LivePerson CEO Discusses Q2 2011 Results - Earnings Call Transcript

LivePerson, Inc. ( LPSN)

Q2 2011 Earnings Call

August 3, 2011 5:00 pm ET


Robert LoCascio – CEO

Daniel Murphy – CFO


Nathan Schneiderman – Roth Capital

Brad Whitt – Gleacher & Company

Mike Latimore – Northland Securities

Craig Nankervis – First Analysis

Jon Hickman – MDB Capital Group

Jeff Van Rhee – Craig-Hallum Capital



Welcome to the second quarter 2011 LivePerson conference call. With us today, we have Robert LoCascio, CEO of LivePerson and Daniel Murphy, Chief Financial Officer of LivePerson. Now, I like to turn call over to Mr. Murphy.

Daniel Murphy

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 or 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 over time and we undertake no obligation to inform you if they do. The 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 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 the investor relation section of our website.

And now, I’d like to turn the call over to LivePerson’s Chief Executive Officer, Robert LoCascio.

Robert LoCascio

Thanks, Dan. Good afternoon, everyone and thanks for joining us. I'm happy to report that we had a very strong second quarter. We generated $31.9 million in revenue, which is a 5% increase from the prior quarter and a 21% increase from the prior year. Revenue exceeded our guidance and we achieved an EBITDA of $0.13 per share, which is a 30% increase from the second quarter of the prior year, and adjusted net income of $0.08 per share.

Beyond our core chat business, we continue to lay the foundation for a new product and platform strategy. Before diving into those details, I would like to briefly take you through the exciting developments in LivePerson’s vision and strategy. Success of our intelligent web franchise is largely being driven by the sophisticated behavioral targeting platform that supports this core application.

Our platform process data on nearly 100% of the traffic on our customers’ website totaling about $450 million unique visitors per month. Though we process data all this traffic our platform currently targets some proactive users [ph] and most likely to convert, which is only about 2% of all visitors. So, we continue to work towards unleashing the full value of our data and behavioral intelligence. Last year, we architected an open platform that can support a broader set of online engagement applications and services developed by our team for customers and third party partners.

By supporting and delivering more engagement applications and services we can maximize the value that we hold in our data monitoring and intelligence, and in turn enable the business to meaningfully connect with a greater percentage of their consumers on and off their websites. On the last call, I introduced the strategic priorities that are guiding our company’s operations that will help us to the next level. To remind you these priorities are to increase the value of each unique monthly visitor that we monitor, deliver a platform that supports intelligent real-time applications and services, deliver products in a frictionless way [ph] and provide meaningful connections between our clients and their customers.

These priorities keep our company focused on our strength and differentiators, as well as our mission and while we do what we do which is provide meaningful connections overall [ph]. As we execute on a strategic plan, we have also been expanding our leadership team to align to where our business is headed over the next several years. In the past quarter, we hired a new head of global professional services, who will largely be focusing on creating a set of expanded service offerings to support the platform and our new application.

Additionally, we brought on a head a platform, who co-founded a company that had created one of the main advertising trading platforms, and we also added a head of data strategy with a senior executive from one of the main advertising networks. As we continue to execute on our strategic plan we are bringing a new set of leaders to help guide our teams effectively, in alignment with our tactical [ph] and strategic priorities.

Now I’d like to talk about activity in new areas before discussing the performance of our core products. I am personally very excited by the advancements we made in the past quarter as we are starting to see opportunities and delivering new intelligent engagement products. With re-architecting our platform late last year, we developed a set of APIs to enable customers and third party partners to leverage our data intelligence to expand their engagement capabilities to other channels and communications such as mobile devices and social media.

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