LivePerson, Inc. CEO Discusses Q2 2012 Results - Earnings Call Transcript

LivePerson, Inc. (LPSN)

Q2 2012 Earnings Conference Call

Aug 01, 2012 5:00 PM ET

Executives

Robert LoCascio – Chairman and CEO

Dan Murphy – CFO

Analysts

Nathan Schneiderman – Roth Capital

Brandon Pickett – Raymond James

Richard Fetyko – Janney Montgomery Scott

Jeff Van Rhee – Craig-Hallum

Michael Latimore – Northland Securities

Richard Baldry – Wunderlich Securities

Brian Murphy – Sidoti & Company  

Craig Nankervis First Analysis

Brian Schwartz – ThinkEquity

Presentation

Operator

Good afternoon, and welcome to the LivePerson’s Second Quarter 2012 Earnings Call. My name is Diane, and I will be facilitating the audio portion of today’s interactive broadcast. With us today, we have Mr. Dan Murphy, CFO; and Robert LoCascio, CEO. 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)

At this time, I would now like to turn this call over to Mr. Dan Murphy. Sir, you may begin.

Dan Murphy

Thanks, Diane. Thanks very much. Before we begin, I’d like to remind listeners that during this conference call, comments that we make regarding LivePerson that are not historical facts or 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 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 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’s 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 to everyone for joining us. I’m pleased to report that we had another strong quarter. BEV revenues grew 23% over last year. We signed a record 136 deals, up from 117 in Q1. During the quarter bookings came in at $6.9 million. This was a record for our quarter and almost 20% increase over the prior year quarter of $5.8 million.

New product pipeline continue to make up a large percentage of bookings with 17% of total bookings coming from new products compared to 10% in Q1 and 5% in Q4.

My high level observation is that the continued strength in our booking’s numbers and the changing mix of new to existing products indicates we are on the right path towards executing on our overall vision of delivering a platform for intelligent engagement. We now focused on how to optimize execution on our go-to-market strategy so we can scale our product sales to our 8,500 customers.

We now have some great used cases coming from customers who are using our new products. As many of you experienced firsthand, our customers, some at Aspire went global this year, as we hosted events in the U.K., Australia and New York. Nearly 500 customers gathered across several continents to witness of some of the world’s leading brands are utilizing LivePerson’s technology to more meaningfully engage their customers online. It was exciting to see some examples of customers leveraging more than one LivePerson product to successfully drive their overall engagement strategies.

At Aspire, Petco shared a case study of how using multiple LivePerson products in tandem can create a holistic customer engagement strategy. Petco has been an LP chat customer since 2010 and then when on to the Play LP Marketer and recently implemented LP Insights. After launching their new P.A.L.S. customer awards program, they wanted to drive adoption while deflecting more costly interaction. They deployed LP Marketer to engage customers with targeted messaging to sole tape the P.A.L.S. log in process. And this helped Petco deflect expensive time consuming voice calls and improve overall customer experience. When Petco implemented the voice to the customer capabilities of LP Insights, they were able to identify problems in the P.A.L.S. log in process that was preventing conversion and then use LivePerson Marketer to optimize the process and help customers locate their P.A.L.S. account number. Petco is a great example of how our customers can use multiple products to improve the overall online experience.

Home Depot also presented at our New York Aspire event. And Home Depot talked about how important it was for them to ride an interconnected brand experience for their customers both on and offline. With about 45% to 50% of their in-store purchases starting with the visit to homedepot.com, its vital for them to connect the online and offline customer experience, and they are utilizing LivePerson products to make that connection. A great example was a highly segmented awareness campaign, which Home Depot ran around their installation services by using the geo-location data we capture on a visitor, they were able to target consumers in 11 specific markets using LP Marketer and further narrowed the segment with product offerings that had a higher propensity for installation, which increased conversion rates. With over 300,000 FKUs on homedepot.com, the ability to run highly targeted campaign provide significant value.

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