- Earnings call transcript Q3 2022

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Operator

Good afternoon ladies and gentlemen. Thank you for standing by. Welcome to LivePerson’s Third Quarter 2022 Earnings Conference Call. My name is Ryan and I will be your conference operator today. At this time, all participants are in a listen-only mode. reminder, is a recorded. As Instructions] this being conference [Operator call turn I’d to conference to now like the Mr. Senior Cooper, Chad Vice President, Investor Relations. sir. ahead go Please

Chad Cooper

Thank you, Ryan.

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

Rob LoCascio

EBITDA In earnings the $X.X joining like million into LivePerson's Thanks with start territory. revenue to and X.X% I'd positive moved Chad. call. year-over-year quarter. grew an adjusted million to overview $XXX.X Thank third quarter of off for XXXX of QX, you

many up we customer of hosted in San points few one XXX where margins Our year-over-year. in Francisco events and prospects attendance. brands XX% basis key A our of non-GAAP were gross our were largest weeks ago,

customers and Our partners powered gave and strategies customers a tendency at These digital into the Priceline, product were a view to they that thinking AI journeys have were our LivePerson I Google, want roadmap with broad our private by Virgin us offer engagement events brands and customer event you. help in strategic Elements lens three future. Health at that and inform Media, validated implemented There our share with largest date. Verizon, to clear the themes into

company, was our has clear phone, and XX call for brand people company other before. than a the voice. industries. up to We in for our the care, no and what done us in to considered we of us provider. shifting of enterprise in by there's customer of of multitude now system, Being XX%, ever create the validate the brands space. across to of ingrained engagement execute pick something really us long-term years fact out meeting customers now XX%, that they struck critical one systems. provider become those for validation consider tier how systems of that that was as their that that now customers trust we that are partner I they one, serves reservation only customer the a of considered small have The mission that one we me world we tier a against traditional group to more the told need us, told largest are including took that First, a their vision, in meeting, contact we volume thousands CTO tier we one alternative the a Brands airlines Where that it seeing businesses after XX% our their of one now a

that we this voice trend year, years converse voice is volumes consumers responsibility ahead. well exciting conversational natural a curiously we as new highlight This months with be opportunity expectations. our the grow heightened voice reality expect a an machine and this both continue to We brings to in when one and AI human as enabling -- release there'll of highlight release when through experience. language a to our One

use Second, automation brands the vision how of enterprise. our for validated have and in the AI

specialists brands to our the across continuing tools prominence and and of and teams adopting their thanks expertise AI build function their support Our to business. are to the AI

we they our one as value banking of discussions in additional they're trend, with increased our had As automation. deploy this platform seeing major brands exemplifies

chat-bot number automation much channels, AI, and and LivePerson increasing an connect product innovate them helps them, them of company is today. customer to markets brands driven helping the are our most roadmaps engagements digital AI leading a For that of more in sophisticated than operate the multitude

be platform where that customer us hub. key want the to create brands powerful Finally, engagement they a unique, integrate systems

which is and term move integrations customers telco as creating are customers conference part consumer opportunity systems cases, joined largest unlock conversion commerce into doing enterprise the acquisitions want strategy that we're rich conversational rates. Base stage partnership Tenfold other legacy know Voice role. this on our seeing highlight compelling and a hub, central with deliver digital us Google use our already Also order the to off results several search. work that the of experience. our central ads The to on to are our in that conversational us of focus in of really engagements our platform main of using with We've to to engagement One the kicked long for together of around

from more to have Google updates the beta partnership availability exciting with in move with quarters. coming this we as general to expect We

event tier and to So as on roadmap as central with and a a world's hub build customer strong driven continue was terrific serve of for our it platform all, approach on leading product brands. to a validation one the us engagement to AI the

for results our deeper dive quarter. the into let's Now

during three actions revenue we on XXXX faster fiscal optimize our changes with to As we call the outlined in growth. the year QX in market, focus

exist logo growth other customers. on strategic expansions existing partnerships the and and platform can to New strengthening our drive it platforms our value with opening to be AI initiatives enhanced customers AI so

we carrier like newer have divulge to not numbers, are in traction. our we score reps quota would highlight QX that evidence, strong a While starting do I bookings booking to gain

In achieved fact, the we count XXXX revenue. deals booking signed testing QX since and of customer we wins logo growth, number of XX total after achieved deals the out figure deal quarter. highest COVID and a seven the in Starting netting with

the because they cost true they're digital platform. As can savings brands look achieve recognize economic powered AI increasingly with LivePerson proposition. even expanded current for they conditions the under strategic engagement, for value customer recognizing This partner our holds

which our turn some include I the As of the the to customers most in quarter, brands innovative some wins of world. for top

Let's with We want new XX start new logos. in logos the quarter.

new deals over year on the over dollar the XX% of down year logo the While number is year. is year, bookings logos up new

Additionally, significant the on presence new new year and expansion us our the These logo dollars. of are enterprise provide for bring board. of number in market upsells have and logos the tomorrow over They are wins opportunity up foundation these customers XX% the and expand the to year. excited

was Group an While Money the America. largest Services and lending and Mart alternative operating of Momentum wins provider quarter North Financial logo the operating unit across new

an Money deflection LivePerson XX new based In messaging, analytics. digital agent to and Mart in strategy days base voice call just to us for launch service able addition signing -- workspace that for messaging, AI with automation to was entire being an after amazing brand included servicing voice and

a members. TCV deal seven logo figure with offer new three-year they a was deflection RFE number costly plan They process of and the satisfaction. where our provider programs. messaging insurance This improve with signed vendors of XX healthcare use provider a public IVR a is healthcare million new phone win software vertical. they automation year-long other large a we can over and and to deal reduce logo that We in Another customer auto largest calls UK's beat so to have with

the and CRM sales this E to set calling their the creating platform door customer new Expect partners. cases real providers note also channel analytics partner enable identify we members that one integration is the tenfold which of context P procurement to with and into are of who lengthy to It's reducing enables quickly and who's time captured new and and gives ensuring partners, our potential service heavy to experience, each process. systems. deliver while open customer handle a partner quickly, pitching also reps Cisco in the or interesting of logos customers agents a us our R time. back full best will This a Our to new their avoid partner jointly

and We also strong with had upsell renewals. a quarter

dining looking six messaging. Google Chat, messaging. insurance business the deploying in and form, voice the highlights executing one our the and in partnership business sales expertise helping we chain remaining personalized upsell This combination second conversational their messaging XX into renewal brands figure web to in and moving signed Also amount roadmap continue us. us, us real Chipolte reflects of relationship one deliver messaging platform its Pepper the growth Our their Business we power payers new We're the renewed now Apple trends deal the and digital largest in app, of ago renewal value We activities a and websites. us. cash I'm the in lines multi-year them healthcare XX line with and achieved to to being strategic on professional locations, and real roadside as largest an provider. deliver LivePerson's curiously months lines renewal customer vertical, national named And company. expanded happy company like a support current channels customer digital tier a profit the two business announce in established a renewal deflection around invest top our Chipolte on Fortune AI best focused a restaurant concierge claims. of include services. US They about the largest on in XXXX enormous service automation designing in the to footprint, as cosmetic signed journeys leverages a finally, and fast bot with commerce deal in additional This an the the renewed of their the of Business in as are of a for insurance US in a with AI, to improve based expand automation class conversational with quarter, world's in personalization and cloud we ponds just scale. like human brands seven expansion is company. and to the largest feeling customers on experiences also a success expanding year by

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recently, platform on and open discussed opportunity what This new we larger party by a see areas will working we a addressable we're to As as partners, teams. our us our base. acceleration enable within customer greater customers, incremental developers address market of strategy for internal third

grown helping no more marketing with months pipeline pipeline percent a LivePerson lever As we QX, app a plan growth or of major in an market program launch versions while have product JR has product several than the base that a Twilio's four a Twilio hundred who in in Affinity including QX, pipeline fact the early our or third by direct We're and to momentum uncover eye from rev dedicating in Tealium, build scalable party and Quantum six Medallia app QX XX to we marketplace as marketplaces contribute appropriate on and transcription including for past Marketplace marketplace investment. encouraged to opportunities jointly of on to we We Solonus the share voice three Metric. example, the currently this next voice formula partnerships to launch LivePerson us in for available very In opportunity. revenue development. are base and in nearly sales Flex untapped as see is partners, the across months, from for its strong the resources

driving Zive. new CMO, Chief most the growth. Finally, a At to bot called enterprise digit Ada, chat priority demand Officer, take generation software triple CMO talk Ruth's recently Ruth while also where leadership operational our company helped scalable, Ruth Marketing time is I'd rigor. to serving a is of three to a world the opportunity class about grow her transform like and LivePerson predictable measurable, company through

We're team. So welcome here. have to we to to want our her the Ruth really excited

free double-digit As the margins announced to on to top adjust I on we let continue focus call start the a over turn call, John? mentioned John with flow EBITDA in the And adjusted growth margins now year, discuss these to results. to cash beyond. of that, in deliver at sustain our at execute with and detailed QX financial track the plan and the the XXXX we're and of profitable me

John Collins

to to $X.X overperformance and on by year-over-year The to In approach to to with we was third were at the during expected our million Rob. an growth margin structure double start expense launched EBITDA. continue the Restructuring upside is XXXX. health of you, set upsells range wild top profitability profitable growth, advancing third expectations of continued in cost the exiting optimize by margins of of Non-GAAP Thank professional EBITDA the and goal and to upside net effect year that to just out scalable focus the prior end, accelerated guidance and for was to In the the cash reductions we've we of first digit to balanced To more services quarter, our order driven margin grew quarter deliverables. than actions the high positive by the close X.X% the relative year. cost free year, of year reductions the plan revenue. and this primarily quarter. reduce and in advance sources we quarter. $XXX.X half timing relative run continue of taken third improvement million, a The guidance translated significantly rate adjusted cost gross in to the our XX% attributable and revenue flow last which the revenue the we'd continued our

forecasting pace year, free start per we year to we the over in the when P&L flow burning magnitude For note date, $XX our of grow. cash to profitable were on of and number perspective and plan the transformation million that well quarter launched at a that growth

and cost expect development the coupled benchmarks. and and align medium administrative Over to general and best these emphasis the term, marketing, on sources we in better reductions industry high sales revenue to scalable long with margin with expenses research class

reporting year elaborate XX% in BXB grew our revenue was customer and from covid from last year business for services over the grew quarter hosted expectations consistent grew Revenue XX quarter, down dropped quarter, to we the year the with the segments underlying revenue. revenue, XX% hosted shared over third variable our third to To over enterprise COVID city Turning drivers year, testing software BXB XX% the professional within driven excluding from on total year. X% pandemic revenue impact XX% software zero and testing year and longstanding XX grew over year. year

As for focused deal for service figure which eight signed high in quarter, to automation first healthcare the continued on is delivery attributable growth professional the a as healthcare was companies. services, we

in year total geographic elevated revenue From the a expect of grew year continue revenue. revenue We PS over fourth XX% to represented perspective, XX% quarter. US and

grew year revenue international total While XX% and year of revenue. X.X% over represented

In continued to on third year the the consumer increased quarter, from over momentum. go to build market our year. X.X% revenue Finally, segment we

efficiency to is and Our and macro both new base operational reduce with our in present environment. costs increase resonating the especially customer platform's logos, ability

conversational and addition, seamless viewing are experience perspective, and of usage are tier AI future. In as the growth consumer to in expect the approximately customers to seven, increasingly once long end we us world. third across conversational billion the one manage most delivering automation of we we month, figure signed making platforms as and to personalized And quarter, deals, the a term service each provider, one Today voice seven described, customers landed Rob value us one base partner interactions in scaled was digital this new our and four journey. fundamental part looking the key that which a a of logos. again proposition will From the our in this of and three drive logos. expansions, figure that new one seven strategic as Note the platform cross-selling facilitate and AI

and enterprise logos. of year. in focus that go new Enterprise number relative the value the as values value and to year base. initial logo greater logos new deal deals year deal we year continue XX% to by in expansions our rebuild aggregate lifetime these while down over a number typically driven higher market both Considering we terms increase of a indicators across and opportunities momentum. expansion up new higher a new result market ramp of logos significantly reps results see translating down in the value new enterprise, was logos While new on strategic broadly more to aggregate the were Aggregate XX% logo to in deal over

of volume strongest improved Conversational four we XX% XXXX, year attributable XX% increased messaging XXX X target year grew up revenue year was messaging enterprise customer quarter, from shared testing. gain large year sense, X,XXX impact our first for over group year COVID share cloud or testing retention consistent variable and Average volume XX covid to the several year to expectations lower last of year. below revenue was XX% quarter by primarily quarter of normalizing over program. XX revenue XX to AI improved with revenue quarter driven based this this RPO XX% range third over XXX,XXX year our per renewals upsells. The XXX% pandemic lower the over from net and City's million and driven XXX quarter, just

growth year and expect of for in million. X We range to year to approximately elevated continued we the upsells In with XXX or than in terms by midpoint million million year. of now the early improvement fourth professional outperformance in full raising guidance, XXX services renewals coupled the Considering expectations a wild quarter. expected, for more health quarter are the revenue third of guidance we XX% revenue XX% and expect to those and previously

EBITDA, less, of health is $XX services fourth For elevated the for for for from range in our guidance million the time adjusted expected additional upsells approximately EBITDA and were of revenue year. to wide potential to year X% we the million, that the professional components to sequential potential previous the in fourth at in deliverables year $X reaffirming are from fourth million. reflects revenue services continued the of and the into million or adjusted attributable p the in range time year predictability quarter The $XXX.X the full wild of early forward the revenue from to the upside The decline accelerated is operating attributable to health from continued quarter, The professional to with implication pulled expenses one wild and less third quarter range and and quarter. l a primarily $XXX.X lowering optimizations. this upside one magnitude

adjusted fourth the margin to a of or XX% for of million revenue XX midpoint As to expect range we quarter, EBITDA XX the to in XX.X million guidance.

XX%. Finally, expecting range in be are margins we to of to gross non-AP XX% a

I'd us quarter, year several our in taking Before new on emphasize to themes execution strategy XX% aggregate enterprise new values. VR is year and like in XX% profitable increase questions, momentum, for observe for increasing solid we continue indicators to In increase key XXXX. sales the deal including third growth of and how a XXXX positioning logo VR logos,

the of and with provider those which results a inputs model to traction strategic sales reflect our positive strategic a in sales with XXXX. haven't within robust This us And We quarters. margin Critical cross-selling of can sources margins double assets. customer on long within newly products momentum of our and acquired focus operator, digit regards EBITDA we position high durable to service scalable our us flow were to structure also on increased that base seen and and generate and technology free installed partner cash the partnerships expanded as and we increasingly in a. operating changes our that a from revenue base, adjusted level q optimization proceed tier coupled to four past one cost term with

Operator

a of time line from [Operator session. instructions] the Needham. will this and question-and-answer MacDonald be conducting Please Thank go you question from Our ladies we first Ryan ahead At gentlemen. comes

Ryan MacDonald

that you we repeated start you us one-time provide nice forwards and help here. that some pull and the a more …questions in components with we a into and on guidance won't early from quarter XQ? bit color QX see that Maybe just just discussed came the understand congrats of can the

Rob LoCascio

components to one-time true Hi, acceleration Ryan. Yeah, for revenue those an of recognition relate ups. usage

who customers raise were ahead quarter And contractually the and early usage the in was needed of third to forward the third So cap. upsold committed recognition was we other in the and essentially words, episode renewed of the well going that so nature accelerated and overall that quarter. the in the

Ryan MacDonald

that as sort wider grow Wild could called guess. of translates the I as you sense. of in Can just from, thanks overperformance right, us continue help and for continues or complete see could makes the the terms All from of coming And or side there Health. some the in up And pressure EBITDA to of a performance on where sync I that's me. clarifying understand whether of to EBITDA BXB some adjusted sort that it's Wild that create Yeah, guess, think business to we then, great early, performance. see Health it's success us downward initiative. you out sort for BXC Can variability I to what adjusted as of mix then of revenue, you on

Rob LoCascio

John. ahead, Go

John Collins

I on was point. specific just EBITDA, going that adjusted just comment to financial make a on

to as Wild Health with more we margin insight I have can think margin, over expand now gross consistent we has but be previously, lower greater LivePerson's that gross a we target broadly, overall time. ways discussed into

improve get to to So expect time. we don't necessarily over it worse, but

Rob LoCascio

then And we're we're -- platform. right overall BXC BXB, on number good seeing the for medical but the also signing traction a up people side professionals some and the then now we're of And there are onboarding on seeing service.

sort combination right now. of a both a of it's So

Ryan MacDonald

on curious rep sort sales gains quo it's from in capacity should moment as on just sort productivity, out how we about and about coverage some talk of you can you're sales count? into, good Maybe see looking Excellent. the despite and XXXX, of incremental improvements just to quota at me, one you're broader of environment. a sort feeling investments for think macro how I'm in head the there the of more about Thanks. planning uncertain

Rob LoCascio

Yeah, think on have. we today, we continue to the see that Ryan, ramping I where do we stand progress reps

start ramping mid-fifties terms we started XXXX as total we year in reps, have with the I are mid-XX in XXXX. of we terms And right. number ramp just be to the of… shortly numbers think flow We go a as year overall with XXXX that more will who healthy investments on of think picture, and will in ramp exit framework think No, a growth about light thereafter. and broader in profitable we Big XXXX number in

we'll We certain EBITDA margins and investments overall accordingly. have free cash targets make for generation and

Ryan MacDonald

the Thanks Excellent. color. for

Operator

you. Thank

comes question next Schappel line Please ahead. go Loop Capital. the of Mark from Our from

Mark Schappel

Hi, of on and just thank through Could yeah, unchanged strong XQ performance, to you John, it the here. And much job surprised pretty guidance my some why given nice there see remains I run like is? you that takes question. taking that puts the for quarter. was profitability the the and looks

Rob LoCascio

felt roadmap course to with professional we the line. the the greater strategy Yeah, And some profitable accelerate in staying time I services on but certain component of and terms bottom growth components our delivering of simply term the cutting in continued time and predictability our on, of side ability for deliverables to continued less impact the at top think on assess And this of that call. described cost would the as by be base I components also upside relate outperformance is health there than relates wild other on long that deliverables. on the expectation certain business, to then one and other going we costs customer our forward, of in, those sort our the product dropping terms to to

it's but to balanced opportunities with the we're costs we outta respect approach harming but, not taking business, as So look growth a here taking forward.

Mark Schappel

you talk to then you. half was international I correctly. Thank I just you're dynamics believe mainly about great. a recall your about in if percent, four some to the business, Could It of continue and And seeing up Europe, US is there? which Okay, seems underperform, the

Rob LoCascio

and are feel of growth. market the rethinking products. investment is But right some European Obviously, we we the to lot sort better of the the specific I looking like make Yeah, lot feel but a very we focused our there, strong anything accelerate a how to at in still just do markets has of need we we are for there little opportunity now. don't we to it a have talk of we a approach. about have think bit changes

the grow it same I of how demand but the see think there, and execution rethinking we at that how a it's and so. basically, but leadership, there's we're definitely rates that we, the lot we'd around in us

Mark Schappel

Thank you. Great. me. That's all for

Operator

you. Thank

ahead. of from comes Panigrahi go from question Next Please Siti Mizuho. the line

Siti Panigrahi

Thank you. question, taking Thanks for my Rob.

peers Some of your they in center, even platform pressure. contact talked about macro

Are base? among of impact macro seeing sort kind your install yeah, your business? to any or So your many, pressure are base you among you any seeing wondering or what of enterprise

Rob LoCascio

Not right now.

and I replace messaging which channel when have it. one when, about It's the about think, I billion the the XX% the was And of conversations about some down from CTO even with talking in of sat that form of automation AI story provider tells not we've tier like I I our we I that that, tell, of it's think carry about what one an and, at in voice. communication. we're the things airlines very is not human automating because what scale at needed capabilities this talked the he becoming quarter and to we've platform a is company. you're world, wanted automation as critical look And when said about a to normally automation that channel you a as being value We're is the high about agent. talked a largest

get So can messaging. ago. moving That was Yeah. wasn't inning one scale it's to we that automation more calls conversations. to the so It about, many them kind of have not, was to moving years voice

think into, to I AI I it really that is And about area. diverge think businesses. people that say the messaging that market are that the more costs of market because seeing demand very what moving and starting the out high the good what today. concept should we sometimes we're quality So the in show there's chats from in the, we're or channel do feel we're to in going we're very we're driving of I that that's

So…

Siti Panigrahi

great. now? you landscape That's do how the competitive characterize And then right

Rob LoCascio

the, there. you CRM that got still we're And cha Salesforce are out with you've the again, like the players like and them. really the providers integrating voice It's then once have

can one into you now open, we've although of a strategies can platform's garden, sort One our, very AI our integrated live walled of things. been other our We're in of it.

about we're to product I Like we Twilio, integrating those we we're really it over maybe with take them, So run and out. where are we is how How center platforms? we our contact got give voice now they've we take a that instead over I these do don't platforms How run over people AI thinking flows. relationships cooperative. an their it run our some example we them it platform? five Why got product because the into over nines? a marketplace there to and got they've which in see of as obviously voice-based going them see now Genesis and do flex run more think Twilio do in

and beyond to we of then ourselves our into So, on do evolve the platform. garden of walled AI kind can for a more platform are you starting it

You platform. that's And where can moving we're our all do really now. for it

Siti Panigrahi

the for color. Thanks great. That's

Operator

you. Thank

go B. ahead. Securities. comes Cummins question Zach Please of Riley the Our next line from from

Zach Cummins

questions. Congrats for then quarter afternoon. on thanks the again good my taking Hi, and

more focus potential me First to, of any for go these the incentive to at point? of on for with the is is upsells sort been into that your change of there Are, just and in over is, begin payoff larger really that, macro force in strategy, to just this higher enterprise sales the conditions. S to focus curious involvement time? the market an if given there's any Just sort customers there question current given

Rob LoCascio

No, it's same. been the

business remember, the small of, went kind abandoned don't you If of we kind enterprise we, and market. up to we the we

we're those very the customers. renewing one got to, them. it's becoming focused seven, best we've do So enterprise We that the we're do We eight and well, our there. work and, them, It's, we're well, tier figure critical deals for mid-market hard on. the sell like it into

most get telcos I in we and the airlines now. like, most and as when, critical are you're banks we excited company, think excited when the So largest a world get

even guys You're be you We XX%, us our XX%, now engagement. as XX% be carrying is of like pushing better And a company, company to customer better. want of something they're to all a exciting. which

really, excited So even people, that. we I the on we think company, who and by just work a here, get working people as

that's They have crack lot perspective, is, from of AI of and internal generate they sort all so the to scale, these automate data sets. a thing how other note that I have ability mean, a at conversations. large exciting. the of do The data that an we lot on you

I that's that trying focus. to get more want operationally think We're 'XX. for be our medium been us, be that'll to near for focus to It's going now, for streamlined, after the our into term. So our and where better is. just focus at We

Zach Cummins

or towards digit geared John, adjusted final sort digit And margin achieve that that that, you question helpful. put is sort margin target? or, any out for adjusted to target that EBIDA puts confidence target XXXX, of that's some give me that, in for double of growth and of the are to you've what there takes That's, there around terms double the that, Understood. needed of that

Rob LoCascio

component, are set we've we'd of able that a double range think to there's as about even the goal possible that but the, Sure, we certainly digits growth lower be the, for achieve in ourselves. a, a scenario, still in revenue that

Zach Cummins

taking for my on congrats questions again and quarter. thanks Well, the Understood. and,

Operator

from go Tom ahead. [Operator Please instructions] Next [ph] line of KeyBank. from question Blake the comes

UnidentifiedAnalyst

my I expansionary if was but base about guys so already the results. this, the just wondering discussed, might apologize growth. thanks taking installed question I new it the missed for and bookings growth. have I congratulations on know and Hey I saw

term during there, pull But Just a go of old XXXX? that from right. wondering other follow you're specifically have there of an terms of some in if old type the into pandemic shelfware worrying your or you as of term, spend there's there, monitoring in maybe any if an about there's up. was kind any I peers like

Rob LoCascio

gain group off half No, our From the P&L has namely if particular wouldn't rolled than Citi primarily COVID of that the variable which have in in customer, the one accelerated the have discussed the XX sources of which of and I we the largely previously. we've XXXX. testing, share say revenue first pandemic other anything pandemic, portfolio, revenue both

pull accelerated customer As of we some Johnson, because usage. QX into the

they'll top there's really their hit we they where -- they're not their no in shelf, se. go per If any base their into on range there's So hitting shelfware overages. usage, the in of customer we're the stuff anything, have, pulling

we deal, them another like tier. restructure move then the So to to

UnidentifiedAnalyst

last be Rob, follow great. and great bookings second solid would just LivePerson's new heading Thanks on technology. And have, out clarification my into and defensible a does and a growth That's up of year for base question is the to installed there. the it seem

of this just adding of comment the for I'm to two led, hedging is type to technology technology yourself maybe add a LivePerson as consolidated Thank you wondering, but, mandates. maybe as the think about, strategic just these attach of larger a off Rob, you spend maybe or LivePerson these risk larger question could of of I term you. consolidated platforms, the it's long defensible kind tenfold if functionality or of

Rob LoCascio

this partners I become of and there's our integrations you One like think people of info opportunity do partners more to because we're outline, and the the technology the want Twilio's past us hinges parts more technique seeing, Salesforce is, the be to platform one the how and two system kind and like which in we is, a of our are it. BPO that greatest hub. like the Yeah, where is customers

consumer. to behind systems a AI front to We've experience. get integrated to the is We that automated the that to quality rails automate high make experience a the end that lot got of are need controlling

think in, I in as So hub become becomes important this role we business. of our more customers our system the

some tech AI launch. and competitors with but they may with got part conference the customers. AI got in this Like, just Africa was the we your Kool-Aid, the new know know and second a own technology with had that I in The world. South it's of best you CEOs, drink is founders I out I customer, just, we've new like, the, I've like of who South market, and they cap And look look a up say at us. be I bunch at other companies. they who'll for African choosing a we're all they're met And opening these like, their potential all they've customers the everyone, been

think we just to see lot to in And some because build think of processes. there build than there's the we a a trying can start AI. to of It's contact business execution. marketing. as new got head and of right that's of the technology, I this there just and trying about world AI We We're type company, build people trillion so opportunity we've got center better that lead good we've, head automate voice. a we've And it had a We're now. a best I company just got not

think I and help, definitely needed new We've marketing. marketing head streamlined a force. of we of our a the have lot have sales

so have got now a And we market into solid. It's like a executing get our We the just I execution markets. sales nor like to strength don't got our, product issue really we feel there. just just global And, challenge. but

UnidentifiedAnalyst

AI I there pools there hub record like could they're term that the LivePerson strategic choosing on could say in a system are that key Rob, kind up, software us motion? going of of for be this, are digital customer if to we that are sounds Is in sorry becoming today about specific, your terms And, that, to possibly follow is component spending or consider of bakeoff there relatedly that. some specific future, of of you comment in to AI, a prior LivePerson context when it there, and engagement

Rob LoCascio

powered say. way, what advances amazing in AI what going the into months XX last that, future. perspective mean is do the that's and pretty by We we AI by the technology a can we with engagement I in with, model Yeah, say, from and digital the our customer

so I for you're AI the focus AI that right And will especially become everything. conversational point believe and

there's on based fly management the on content today even instance, generate of on patterns consumers. For ai, the content ability based

render can pixels in now an You it the build fly a image without and jpeg. on

intent. based do these all You could consumer a that a on we conversation can tailor things to

AI after. about that's a to consumers, our be, a really go so and will provide group And with want machine saying, to want do that, of And we target right them them. want what the something and we're business content to with and I we ultimately conversations consumers, to trying

on how strategically. on approach we're customers the with So the think in we're out their just and this been needs that three really to are I what we it's, good place. I like and really two or seat of in driver's do And because focused execute last months that feel just a I've

execute. to Just got

UnidentifiedAnalyst

Excellent. Thanks guys. for the answers,

Operator

you. Thank

from line Barclays. MacWilliams comes question go ahead. Next of Ryan from the Please

Ryan MacWilliams

for guys, the Hey thanks taking question.

pretty Just third R&D see fully happy for in quarter operating the there in investors quarter further a improvement few the reflected the taken also spend marketing that for John John. that benefit quarter call weren't you? are big actions Was and any could the and with to sales in leverage declining.

Rob LoCascio

that quarter true. the dynamic will some and impact but were action have fourth certainly are have in there Yeah, Ryan. holds in so Hi, p that late that or, that been the quarter or l

will, in Although and as quarter optimizations the, in course most we And, be actions the and said speak. remarks, PNL some have I reflective. as that in we translate of of additional the will prepared through working the we, we're third as

Ryan MacWilliams

think then of any way converge we two and like over at like, in point? takes and kind differences time? free to any Like is Perfect. we margin EBITDA cash the of margins there some should, should given the and these quarter And those this about between expect changes puts

Rob LoCascio

EBITDA flow needed to there to you a a private to cash is variety large pre of our CapEx software after cloud. to support as Over get capitalization may component in addition time just know

them forward I them start expect So there's, see closer less however, and converge. converge we'll to ever those see converge. capitalization start but then get moving software time. fully as they'll to become over are that reducing We'll time we wouldn't to over them

Ryan MacWilliams

the of box And just kind ones. just more like, Perfect. check two

think You the for have remarks, might mentioned, guide. Q the the from we I impacting this the what wild in contribution quarter prepared missed could health and about four in maybe

Rob LoCascio

business baseline think the we that and less the already exactly we the, this for in we're, I that strength being and sure point We're and upside But guidance. as the continued Yeah, the we, kind contribution we in of increased quarter saw predictability seeing time fourth third have not the serves we're hence expect I it's conservative. can newer growth a a to quarter, where the, the land. the will at because in we're think

Ryan MacWilliams

the Thanks color. guys. Appreciate Excellent.

Operator

Thank you.

Van Our ahead. from Craig-Hallum. next Rhee the question Please comes Jeff of line go from

Jeff Van Rhee

Yeah. Great. Thanks.

'XX, hosted framework not So from 'XX. to growth of a several rate at guess can but PS the or think realize given I you're into a consumer standpoint, level put preferably you've versus about how and segments guidance give versus got and about probably and from least that, either high think it a at us we you just how take

at you some least can't give If it. us around bounds

Rob LoCascio

last think specific question we for the had impact. that we think give can expecting before are that quarter. the XXXX great focused a Jeff. where framework improvement quarters, we're and quarter about I PS in be specifically We noted, We, even fourth want we we kind elevated normalizing we growth. the first see out. we continued expect answer in color BXB COVID prepared significant on fourth. in to of a clearly and, in profits remarks, as described on generating PS to again, the were over the cash how to put foremost four strength investment with we right, I said generating consistent where make prior to To will bookings Yeah, question things XX as, we guide land as we more as in your we're, continue and But third Hi, And and on next another we're, response year. dictate

have but XXXX. in we moderate had I to in than in years will PS more it still we'll start historical think have

Jeff Van Rhee

to just round on And it any thoughts out, consumer?

Rob LoCascio

at it's time. in don't this have out Yeah, for from this point playing how year, I different expectations consumer

Jeff Van Rhee

Okay. I particularly And the reconcile messaging a the growth. is strength. then automation standpoint, and me from platform around AI the Help product know competitive

incorrectly. inverse, XX% said up probably about thinking but that conversational XX%, is it should like messaging up be and seems you the think were unless automations it I I'm

Rob LoCascio

automation. the No, it new go we logos first where with live of on depends use and or and the new, the automation agents

anything what pattern expect we So different a now. see we don't in than, right

and So nothing customers on get there's for we like but nothing I back that our there. that. see growing that's stuff it, new normal there's you to can not

Operator

you. Thank

question comes Our from Please of go the next Arjun Bhatia Blair. line ahead. William from

UnidentifiedAnalyst

the whether all? changing your we there market in enterprise you discuss Can changing up. is the I Chris the This result the Thanks to for was dollar customers at to It message of logos any traction being with while But market. current taking is done sounded unpack macro amount year changes? at this intentional thanks. little bookings Arjun. over So from wanted are primarily, kind Hi, is the on of go of to year for number like new way my you're backdrop or question. a this better fit bit that landing was

Rob LoCascio

because fluctuates doing quarter. on big just side, quarter it of enterprise think I kind game by it No, we're hunting the

But we're, like can new great bigger sales new logos we're, quarter expanding as a and we many the get sort we had deal rep of future a a it's of next really quarter it, see company. deals, as optimized quarter to obviously your generate because the gate trend. hunting, we're happens So size. last We'll value for logos game we want to up it's But can this we not quarter. so sort quarter down, and big by it's what this

UnidentifiedAnalyst

of cloud, you. a fit theme XXXX? party this opportunity how the and you conversational on this And customers as we that's the revenue in you're about how bringing wondering does that then hub Thank onto touch using That's, platforms thinking was generates the with I third kind once then into helpful. going of

Rob LoCascio

quality we're what scale. It's usage. greater. endpoints is the do to automations then where is, things we basically the on. get looking that see two always of And drive drive and we that There's we're Yeah, obviously the

sales and look what service more marketing automation into web, you and more then And and versus marketing into service The lot we're gets on systems. to when Then Apple consumers get get we're, places is cases, a more that can app, like that them Business ability and Chat. system. of drives us, So human. to in the use at our deployed cross-sale the

there that systems, So and you're, But when does integrations. marketing handles back takes or needs we're when are automation into to service when integrating a AI our process systems, we are it those systems a our, there the and communicating do end billing the end, backend with full you're when sale that's with and, and an best. comes when inquiry

level you going really as this a to automation. if of we're even see integral, scale higher we So to really of,

amount or with human contact human are have because that. XX cross not we The XX% still acquisition XX% a of XX%, we, automated, are, our gum may And our systems And store tenfold interact with with around platform, agents. is to volume where there's we enabled. of that us those fair only those. on agents are So ability in backend ability of interact still like more to gives centers API integrate reason

So, so that's really key.

platform, an The second it's enterprise system. genesis a it's on on money sometimes they part off is Maybe they like spent bought and voice it and capitalized. a

put one our that And we so unseating better have onto to then volume. AI way a more that, but that platform, can is if we thing, get riding over

hand their revenue the of voice end platforms, that they're will traffic volume, with all legacy backend on bring the to automations that drive more we hitting for whether systems calls drives whether do platform, which that, voice our we So on calls, all automate doing we us.

everything with that's partnerships. how we align our So,

Operator

will Ladies you. the call and turn to Thank of have our end I remarks. reached for now closing gentlemen, LoCascio call we Rob the today.

Rob LoCascio

much burning time put that said on is space So focus today. our positive to a which so obviously time, of AI generating it and quarter where that It's, your I the a goal. iterate We And and automation to over going out, obviously growth ours. And we leading also that. were head very was now it want we're towards was thank at XX February, you million for in think cash, profitable delivering I a we fast. into our and EBITDA, did we were heading we focus

restructurings a 'XX. have and now, other going to starting lot their are into space see, go to As in all people through we they're can that the of

lot very It hard done to goal ultimately 'XX. and years provider a ago, that four drove a gives P&L and done. excited And was I And a to we're something profitable we focus get again, results five dreamt all testament lot times. is difficult company, once of in us have become fresh one of the years It restructuring. a did we QX. ago, that's very everybody to We want that to a of everybody to in the in it company traditional in and We've voice. now one's and a these in alternative Our half today work that work hard growth. of something a thank even in and tier growth doing ever created 'XX the drive to the an no

for looking thank you shareholders quarter. to So next next our See all great the everybody, and work. our forward quarter also and employees

Operator

your participation. for Thank Thank you. you LivePerson of The now conference concluded. has

lines. disconnect your now may You

LivePerson (LPSN) 8 Nov 222022 Q3 Earnings call transcript