LivePerson, Inc. (LPSN) Q1 2012 Earnings Call May 8, 2012 5:00 PM Executives Dan Murphy – CFO Robert LoCascio – Chairman and CEO Analysts Nathan Schneiderman – ROTH Capital Shyam Patil – Raymond James Richard Fetyko – Janney Capital Ryan McDonald – Northland Capital Presentation Operator
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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 everyone for joining us today. I’m pleased to report we are starting the year off on a strong note. During the quarter, our core business demonstrated continued strength with B2B revenue increasing 23% over the prior year period. We also had a very strong bookings quarter. First quarter bookings came in an unseasonably high at $6.1 million, which represents more than a 60% increase from the prior year’s first quarter and around 10% of the pipeline consisted of new products. As we have discussed in the past, in the first half of 2012, we are focused on continue to build our new product pipeline. We remain focused on rolling out the products more broadly across our customer base, while expanding the depth and reach of our core chat product offerings. Along those lines, we continue to make considerable investment in building out our sales team and training them on the value-based selling model we implemented last year. During the quarter, we added six quota-carrying sales reps, which is in addition to six head during the fourth quarter. We’re also starting to increase our overall marketing investment in order to build awareness and demand in the marketplace. To that end, I just got back from UK, where we kicked off the first three Aspire customers summits. Our Aspire events bring customers together to share success stories and best practices and to learn about our latest innovations. With over 300 people on attendance, it was an important opportunity for us to connect with these leading European companies and really give them an opportunity to exchange ideas, learn about our new products and connect with each other. It definitely was one common threat among these organizations, a strong desire to create deeper, more meaningful relationships with their customers. And they are looking to LivePerson to help achieve this.
We look forward to continue to connect with our customers and will be hosting our next Aspire event in Australia at the end of May and then one in New York during mid-June. As part of our overall strategy, we continue to evolve our core chat products. We are in the process of launching a new connection framework that combines chat with full integration of voice, video, screen sharing and even real-time language translation.From the consumer’s perspective, they are able to switch between these communication channels seamlessly and from our customer’s perspective, all these technologies easily plug into the agent console. We preview this connection framework at our EMEA Aspire event last week. An early adopter of this new connection framework is a major consumer electronics company. They launched a very exciting deployment a few weeks ago on a few of their emerging market websites. Our technologies enabling them to create an online customer experience that very much replicates the same high-touch experience that consumer get when they are in one of their stores. They’re also going to use the video webcam to conduct sales, support and product configurations in real-time. They will feel very much like their in-store experience and this enables them to cover markets where they don’t have significant store penetration. Our goal with the connection framework is to accelerate the adoption of our technologies among contact centers where voice 1-800 numbers are still the dominant form of communication. Our expectation is to rolling up the connection framework to the standard offering with our chat products starting at the beginning of Q3. Read the rest of this transcript for free on seekingalpha.com