NEW YORK, Nov. 6, 2012 /PRNewswire/ -- LivePerson,
Inc. (Nasdaq: LPSN), a provider of real-time intelligent engagement
solutions that increase conversions and improve customer
experience, today announced financial results for the third quarter
ended September 30, 2012.
(Logo:
http://photos.prnewswire.com/prnh/20110105/NY24753LOGO-a )
Revenue
Revenue from business operations (B2B) for the third quarter was
$36.1 million, a 17% increase as
compared to the third quarter of 2011. Total revenue for the
third quarter was $39.7 million, a
16% increase from the third quarter of 2011. Revenue from
consumer operations for the third quarter was $3.6 million, flat versus the third quarter of
2011.
"During the quarter we saw continued strength in many of our key
business and financial metrics, all indicators that point to the
overall health of the business. We signed a record number of
deals and bookings topped $8
million. We also continued to strengthen our core
product offerings, making substantial progress with the integration
of our advanced predictive targeting capabilities, rolling out a
fortified turnkey mobile solution and advancing with our overall
platform strategy," said CEO Robert
LoCascio.
Customer Expansion
LivePerson added 51 new enterprise and midmarket clients during
the quarter, including:
- Tupperware
- Smith & Wesson
- Seamless
- Restaurant.com
The Company also expanded business with:
- Virgin Atlantic
- Deutsche Telekom
- Forex Capital Markets
- PR Newswire
Net Income
Net income for the third quarter of 2012 was $1.6 million or $0.03 per share as compared to net income of
$2.7 million or $0.05 per share in the third quarter of 2011. Net
income during the third quarter of 2012 was impacted by deal and
litigation related expenses of approximately $0.7 million.
Adjusted Net Income and Adjusted EBITDA
LivePerson considers adjusted net income and adjusted earnings
before other income/(expense), taxes, depreciation, amortization,
stock-based compensation and other non-cash charges, if any
(adjusted EBITDA) to be important financial indicators of the
Company's operational strength and the performance of its business.
These results should be considered in addition to results prepared
in accordance with generally accepted accounting principles (GAAP),
but should not be considered as a substitute for, or superior to,
GAAP results.
The difference between adjusted EBITDA per share, a non-GAAP
measure, and GAAP EPS, is other income/(expense), taxes,
depreciation, amortization, stock-based compensation and other
non-cash charges, if any. The difference between adjusted net
income per share and GAAP EPS is amortization of intangible assets
and stock-based compensation.
A reconciliation of the differences between adjusted EBITDA and
adjusted net income, and the most comparable financial measure
calculated and presented in accordance with GAAP, is presented
under the heading "Reconciliation of Non-GAAP Financial Information
to GAAP" immediately following the Condensed Consolidated
Statements of Income included below.
Adjusted net income for the third quarter of 2012 was
$4.6 million or $0.08 per share, as compared to adjusted net
income of $4.8 million or
$0.09 per share in the third quarter
of 2011. Adjusted Net income during the third quarter of 2012 was
impacted by deal and litigation related expenses of approximately
$0.7 million.
Adjusted EBITDA for the third quarter of 2012 was $7.4 million or $0.13 per share, as compared to adjusted EBITDA
of $8.9 million or $0.16 per share in the third quarter of 2011.
Adjusted EBITDA during the third quarter of 2012 was impacted by
deal and litigation related expenses of approximately $0.7 million.
Cash
The Company's cash balance was $103.3
million at September 30, 2012
as compared to $100.6 million as of
June 30, 2012. The Company
generated $3.4 million of cash from
operations in the third quarter, and incurred planned capital
expenditures related primarily to the purchase of servers and
computer networking equipment, resulting in a cash outlay of
approximately $3.9 million.
Financial Guidance
The Company's 2012 guidance reflects previously disclosed deal
related expenses including amortization, as well as expenses
associated with ongoing litigation and international expansion. The
following is the Company's current expectations for financial and
operating performance:
Fourth Quarter 2012
- Revenue of $41.5 - $42
million
- Adjusted EBITDA of $0.12 - $0.14
per share
- Adjusted net income per share of $0.07 -
$0.09
- GAAP EPS of $0.02 - $0.04
- Fully diluted share count of approximately 58.3 million
Full Year 2012
- Revenue of $156.5 - $157
million
- Adjusted EBITDA of $0.51 - $0.54
per share
- Adjusted net income per share of $0.30 -
$0.33
- GAAP EPS of $0.10 - $0.13
- Fully diluted share count of approximately 57.5 million
Other Full Year 2012 Assumptions
- Amortization of intangibles of approximately $0.6 million
- Stock-compensation expense of approximately $10.7 million
- Depreciation of approximately $7.8
million
- Effective tax rate of approximately 39%
- Cash tax rate of approximately 37%
- Capital expenditures of approximately $10.4 million
- Costs associated with acquisitions, litigation and
international expansion of approximately $5
million
- Acquisition-related operating expenses of $1.5M from the acquisitions of Amadesa and
Look.io
Stock-Based Compensation
Included in the accompanying financial results are expenses
related to stock-based compensation, as follows (in thousands):
|
3
months ended
|
9
months ended
|
|
|
Sept
30, 2012
|
Sept
30, 2012
|
|
Cost of
revenue
|
$428
|
$1,130
|
|
Product
development
|
807
|
2,206
|
|
Sales and
marketing
|
822
|
2,113
|
|
General
and administrative
|
795
|
2,197
|
|
Total
|
$2,852
|
$7,646
|
|
|
|
|
|
Amortization of Intangible Assets
Included in the accompanying financial results are expenses
related to the amortization of intangible assets, as follows (in
thousands):
|
3
months ended
|
9
months ended
|
|
|
Sept
30, 2012
|
Sept
30, 2012
|
|
Cost of
revenue
|
$129
|
$196
|
|
General
and administrative
|
11
|
98
|
|
Total
|
$140
|
$294
|
|
|
|
|
|
Earnings Teleconference and Video Discussion
Information
The Company will discuss its third quarter 2012 financial
results during a teleconference today, November 6, 2012 at 5:00
p.m. ET. To participate via telephone domestic callers
(U.S. and Canada) should dial
877-507-3684, while international callers should dial 706-634-9559,
both should reference the conference ID "57153167". 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.liveperson.com/about/ir.
If you are unable to participate on the live call, the
teleconference will be available for replay approximately two hours
after the call. To access the replay, please call
855-859-2056 (U.S. and Canada) or
404-537-3406 (international). Please reference the conference
ID "57153167".
The Company will also post a video discussion of its third
quarter results on YouTube. To view, click on the following
link: http://www.youtube.com/user/myliveperson.
About LivePerson
LivePerson, Inc. (Nasdaq: LPSN) offers a cloud-based platform
that enables businesses to proactively connect in real-time with
their customers via chat, voice, and content delivery at the right
time, through the right channel, including websites, social media,
and mobile devices. This "intelligent engagement" is driven by
real-time behavioral analytics, producing connections based on a
true understanding of business objectives and customer needs.
More than 8,500 companies rely on LivePerson's platform to
increase conversions and improve customer experience, including
Hewlett-Packard, IBM, Microsoft, Verizon, Sky, Walt Disney, PNC, QVC and Orbitz.
LivePerson received the CODiE award for Best Content Management
Solution in 2012 and for Best Ecommerce Solution in 2011, and has
been named a Company of the Year by Frost and Sullivan in
2011. LivePerson is headquartered in New York City with offices in San Francisco, Atlanta, Tel
Aviv, London and
Melbourne.
For more information, please visit www.liveperson.com.
To view other recent press releases about LivePerson, click on
the following link: http://pr.liveperson.com.
Non-GAAP Financial Disclosure
Investors are cautioned that the following financial measures
used in this press release are defined as "non-GAAP financial
measures" by the Securities and Exchange Commission, or SEC:
adjusted EBITDA, or earnings/(loss) before other income/(expense),
taxes, depreciation, amortization, stock-based compensation, other
non-cash charges, if any; and adjusted net income, or net income
excluding amortization of intangible assets and stock-based
compensation. These measures may be different from non-GAAP
financial measures used by other companies. The presentation of
this financial information, which is not prepared under any
comprehensive set of accounting rules or principles, is not
intended to be considered in isolation. In addition, although
we have provided a reconciliation of these measures to the nearest
comparable GAAP measures, they should not be construed as
alternatives to any other measures of performance determined in
accordance with generally accepted accounting principles, or as
indicators of our operating performance, liquidity or cash flows
generated by operating, investing and financing activities, as
there may be significant factors or trends that they fail to
address. We present this financial information because we
believe that it is helpful to some investors as a measure of our
performance. We caution investors that non-GAAP financial
information, by its nature, departs from traditional accounting
conventions; accordingly, its use can make it difficult to compare
our current results with our results from other reporting periods
and with the results of other companies.
Safe Harbor Provision
Statements in this press release 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 progresses, 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. Actual events or results may differ materially from those
contained in the projections or forward-looking statements.
Some of the factors that could cause actual results to differ
materially from the forward-looking statements contained herein
include, without limitation: potential fluctuations in our
quarterly and annual results; potential fluctuations in litigation,
transaction-related and other costs; costs associated with our
international expansion; the adverse effect that the global
economic downturn may have on our business and results of
operations; competition in the online sales, marketing, customer
service and online engagement solutions markets; our ability to
retain existing clients and attract new clients; risks related to
new regulatory or other legal requirements that could materially
impact our business; impairments to goodwill that result in
significant charges to earnings; volatility of the value of certain
currencies in relation to the US dollar, particularly the New
Israeli Shekel, U.K. pound and Euro; risks related to our
international operations, particularly our operations in
Israel, and the civil and
political unrest in that region; responding to rapid technological
change and changing client preferences; our ability to retain key
personnel and attract new personnel; risks related to the ability
to successfully integrate past or potential future acquisitions;
technology systems beyond our control and technology-related
defects that could disrupt the LivePerson services; increased
allowances for doubtful accounts as a result of an increasing
amount of receivables due from customers with greater credit risk;
privacy concerns relating to the Internet that could result in new
legislation or negative public perception; risks related to the
regulation or possible misappropriation of personal information
belonging to our customers' Internet users; legal liability and/or
negative publicity for the services provided to consumers via our
technology platforms; risks related to protecting our intellectual
property rights or potential infringement of the intellectual
property rights of third parties; and risks related to our common
stock being traded on more than one securities exchange, which may
result in additional variations in the trading price of our common
stock. 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 reports and documents filed from time to time
by us with the Securities and Exchange Commission for a discussion
of these and other important risk factors that could cause actual
results to differ from those discussed in forward-looking
statements.
LivePerson, Inc.
|
Condensed Consolidated Statements of
Income
|
(In
Thousands, Except Share and Per Share Data)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Revenue
|
|
|
|
$
39,670
|
|
$
34,347
|
|
$
114,934
|
|
$
96,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
9,036
|
|
8,368
|
|
25,450
|
|
25,148
|
|
Product
development
|
|
8,005
|
|
5,266
|
|
21,881
|
|
14,658
|
|
Sales and
marketing
|
|
12,713
|
|
9,907
|
|
36,820
|
|
28,146
|
|
General
and administrative
|
|
7,316
|
|
5,689
|
|
22,784
|
|
15,037
|
|
Amortization of intangibles
|
|
11
|
|
11
|
|
98
|
|
32
|
|
|
|
Total
operating expenses
|
|
37,081
|
|
29,241
|
|
107,033
|
|
83,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from operations
|
|
2,589
|
|
5,106
|
|
7,901
|
|
13,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense), net
|
|
41
|
|
(762)
|
|
155
|
|
(370)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
2,630
|
|
4,344
|
|
8,056
|
|
13,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes
|
|
1,030
|
|
1,609
|
|
3,193
|
|
5,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
$ 1,600
|
|
$ 2,735
|
|
$ 4,863
|
|
$ 8,162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income per common share
|
|
$
0.03
|
|
$
0.05
|
|
$
0.09
|
|
$
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
net income per common share
|
|
$
0.03
|
|
$
0.05
|
|
$
0.09
|
|
$
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding used in basic net
|
|
|
|
|
|
|
|
|
|
income per
common share calculation
|
|
55,688,824
|
|
53,109,824
|
|
55,087,109
|
|
52,642,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding used in diluted net
|
|
|
|
|
|
|
|
|
|
income per
common share calculation
|
|
57,760,868
|
|
55,736,089
|
|
56,987,302
|
|
55,240,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LivePerson, Inc.
|
Reconciliation of Non-GAAP Financial Information
to GAAP
|
(In
Thousands, Except Share and Per Share Data)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
Supplemental Data
|
|
|
|
|
|
|
|
|
|
The
following information is not a financial measure under generally
accepted accounting principles (GAAP). In addition, it 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
this financial information because we believe that it is helpful to
some investors as one measure of our operations. We caution
investors that non-GAAP financial information, by its nature,
departs from traditional accounting conventions; accordingly, its
use can make it difficult to compare our results with our results
from other reporting periods and with the results of other
companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Net income
in accordance with generally
|
|
|
|
|
|
|
|
|
|
accepted
accounting principles
|
|
$
1,600
|
|
$
2,735
|
|
$
4,863
|
|
$
8,162
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
(a) Amortization of intangibles
|
|
140
|
|
318
|
|
294
|
|
953
|
|
(b) Stock-based compensation
|
|
2,852
|
|
1,736
|
|
7,646
|
|
4,951
|
|
(c) Depreciation
|
|
1,841
|
|
1,704
|
|
5,170
|
|
4,928
|
|
(d) Provision
for income taxes
|
|
1,030
|
|
1,609
|
|
3,193
|
|
5,028
|
|
(e) Other
(income) expense, net
|
|
(41)
|
|
762
|
|
(155)
|
|
370
|
Adjusted
EBITDA (1)
|
|
$ 7,422
|
|
$ 8,864
|
|
$ 21,011
|
|
$ 24,392
|
Diluted
adjusted EBITDA per common share
|
|
$
0.13
|
|
$
0.16
|
|
$
0.37
|
|
$
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares used in diluted adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
per common
share
|
|
57,760,868
|
|
55,736,089
|
|
56,987,302
|
|
55,240,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
in accordance with generally
|
|
|
|
|
|
|
|
|
|
accepted
accounting principles
|
|
$
1,600
|
|
$
2,735
|
|
$
4,863
|
|
$
8,162
|
|
Add:
|
|
|
|
|
|
|
|
|
|
(a) Amortization of intangibles
|
|
140
|
|
318
|
|
294
|
|
953
|
|
(b) Stock-based compensation
|
|
2,852
|
|
1,736
|
|
7,646
|
|
4,951
|
Adjusted
net income
|
|
$ 4,592
|
|
$ 4,789
|
|
$ 12,803
|
|
$ 14,066
|
Diluted
adjusted net income per common share
|
|
$
0.08
|
|
$
0.09
|
|
$
0.22
|
|
$
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares used in diluted adjusted net income
|
|
|
|
|
|
|
|
|
|
per common
share
|
|
57,760,868
|
|
55,736,089
|
|
56,987,302
|
|
55,240,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
7,422
|
|
$
8,864
|
|
$
21,011
|
|
$
24,392
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
(a) Changes in
operating assets and liabilities
|
|
(2,448)
|
|
(722)
|
|
998
|
|
(1,719)
|
|
(b) Provision
for doubtful accounts
|
|
|
|
110
|
|
20
|
|
230
|
|
(c) Provision
for income taxes
|
|
(1,030)
|
|
(1,609)
|
|
(3,193)
|
|
(5,028)
|
|
(d) Deferred
income taxes
|
|
(585)
|
|
(243)
|
|
(1,325)
|
|
(58)
|
|
(e) Other
income (expense), net
|
|
41
|
|
(762)
|
|
155
|
|
(370)
|
Net cash
provided by operating activities
|
|
$ 3,400
|
|
$ 5,638
|
|
$ 17,666
|
|
$ 17,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Earnings/(loss) before other income/(expense), taxes, depreciation,
amortization, stock-based compensation and other non-cash
charges.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LivePerson, Inc.
|
Condensed Consolidated Balance
Sheets
|
(In
Thousands)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2012
|
|
December 31, 2011
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
cash equivalents
|
$
103,284
|
|
$
93,278
|
|
Accounts
receivable, net
|
22,825
|
|
20,999
|
|
Prepaid
expenses and other current assets
|
6,921
|
|
5,390
|
|
Deferred
tax assets, net
|
2,588
|
|
2,342
|
|
Total current
assets
|
135,618
|
|
122,009
|
|
|
|
|
|
|
|
|
|
Property
and equipment, net
|
16,124
|
|
13,879
|
|
Intangibles, net
|
12,367
|
|
1,095
|
|
Goodwill
|
26,572
|
|
24,090
|
|
Deferred
tax assets, net
|
3,621
|
|
2,829
|
|
Deferred
implementation costs, net of current
|
215
|
|
247
|
|
Security
deposits
|
551
|
|
356
|
|
Other
assets
|
1,465
|
|
1,546
|
|
Total assets
|
$
196,533
|
|
$
166,051
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
9,908
|
|
$
8,258
|
|
Accrued
expenses
|
14,056
|
|
12,019
|
|
Deferred
revenue
|
6,752
|
|
5,378
|
|
Total current
liabilities
|
30,716
|
|
25,655
|
|
|
|
|
|
|
|
|
Deferred
revenue, net of current
|
1,152
|
|
1,152
|
Other
liabilities
|
1,465
|
|
1,546
|
|
Total liabilities
|
33,333
|
|
28,353
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
163,200
|
|
137,698
|
|
Total liabilities and
stockholders' equity
|
$
196,533
|
|
$
166,051
|
|
|
|
|
|
|
|
|
Investor contact:
Stacey Yonkus
212-609-4236
syonkus@liveperson.com
SOURCE LivePerson, Inc.