LVOX - Earnings call transcript Q1 2022

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Operator

Thank you for standing by. This is the conference operator. Welcome to the LiveVox Holdings First Quarter 2022 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Alexis Waadt, Vice President, Head of Investor Relations. Please go ahead.

Alexis Waadt

you participation thank and afternoon for today. your Good are Chief and Executive me Financial Clevenger, on and Summe, call the Officer. Chief and LiveVox With Officer Louis Co-Founder Vice President Executive Gregg of

would events, future I or and this risks XXXX financial the and uncertainties. Act during and forward-looking meaning started, not derived refers get that future characterizations the call limitation, discussed conditions without those SEC projections those performance we including a like independently Any differ accordingly, such guarantee future of remind that no Securities conference market to comments conference statements you expectations, forward-looking or contain to of from other the including, Private reason, information. are to webcast not of in subject made or that listed of the forward-looking statement. note of company third-party information representation Factors within verified, to this of and any from Reform for LiveVox Before statements. call projections been in The results statement is materially and such respect is expressed a company’s could statements actual filings. update Risk makes information our past has market no this on section assumes warranty obligation any sources or future also in results. Please forward-looking Certain was Litigation

over on and can on A I Relations non-GAAP be website. call, financial to be XXXX XX-Q will begin. measure Investor earnings materials, non-GAAP call together also of company call, investors.livevox.com. measures defined comparable Form these this to During A will website, XX, turn LiveVox’s replay our for available is release, release earnings the which with will available company’s the directly With in GAAP on related the Regulation recorded measures Relations discuss that, reconciliation period Louis the available press by as conference the March website, to each of ended found investors.livevox.com. Investor the of most financial SEC be will this the G.

Louis Summe

afternoon, in as I’m our name is Good Today, share the us. and Louis with pleased LiveVox. CEO XX% joining Summe. start am success of range. I guidance Co-Founder to in came for and high of revenue well at Usage above to came of the revenue year-over-year. XXXX, more for as you begin Contract you the plans at for our end was cloud. EBITDA results. public of our middle everyone than XX.X%, the I and results at strong My thank in came the $XX.X summary guidance, continued guidance million, continue at from above our of year. guidance, Total up our financial margin the will to the of throughout our high QX migration was guidance. XXX% as which end the customers see were to of the our mid-range Gross revenue benefits and platform our we completing

XX% investments wins records versus new well, As dynamics time year. with as space, bookings is QX, over this and more pipeline CCaaS of the up a logo year-to-date XX%. positive our result over last up go-to-market XX%. for setting are than And up Bookings in our are

year-over-year, XX% XX% our year-over-year, taken customers The products of up of base. more we digital QX. demand. momentum our revenue XXX% opportunities, strong as And in We is in represents from XX% continued products retention or lastly, up signed now high easy-to-deploy deals and XXX% X seamless than characterize Digital agent to omnichannel testament differentiating quarter. a is of approach. XX we new our approximately comprising AI be to new of customers taking continue we virtual products, see in in Net customer to now significantly which improved our believe AI number full XX% of our enterprise QX, and which revenue QX to the business, by last up more number in

And two strategy. marketing. and key want I sales our to focus go-to-market of on today, areas to pivot Let’s

master our continued building is First traction relationships agents. with

As a grew past sales through primarily reminder, LiveVox efforts. in direct the

Over agreements year, signed we agent master with the past X organizations.

the importantly, has these on seasoned More significant we brought grow team board progress. made relationships to

to recently at partner-driven master top largest the demos, a easily of our I materials, have am to continue incentives help are that to enablement year-over-year. share technical We launch X excited market guidance prospective increased LiveVox’s ACTivate, number current and momentum partner sales omnichannel XX% from platform our to of sell enables that positive these to partners see partners purpose-built CCaaS and competitive We blended and two capabilities efforts. and announced agent the to over customers. channel partner new access we

anticipate they last XX%, approaching from recent While we bookings service of year’s represent opportunities that our grow. continue to master on number now were to activity, pipeline. XX% And based agent nearly

advantages to LiveVox capabilities preeminent resellers our to partner position CCaaS a go-to-market the will key to which is looking next I The in many become platform integrators, and the offerings, there brings This is partnership phase their second as VARs alliances, our strategic whom includes with table. of a are or essentially add is to strategy our resellers. unique technology systems point of ecosystem. numerous share, expanding are

and public scale shared largest AWS. strategic offer us and through potential reliability active-active center of or support and customers contact an It our number Zone easily platform I gives it Availability This the specifically, quickly the enables best-in-class organizations. our to us and Web to call, and advantages. more AWS LiveVox horizontally enables last to cloud, this Services, partners a and in us First XXX% Amazon are on the architecture

financial are our service born with stakes protocols Second, enterprises This and result is in cloud in becoming of LiveVox’s industry, the and to security bred being clients. the larger table have as unmatched the and financial functionality a services features we for and migrating compliance as seen industry.

additional easy a significant rich easy our with LiveVox of XXXX. easy into as orchestrate believe and out-of-the-box feature Third, we an Comparatively, and partners our perfect bookings on optimize revenue easy go-to-market to phase set, that’s move and support. platform. a can platform positive strategy have this it’s is to impact seeking to sell We to demo, implement,

our important beneficial. experienced In available will recently in uptick AppExchange we sales increasing a mutually partnership to as our a have fact, have the will that marketing the believe a overall be and and in we invested marketplace, the scaled past Salesforce in clear in Connector that seen in our effort awareness note signed It’s partnership interest. we next be with in we’ve Salesforce Inc., revenue Neustar the we And few already where TransUnion company weeks, new opportunities. agreement

continued our we’re in marketing effort sales these to poised As opportunities emerge, to growth area. to support this leverage and

new to add want share customers and a to the continued to As platform examples. few I mentioned, we significant

to the center The They previous ticketing all areas, receivables moved first Their and vacation is management of vendor marketing and rental and management. a management, as our and outgrew capabilities CRM sales platform includes improve omnichannel large our quality their their of the well organization. resort as including experience to property products. and our management contact native of three solution

customer ever. mental state LiveVox one solution, not was and health offer a quickly closes our is call full This deal here this solution our is and speech native which analytics. on-prem initiative fastest of were Of recording The we Next scripting, note an they to required how previous to a includes XXX omnichannel our did on replace our functionality. SmartStart implement through earnings was service. able CRM, brought call. in hotline mentioned

and marketing BPOs an by was brought three XX,XXX upsells channel in and platform combined outsourced of our population maximize to finally, our needed significant who is global reliability And expanding a agent a Next, compliance we and in greater more partner three with agents. than QX, productivity. with generation agency, this lead relationship had for

We use platform, are date excited wins and full cases. our across validate these omnichannel they about multiple offering to as other

easier Most than As share excited adopt. schedule. continue ever UXX noted, more robust I our GA ever AI and shared to months on went our and to that make platform we’re digital and relates pipeline very pleased bookings. our also am coming weeks releases, quarter and to notably, to and as the I it capabilities for last product advance is

As year. analytics and this operational new agents won optimally includes at their combined Enterprise Innovation UXX release offers incidentally Connect capabilities. Best Experience with digital channel quality management enhanced and a also an That analytics enhanced CRM capabilities, including capabilities multi-channel ticketing and speech customer robust more Customer capabilities, of messaging help platform, in enhanced several customers with to on reminder, choice. this and communicate

will company. optimistic To public burgeoning strong questions, launch of for into continued and product enable the I Clevenger year-over-year. our and our forward and the agents guidance. be Additionally, now customers XXX% customers. our hard To by improvements is and and to to XXXX pipeline, provide to I customers customer for of Value Speed it tool one to about review that of believe to QX and find answers our with migration I from opportunities. valuable and beyond Knowledge the trends our LiveVox all are look thank a summary, us. that strategic while collaboration continue intensified to potential Board, meets direction strong And self-service powerful well In I’m Market of for the the Gregg for want pleased bookings, most providing excited times, we and Revenue a cloud To positioned to our quickly next down we’re the year-to-date. our team I in to interest communication. partners our Center, very progress Speed am their and their implementation and I XX% insights service over reduction our turn validating work, product course, financials Speed announced

Gregg Clevenger

start call the and off a Relations filed in that website, before release afternoon just in section on presentation to prior call I posted this just our our was press are reminding just good Investor everyone. discuss issued figures today that on and I Louis call. financial Thanks, our the which on you this non-GAAP will reconciled XX-Q, also all by in

last of for $XX.X X% at last $XX.X range by which X% and end first quarter higher contract XX% quarter the for of and strength first million to than our quarter the of of $XX.X first $XX.X revenue than was first year our last total above was the was and high of high supported to than guidance million, quarter than the end range the year, $XX.X million Our our higher quarter higher This million. of XX% last $XX.X million continued higher in million. the revenue, guided quarter,

million. year-over-year Our guided million excess down to $X.X range in X% middle and of first the in $X.X the million, quarter was usage $X.X of revenue our

of less of throughout end this XX% as measure. between the quarters Our running the after a stronger period XXX% over net in pre-pandemic XXX% to quarter factor pandemic, of prior and LTM climbed of revenue became as retention the first most the LTM

sales up bookings over been strong same current period pipeline our the over New XX% year. have to up year-to-date, XX% with last compared

gross adjusted increase now driving public driven that previous for have the XX.X%, quarter cloud guidance XXX was an AWS. to by our we our cost of margin basis points full efficiencies and quarter first the on are versus this quarter, transition we made Our for platform last

at improvement was for adjusted the million, guidance. quarter in the of our by all range construct of margin, quarter, million gross offset $X.X a with negative $X.X consistent the expense increased down $XXX,XXX Our middle operating $X.X of million in previous the last driven by of EBITDA adjusted our from guided

basis both last for a quarter $X.XX Our share on year. a share per negative first versus earnings $X.XX quarter the share GAAP diluted of were the basic per and negative in per

and CapEx the equivalents we $XX and I’ll pivot first million expense to that, CapEx to quarter forward-looking office expense. due marketable normal the guidance. with and quarter our also in with than let’s of higher cash first securities. may our quarter India fourth debt current start for the revenue as year additional of first Our and $XXX,XXX higher With and of $XX the you lastly, the $XXX,XXX second $XXX,XXX, last refurbishment totaled guidance of And than recall, impacted for that, ended quarter million cash quarter

between million, XXXX. second be XX% to quarter We and to million quarter XX% of expect second the revenue growth over $XX.X $XX.X total

and We XX% of between last $X.X XX% to X% between growth year expect usage be quarter and expect second contract last XX% than $X.X $XX.X to revenue higher $XX.X million excess over million, revenue year. to the the to and million second million, of we quarter be

to quarter, this optimize our around in cloud mid-XXs this our of about quarter to the continue expect margin we basis higher we first gross than scale will the the second the in quarter quarter points and trend as infrastructure. year for adjusted and the be by to We the XX.X% AWS public fourth expect continue that towards XXX costs

of EBITDA $X.X sequential by and $X.X improvement call the as adjusted EBITDA a we between quarter, be towards quarter trend range the a XXXX, midpoint beginning over our quarter. based laid million and to second $X.X negative last negative expect in to continue last adjusted upon this expect million out We million the the on we breakeven of

of guidance improving full XXXX, except reaffirming we guidance are by previous all $X terms our year million. which we aspects are of In for adjusted EBITDA, now

continue So or to to XX% XXXX. for between over year million and $XXX recap, growth we our to revenue expect total be to million the XX% $XXX

continue usage and to for between be the million. revenue to contract $XXX between and expect million $XX $XXX our $XX excess to We million and year million revenue be

$XX be beginning year with adjusted percent full operator, $XX million by With adjusted million And the trend fourth million We guidance, EBITDA and continue adjusted now Q&A? gross in our expect of you line XXXX. our the to and year. to breakeven can open we negative by margin $X towards the between mid-XXs for to the the increase for this that, the to of quarter in negative expect be EBITDA please

Operator

Sandler. first from [Operator James The Fish Please is go ahead. from Piper Instructions] question

James Fish

did Hi, into those on want for guys. quarter. significant I Louis, the three Great Thanks upsells you something go to BPOs. here. back questions said, to

large get you essentially, some what to over have years? a contact the try just had what to you those you next with want of penetration understand Just to what of centers XX,XXX a of up-sell before, these getting move agents getting share of of towards couple as sense to kind are greater those you versus

Louis Summe

and them is I large expansion but our Jim. Thanks, Yes. market BPOs our these would share say And small, still larger these that incremental, with with relatively organizations. consistent. is are

growth a additional source of it’s for nice So, us.

James Fish

years, larger center contact it’s services when go in center And you morning, seeing seen your were I other including Louis, LiveVox these something cloud it in you’ve refreshing Avaya guess, the how few to opportunities especially some And report opportunities, after the and over financial this contact historically, Understood. vendors you’re larger the to next was to alluding is vertical. looking remarks. what large contact are seeing departmental for Thanks, this that Or of pie that pipeline you into also we more sale moving point? And of from up kind from kind let’s entire specifically and expand guys. and a a there? to get in you’re now the at piece go decoupled LiveVox full, the of pipelines specifically, are regards XX% of with center discussing?

Louis Summe

Yes.

rather happy we’re the to people would of And see across get demo, people We a on the a level. there departmental that think I to in enterprise So, get departmental sale. sale. more a the full often what’s conversation spread organization. then have and we starts course But the obviously it more involved, start

people a of as So, a situations of LiveVox’s starts than pivot and a market suite more full as as become sale from increases. sale the departmental more market the look enterprise to where robust more broader more and a to and products cloud-first

mentioned that, you when I last large were so a year, over at pipeline, time. our substantially more there up companies of was a look number this inside number at last And are year XX% there than of which

So, are that maturity driving the and the that. of I maturity think of product the the market

Operator

ahead. Parker Stifel. Next Go from question Lane is from

Parker Lane

guidance excess for there Hi, the side. range is revenue to the at little thanks on wanted there bit larger a look here.I Obviously, revenue the the for contract usage taking question year. than

for of at associated when then full And for that So, smaller year, usage larger two, those question guidance with when you drive revenue deals, been you how excess end confidence there enterprise two-part have or here look usage out at the and look some of One, that here. lower ending these customers you Thanks. of that’s is or any the with share have the customers? do playing have at higher that how range? much dynamics up the that

Louis Summe

a enterprise yet. and not the in sale Yes. level could that’s of a and future, the That we’ve distinct There sale emerge something but trend of split that full between seen usage. the really meaningful really is distinction as between departmental as the contracted in terms not

but As revenue, you far our I our or our as how numbers mean, and activities a can flowing credit and I originations going that usage yet there is think strong projection up from picking in around what Reserve in back activity Federal cycle, we of service not haven’t really is a view forward see of received have what that And couple is the credit middle lot how servicing have on that connected cycle. credit name to just up yet. to see into the that tightly data part points a the we seen flow as the recovery. into think and us our credit are Moody’s, definitely I cycle, early look usage we or activity we know is people stages followed the the from usage And of at that information that are the

So, back we in experience something that ‘XX. half the future that’s in possibly the of would we and think still

Gregg Clevenger

you see the that’s Yes. for And to range the of and guided to the first just to can we’ve the multiplier X.XX, basically at add second that, the in quarter, what that quarter. midpoint

us have like we we assuming don’t Louis are the – – in things expect going the all that a back recovery near-term. half But here year. the in said, we So, we’re that to a not more the we monitor recovery will we of do tell that

their hearing they well and that to from for are how customers preparing business. as We’re it we talk

of in full guidance. that’s what’s so well reflected the year in And our number as terms

Parker Lane

anything sales from are sales cycles let’s where from customers the and enterprise seeing uncertain. a to suggest we could now. And your elongate XX ago? potentially sense. is seems were, or you of consistency that pipeline it, call be lot conversations at to right days there very the Obviously, teams strong your looking with then business, Is Makes very Thanks. macro

Louis Summe

that ago talk are pandemic the would the Obviously, pandemic there a the say a more conversation back less new of year and now or getting and more ago, about I had of a of people normal. operations. more and was changed about that’s how interrupted quarters couple to talk a

they said, are change, not they if going people the center cloud-first to they definitely is cloud, about looking However, a their at make to with new that to move cloud. are that are they the thinking about are infrastructure, and when thinking their contact market the move will they normal

of strong and pipeline And again up so because year-over-year. is the has dynamic, remained kind XX% the that’s over

Parker Lane

Great. Thanks again.

Operator

is Sachs. Staffel Goldman next question The from from Jacob go Please ahead.

Jacob Staffel

Hi, guys. Staffel question. is over of couple I at of wanted on part Jacob team Thanks a Kash’s to for taking This ask questions here. Goldman. my

First the sales one this end I by direct year mentioned believe, was goals one to from being, headcount double the XX. XX of to of

kind relate So any we that at one, with to are where how operating that on to doubling operating margins come year? to margins is hiring of and headcount two, going of end it modified and how color the

Gregg Clevenger

Yes. into be, plan. by expect That That’s the the the have is end go-to-market our We still factored doubling quota-carrying the in guidance heads as to we’ve said, of still year. given. we that

so ramp go-to-market. all previously guided terms in remains going with the to consistent And we’re how what to we have it of

Jacob Staffel

– excuse color that all I me, Awesome. then revenues you sorry, XXXX. by more that for one customer of to XX% on think account you mentioned engagement And expect – any

has consistent? whatnot? we’re or on adjusted that color that where there? So, Or Is any at been

Gregg Clevenger

the It’s bookings driving a call And We the been is which revenue of portion that’s evolution collections, last for is have XXXX that’s going year. We that continuing. we continuing. time. about was long being a that. a our been adjusted XX%, last And not had is of trend talked our in new that very XX% that in trend what XX% –

proportion a So, much our bookings. of collections is just new smaller

is that that, expect way has to that been. it we so going continue And the trend

Jacob Staffel

all Awesome. for That’s Thank you so much. me.

Operator

The is go from from question Brett ahead. Knoblauch Fitzgerald. next Cantor Please

Brett Knoblauch

for Thanks guys. Hi, question. taking my

in debt the quarter update you I to additional Has users? was First, frequently headwinds they regulations QX to as that and your guys with updates that headwind a Any that? contracts? customers their to referred regard how new as been you well? place guess, to had Have any can as contact, went renegotiate last for in to customer collection what on

Gregg Clevenger

of negotiations a recall it I it’s up of contact from and away as wouldn’t greater our a kind happened. are contract customers since utilization having for reach consistent a out any headwind, since that also diversification we took been those a digital most It’s no. And And us been channel recovery and place last I picking seeing don’t volumes say voice of to and creditors. call.

that is to on kind was is our So, and ago months couple alluded a normal largely a way it last and to furious evolving of the we basically fast back balance. call, and of impact it

Brett Knoblauch

see or in quarter? that And headcount of and cost on just headcount, kind the focused I kind headcount. of rationalization a in then just streamlining the a is of kind Was employee that of decline cost or total go-to-market more attrition

Gregg Clevenger

are, It’s across bit running mean, industry add it very, And tech, are We everyone I a little about backfill new how being for but positions. of how diligent attrition both, would are has like very I averages up is we we higher. well and what for below picked still we it the has especially say. board.

teams that do backfill, entire team very ensuring the add positions we executive Louis do that around I business. We’re involved, it’s when across we and across and the actively whole their justified

a or we’re the in so. year would just in hands so And the more been I were that just being phase than at headcount high-growth we on say perhaps past about lot we’ve

Brett Knoblauch

you. Thank Understood.

Gregg Clevenger

Yes.

Operator

from next go Capital The question Markets. is from Northland ahead. Latimore Mike Please

Mike Latimore

margin to strong gross Thanks. there. see the Nice outlook bookings and

And here? of does – in four IVAs. for an you the IVAs? a pipeline How were how is said that there or deals look with quarter general terms the I anomaly In – was the there think trend

Louis Summe

looks part that’s become conversation. I mean of it’s that’s of standard the I say much a pipeline kind the pretty would that or progression trajectory. strong. Yes, the every

operations. used are people Now by across because broad just they their way, it have the doesn’t it to in way using mean some degree, a

agents them in that. terms and the started do I people of lot a want AI them to virtual mature. with mean So, I is conversation testing of think the with getting

As across far the I in its it the stages terms really spreading as early and there. operations, tapping potential it still we’re of full in think

Mike Latimore

Okay. range? That throughout up then the expansion should sort nicely, that makes rate the revenue the area, to up of continue inch sense. was And expense

Louis Summe

revenue. Net

Gregg Clevenger

the I and the particularly We’ve data had took points in has that saying what think before pandemic. happened Yes. the the what’s while pandemic on – collections the us would at pre-pandemic so. we now high-teens rolling point those been early been off where for been where a is the really And we’re from are kind of quarters.

so against quarter goes as by, every And of set numbers. by impacted a comparing – we’re pandemic

And that so up. expect to going that’s yes, do continue we to trend

Mike Latimore

your And a it you just I lastly like little getting to then hires, get Are having sales is on of pay the kind on I Where it from? confident color hitting guess them some are sounds pipeline more how the of of you there? you’re talent? mean, just to goals. board,

Louis Summe

there. we’re well actually, pretty mean, I doing

profile little And that competencies. investments, kind people space. experienced into I more I focus on models development we’re made would to think go-to-market as mean, a refining recruit we’re that able We our the a specific we’ve account of lot of selling – to bit. continue say the are the and AEs I

we can our think us go-to-market I where But are absolutely competitive. more profile an investments to that, So, opportunity successful. refine frankly it’s be yes, our giving

we think that. pretty I feel good about So,

Mike Latimore

you. Thank Okay.

Louis Summe

Thank you.

Gregg Clevenger

you. Thank

Operator

Louis to question-and-answer remarks. for closing This back Summe I the conference to concludes turn any session. like over would the

Louis Summe

again, to to Thank employees thanks, it customers thanks, our for I thanks to Right. really our everybody I their together and appreciate Board, to you. all communications and with our Well, in our of of all thanks quarter you. support pulling of joining. course, and for look forward and

Operator

conference concludes This call. today’s

for pleasant participating a You may Thank day. have disconnect your you lines. and

LiveVox (LVOX) 15 May 222022 Q1 Earnings call transcript