LivePerson's CEO Discusses Q4 2011 Results - Earnings Call Transcript

LivePerson Inc. ( LPSN)

Q4 2011 Earnings Call

February 13, 2012 5:00 pm ET

Executives

Dan Murphy - CFO

Robert LoCascio - CEO

Analysts

Nathan Schneiderman - Roth Capital Partners

Shyam Patel - Morgan Stanley

Richard Baldry - Wunderlich Securities

Richard Fetyko - Janney Capital Markets

Brian Schwartz - Thinkequity

Presentation

Operator

Good afternoon. At this time I would like to welcome everyone to the LivePerson fourth quarter year end earnings conference call. After the speakers remarks, there will be a question and answer session. (Operator Instructions)

Now, I would now like to turn the conference over to your host for today Mr. Dan Murphy, CFO.

Dan 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. Results that we report today should not be considered as an indication of future performance.

Changes in the 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 the investor relation section of our website.

Now, I'd like to turn the call over to LivePerson's Chief Executive Officer, Robert LoCascio.

Robert LoCascio

Thanks, Dan. And thanks for joining us today. I'm pleased to report that fourth quarter and 2011 was very strong for LifePerson in terms of financial metrics and more important in executing our overall strategic goals.

During 2011, we began to take the unique parts of our core chat products namely our data and real-time intelligent layers and use them to power our number of other home-grown and third-party developed application. Last quarter, during our customer summit Aspire, we formally launched several of our latest innovation including LP Marketer, LP Insights and ADE.

Our LP Marketer product when GA during the fourth quarter. At that time, we had at about a dozen customers and data which presented a great opportunity to discover use cases and areas of product improvements. We've seen a good amount of traction with non-weighted customer as well as converting beta into paid accounts. Overall 16 customers are using the product.

Going forward with LP market, I will continue to build a rode map with new features including mobile enablement, better integration with first-party data all which will make it easier for companies to target and convert more consumers into paying customers. Another product, ADE or analytical driven engagement, leverages website analytics data to maximize the value of our customers' online chat, LP Marketer and search engine marketing programs.

Using our customers third-party analytics data such Google analytics, ADE creates dynamic business rules that are automatically updated as website business behaviors patterns evolves. There is a lot of opportunity in our small business to mid-market segments for ADE. We currently have over 150 customers using this product.

As with ADE, LP Insights is another homegrown product from LivePerson. LP Insights take the company's unstructured data from chat transcripts and analyze these customers conversion from marketing intelligence. Because the collection is announced as the data as done In real time, the Insights are actionable and geared for driving conversions, understanding trends and users sentiment.

There is some news cases during the quarter and with some decidedly positive responses from several other proof of concept customers, we now have seven large enterprise customer up and running on LP Insights. With regards to our APIs and our partner application s, we now have around 125 customers using our API which is a third-party or internally development apps. Most apps are developed around content mobile and social spaces.

Now strategy with these applications and open API is to expand the reach and useful of our core products driving further adoption in the overall stiffness of our real-time engagement platform.

In 2011, we also focused on attracting talent that could line with our overall business strategy of building a real-time data and intelligence platform. We hired six new leaders in 2011 including a new CFO, Dan who is next to me hear, head of marketing and professional services, platform, network operations, product management and most recently a new global head of sales and markets.

Our new global head of sales and market is Erica Schultz. Erica was the Group Vice President of Oracle's SaaS organization where she led Oracle CRM On Demand, its SaaS CRM solutions as well as Oracle's field and telesales teams.

Oracle CRM On Demand became the fastest growing application product line and the fastest growing SaaS CRM solution in the market. During her 16 years at Oracle she also led operations in Oracle internet sales, division Oracle Direct and mid-market sales in North America and India.

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