LivePerson CEO Discusses Q3 2010 Results - Earnings Call Transcript
LivePerson, Inc. (
)
Q3 2010 Earnings Call Transcript
November 4, 2010 5:00 pm ET
Executives
Tim Bixby – President and CFO
Robert LoCascio – Chairman and CEO
Analysts
Richard Baldry – Signal Hill Capital
Nathan Schneiderman – Roth Capital
Richard Fetyko – Merriman Capital
Brad Whitt – Gleacher & Company
Presentation
Operator
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LivePerson, Inc. Q2 2010 Earnings Call Transcript
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LivePerson, Inc. Q2 2009 Earnings Call Transcript
Good afternoon. My name is Keisha and I will be your conference operator today. At this time, I'd like to welcome everyone to the LivePerson third quarter 2010 financial results conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)
Thank you. I will now turn the call over to today's host, Mr. Tim Bixby. Sir, you may begin.
Tim Bixby
Thanks very much. Before we begin, I would like to remind listeners that during this conference call, comments that we make regarding LivePerson that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results.
These statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. The internal projections and beliefs upon which we base our expectations today may change overtime and we undertake no obligation to inform you if they do. Results that we report today should not be considered as an indication of future performance. Changes in economic, business, competitive, technological, regulatory and other factors could cause LivePerson's actual results to differ materially from those expressed or implied by the projections or forward-looking statements made today. For more detailed information about these factors and other risks that may impact our business, please review the reports and documents filed from time to time by LivePerson with the Securities and Exchange Commission. Also, please note that on the call today, we will discuss some non-GAAP financial measures in talking about the company's financial performance. We report our GAAP results as well as provide a reconciliation of these non-GAAP measures to GAAP financial measures in our earnings release. You can obtain a copy of our earnings release by visiting Investor Relations section of our website.
And now I'd like to turn the call over to LivePerson's Chief Executive Officer, Robert LoCascio. Robert?
Robert LoCascio
Thanks, Tim. Good afternoon, everyone and thank you for joining us as we review our third quarter business results.
The second half of our fiscal year is off to a great start. Revenue increased 27% year over year to $28.2 million. This represents 7% quarterly sequential growth.
EBITDA per share for the quarter was $0.14, in line with our guidance for the quarter of $0.13 or $0.14 per share. EPS for Q3 was $0.05, a bit better than our guidance range of $0.03 to $0.04. Tim will provide more detail on this shortly.
We saw acceleration within our B2B business this quarter and signed 18 new names, including some of the leading online retailers, financial institutions and telecommunication providers. The team generated (inaudible) million, which represents a 29% year-over-year increase and 7% sequential quarter-over-quarter increase.
Our enterprise business grew 9% sequentially and we began to see the Asia-Pacific, a new region of focus, contributing to revenue growth. The North American team had a particular strong quarter and we anticipate this momentum to continue into Q4.
Activity in Europe continues to expand and we achieved the second best bookings quarter ever in that region. This is a positive sign given the traditional summer holiday slowdown.
Revenue was primarily driven from customer expansion within the enterprise group as well as new name accounts in the midmarket segment. We saw several of our larger accounts expand beyond their initial sales deployments into service deployments. This is a trend we typically see in our larger accounts.
We have also increased our efforts in France, where we now have a local sales office, as well in Germany and anticipate seeing the pipeline build in these countries. We continue our expansion efforts in the Asia-Pacific region and just last week announced a channel partnership with Engage.
Engage is an Australia based customer contact solution business established in partnership with the Clemenger Group, the largest communications group in Australia and New Zealand. More details on the partnership with Engage will be provided by Tim.
Revenue from our small business team came in at $6.3 million, up 3% sequentially from Q2. Growth continues to be driven by both new accounts, as well as expansions within existing accounts. We believe future growth will also be driven by the introduction of a new mobile application that will enable small businesses to chat with customers on the go.
Midmarket generated revenue of $1.9 million in Q3, which represents 5% quarter-over-quarter sequential growth. The team added several new names within the quarter and continued expansion efforts within the existing accounts.
The midmarket pipeline looks strong as we head into the fourth quarter. One of our new midmarket customers, ThePlanet.com, a global hosting leader is using our new premier offering as well as our salesforce.com integration.
According to the company, the integration process was easy and swift and has enabled them to gather more value from their data. The company informed us that they had used several different chat systems over the years, but that LivePerson's solution is by far the most effective.
The consumer team generated $3.6 million in revenue in Q3, up from $3.4 in Q2. This represents 15% annual growth and 5% quarter-over-quarter growth. We recently updated our homepage at LivePerson.com and the new homepage now includes both information on the B2B and B2C offerings.
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