— Generates revenue of $118.3 million and growth of 25% year-over-year in the third quarter
— Raises midpoint of 2021 revenue guidance
— Closes two major strategic acquisitions, VoiceBase and Tenfold, accelerating voice product roadmap
— Signs seven 7-figure deals, as well as the largest 8-figure contract in LivePerson’s history
NEW YORK, Nov. 2, 2021 /PRNewswire/ — LivePerson, Inc. (NASDAQ: LPSN) (“LivePerson” or the “Company”), a global leader in conversational AI, today announced financial results for the third quarter ended September 30, 2021.
Third Quarter Highlights
Total revenue was $118.3 million for the third quarter of 2021, an increase of 25% as compared to the same period last year. Within total revenue, business operations revenue for the third quarter of 2021 increased 26% year over year to $109.2 million, and revenue from consumer operations increased 16% year over year to $9.1 million.
LivePerson signed seven seven-figure deals and 102 deals in total in the third quarter, comprising 37 new and 65 existing customer contracts. Trailing-twelve-months average revenue per enterprise and mid-market customer increased 34% in the third quarter to another record high of $570,000, up from approximately $425,000 in the comparable prior-year period.
“We delivered a strong third quarter with revenue growing at 25% or greater for the sixth quarter in a row and volume on our Conversational Cloud hitting another record high. Simultaneously, we added more leadership talent across the Company, built out capacity in critical functions, and evolved our strategy for Conversational AI and Voice,” said founder and CEO Robert LoCascio. “Brands are looking for a strategic partner to help them with end-to-end digital transformation that puts customers in control of their own experiences. Through the combination of LivePerson, VoiceBase, and Tenfold’s technologies and expertise, we are eager to bring this unified, deeply integrated Voice and Conversational AI system to life for brands.”
“We expect the acquisitions of VoiceBase and Tenfold to create glide paths to new logo acquisition and expansion within the base. By seamlessly integrating voice, messaging, and a broad spectrum of backend systems, these acquisitions also extend our AI platform’s ability to deliver personalization at scale. When coupled with our go-to-market investments, we’re well positioned to meet our 2022 targets and enter a new phase of AI-led growth,” added CFO John Collins.
Customer Expansion
During the third quarter, the Company signed contracts with the following new customers:
- One of the ten largest healthcare companies in the world
- One of the three largest banks in Australia
- A leading designer apparel brand in the U.S.
- A major telecommunications services provider in Southeast Asia
The Company also expanded business with:
- A multi-billion dollar entertainment and media conglomerate
- One of the largest news media companies in the U.S.
- One of the world’s largest telco companies
- One of the world’s biggest beauty and cosmetics companies
- One of the largest cryptocurrency exchanges in the world
Net Loss and Adjusted Operating (Loss) Income
Net loss for the third quarter of 2021 was $32.8 million or $0.47 per share, as compared to a net loss of $38.7 million or $0.58 per share in the third quarter of 2020. Adjusted operating loss, a non-GAAP financial metric, for the third quarter of 2021 was $33,000, as compared to an adjusted operating income of $9.1 million in the third quarter of 2020. Adjusted operating (loss) income excludes amortization of purchased intangibles, stock-based compensation, other litigation and consulting costs, restructuring costs, contingent earn-out adjustments, interest income (expense), and other expense (income).
Adjusted EBITDA
Adjusted EBITDA, a non-GAAP financial metric, for the third quarter of 2021 was $6.9 million or $0.09 per share, as compared to $15.1 million or $0.20 per share in the third quarter of 2020. Adjusted EBITDA excludes amortization of purchased intangibles, stock-based compensation, depreciation, other litigation and consulting costs, restructuring costs, contingent earn-out adjustments, provision for (benefit from) income taxes, interest income (expense), and other expense (income).
A reconciliation of non-GAAP financial measures to GAAP measures has been provided in the financial tables included in this press release. An explanation of the non-GAAP financial measures and how they are calculated is included below under the heading “Non-GAAP Financial Measures.”
Cash and Cash Equivalents
The Company’s cash balance was $633.0 million at September 30, 2021, as compared to $654.2 million at December 31, 2020.
Financial Expectations
With third quarter financial results on target, and progress in execution on the Company’s investment plan, the Company is raising its 2021 revenue guidance range to $468.0 million to $471.0 million, or 27.7% to 28.5% YoY, from previously issued guidance of $464.0 million to $471.0 million, or 26.5% to 28.5% YoY. Revenue guidance range for the fourth quarter is $122.2 million to $125.2 million, or 19.6% to 22.6% YoY.
The Company is also updating its 2021 adjusted EBITDA guidance to a range of $11.9 million to $16.3 million, or a 2.6% to 3.5% margin, from $14.8 million to $22.8 million, or a 3.2% to 4.8% margin. This revision primarily reflects the new strategic asset acquisitions of VoiceBase and Tenfold, and planned investments in go-to-market capacity and product innovations designed to drive increased revenue growth in 2022 and beyond. The Company is guiding for fourth quarter adjusted EBITDA in a range of $(21.7) million to $(17.3) million or a (17.8)% to (13.8)% margin.
Earnings Teleconference Information
The Company will discuss its third quarter 2021 financial results during a teleconference today, November 2, 2021. To participate via telephone, callers should dial in five to ten minutes prior to the 5:00 p.m. Eastern start time; domestic callers (U.S. and Canada) should dial 1-877-407-0784, while international callers should dial 1-201-689-8560, and both should reference the conference ID “13724205.”
The conference call will also be simulcast live on the Internet and can be accessed by logging onto the investor relations section of the Company’s web site at http://www.ir.liveperson.com.
If you are unable to participate in the live call, the teleconference will be available for replay approximately two hours after the call. To access the replay, please call 1-844-512-2921 (U.S. and Canada) or 1-412-317-6671 (international). Please reference the conference ID “13724205.” A replay will also be available on the investor relations section of the Company’s web site at http://www.ir.liveperson.com.
About LivePerson
LivePerson makes life easier for people and brands everywhere through trusted conversational AI. Our 18,000 customers, including leading brands like HSBC, Orange, GM Financial, and The Home Depot, use our conversational solutions to orchestrate humans and AI, at scale, and create a convenient, deeply personal relationship – a conversational relationship – with their millions of consumers. LivePerson was named to Fast Company’s World’s Most Innovative Companies list for its leadership in artificial intelligence. For more information about LivePerson (NASDAQ: LPSN), please visit www.liveperson.com.
Non-GAAP Financial Measures
Investors are cautioned that the following financial measures used in this press release are “non-GAAP financial measures”: (i) adjusted EBITDA, or earnings/(loss) before provision for (benefit from) income taxes, interest income (expense), other expense (income), depreciation, amortization, stock-based compensation, restructuring costs, acquisition costs and other costs; (ii) adjusted operating (loss) income, or operating income (loss) excluding amortization, stock-based compensation, restructuring costs, acquisition costs, deferred tax asset valuation allowance, and other costs; and (iii) free cash flow, or net cash provided by operating activities less purchases of property and equipment, including capitalized software.
Non-GAAP financial information should not be construed as an alternative to any other measures of performance determined in accordance with GAAP, or as an indicator of our operating performance, liquidity or cash flows generated by operating, investing and financing activities as there may be significant factors or trends that it fails to address. We present non-GAAP financial information because we believe that it is helpful to some investors as one measure of our operations.
Investor Relations contact
Idalia Rodriguez
ir-lp@liveperson.com
212-609-4214
SOURCE LivePerson, Inc.
Author Information
As a detail-oriented researcher, Sherril is expert at discovering, gathering and compiling industry and market data to create clear, actionable market and competitive intelligence. With deep experience in market analysis and segmentation she is a consummate collaborator with strong communication skills adept at supporting and forming relationships with cross-functional teams in all levels of organizations.
She brings more than 20 years of experience in technology research and marketing; prior to her current role, she was a Research Analyst at Omdia, authoring market and ecosystem reports on Artificial Intelligence, Robotics, and User Interface technologies. Sherril was previously Manager of Market Research at Intrado Life and Safety, providing competitive analysis and intelligence, business development support, and analyst relations.
Sherril holds a Master of Business Administration in Marketing from University of Colorado, Boulder and a Bachelor of Arts in Psychology from Rutgers University.
