These an volume ago, noted, drove this XX% within metric and of sustained the and our base. deep sequentially XX% expansion driven the XXX% on and we to year improved -- additional XXX,XXX quarter our bass driven year-over-year, RPO signed and two deals. also discussed Total year-over-year. increased increase earnings the large to growth travel including growth that consecutive was year-over-year. telecommunications, top by marketng the was services, within

with newly the of attributable guidance to our first in non-core realizing range. the sales and R&D were hiring fourth cost a company. focus quarter general through was our quarter. the quarter, research on acquired driven million our profitable down improvements to and end the adjusted EBITDA consolidation the loaded in $X.X of meaningful Moving that and relative acquisition marketing, the reducing With the structure Cost P&L, post made to administrative, and costs $XX.XX, reductions of share first quarter functions, a hosting contributed and the a acquisitions and to we growth to efficiencies primarily by addition loss and in cost of development first to infrastructure high fully in in primarily improvement

to EBIT structure expect year. we unfold year, these continue positive now cost themes for be improvements of the the to primary to to full expect our be drivers da and that adjusted the over the that We of remainder

decrease nearly of $XX operating cash, quarter a of have P&L. quarter on and cash year. on had previous expenditures equivalents, over provide by capital the to margins a impact of closed remainder the our the we of primarily previous the call of moment as two to primarily driven to of we growth earnings take discussed visibility quarter, secured like is with the $X million and that business on a significant update cash business both which over two from I'd reduce multiyear the an over now was portfolio its influence control revenue, and expect expenses, which of over years. with million terms by In on the and recurring last broader our Beginning and lines variable XX% GainShare, commitments, enabling greater the and

we revenue and with results total previously, current expected four this of XXXX would to our we in first XX% year quarter indicated outlook. revenue GainShare be aligns in As XX% the

labor As bots to there to for GainShare's reliance in impact inherent on is automations. GainShare model on build due the and margins, because the ramp a

following customers, For deployment. months in is the heaviest which to nine first XX

targeting term platform. the gross a We portfolio GainShare for XX% compared broader the margin greater XX% to are long for than of approximately

a last variable the our Regarding business Court in OSHA's for testing other line XXXX the employers. Supreme business ruling anticipated to January COVID-XX due we mandate testing of quarter, primarily forecasted blocking deceleration

now I'll expect fully no would that this P&L have particular to our margin last exit the our there the guidance from XXXX. customer discuss the that in down We're P&L operational solution the the note extremely the sales pipeline the for and From world opportunities safely leveraging newly of standpoint, As Considering deliver profile end built offices from going digital line qualify source. and an to are continue. spend testing to also second to pipeline global the on this improve healthcare. voice-related minutes acquired and pandemic, as its anticipated been Rob our drive and expanded expect innovation quarter, proud and the on vertical update to and few revenue quarter gross largest to relationships we the that changes in testing reflects the and this in we're our in like for I'll broader this margins abrupt platform discussed observing testing with that for technology enabling the expanding one during knowledge reaffirming described we're city for we're step product us forward. reopen enabling an last voice. COVID a lower COVID-XX and of this key space, branches and after to of I'd that the central trend a regard, business, and we capabilities, close from saw integration meaningful shortly the an and helped field tools opportunities, voice, required impact we revenue voice material of banks

an the case voice seven-figure full large a enhance analytics in products. telco multiyear of analytics we expect in long standalone services deal agent we're with For second renewal the the leading Further, in top the the messaging reduction -- telco building experience on on Fortune was Tenfold one of quarter, first of standing use a closed also the embedded embedded the platform and CRM launching with its multiyear also to this platform brands to and flexible with example, quarter. we suite initial a workspace, XXX for voice analytics, LivePerson's top Building VoiceBase their quarter. on expanding

changing expect from the to We integration platform without preferred of their power experience. the brands desktop enable to LivePerson strategic this benefit

coming roll expect We similar the go-to-market months, integrations in leverage out motion. adding our to to

Base on demand a a across cloud, to secular addressing market, gap through be focused conversational perceive data we're the and analytics analytics analytics broad based combining Voice back also office and the already what analytics. and working leader for the providing our we in omni-conversational unlock driving automation structured, analytics trends rich, across platform process with by with for an conversational capabilities critical in a engagement We're consumer automation unified a Given platform the automation, we're the front platform of In spectrum for to combination consumer of office their channels.

the quarter. to much the full revenue the we on first overperformed second overall while attributable and year the to timing first Turning of in of was revenue between quarter, guidance, performance

still For this the the captures dynamics quarter we us we visible last provided believe and range business reason, guidance today. market that appropriately to

to are As or we $XXX.X a million of the XX% revenue million year-over-year result, $XXX.X guidance full reaffirming year growth. XX% to

improve As to for quarter, the profit that we growth deliver our with and structure consistent profitable have guidance EBITDA, cost already optimize year we full trajectory. on adjusted last taken materially action announced to strategy our

of As expect the range of we guidance adjusted raising EBITDA a X a free in $XX million, to for cash we generate flow positive margin to are fourth of now zero or result, to $ our a and to quarter XXXX. million X%

are our guidance for addition, to range a XX% range XX% non-GAAP new gross full to In range to to of for profit XX%, margin the of from XX% a XX% of -- we year. raising a

For second function comparison, growth is million range and Note in million, rates for near $XXX.X revenue or XX% guidance year. same to XX via of $XXX.X for to our quarter, a the year-over-year. quarter growth last period second that year is the this the record

XXXX. in second half we're year full of expecting growth our guidance the As accelerating implies,

to negative a second As of for guidance X% the $X.X our EBITDA a loss of adjusted to X%. margin million $X.X negative quarter, in a of or ranges loss

we implied expect on and As guidance, our quarters and the second adjusted EBITDA of positive year to XXXX. by third fourth full quarter generate

guidance, of year margin our second for consistent also. quarter a to profit non-GAAP with full the Finally, targeting were we XX% gross XX%

we like strategic expect remainder and to summarize results, continue our to the beyond. and the drove that Before performance XXXX of to first quarter's taking several questions, for that themes shape would I

to in positive meaningful EBITDA non-core messaging, year. first positive we We on quarter for ranges P&L operating believe plan quarter improvements our and the our to to efficiencies, digital EBITDA, plans we that both the core commitment is improvements we return to executing motion, to motion enhance future and we and first cost profitable strategically into year focused to are with free in product an a and expenses, in on reduce sides More anticipated growing while of for drivers are vertical, the XXXX. cash We're fourth specifically, high including R&D, quarter. to continue building expect plans and and growth announced new that, our strategy of agility LivePerson on generate growth. driving our adjusted operator, the we're and in margin, in achieve preserving and Q&A. post-acquisition adjusted the end of momentum the outlook profit in and our We of successful positive flow to structure revenue drive And full adjusted can we expansion with cost free realigning execution the and the analytics, proceed flow leverage during on which AI go-to-market executed With full EBITDA excited cash integrations, gross set for rapid exceeded to quarter, fourth investment guidance the very thankful health core, post-acquisition platform across their our excellence. team broader integration heading

Operator

time, we'll be question proceed session. Needham. your [Operator Instructions] with from question. Please At this Our MacDonald with first conducting a question-and-answer Ryan is

Ryan MacDonald

some and pipeline the to Rob of far. marketing and in-person question. I so generation the thanks John, return of good for my events the that taking guess, see Great

think than have remainder rebuild you confidence and the events? terms just should sort about what to logo this existing expansions? rather of we of And wins that expect As do year, new in marketing of pipeline Thanks. can the we the what start

Robert LoCascio

and people in up three logo quarters -- presenting you front, up in to last been potential events opened as what I if doing new Yes, of at in customers the was just year pretty -- especially new with you've room know you and they're last it's each our the the accelerates as were logos. week, having them the event talking event, and other the past, the amazing it

or So, it past potential do the the to do I that. has what it'll think in did definitely

one they there, going have that do -- we're few a to obviously, can there keep of these in in that London a reassurance out if see COVID from people then prevent weeks, successful and have to come we'll can with it, when think but, you things. I going them us enable working doesn't conferences,

one return for same to long the but as how one I can we it definitely like to XXXX, close everything or strategic a have So, goes them we were with COVID. as impact, I we so so in go-to-market. were with think, we'll that, we'd weapon point we'll a And At out. roll as think see to using month these doing,

Ryan MacDonald

it a Wild follow-up, of offering larger from are you. had looks the from then time? a motion think vertical Rob, as Thanks. selling currently like you of about customers they talk additional direct-to-consumer a go-to-market it that investments just mean, make about over BXB first and as sort seeing what you to releasing large sort shift detail Maybe for sort for more more I some And you on payers website, that talked Health, being care you the demand opportunity, of or the of a health to I of there? to the need have opportunity of be Can more motion. you

Robert LoCascio

Yes, to medical they're their professionals. other provide today ready platform

have they it out. a they So, platform, license

And that that's that there and the so is called platform Clarity. platform

and then a have and data that single -- all off a disparate and put before data this that we takes platform person's conversational that connections So, comes then the of experiences. provide body, can that store, that we between AI into consumer create connections

you you different together as platform will the using that when correlate how what vertical at to we're many a platform for part technology direct-to-consumer play data a vertical. core really the data But used of that a they consumer probably heart as how is the the as to vertical platform, healthcare right doing. the There learning is do machine have. entire a learned consumer the they've into and it get any bring that of having for of build data, that's to the way we insights be data other actionable it's So, know, have. and Having into than healthcare,

very we're it. about So, excited

Operator

Thank you.

question. Schappel proceed Mark Loop is with from Our Capital. next with Please question your

Mark Schappel

more you if you question Or the of slower was would for markets? why issues just mean, if a And just the wondering to growth or A to with rate has to think business, yet to U.S. quick just your would I matters? question. attribute closer Rob, growth you issue with a about of U.S.. international can company due continues its on years to half. rate that raise is? internal that by this structural be start-off could it International a overseas I sense the lag just now of the overseas give I been us a trying of couple

Robert LoCascio

investments. just think I it's

have put that that doing is we entire what Our the fired ago, there. about market. largest into we market up half American lot a still and market, we're have market now look LatAm, years at two a in North -- And it. even in partners If we we we

We in that and in U.K., have e-botX in what robust we Germany, group an then a we feed on have and made Singapore, Australia, the Japan. acquisition, got gives us continent you France the then we've

a ours American So, area South of investments and it comes in into be of areas America. focal a continues We've on it's volume investment. return to really market North the these to lot when seen

So, country opportunity Messenger a there. government like were Brazil, there's doing we the case there as a a that use is the lot WhatsApp to with Argentinian that and we're country of we on power WhatsApp and what doing saw

we're really a in in focus are think areas, it's hold and but investing going in where are we investment. focus focus right are And that about probably these it's about investment. just I the markets once we So, big, again, now, to

Mark Schappel

salesforce, And recall you you have as at the carriers see where earnings carriers how Great, respect a fourth I by? today? with number to the if of core do call, and there quarter that just core the going do XXX follow-up time were correctly, many

Robert LoCascio

today. similar amount a It's

Sorry, you John want to that? do hit

John Collins

Rob. ahead Go

Robert LoCascio

small amount today. It's a

add We carrying need now next year. little probably year capacity more because we're a are bit into next for quota and looking what we'll -- we'll

to look So, year's but there build a amount, enough to cover not are we're to to heads what add, goals. need we'll think to going get more next that tremendous we pipe to

at looking are. much we where state steady it's But now. right we're that pretty So

Mark Schappel

you. Thank Great. Okay.

Operator

Thank you.

the next question is with Mizuho. proceed Please Panigrahi Siti your Our from with question.

Unidentified Analyst

vendor's is you're Siti live just thinking you. terms into as the mentioned, well, to chat, about what Panigrahi. this a a about for offering ahead? live Abhinav Thank launching large live how your to We going a or chat, a ask quarter. quarter see CRM you are on environment of this in competitive competitive Great if HubSpot, at lunch CRM looking small you wanted you especially, question Hi, integrate looking environment have

Robert LoCascio

have are mean, businesses. traffic. automation out a capabilities I they've we of a always AI the call It's to up companies, sets primarily we them. got kind or center that Yes, then added had we, the is It's voice two there. we've direct platform. the directly competitors, platform messaging, voice, voice we very different we've still companies And and with now best we are asynchronous And partner at to core Google chat of chat then going the than which But them. Amazon. have We're into their them adding the competing with platform take and messaging

sometimes And compete AI with of our inside sometimes they're platform, their platform, our we messaging deliver we by them.

So those steps. really two the are

conversational customer XXXX, the -- conversational I engage beyond actually And cloud. think platform different platform care. envision that, that we a though, many really the big from and to user opportunities, in a live XXXX, the we this we experiences even as change, the be renamed is embedded would

part would we XX can acquisition. console with acquisition tenfold like, be of was in embedded of of up, our a open lot of because How we a have a that, this garden, of think And walled and want systems I API's, got up is it's, a we lot it to to be of to it's different know we ability like we other open fold agent year, that really that. it's, ServiceNow. our do So even Salesforce, inside our inside the But platform it's got our about tools. sort want inside our, it in many we it's

maturity of embedded we're in So this customers place other where market, the just a want even our the our stuff systems at in own. beyond

capabilities. extending big platform So now the there's focus right on, a

se. go just we So care beyond per that vertical playing a customer

Unidentified Analyst

a makes it. Appreciate sense. Thank lot you of

Robert LoCascio

Thanks.

Operator

next Our with Samad question. your Samana is proceed from question Please Jefferies. with

Mason Marion

confidence about you the walk the and assumptions our you on factors XX% correctly, got key Mason off Marion Can me I'm of Hi, through in XX% revenues. guidance math Samad. a the kind us this XQ? my is taking for Thanks year re it questions. in doing growth for can half give for implies the total second you accelerate If just

John Collins

discussed we've a function quarter had sequential XX% we are the year that context record line with of of tailwinds QX. in considering to sequential along we had with where to previously, where is we The quarter the other discussed QX improvement Remember, of second roughly second in we've the the in from sight hard record today clear year. ramping that just accelerate have in last line that's improvement. QX really And Salesforce from we past comparables voice, growth in of

Mason Marion

a Okay. quarter. the step-up What this? behind nice this had were Understood. And RPO drivers you

John Collins

Yes.

quarter. had up-sells as the deals renewals large care large deal figure the and large right health that we on of last signing discussed described eight we Continued

Mason Marion

Okay, thank you.

Operator

with question next is Our from Blair. our Arjun William with question. Bhatia proceed Please your

Unidentified Analyst

thanks Hi, taking my Arjun. this questions. for And for Chris is on

rationale wanted Just on some behind dig acquisition. in to the more a strategic Health the of Wild little

personnel Health the we've more can From of the bit touched a on side domains that role fits like So playing healthcare my in. they play? team, on standpoint, what precision a As medicine? majority the product technical are you person of where personnel Wild into moves and

Robert LoCascio

bit more half than were the team it's we mean, technologists. I Yes, keeping little a

engineering, and And got have then data the side, medical you've you're you user science, experience on pure the because at the looking science, the of all other professional So that. data consumer.

to continue growing we'll nicely. keeping we anywhere grow be, it So it, are is

humans As about they're quite intensive, It's on think it answers health And to insurance. to humans health get labor talking their similar. customer you to a personal care, get about and a really is care. around When all all group, data. care time advice, it's the

that data, provide make most use that. then system And healthcare we and platform data. so these have to their consumer can do of personal data that, off the important and a thing of is experiences healthcare store the And conversational is

largest are about providers. third insurance excited out again, I'm verticals already once it. five our So It's, got we four of vertical, the the largest

mean? data at that's that valid data. that to the data, is that AI. make use really that of medicine, to and what All does a recommendations data person's heart the on And precision ability learning take correlate consumer and is Now machine

just after why if interesting they data so scientists, engineers. AI have the that, every platform it's one than got into And more of in an which was interesting data that's Microsoft, pure you big And could they their you if acquired their know, that here. probably biggest space. AI by a go vertical It's our doing acquired to because we're nuance, We want Microsoft obviously, healthcare understand case engineers, you And when healthcare we before to they especially for to us company. because And that plays here by AI. make and customer of the second that it after. that foundational same people healthcare, group a you as can the it's a was go And can't not got for was it reason see business. bring were have important just legacy, they care wing it old healthcare, companies healthcare,

Unidentified Analyst

Then, one one Yes. Great, for you. quick very you. helpful. Maybe That's thank John,

maybe bit related on first Give characterize to quarter It's just in XQ? was that border the of to a beat earlier, to mentioned that. the in of So much performance over deals And how was it -- bit Thanks. it? expected. sense us right a the earlier was you little we're closing right a close than was first some bit a little with XQ, the quarter the deal that way due

John Collins

the in in I And testing in first Yes, there's it the closures. our of make upside the also the approximately as was revenue relative and would shifting guide, of there's described, up inflowing the tiny sort component. deal to some last remaining quantity, total terms between quarter,

Unidentified Analyst

you. thank Great,

Operator

Please Our is with Van question. from Craig-Hallum. proceed your with Rhee next question Jeff

Jeff Van Rhee

the What to do revenue in incremental year? you're picture want but of for revenue Couple around about acquisitions, new acceleration, the of now VoiceBase that Tenfold, collection terms you at million Wild I combination Health, to with look sort add growth maybe of of to clearer a for the XXX of a spend little going me, getting as the timing the the and go Great. is names Yes. to start XXXX. think

John Collins

percentage as that's the well. that expectation year the the Yes, contribute And Jeff, for will total admitted of assets our year. for digit single the QX approximately same three is revenue case in

Jeff Van Rhee

revision looking what for Okay. that's QX, that outlook. a look gross I And And implies been what but talked you're for, of the declining, guide gross gross guide at not only then QX, COGS for from the how about very you've material QX, margin, this terms on looks of stable, changed to in about like margin thinking the margins? it if just power

John Collins

look also we've had are cost initiatives of with structure. had optimizing acquisition and reduced cost infrastructure. we of and as well, R&D at vendors, hits our Just the and hosting P&L COGS, speed tightening a of hits the to consolidation technology there's the synergies a We've a consolidation able non-core expenditures spend and post execute that costs. and general on We've which that some

initiatives of gross delivered both continue that year of on So to there's are the QX a we a that throughout and unfold margin in remainder the range to that there's wide and of driving those will improvements course EBITDA.

Jeff Van Rhee

quarter that category complex going should about same goes million XX flat in just stock bookings. in And quick the you've get roughly Rob, had QX. this to of bookings new quarters of in to want How XX out we I numbers stock And comp confirm I until side kind capacity from most Okay. then two you guess And reps flat up terms productive, recently. the tapped year-over-year? just then was just that roughly QX that on think forward? on million been talked and loosens are John,

Robert LoCascio

Yes, I'll take both those, Jeff.

stock the of Wild comp stock-based. regard. all approximately component and upfront usage the of general which And stock, flat yes, shares, Health of the So primarily increase the transaction, to tied in were upfront regarding that's that most in

Jeff Van Rhee

Okay. Thank All you. right.

Robert LoCascio

Jeff. Thanks,

Operator

Please next Our B. question. question your Securities. is Cummins Zach Riley with from with proceed

Zach Cummins

And increasing that any we've recurring could potential sort impact the what seen does see near XX% present in taking benefit that of questions, my term portion? and you a that meaningful your most asking an the afternoon. off change I program. about we of Hi, congrats from of from Yes. Gainshare Is you Thanks solid those good in mentioned start quarter. I recurring for know now. to to the past? script by programs just versus wanted on kind long-term converted

Robert LoCascio

a right? definitely a the of past, which broader way, P&L. past, of good in variability departure in variable seen we've It's but most what In increased entirely our the Yes. portfolio from the was revenue,

gives with over base the XX% lot growth and a recurring business, that There still of us more potential. to multi-year have revenue reducing variable strong addition Now, is being we have visibility that in contracts, into function recurring, today. it while the not of upside committed

in So that the business. of we Gainshare sense, overall the just structure improve really

Zach Cummins

be then a strategies, that bigger growth new to logo expected my question to And of updates on I Understood. driver second is around side. more a returning was really on with meaningful your go specifically a previously market know mid-market. to

So helpful? any you can would sort on of be front provide that update

Robert LoCascio

Yes.

We ahead. have -- focus go

John Collins

ahead. Go No.

Robert LoCascio

So we…

John Collins

So…

Robert LoCascio

Go ahead, John.

John Collins

remote in a both different We’re room.

Robert LoCascio

Exactly. Yes. Go ahead.

John Collins

is incremental event new first new we and Clearly, that just very logos. XXXX go-to-market to time for events drive held, to physical marketing strategy, a addition our the since we and the welcome pipeline which expect

and that host new were logos, course, event at past which metrics tool not said, been the coming on forward, we of going we years. Rob depending in the contingent As a there's the deploy have to substantial off, audience that that more a will able see event is of that

XXX total did speak. As we are many Last increasing invest quota-carriers, we ramping, you substantially challenge. though we know, didn't of even them reach as our invest in we year, quota-carrier

and and team, our in the meaningfully to Some the pipeline SDR contributed have increasing generation total in of they those investments first included quarter second.

we're through our which the right is into We've partnerships. a today. motion of other here platform many go-to-market demand gaining the box lot about out on our platforms, port tensile of The is course, customers of component talked core strategic leverage kind how can what other

for we're all motion our levers these seeing relatively So are new traction with. go-to-market that

Zach Cummins

of Thanks questions, the luck for rest taking my the with great. and Well, of quarter. Understood. best

Robert LoCascio

Thank you.

John Collins

Thanks.

Operator

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

Robert LoCascio

adapt clear about to-date. And step we sustainable event, we're On the progress we our growth. is what change. this made I'm moment, and size for of the and we If goal proud company see laser back market has have very our on the agility, to execution to on conditions focused as profitable those of team And unique, goals delivering a deliver the our call, maturity this over long-term. as QX

view, easy global agility two during With as our significant inconsistency, confuse adaptability, the macro short-term past the years shifts. especially it's to of

one value have So our I'd Fast in enabled abilities like AI over Company's company the named to shareholder years, evolution clarify of the recently unlocked how being number these world.

it our creation to quickly been leading Our industry system And the month running per over of world's rich of of the to in innovation brands. opportunity a at asynchronous invented as digital strategy AI delivered and major platform, feature company broader messaging We scale. for XXXX, in then we billion we those have company moved which as with since the XXXX, and in AI. an chat, has mission-critical for another and capture platform our evolved lead progressively XX% conversations founding In web by brands. powered even XXXX X powered on now the deeper we the with conversational over conversations

operating XX% into cloud. to core opened We balance are the order. experience are profitability. The X% and a over an a how customer knowing an new intended closed Today, year and innovations, new leverage which company AI So conversational went requires all growth care, engagement, enables access and markets. to down the new spend in of chat leading quick company put on short to and initiatives, of from around investments our platform. into model agility we And that

connects platform, potential. everything core usage markets we we believe conversational in So growing have to back high on our that do growth that

we capital, we accelerate flow, our own of both raise We and through capabilities. of recently history, only most and capital our our AI acquisitions. so organic some cash technology self-funded into development the we that can strategic initiatives our deploy For XX-year do

provide with powered by greatly Health Our engagement, to business processes leadership core accelerate our would core markets VoiceBase Wild better acquisitions and us platform. from Tenfold, that of and technology automation and insights AI benefit into our

the company team acquisitions dedicated to Our winning support X,XXX to the against improvement focused of new for staying and world, Doing thank the versus unique now, at one progress executing like focused I thank to focus Work want in even on the our will M&A and looking and times. team LivePerson. constant LivePerson leadership see multiple line Amazons on of world the a and and opportunities. people everyone these on on things be With for Have talented strong integrating the day. AI during and culture big long-term everyone call. Places the we'll on number recognitions, who you And and and the are short, a and goals, these a Best Googles strong top and you delivering medium great both a the during next that, for require QX. beat bottom

Operator

It Everyone has going else like looks call. is Goodbye. else left no to this call. join one the

Operator

And today's you at this disconnect lines This participation. you Thank for your your may conference. time. concludes

LivePerson (LPSN) 10 May 222022 Q1 Earnings call transcript