-- Total Revenue of $101.3M, at the top end of our guidance range
--
-- Adjusted EBITDA above the midpoint of our
guidance range --
--Maintaining 2023 Revenue and Adjusted EBITDA
guidance midpoints--
NEW
YORK, Nov. 8, 2023 /PRNewswire/ -- LivePerson,
Inc. (NASDAQ: LPSN) ("LivePerson" the "Company", "we" or "us"), a
global leader in conversational AI, today announced financial
results for the third quarter ended September 30, 2023.
Third Quarter Highlights
Total revenue was $101.3 million
for the third quarter of 2023, at the top end of our prior guidance
and a decrease of 21.8% as compared to the same period last year as
the company continues to execute on its plan to exit lower-margin
and non-core lines of business.
LivePerson signed 50 deals in total for the third quarter,
consisting of 19 new and 31 existing customer contracts, including
4 seven-figure deals. Trailing-twelve-months average revenue per
enterprise and mid-market customer increased 13% for the third
quarter to $595,000, up from
approximately $525,000 for the
comparable prior-year period. Beginning with the second
quarter of 2022, in order to provide a more consistent and
meaningful measure of ARPC, we started calculating this metric
using only B2B Core recurring revenue, which is consistent with the
revenue base for calculating Net Revenue Retention.
"Since last quarter, we have refocused the company on our core
strengths – those that have delivered a meaningful return on
investment to our enterprise customers by enabling them to
efficiently shift legacy voice interactions to digital channels and
AI-powered automation," said Interim CEO and CFO John Collins. "Based on projections available
from Gartner and Forrester, the combined markets for
conversational AI and customer service and support are estimated to
grow approximately 20% year-over-year in 2024. Considering the
demonstrable return on investment our customers are realizing, and
growing traction we're seeing with generative AI, we believe we are
well positioned to meet this growing demand."
Customer Expansion
During the third quarter, the Company signed 50 total deals for
the quarter, including 4 seven-figure deals, 31 expansion &
renewals and 19 new logo deals. New logo deals included:
- Two large California-based
credit unions;
- A leading conversational marketplace company; and
- One of the largest network providers in the UK.
The Company also expanded/renewed business with:
- A leading Australian bank;
- A leading South African digital bank;
- One of the world's largest cruise lines; and
- One of the world's largest amusement park and entertainment
businesses.
Net Loss and Adjusted Operating Income (Loss)
Net loss for the third quarter of 2023 was $53.3 million or $0.68 per share, as compared to a net loss of
$43.2 million or $0.56 per share for the third quarter of 2022.
Adjusted operating income, a non-GAAP financial metric, for the
third quarter of 2023 was $2.8
million, as compared to $2.0
million adjusted operating income for the third quarter of
2022. Adjusted operating income (loss) excludes amortization of
purchased intangibles and finance leases, stock-based compensation
expense, other litigation, consulting and other employee costs,
restructuring costs, impairment of goodwill, impairment of
intangible assets, gain on divestiture, leadership transition
costs, contingent earn-out adjustments, acquisition and divestiture
costs, interest (income) expense, and other expense (income).
Adjusted EBITDA
Adjusted EBITDA, a non-GAAP financial measure, for the third
quarter of 2023 was $10.6 million as
compared to adjusted EBITDA of $9.1
million for the third quarter of 2022. Adjusted EBITDA
excludes amortization of purchased intangibles and finance leases,
stock-based compensation expense, depreciation, other litigation,
consulting and other employee costs, restructuring costs,
impairment of goodwill, impairment of intangible assets, leadership
transition costs, gain on divestiture, contingent earn-out
adjustments, provision for income taxes, acquisition and
divestiture costs, 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 $212.2
million at September 30, 2023,
as compared to $391.8 million at
December 31, 2022.
Financial Expectations
The following forward-looking measures and the underlying
assumptions involve significant known and unknown risks and
uncertainties, and actual results may vary materially from these
forward-looking measures. The Company does not present a
quantitative reconciliation of the forward-looking non-GAAP
financial measures, adjusted EBITDA and adjusted EBITDA margin to
the most directly comparable GAAP financial measures (or otherwise
present such forward-looking GAAP measures) because it is
impractical to forecast certain items without unreasonable efforts
due to the uncertainty and inherent difficulty of predicting,
within a reasonable range, the occurrence and financial impact of
and the periods in which such items may be recognized. In
particular, these non-GAAP financial measures exclude certain
items, including amortization of purchased intangibles and finance
leases, stock-based compensation expense, depreciation, other
litigation, consulting and other employee costs, restructuring
costs, impairment of goodwill, impairment of intangible assets,
leadership transition costs, gain on divestiture, contingent
earn-out adjustments, (benefit from) provision for income taxes,
acquisition and divestiture costs, interest (income) expense, and
other expense (income), which depend on future events that the
Company is unable to predict. Depending on the size of these items,
they could have a significant impact on the Company's GAAP
financial results.
In terms of full year 2023 revenue guidance, we are reiterating
the midpoint of $394M, but narrowing
the range to $389M - $399M from the prior range of $388M - $400M. This
range excludes the $7.2M contribution
from Kasamba in Q1.
Inclusive of the Kasamba contribution in Q1, the new full year
2023 revenue guidance range is $396M
- $406M, narrowed from the prior
range of $395M - $407M.
As for the B2B Core, we expect recurring revenue to represent
86% of total revenue.
For full year 2023 Adjusted EBITDA guidance, we are reiterating
the midpoint of $25.5M, but narrowing
the range to $22M - $29M from the prior range of $19M - $32M.
For the fourth quarter, we expect total revenue to range from
$89.7M - $99.7M. Further, we expect B2B Core recurring
revenue to represent 89% of total revenue. As for adjusted EBITDA,
we are expecting a range of $0M -
$7M.
For the tables below, year-over-year growth rates are on a
like-for-like basis (excluding Kasamba contribution from 2022).
Fourth Quarter 2023
|
Guidance
|
Revenue (in
millions)
|
$89.7 -
$99.7
|
Revenue growth
(year-over-year)
|
(21)% -
(12)%
|
Adjusted EBITDA (in
millions)
|
$0 - $7
|
Adjusted EBITDA margin
(%)
|
0.0% - 7.0%
|
Full Year 2023 (excludes Consumer revenue generated in Q1
2023)
|
Guidance
|
Revenue (in
millions)
|
$389 - $399
|
Revenue growth
(year-over-year)
|
(19)% -
(16)%
|
Adjusted EBITDA (in
millions)
|
$22 - $29
|
Adjusted EBITDA margin
(%)
|
5.7% - 7.3%
|
Disaggregated Revenue
Included in the accompanying financial results are revenues
disaggregated by revenue source, as follows:
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In
thousands)
|
Revenue:
|
|
|
|
|
|
|
|
Hosted services
(1)
|
$
85,747
|
|
$
98,951
|
|
$
254,371
|
|
$
318,382
|
Professional
services
|
15,585
|
|
30,610
|
|
52,144
|
|
73,941
|
Total
revenue
|
$
101,332
|
|
$
129,561
|
|
$
306,515
|
|
$ 392,323
|
(1)
|
On March 20, 2023, the
Company completed the sale of Kasamba and therefore ceased
recognizing revenue related to Kasamba effective on the transaction
close date. Further, this sale eliminated the entire Consumer
segment, as a result of which revenue is presented within a single
consolidated segment. Hosted services includes $7.2 million for the
nine months ended September 30, 2023, and $9.5 million and $27.7
million of revenue for the three and nine months ended September
30, 2022, respectively, relating to Kasamba.
|
Stock-Based Compensation
Included in the accompanying financial results are expenses
related to stock-based compensation, as follows:
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In
thousands)
|
Cost of
revenue
|
$
76
|
|
$
2,905
|
|
$
879
|
|
$
9,156
|
Sales and
marketing
|
2,726
|
|
6,021
|
|
7,429
|
|
18,612
|
General and
administrative
|
5,180
|
|
12,034
|
|
(6,070)
|
|
35,703
|
Product
development
|
3,314
|
|
10,980
|
|
2,242
|
|
36,852
|
Total
|
$
11,296
|
|
$
31,940
|
|
$
4,480
|
|
$
100,323
|
Amortization of Purchased Intangibles and Finance
Leases
Included in the accompanying financial results are expenses
related to the amortization of purchased intangibles and finance
leases, as follows:
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In
thousands)
|
Cost of
revenue
|
$
7,545
|
|
$
4,811
|
|
$
16,684
|
|
$
13,788
|
Amortization of
purchased intangibles
|
894
|
|
920
|
|
2,644
|
|
2,742
|
Total
|
$
8,439
|
|
$
5,731
|
|
$
19,328
|
|
$
16,530
|
Supplemental Third Quarter 2023 Presentation
LivePerson will post a presentation providing supplemental
information for the third quarter 2023 on the investor relations
section of the Company's web site at
www.ir.liveperson.com.
Earnings Teleconference Information
The Company will discuss its third quarter of 2023 financial
results during a teleconference today, November 8, 2023, at
5:00 PM ET. 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
"13741138."
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 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
"13741138." A replay will also be available on the investor
relations section of the Company's web site at
www.ir.liveperson.com.
About LivePerson, Inc.
LivePerson (NASDAQ: LPSN) is the global leader in enterprise
conversations. Hundreds of the world's leading brands — including
HSBC, Chipotle, and Virgin Media — use our award-winning
Conversational Cloud platform to connect with millions of
consumers. We power nearly a billion conversational interactions
every month, providing a uniquely rich data set and safety tools to
unlock the power of Conversational AI for better business outcomes.
Fast Company named us the #1 Most Innovative AI Company in the
world. To talk with us or our AI, please visit 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
(benefit from) provision for income taxes, interest (income)
expense, other expense (income), depreciation, amortization of
purchased intangibles and finance leases, stock-based compensation
expense, contingent earn-out adjustments, restructuring costs,
impairment of goodwill, impairment of intangible assets, leadership
transition costs, gain on divestiture, acquisition and divestiture
costs and other litigation, consulting and other employee costs;
(ii) adjusted EBITDA margin, or earnings/(loss) before (benefit
from) provision for income taxes, interest (income) expense, other
expense (income), depreciation, amortization of purchased
intangibles and finance leases, stock-based compensation expense,
contingent earn-out adjustments, restructuring costs, impairment of
goodwill, impairment of intangible assets, leadership transition
costs, gain on divestiture, acquisition and divestiture costs and
other litigation, consulting and other employee costs divided by
revenue; (iii) adjusted operating (loss) income, or operating
income (loss) excluding interest (income) expense, other expense
(income), amortization of purchased intangibles and finance leases,
stock-based compensation expense, contingent earn-out adjustments,
restructuring costs, impairment of goodwill, impairment of
intangible assets, leadership transition costs, gain on
divestiture, acquisition and divestiture costs, and other
litigation, consulting and other employee costs and (iv) 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.
Forward-Looking Statements
Statements in this press release and on our earnings call
regarding LivePerson that are not historical facts are
forward-looking statements and are subject to risks and
uncertainties that could cause actual future events or results to
differ materially from such statements. Any such forward-looking
statements, including but not limited to financial guidance, are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. It is routine for our
internal projections and expectations to change as the quarter and
year progress, and therefore it should be clearly understood that
the internal projections and beliefs upon which we base our
expectations may change. Although these expectations may change, we
are under no obligation to inform you if they do. Some of the
factors that could cause actual results to differ materially from
the forward-looking statements contained herein include, without
limitation: our ability to retain key personnel, attract new
personnel and to manage staff attrition; strain on our personnel
resources and infrastructure from supporting our existing and
growing customer base; our ability to retain existing customers and
cause them to purchase additional services and to attract new
customers; major public health issues; the ability to successfully
integrate past or potential future acquisitions; our ability to
secure additional financing to execute our business strategy;
lengthy sales cycles; delays in our implementation cycles;
payment-related risks; potential fluctuations in our quarterly
revenue and operating results; the material weakness in our
internal controls and limitations on the effectiveness of our
controls; non-payment or late payment of amounts due to us from a
significant number of customers; volatility in the capital markets;
recognition of revenue from subscriptions; customer retention and
engagement; our ability to develop and maintain successful
relationships with partners, service partners, social media and
other third-party consumer messaging platforms and endpoints; our
ability to effectively operate on mobile devices; the highly
competitive markets in which we operate; general economic
conditions; failures or security breaches in our services, those of
our third party service providers, or in the websites of our
customers; regulation or possible misappropriation of personal
information belonging to our customers' Internet users; US and
international laws and regulations regarding privacy and data
protection and increased public scrutiny of privacy and security
issues that could result in increased government regulation and
other legal obligations; new regulatory or other legal requirements
that could materially impact our business; governmental export
controls and economic sanctions; industry-specific regulation and
unfavorable industry-specific laws, regulations or interpretive
positions; future regulation of the Internet or mobile devices;
technology-related defects that could disrupt the LivePerson
services; our ability to protect our intellectual property rights
or potential infringement of the intellectual property rights of
third parties; the use of AI in our product offerings; the presence
of, and difficulty in correcting, errors, failures or "bugs" in our
products; our ability to license necessary third party software for
use in our products and services, and our ability to successfully
integrate third party software; potential adverse impact due to
foreign currency and cryptocurrency exchange rate
fluctuations; additional regulatory requirements, tax liabilities,
currency exchange rate fluctuations and other risks if and as we
expand; risks related to our operations in Israel; potential failure to meeting service
level commitments to certain customers; legal liability and/or
negative publicity for the services provided to consumers via our
technology platforms; technological or other defects that could
disrupt or negatively impact our services; our ability to maintain
our reputation; changes in accounting principles generally accepted
in the United States; natural
catastrophic events and interruption to our business by man-made
problems; potential limitations on our ability to use net operating
losses to offset future taxable income; risks related to our common
stock being traded on more than one securities exchange; and other
factors described in the "Risk Factors" section of the Company's
Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on
March 16, 2023. This list is intended
to identify only certain of the principal factors that could cause
actual results to differ from those discussed in the
forward-looking statements. Readers are referred to the Company's
reports and documents filed from time to time by us with the
Securities and Exchange Commission for a discussion of these and
other important factors that could cause actual results to differ
from those discussed in forward-looking statements.
LivePerson,
Inc. Condensed Consolidated Statements of
Operations (In Thousands, Except Share and Per Share
Data)
Unaudited
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
$
101,332
|
|
$
129,561
|
|
$ 306,515
|
|
$
392,323
|
|
|
|
|
|
|
|
|
Costs, expenses and
other:
|
|
|
|
|
|
|
|
Cost of
revenue
|
31,980
|
|
43,681
|
|
105,964
|
|
138,297
|
Sales and
marketing
|
32,118
|
|
49,448
|
|
93,312
|
|
167,563
|
General and
administrative
|
30,448
|
|
32,171
|
|
70,065
|
|
92,152
|
Product
development
|
35,575
|
|
44,744
|
|
94,933
|
|
156,568
|
Impairment of
goodwill
|
11,895
|
|
—
|
|
11,895
|
|
—
|
Restructuring
costs
|
2,097
|
|
7,111
|
|
15,999
|
|
17,949
|
Gain on
divestiture
|
—
|
|
—
|
|
(17,591)
|
|
—
|
Amortization of
purchased intangibles
|
894
|
|
920
|
|
2,644
|
|
2,742
|
Total costs, expenses
and other
|
145,007
|
|
178,075
|
|
377,221
|
|
575,271
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(43,675)
|
|
(48,514)
|
|
(70,706)
|
|
(182,948)
|
|
|
|
|
|
|
|
|
Other income (expense),
net
|
|
|
|
|
|
|
|
Interest income
(expense), net
|
1,068
|
|
401
|
|
3,005
|
|
(1,713)
|
Other (expense) income,
net
|
(10,164)
|
|
5,114
|
|
9,391
|
|
1,908
|
Total other (expense)
income
|
(9,096)
|
|
5,515
|
|
12,396
|
|
195
|
|
|
|
|
|
|
|
|
Loss before provision
for income taxes
|
(52,771)
|
|
(42,999)
|
|
(58,310)
|
|
(182,753)
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
541
|
|
249
|
|
1,600
|
|
1,270
|
|
|
|
|
|
|
|
|
Net Loss
|
$
(53,312)
|
|
$
(43,248)
|
|
$ (59,910)
|
|
$ (184,023)
|
|
|
|
|
|
|
|
|
Net loss per share of
common stock:
|
|
|
|
|
|
|
|
Basic
|
$
(0.68)
|
|
$
(0.56)
|
|
$
(0.78)
|
|
$
(2.39)
|
Diluted
|
$
(0.68)
|
|
$
(0.56)
|
|
$
(0.78)
|
|
$
(2.39)
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
78,005,210
|
|
77,784,346
|
|
76,902,316
|
|
76,969,629
|
Diluted
|
78,005,210
|
|
77,784,346
|
|
76,902,316
|
|
76,969,629
|
LivePerson,
Inc. Condensed Consolidated Statements of Cash
Flows (In Thousands)
Unaudited
|
|
Nine Months
Ended
|
|
September
30,
|
|
2023
|
|
2022
|
OPERATING
ACTIVITIES:
|
|
|
|
Net Loss
|
$
(59,910)
|
|
$
(184,023)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Stock-based
compensation expense
|
4,480
|
|
100,323
|
Depreciation
|
24,852
|
|
21,414
|
Amortization of
purchased intangible assets and finance leases
|
16,369
|
|
16,530
|
Amortization of debt
issuance costs
|
3,384
|
|
2,831
|
Impairment of
goodwill
|
11,895
|
|
—
|
Impairment of
intangible assets
|
2,959
|
|
—
|
Change in fair value of
contingent consideration
|
5,442
|
|
(8,568)
|
Gain on repurchase of
convertible notes
|
(7,200)
|
|
—
|
Allowance for credit
losses
|
2,653
|
|
4,669
|
Gain on
divestiture
|
(17,591)
|
|
—
|
Deferred income
taxes
|
741
|
|
770
|
Equity loss in joint
venture
|
2,264
|
|
—
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
Accounts
receivable
|
(16,390)
|
|
(13,856)
|
Prepaid expenses and
other current assets
|
(18,028)
|
|
(13,519)
|
Contract acquisition
costs non-current
|
6,189
|
|
(2,842)
|
Other
assets
|
1,390
|
|
(123)
|
Accounts
payable
|
(13,420)
|
|
(4,229)
|
Accrued expenses and
other current liabilities
|
28,892
|
|
(12,234)
|
Deferred
revenue
|
12,691
|
|
7,450
|
Operating lease assets
and liabilities, net
|
(500)
|
|
(2,148)
|
Other
liabilities
|
(23,282)
|
|
8,084
|
Net cash used in
operating activities
|
(32,120)
|
|
(79,471)
|
INVESTING
ACTIVITIES:
|
|
|
|
Purchases of property
and equipment, including capitalized software
|
(22,437)
|
|
(35,212)
|
Payments for
acquisitions, net of cash acquired
|
—
|
|
(3,458)
|
Purchases of
intangible assets
|
(3,245)
|
|
(1,394)
|
Proceeds from
divestiture
|
13,819
|
|
—
|
Investment in joint
venture
|
—
|
|
(3,993)
|
Net cash used in
investing activities
|
(11,863)
|
|
(44,057)
|
FINANCING
ACTIVITIES:
|
|
|
|
Principal payments for
financing leases
|
(2,468)
|
|
(2,785)
|
Proceeds from issuance
of common stock in connection with the exercise of options and
ESPP
|
1,622
|
|
1,238
|
Payments on repurchase
of convertible senior notes
|
(149,702)
|
|
—
|
Net cash used in
financing activities
|
(150,548)
|
|
(1,547)
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
6,654
|
|
(4,713)
|
Net decrease in cash,
cash equivalents, and restricted cash
|
(187,877)
|
|
(129,788)
|
Cash, cash equivalents,
and restricted cash - beginning of year
|
392,198
|
|
523,532
|
Plus: cash classified
within current assets held for sale - beginning of year
|
10,011
|
|
—
|
Cash, cash equivalents,
and restricted cash - end of period
|
$
214,332
|
|
$
393,744
|
LivePerson, Inc.
Reconciliation of Non-GAAP Financial Information to
GAAP
(In
Thousands)
Unaudited
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of
Adjusted EBITDA (Loss):
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
(53,312)
|
|
$
(43,248)
|
|
$ (59,910)
|
|
$ (184,023)
|
Add/(less):
|
|
|
|
|
|
|
|
Other litigation,
consulting and other
employee costs (1)
|
8,514
|
|
4,772
|
|
26,713
|
|
12,643
|
Depreciation
|
7,764
|
|
7,063
|
|
24,852
|
|
21,414
|
Amortization of
purchased intangibles and
finance leases
|
5,480
|
|
5,731
|
|
16,369
|
|
16,530
|
Restructuring costs
(2)
|
2,097
|
|
7,111
|
|
15,999
|
|
17,949
|
Impairment of
goodwill
|
11,895
|
|
—
|
|
11,895
|
|
—
|
Leadership transition
costs
|
6,966
|
|
—
|
|
6,966
|
|
—
|
Contingent earn-out
adjustments
|
7,227
|
|
(8,568)
|
|
5,441
|
|
(8,568)
|
Acquisition and
divestiture costs
|
126
|
|
1,002
|
|
3,035
|
|
3,124
|
Impairment of
intangible assets
|
2,959
|
|
—
|
|
2,959
|
|
—
|
Stock-based
compensation expense (3)
|
8,475
|
|
31,940
|
|
1,662
|
|
100,323
|
Provision for income
taxes
|
541
|
|
249
|
|
1,600
|
|
1,270
|
Interest (income)
expense, net
|
(1,068)
|
|
(401)
|
|
(3,005)
|
|
1,713
|
Gain on
divestiture
|
—
|
|
—
|
|
(17,591)
|
|
—
|
Other expense
(income), net (4)
|
2,938
|
|
3,454
|
|
(14,832)
|
|
6,660
|
Adjusted EBITDA
(loss)
|
$
10,602
|
|
$
9,105
|
|
$
22,153
|
|
$
(10,965)
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Operating Income
(Loss)
|
|
|
|
|
|
|
|
Loss before provision
for income taxes
|
(52,771)
|
|
(42,999)
|
|
(58,310)
|
|
(182,753)
|
Add/(less):
|
|
|
|
|
|
|
|
Other litigation,
consulting and other
employee costs (1)
|
8,514
|
|
4,772
|
|
26,713
|
|
12,643
|
Amortization of
purchased intangibles and
finance leases
|
5,480
|
|
5,731
|
|
16,369
|
|
16,530
|
Restructuring
costs (2)
|
2,097
|
|
7,111
|
|
15,999
|
|
17,949
|
Impairment of
goodwill
|
11,895
|
|
—
|
|
11,895
|
|
—
|
Leadership transition
costs
|
6,966
|
|
—
|
|
6,966
|
|
—
|
Contingent earn-out
adjustments
|
7,227
|
|
(8,568)
|
|
5,441
|
|
(8,568)
|
Acquisition and
divestiture costs
|
126
|
|
1,002
|
|
3,035
|
|
3,124
|
Impairment of
intangible assets
|
2,959
|
|
—
|
|
2,959
|
|
—
|
Stock-based
compensation expense (3)
|
8,475
|
|
31,940
|
|
1,662
|
|
100,323
|
Interest (income)
expense, net
|
(1,068)
|
|
(401)
|
|
(3,005)
|
|
1,713
|
Gain on
divestiture
|
—
|
|
—
|
|
(17,591)
|
|
—
|
Other expense
(income), net (4)
|
2,938
|
|
3,454
|
|
(14,832)
|
|
6,660
|
Adjusted operating
income (loss)
|
$
2,838
|
|
$
2,042
|
|
$
(2,699)
|
|
$
(32,379)
|
——————————————
(1)
|
Includes litigation
costs of $8.4 million, consulting costs of $0.5 million and accrued
expenses and fees of $0.2 million, offset by sales tax liability
reversals $0.6 million for the three months ended September 30,
2023. Includes consulting costs of $0.3 million, litigation costs
of $3.3 million and accrued expenses and fees of $1.2 million for
the three months ended September 30, 2022. Includes litigation
costs of $23.6 million, accrued expenses and fees of $2.3 million
and consulting costs of $0.9 million, offset by sales tax liability
reversals of $0.1 million for the nine months ended September 30,
2023. Includes litigation costs of $7.4 million, employee-related
costs of $3.9 million, consulting costs of $1.0 million and an
increase to the reserve for sales and use tax liability of $0.3
million for the nine months ended September 30, 2022.
|
|
|
(2)
|
Includes severance
costs and other compensation related costs of $2.1 million and
$16.0 million for the three months and nine months ended September
30, 2023, respectively. Includes severance costs and other
compensation related costs of $7.1 million for the three months
ended September 30, 2022. Includes severance costs and other
compensation related costs of $17.6 million and lease restructuring
costs of $0.3 million for the nine months ended September 30,
2022.
|
|
|
(3)
|
Excludes $2.8 million
of accelerated stock-based compensation recorded during the three
months ended September 30, 2023 in connection with the CEO
departure, as these costs are presented in leadership transition
costs.
|
|
|
(4)
|
Includes losses related
to the Company's equity method investment during the three months
ended September 30, 2023. Includes $10.0 million of other income
related to a litigation settlement, a $7.2 million gain related to
convertible senior notes repurchases and losses related to the
Company's equity method investment during the nine months ended
September 30, 2023. The remaining amount of other income (expense),
net fluctuation is attributable to currency rate fluctuations three
and nine months ended September 30, 2023. Includes $0.2 million of
other income related to the settlement of leases and $2.5 million
of costs related to elimination entries of the Company's equity
method investment for the three and nine months ended September 30,
2022. The remaining amount of other expense (income) for the three
and nine months ended September 30, 2022 is attributable to
currency rate fluctuations.
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Calculation of Free
Cash Flow:
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
$
(1,571)
|
|
$
(15,104)
|
|
$
(32,120)
|
|
$
(79,471)
|
Purchases of property
and equipment, including
capitalized software
|
(5,440)
|
|
(10,015)
|
|
(22,437)
|
|
(35,212)
|
Total free cash
flow
|
$
(7,011)
|
|
$
(25,119)
|
|
$
(54,557)
|
|
$ (114,683)
|
LivePerson, Inc.
Condensed Consolidated Balance
Sheets
(In
Thousands)
Unaudited
|
|
|
September
30,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
212,189
|
|
$
391,781
|
Accounts receivable,
net
|
99,867
|
|
86,537
|
Prepaid expenses and
other current assets
|
41,201
|
|
23,747
|
Restricted
cash
|
2,143
|
|
417
|
Assets held for
sale
|
—
|
|
30,984
|
Total current
assets
|
355,400
|
|
533,466
|
|
|
|
|
Operating lease right
of use assets
|
4,386
|
|
1,604
|
Property and
equipment, net
|
123,468
|
|
126,499
|
Contract acquisition
costs
|
35,953
|
|
43,804
|
Intangible assets,
net
|
64,781
|
|
78,103
|
Goodwill
|
283,759
|
|
296,214
|
Deferred tax
assets
|
4,486
|
|
4,423
|
Investment in joint
venture
|
—
|
|
2,264
|
Other
assets
|
1,212
|
|
2,563
|
Total
assets
|
$
873,445
|
|
$
1,088,940
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts
payable
|
$
14,098
|
|
$
25,303
|
Accrued expenses and
other current liabilities
|
123,132
|
|
129,244
|
Deferred
revenue
|
96,783
|
|
84,494
|
Convertible senior
notes
|
72,245
|
|
—
|
Operating lease
liabilities
|
2,194
|
|
2,160
|
Liabilities associated
with assets held for sale
|
—
|
|
10,357
|
Total current
liabilities
|
308,452
|
|
251,558
|
|
|
|
|
Deferred revenue, net
of current portion
|
393
|
|
174
|
Convertible senior
notes, net of current portion
|
511,055
|
|
737,423
|
Operating lease
liabilities, net of current portion
|
2,932
|
|
682
|
Deferred tax
liabilities
|
2,762
|
|
2,550
|
Other
liabilities
|
2,770
|
|
28,465
|
Total
liabilities
|
828,364
|
|
1,020,852
|
Total stockholders'
equity
|
45,081
|
|
68,088
|
Total liabilities
and stockholders' equity
|
$
873,445
|
|
$
1,088,940
|
Investor Relations contact
ir-lp@liveperson.com
212-609-4214
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SOURCE LivePerson, Inc.