Earnings call transcript Q1 2023

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to LivePerson's First Quarter 2023 Earnings Conference Call. My name is John, and I will be your conference operator today. [Operator Instructions].

like the now to call would Mr. I to conference turn over And Vice Relations. of Cooper, President Chad Senior Investor Thank you. Please go ahead.

Chad Cooper

Thank you, joining for thank and John. Good us afternoon, today. everyone, you

and are On Officer. LoCascio, the me John today call LivePerson's Chief with Founder CEO; Financial and Collins, Rob

risks assumptions that are call, on we uncertainties. our and and are projections forward-looking which will based subject during today's note statements statements are about make as current other predictions, and future Please of to and today statements, expectations results. These

Actual earnings the various call any forward-looking in during no results to and due including factors, time with to statements. conference from XX-Qs time may differ assume press obligation materially the other to those described file We reports and this comments update today's in XX-Ks, and we release made SEC.

during press and supplemental section will call, to release are financial non-GAAP of measures Reconciliations earnings Investor the of measures. where included LivePerson's slides available which we applicable. and non-GAAP on quarter, Relations financial release press of the in supplemental the today's slides, GAAP are include highlights the website. this Also discuss Both

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

nominate election shareholder a announced As be Meeting you 'XX may aware, of as the Annual its candidates intent company's has at to for directors Stockholders.

encouraged the their annual The contain other accompanying company strongly intends the proxy due as filed and documents SEC read in meeting XXXX Stockholders card information. carefully in related definitive course. the proxy proxy the to all statement, are important to they file company's to and of company with entirety materials the definitive

company sec.gov. in the direct set for the company's interest SEC. may documents through the of or security copies definitive or other by statement indirect obtain Stockholders identity or website and forth company's proxy otherwise, the SEC's website these filed by will materials through at the participants of and free with holdings the regarding their be the Information

not appreciate and will this questions comment call. We LivePerson's We matter performance this results. your on keeping on you further on focused

that, the I over And to will call with turn Rob. Rob?

Robert LoCascio

thank while afternoon, XXXX and million a million quarter, Good of earnings revenue our $XXX had loss us $X ahead generating profitability EBITDA was range. of at Total Chad. as really for Thanks, first narrowing guidance for good we was on execute to you of EBITDA the call. goals. the well our quarter high our continue and to LivePerson joining the adjusted revenue range end

and focus for business on our BXB progressing crucial core expenses. continue of on the next rightsizing We a phase including our our narrowed initiatives, growth,

EBITDA are total on full financials provide revenue We shortly. detail will adjusted reaffirming and year, and the guidance for more the John

and next over business. business us company, products and new X of the generative employees removing was of AI the solid divesting the the changes from our support of we X implemented the core a with start The leg see our quarters, focus customers, the past non-core opportunity our For May our gives launch operating the journey platforms. including revenue, of our we on our to and growth consumer foundation

completed improve also -- will we going which the our functions, go-to-market consolidation meaningfully always We've completed certain forward. P&L of

ahead. Our have we poised growth changes are And to inflection company an we the in accelerate with is at implemented, point. periods profitable the

and years our business accelerate We generative significantly will that AI to have we as set our high-quality AI the automation X of enterprise. effective have sights into and existing ago. traction companies early on enterprise in believe entrants outcomes We the becoming the of largest one delivering most our advantage AI

only LivePerson API consumer hosts also with billions on AI coupled engagements, platform, is XXX,XXX AI labeled XXX,XXX enterprise. input enable live transactions, our are or trained the Most with conversations and with generative conversations experts of enable not enterprises tens in this imperative the with by employees thousands of models our of to but conversations AI-generated of approach endpoints freelancers. that

rooted precision advantages XXX,XXX allows protecting generative into back-end their the Those week, data, with data joined responses customers' our set in you service the to and reflect our product customer our data quality us are secured suit data customize conversational the customers AI largest data. and outcomes. situation transactions and platform brand's to of agents set, and our a integrations that guardrails Our and generating systems, our on strong the launch which do for who very could voice and platform LivePerson last event saw tailor handling the our

of the a new efficacy our key driving data language AI accelerant the prepared to it acquisition to been allowing be models. large Additionally, and the to has voice-based with scale

but LivePerson is set to build brands, artificial. including connections AI, use HSBC, world's rich nearly Conversational XXX Conversational X a conversation month leading uniquely interactions global Cloud. Chipolte, Media, We are providing reduce every data and anything of the billion increase Virgin power a revenue leader costs, our in that

generative the We can be to provide in the so our guardrails that XXX,XXX necessary important XXX,XXX the help grounded platform. it as risk skilled use and models and how humans large high-quality enterprises loop generate overstated Over that expertise -- are platform, the It training assembler use refining using humans responses. on responses set is can't data act to AI. the only safely this language the and these LivePerson leverage answers to mitigation continually LivePerson leverage are the to or

company, feel has are brands hallucinations. AI of reduce call tremendous This set value providing in ensures our that asset grounded if outcomes. that the all a facts what really data to we I uniqueness look of relevant its because high-quality they at X such in day, we And alone and that conversations the our value

to we conversation that out our service when And these integrations using at aspects them key this, deep acquisition is that look of for our we we talking Tenfold in One with don't What about models they're AI part high-quality action. looking conversation models and large to brands, is them with most recently, the of or is service that's working combine they comes really platform it been a like systems due things large outcomes And an seeing outcome the outcome. language it of the a integration and sales see important usually back-end biggest good also but the that actions to where and gives responses, of is language when and our sale as outcome pillar. generate the natural, many supports the most I've shine. see we're we

We integrated system outcomes. have XXX,XXX that provide APIs into today our those over

call And saw our the for you AI which enterprise deliver and grade AI commitment plans that have E EIA So of watched as is that on in X, an to many framework. we indicates you different to way, also we may have May everyone. equal, a

do as outcomes It accelerate set open voice FiveX. or ago. power just is allows generative And safe unlike our about And years AI talk the voice takes think models, right much we of the a And them and this in help us into deliver us integrate on what a and with Amazon what we of like focused with in way. training but EAI responsible AI a that to Connect OpenAI Genesys X we release that term, all can platforms or in set to with out platform, will large we assembles the now want general language of what enterprise. our more and data this customers the

conversations TAM. with voice about of that could will the can rate. I we a don't what the I now get see place conversations a never think now need automated $XX of get I the that It's we over And As a I And is automated And X anymore human very at years. to you believe those accelerate know, to beings XX% next happen traditional think future. will was fundamentally those we taking can calls billion that agents those get where high way calls.

really excited So about opportunities. the we're

did into had lot we our about restructuring, obviously, is that's we to And obviously, put of to today. effort focus to and a we the big last are this we of couple months focus into restructuring opportunity. all now can really in And of growth, put able XXX% but the work be where business on that the

When XX and We on XX including X-figure put a logos new business. the teams see we we and more We're mid-market focus because in a area completed and can -- go-to-market small we we more the shifting X higher-quality deals that in technology the we lot look do renewals, our now did deals, deals, XX usually QX. transformation. in than logo quarter, do signed of this in at we expansions new restructuring the quarter, with

the continue that focused And QX. we into quarter. that So are forth on during will

largest deal We a and Europe's did X-year bank X-figure sign financial services company. with

XX how everything, generative a puts their this they customers core employees is today. that with of their they the brand plan goal LP immediate markets engage Our and serve AI and at strategy with to

I that third I about -- think -- interesting them. believe with third what's second our deal or renewal this with is

even a put way. the And want and it allow in a way on on face a it they to generates AI, to safe everything that outcome in that them with of do platform can generative the going in secure

object market think it's the this so shiny of comes bringing when real and again to new enterprise. how how we are And playing in we it do I it a make to with the just testament it once

of customer Builder, we're We're once our in a adoption suite going AI our the this with brand Conversational one technology. messaging This companies retention use now proactive signed the expanding expand we messaging. telecommunications relationship the also renewal and using X-figure Conversation care, across sales, of Assist as and We multinational with comprehensive deal increased with of complaints, obviously, largest world. again, new

last landed financial and Canada. largest doubled year, in of We in its spring the deal brand services the also leveraging investment LP a renewal our a company multinational bank This services. with automation X-figure

In with what pleased conversations them which on deal, the already and is In daily basis. dedicated the optimize our Genesys that all are beat our but deliver automation far. of with doing the and conversations engagement we're team. their is powers we for them, Salesforce as automation this quality months, operation critical a deployment out we day-by-day climbing is of also XX% what for the on we so X Volume

Also our players. this the XXX achieve one of providing call that important of taking of further insurance providers operational traditional to to is health volume to efficiencies, messaging center And Fortune shift global we're what our XX% client. the note to out that their volume upside large of a with engagement contact also meaningful one goal to set

X is to the their a reducing Phase And remove at care begin the service the and the a large We large IVR where into key plan with deploy messaging. consumer X deflection playing into embarked has center messaging X-year health is asynchronous provider. that one language deal And a in proactive finally, models with X-figure landed care, component. large retailer Phase We'll of to turn a transformational for journey with U.K. and than on and and web an on traditional technology focusing a quickly digital the our ticketing. then platforms experience delivering contact delivering costs. ticketing integration better we're technology move

us profitable that in focus now to in on market the enables match final The QX enterprise driving demand a will AI. at scale for restructuring growth the

focusing to have and used our Now accelerate these the that have operations, it to on to restructuring we And use them to comes when our brands. these our platforms and when they growth efforts on with tools all contact history just especially now and the them. that center. want our position engaging us, enterprise to right of the in it of technologies comes the a in trust their AI we bringing behind scaling it We're and really they new us bringing unique because with and with products can engines to generative now return

limited But that a cases and like bunch IT HR there, it's for not use using only there's customers of already cases. us use are

to as business platform, we think with go continue want units. use the we've I we after contact the learned in will into we So to go other leverage see expand what cases that to where center

the call John? over John, discuss And results. turn the will with financial me let who now to that,

John Collins

Thank you, Rob.

transformative a and one first LivePerson's growth financial quarter profile The for was XXXX of strategy.

and one committed quarter, to go-to-market of we a the growth the restructuring largest core. focused the BXB enter we accelerating the As quarter completed history, within rate enabling with for second in company's run strategy a last us events profitable

previously ticketing and redundancies spend traditional roles simply customer plan engineering success necessary. pare we restructuring enterprise product and for customers our not could By the our eliminated reduced were of sales and combine to that the meetings, ensure scoping customers Instead, Significantly, back needs model. across closer the sales those and be solutions. to efficiently we talent code, with bringing did

In non-core into Kasamba, and our underlying XXXX. lines, transparency including addition, BXB business core which was segment Consumer our since we sharpened focus business on down revenue the divesting by the providing winding recurring

We in at retiring also of quarter the million notes in strengthened amount the by million first XXXX. $XXX.X the principal balance in significant a sheet maturing convertible discount, $XXX of

transformative Rob resources and discussed, by enhance is reallocate in rapidly, immediately the market described generative I P&L our for outcomes changes us enabled capabilities our business that our and strategy As to direction also of better significantly in deliver part AI. evolving The this to broader just platform driven customers. have

With channels generative can for and voice and incredibly the both automate week, experience last consumer at products we AI in the reduce we launched the our messaging costs exciting. which rate is brands

to was million within our $XXX results. the guidance first first generated of quarter, of which $XXX.X million. range revenue we In to $XXX million, our Turning and the quarter

as we remarks, recognized discussed March means the revenue, revenue guidance. as XX, prior underlying our end the in recognize of first in Consumer Kasamba segment contemplated business range. the the quarter at divested not high unit quarter quarter guidance we Rob's $XXX our we However, which a of would quarter Kasamba, for been million revenue our have Had in on Kasamba and the full full did total of last

impact Given normalized a expectations we will basis, on the without for from that the the is divestiture, year Kasamba. discuss

recurring $XXX.X revenue of also and BXB was $XX.X the consistent recognized professional Kasamba, our have to which and million of in guidance total onetime The quarter of was XX% normalized contributions. services higher improvement range, approximately Excluding first would to the due with from end high primarily high we end the expectations. $XXX.X consistent our core in been million. million with BXB revenue revenue revenue core certain

$X a than EBITDA million was which of Adjusted was million. our of expected to loss $X.X loss better $X million,

do overperformance of in In cloud which higher in the migration, by BXB sales quarters. in future the expect revenue, part driven adjusted addition incur for was we to and EBITDA expenses to timing marketing and

It in our restructuring driven solid plan. of was also execution part by

year. for point first restructuring plan a fully business and Before first contributions trough revenue the second cores inflection we our for in segments reflect and non-core that revenue quarter, declining loans. the the turning the and to our note improvement quarter executed, of With reporting standard BXB expense still expect the the in BXB segments sequential an for quarter core these remainder from

first core XX%. hosted and segment declined With that said, of recurring revenue from year-over-year. Revenue quarter, X% revenue BXB within for total declined software component revenue total for approximately the the the BXB year-over-year declined hosted XX%

of driven diagnostics declines As discussed gainshare discussed quarter. labor projects gainshare and pandemic-driven JV the the drivers services revenue. lines, last the part revenue quarter, XX% primary in we Professional are business last by testing, COVID-XX grew year-over-year, that variable non-core for these including

have Kasamba, XX%. declined full declined would the a segment we revenue revenue of Consumer X.X% the Consumer segment Finally, Had recognized from quarter year-over-year. for

Again, the for quarter. full the in in we provided press Kasamba the on basis normalized the quarters. future without a Given divestiture, impact expect discuss first is do the from segment a year will to the Note on that report we not in reconciliation consumer release. expectations

declined U.S. revenue winding perspective, geographic XX% and year-over-year. for that primary declined non-core lines a these declined U.S. year-over-year declines the revenue international are are we revenue X% business the From down. drivers Again, --

focus our first in going to part segments. sales below market was and XXX% Net in second range SMB target revenue increased to down on improvement Again, due the sequential and in XXX% and quarter we the in MMB of retention quarter forward. expect our restructuring our

year-over-year. JV. Note to year-over-year for to revenue. this total up lines, that professional wind-down on XX% including the was the million, per $XXX,XXX, is due revenue Average business primarily X% customer based metric services decreased $XXX non-core RPO of

down decline gainshare is to including So JV. the professional attributable labor sequential business quarter services and the last again from wind non-core the of lines, for

guidance, of the for the target terms and remain our In expectations on we first achieved for we year. quarter

range. full the a revenue year of full Inclusive year to XX% range current our visibility the we to or million environment, are XX% $XXX macro Given reaffirming $XXX year-over-year. for guidance revenue, is Kasamba of into guidance million the decline

year. of a to revenue compares year growth full this that Kasamba Note last

However, XX% normalizing year-over-year. is or to million both for our a its Kasamba million guidance removing XX% revenue impact, $XXX of to $XXX periods, in range decline

BXB for full to recurring to approximately expect XX% total year. We core revenue of XX% revenue be the

range For full million our EBITDA, guidance $XX $XX year reaffirming adjusted previous million. of we are to

part As year. a first later reminder, certain the was timing expect to in we recognize expenses of the quarter in that overperformance due the the to of

adjusted expected. our to range not is necessary Kasamba originally no for was it the Additionally, contribution because impact material normalize EBITDA of

million range of X% $XX implies quarter. recurring $XX is revenue our decline approximately As component a the of to the that guidance total for be year-over-year. positive in from to quarter, the revenue XX% XX% for first XX%. a or sequentially the quarter growth expected revenue second This million is to Note second

As total is to due revenue labor that JV for gainshare professional quarter first in revenue. to addition is a the reminder, revenue lower the in continue not primarily sequential decline expected services to from the

EBITDA our the to of range margin As have $X we expect reached for behind point guidance the X%. a remainder us, profitability Once of sequential second improvement for adjusted second in $X to in million the again, year. quarter with the an and the million in or X% quarter, is inflection restructuring

set for the rate the growth was XXXX. to WildHealth quarter Finally, for we year revenue in last consistent its core full first the with quarter expectations double

several questions, like taking emphasize to key themes. Before I'd

forward. the first and reach discussed troughing profitable has expect an of to growth the that the execution point After Solid enabled inflection going quarter and in in we second for we revenue BXB sequential last quarter, profitability. the restructuring us plan improvement quarter core

for of factors: coupled narrowed BXB rapidly of focus our core, with demand to a profitable transformation. primary X first, function a growing sight enterprise on AI-driven line Our is growth

with platform, and and organization with product outcomes to our both the guardrails enterprise with third, capable Second, voice and business channels back And deliver support in marketing efficient integrations generative deliver and messaging AI to hands-on more expertise to enhancements today. the end and and AI engineering integrated better including customers. across necessary the sales

I'll back with to questions. that, pass it operator, And you for

Operator

[Operator line Siti Mizuho. Instructions]. question And of Panigrahi the first our comes from with

Daniel Wang

Siti. perhaps additional Dan the in provide of you color to? and expense impact just timing actually QX relates on is the some on This what that for magnitude Can

John Collins

the course last event largest that The restructuring quarter over Yes. in first the the months. was of XX occurred the

we've been entered know, may you quarter. really since As our culminated the first in and we that structure XXXX, rationalizing cost

of our The expense gain and rate technology areas to reduction second platform to of loss support. a key organization and for no need part, consolidation areas a a to our result organization the were that relates restructuring, again, longer of from us in forward. go-to-market The that us quarter, in as run in the going it respective flipped we as

Daniel Wang

on Got you. it going possible sales on And maybe consolidation, that, to I guess growth this period? beyond go-to-market is to your if provide detail that will allow just revenue more capacity forward and you transition the reaccelerate

Robert LoCascio

mean... I Yes.

John Collins

broadly ahead, Rob. -- go think I

Robert LoCascio

John. No, go ahead,

John Collins

restructuring marketing allowed more the the to responsive us today. with And we'll we respond the coupled we'll forward, organization, our as I look hire build be according continue the we a resources think pipe engineering and that to more to to base And we organization. of and demand at demand. which rate have product efficient away allow sales us to Broadly, to come and rightsize with our hire

to positioned So today think well I be responsive. we're

Robert LoCascio

Yes.

AI, us focus is the also but nature did on the it's X of the them and heavy product company, really it's double And automation, click called I by a ago, it's our up acceleration years customer engineering. did org obviously, means and of the now we because added the AI, business and led creating as forward. new we can restructuring We that we a we around all LPX, and where messaging of ended the on a what for success but

more And and customers so want we experts relationship around in have our past, automation. the AI managers,

with restructuring in the took to we and are driving pieces a they're we're key lot removed we that but that then are those then running customer-facing really So pairing partners this revenue. now of client product big company, that instrumental operations, really heads did

engineering have on bottom you up customer So better line AI to as platform. to I a show with think show in usage up going driving much an to product going we're But traditional company, the folks versus you're and the is result success the folks. if got

Operator

of The Levine Peter next question with comes Evercore ISI. from the line

Unidentified Analyst

as I capital might how the [indiscernible] you to about you of notes allocation for XXXX the is Peter Levine. wanted be the for notes convertible This on remainder well ask have? longer-term thinking as

John Collins

retired notes. all the million Again, XXXX $XX Sure. we about of

As and the exiting we be we forward discussed going accelerate to the expect remarks, cash continue year. to prepared in flow profitability positive

remaining the business. capital than of expect to operating So balance will adequate cash year in with run notes of ample more have both satisfy that the be Do the and follow-up? we to to you a million course, end $XX have the

Operator

And the Jeff question of comes the from Rhee with Van next line Capital. Craig-Hallum

Jeff Van Rhee

for questions Rob, guess, more focusing think speak and of that one on couple people me. one a from is fit tight get of I a the quite I and away to don't find distractions, businesses So of I with you're know I WildHealth. get I the trying with often. questions core most the businesses

when your the but lot just customer core thinking script offering. and, and between So end at here quarter, prepared this care differences users, core talk the remains didn't given that I sales a hear model, messaging et different about product, in how BXB a look different the say, business, that cetera. that you

Robert LoCascio

health outcomes. core. And Yes. you go care if I health mean companies we have some with of our And care they're a that health platform larger back of is, to working fact, play. deals matter a in large platform on care use group drive scale to what it's that as providers in to a

it how health incorporated scale a service and area, a tremendous all they pretty looked we've there's go doctor than we care of into large care, normal. to customers now can different can regulatory or health want if platform. language like And around a need at in the but especially a scale coach lot models is a so things, at you built that you So always was expertise

very, you tech any there that investment an some large. out growing returns So I for it's of pretty it's massive with important care, an product. at obviously, us, the as got we'll company -- investment Health care in almost and and AI, them. all they've think health look other side, very see if in future, on And the

again, once we at should a play it's But -- vertical look as it today.

I think on of in year, give perspective able plays we'll these later on deals the larger get it will providers, some health be which allow think strategy. shareholders with to the I to care doing overall sense our how a into better

Jeff Van Rhee

then the in core performance, offering. the QX as I on around side. understanding for competitive takes on But really look business until BXB, And messaging Okay. at hold the you're core core talk like and the the leaning landscape the BXB about AI that

with relatively get the flat It this to there sort platform. early automations. you best-in-class rates like for a of were clear were while, quarter. looks You That, like AI/automation felt had

just more enough I think on momentum below gave not the Why on detail revenue is more? growing XXX% to this talk Are growth, was NRR it in share? quarter. the the booking that? you that getting business not with going you in side your just winning deals? XXX% You're the But what's about

Robert LoCascio

we did to us customers focus. we restructurings If obviously, go I the that, great easy. got I that out and our -- took It's wasn't and into at be XX think did to change to the it can expenses in focus the profitable. our we back things, comes down and that team and and unwound job of things here, out get the months a a take we to amount

still in the of signed with Obviously, even some we're growth the We they AI, because now generative data. large focus again. us. largest though middle trust logos signing the of renewals large in banks the We're is and it's banks and all and world,

that restructure So is But on last to I all growth. the that. to we'll do months execute get efforts we to world shouldn't we back to the business to took think the that focus XX the need it it the marginalize over and what show and just took

so gold going company. think judgment help the the the launched, and And I us have that and of in of And that which right can is quarters will platform. obviously, GA adding we be the technology, on we will now forward sort the place, still how grow execute But just we we're grow. in all standard

So our That's have behind X We restructuring anymore. us. now. That's done that's about focus. our anything focus with that. We're worry don't to

John Collins

NRR it Jeff, of primary course, I restructured to segments, while and, in of in market reason the and the our enterprise increased the to the we business the want range, that on that as we're comment and below mid-market add for small down distraction the focused just through particular, demands was attrition made of restructuring.

week. product And would have that better think enhanced and end by that launched going served market usability forward that lower the -- platform market last the down we of the be self-service you may seen we

then of strong. And there within we we core of enterprise, it course, forward move remains market. the think So as upside down there's

Jeff Van Rhee

forward? in about you of really automated think rates, should we would messages going Given being that rise? to lies automation how expect Or the enterprises, percent the scale the the number

Robert LoCascio

to as is we don't big bots Yes, there. the have last the There's build week, that's going be building. conversations, tail to bot ability long And more to no anymore. automate Like thing. of that's the especially

last I think I on I an gave example, maybe call, did. the

a But we on there models are with bringing to happening we large looked agents. at or not, an a iguana plane. all when airlines that the of were use about started the that conversations to believe And at conversations like have bunch look it we language

iguana. the a would bot you around never build Now intent

looking our because the is can people and just at it data in are iguana, But can asking, basically set. we on I handle the models airlines, bring that with now

going really increase. So to the automation rate of is

is that the automations as can of are part do as they second The we do actions platform, on that actions. the only the good that

all we've And integrations already. got these

voice want we'll I that's on at finish to voice launch, especially traditional should set to our voice and high out be where So we focused is what really which -- the these on. be of And side, a rate. AI done I rid with very get do,

Jeff Van Rhee

mentioned onetime that you about I there you then ground revenues, there covered and I think you And you were mentioned last I think some BXB? Okay. a quickly, affected one, really but were talking items just, of lot John, think

John Collins

are In The contribution the normal also up. in in recognized some Yes. items, enterprise largest was And catch-ups the being quarter. there's for onetime big quarter pretty then general, to core of first BXB deals that terms small. we those professional really services

Operator

next Riley. our question the Instructions]. B. [Operator And from line Zach Cummins of comes with

Zachary Cummins

versus previously you you were were a EBITDA It more there QX? expecting? about could maybe John, bit in here talk the like adjusted sounds when were some that delayed little upside costs

John Collins

Zach, of quarter, previously to necessary expected for we significant Sure. expense, the we component. year. in that reasons being first which more a expect in had later not fully ended up the variety for deploy That's marketing example,

is well as continue quarter. first in migration that then expense expect in hit we a we the the there the to is year later that not complex as to And cloud, what did occur

those the X are drivers. primary So

Zachary Cummins

with of your cases. as Got you you it that down platform? early of gotten you have that you some use expand interesting it. IT from Can new like few It your can you've a Understood. just gone if sounds customers from HR route. AI feedback all opportunities customers have sort sounds customer and expand event launch carrier beyond And that give pretty into AI Rob, just your solutions, like any

Robert LoCascio

Yes.

large outcomes. we've knowledge-based put obviously but But and of in our documents, PDF generate the we to had the like models. to AI for knowledge to parts the X ability One and the -- it enhanced -- the other now is we the previously, models called have ability One the one language this there's is platform.

our it the handbook. the It and look can tooling. can then you make And at platform instantly It can could you that into and for all employee be real put do prepared have you gets of take generative So data. it models. it's in to AI when that all you be an that, tooling all work, to

won't data model the the especially it. formatted be in you just put around the could And side, that data understand way data a if the in

model understand the So we built that. a process for to

on customers So it use large of And already built cases. it opens that. handful for up those have that, have we a who automations who use

to new conversational the data event going company data the the release watching Conversational anyone and if allow of power a we the is ask be set. last will first were now this AI X company weeks a journey in from And thing week, that think And company in questions to one. I to an the But you we're is the store. about from the interface to AI

-- maybe want other our doing Medallia more different side. surveys data imagine build happy type what in with product? not to and to IT this could person and we're is this the a customers say, I campaign why best that a be it when are the access data me AI the then So Tell like, place kind in product to like be what's the put there, that but of shifts marketing to inside it in side, that things. can me comes to of could HR today? help into our us hearing people enterprise, This in that And marketing sell desk tell could

platform that path obviously, have But the down set other the and focus more go into So of use we customer cases put on to ability important also the a is to important. is engagement. data data continuing

different And So I our trying about today. that's there. very think out people to are can what they is what what and do do what's that's strategy from exciting

Operator

And from of the next with line Blair. comes Bhatia question Arjun the William

Christopher Madison

Arjun. Chris is on for This

first on I with take and to the your evolution for generative becoming common. AI forward of one get wanted landscape more going more the competitive me, The

with and make through interacting of always natural think more to how source LivePerson's accessible than chat about So advantage ever. has businesses competitive language

Robert LoCascio

Yes.

it's you months the for safety right looking next and now and it's pick is then if the couple So at to think security. what of years, play out is I going -- look enterprise how

on they and this And stuff that. start want security need tomorrow, they it but that using so adhere allow them platforms to sovereignty data the ideas of to will to around

provided already that. We've

enterprise, the around So be like to are guaranteeing in X data. it's adheres using for kind of way to we're that especially the click these that of us, models principles done and going a

X that's the So part.

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the go enterprise But the and We customers valuable you work that's gives data the to customers the to data most there. of to the Internet, set is and OpenAI conversations. better. set the customer understand our

set And it's the outcome. generate if got best who race, And who's I potentially business a data could horse see data so judge this what in want the years set. upcoming to to is win you the

us, of one the sitting data And best so for we're sets. on

and And you customers' has real what the to ask me? to like interesting, us. a ask want say, power you can time, think it, customers, do questions. from in the it's unique like You It's your I that

now, have So there is obviously, doing there's they're which it, out with what data set, using data. their -- you other CRM Salesforce

a think lot They data, do. of out it have it's that. but care. have They of most in of limited voice like remains they're the some susceptible and the we very files. are voice a customer have voice because companies data some They change do just I they lot conversational There have for transcripted, there,

So I about using we'll think have the not commoditized, own to got but you soon. become models our We're others. language -- think

on create pervasive. the the weapon own I data data then the to competitive set. the will brands being their themselves depending think become sets And

there data get acquisition hands we people think data I model, years generate those business I the or the our the future be also in M&A the these so, around So And next outcomes. could where sets to think better over have who be X data winners sets. sets on these do may

see I it how of playing kind that's so out. And

John Collins

that the case. tail, long because easily technology. want by I the there's is that to key yesterday's calls. not that spent And dollars intent, Chris, just on made, of consumer the the brands desire today, our no point a Rob enterprise the get underscore the which field that's longer automated to That's brand often billions with the on agents Yes, voice is case has to in resolved

to well of to that's provide the AI to kind structure that very support platform sales. given we're today brands systems and drive brands our today, to our deploy on positioned centers the run And cost transform business heavily to integrated service have of the currently even into outcomes generative the back-end

also the data, positioning And the help week. we've been we processes time contact So Rob to at as refining decades that's already deploy in their have we the have brands centers. something can integrations moment for of as deployed of and but that said, that take and this last the as costs out

Christopher Madison

Where want AI of is the you volumes, do deal kind kind talked I see expect customer or you of then that on in a quarter, I would touch tailwind to seen pipeline like shifted X Have you you that increased know other AI. tentative to Open last as little And in retention towards short-term just up flow business? topic. thing bit show a about sustain growth. translate uptick things demo an the

Robert LoCascio

that, Yes. we're The like see obviously, agents call the short-term I immediately wins we turning is what the is efficient. one making the on more

anymore. up, now opening don't to do on that. the safest that's So we're deploy way and platform the can easiest, actually that agents have and customer And the technology, every to type that's this

at Also, the there's manual of process. normally summarizations like conversations

the enhanced it's this the we to X basically automatically so minutes with day, but conversations language spend already So And it had. XX a hour have summarizing now model. that technology, they happens large agents

easiest one. the that's So

is the The fully. one automating second conversations

next there. which safe than putting -- actually is of greatest I the in is and that's ability think fruit, for the do. then we there's weeks, that's part. And also business, which we're a a some will couple of call the concept so And organization platform data the to And for their that's out more to ask out, thing -- the that is in be low-hanging fruit this questions low-hanging

and to And data of and ask questions that's a market conversational Like easy outcomes could marketer to how no-brainer. understand questions better. get you their an can just ask

of So hits get. that I can sort think base there's we some

Ultimately, and home right or can other we're providing with playing contact we loop. no become in now. run -- volume, for that only business humans there's like the at the is like center the to of is XX% automate HR generative the very use -- we organization in XX% every is is what an AI do then And it all the platform pervasive part and that's that that, humans outcomes

Operator

We have end of turn for today. call closing over Rob the now the And to LoCascio remarks. back any our reached I'll call

Robert LoCascio

Yes.

been years. around we've everything and So everything singularly around the and Chat invented power and 'XX obviously, care interface. The of company always been that in conversational else, is started many 'XX these vision company on this interfaces I the focused obviously and commerce, for it in it's ChatGPT with has

Our time came. has of sort

When there's that I we're probably a but noise creates the probably about this into certain handful all in of be world. in brands. wish figure revolution out. I they can we're think of And us and and here, and the the is this deliver And say technology without that actually world here all know were you that to us we a uncertainty, XX here. can trying to we and bet restructuring,

didn't through platforms. in went companies we story. we're And I we're with been But because the cleaner it'd a I always in do this X and that. have here. way, the a here We've world of and said wish like at of to lot leader products the X be a restructuring And best

I now, that when XXX One now will leverage like second to we to areas we in it business other this So data to it's use and about products. we sales apply is, our and areas. focus, and X the platform all our HR. about right and to AI a set our and I need up to really need marketing number complete that, And killing finish of as voice even need take with what and the talked started. way we think is mission we

something always this chasing as could we what we accelerate. how So on The in language large the one a that's vision. just in have company. now, work. But gives us right AI an not we're were pioneers We're focused models generate the of

for focused as enterprise. AI shareholders, missions next growth the focused our company on on the on AI will continuing back then and get excited of our I'm of how quarters how providing couple conversational and generative to we'll get So

AI enterprise in the that's right world. being making think leads we're I the ultimately, largest us the company And bet now. to that And

you, operator. So and you next we'll thank for you the support, see Thank quarter.

Operator

This Thank concludes you. today's teleconference.

disconnect for may Thank a great time. you day. and your at participation, this lines have You your

LivePerson (LPSN) 9 May 232023 Q1 Earnings call transcript