NEW YORK, Nov. 7, 2019 /PRNewswire/ -- LivePerson, Inc.
(NASDAQ: LPSN), a leading provider of conversational commerce
solutions, today announced financial results for the third quarter
ended September 30, 2019.
Third Quarter Highlights
Total revenue was
$75.2 million for the third quarter
of 2019, an increase of 17% as compared to the same period last
year. Within total revenue, business operations revenue for the
third quarter of 2019 increased 15% year over year to $68.5 million, and revenue from consumer
operations increased 37% year over year to $6.7 million.
LivePerson signed 154 deals in the second quarter, an increase
of 47% year over year, fueled in equal parts by the addition of 77
new and 77 existing customer contracts. Trailing-twelve-months
average revenue per enterprise and mid-market customer increased
21% in the third quarter to a record $330,000, up from approximately $270,000 in the equivalent prior-year period.
"Our revenue growth is inflecting as leading brands turn to
LivePerson and our Conversational Commerce platform to profoundly
change the way they deliver care, sales and marketing experiences
to consumers," said CEO and founder, Rob
LoCascio. "Now, with our product organization at full
velocity, we are introducing a host of new solutions that will
raise consumer awareness of messaging and expose our platform to
millions of conversations we previously couldn't reach. We have
also cemented our competitive lead by establishing Maven, in our
view, as the definitive AI engine for Conversational Commerce."
"We accelerated revenue growth for the second consecutive
quarter, highlighting another period of strong execution," added
CFO Chris Greiner. "We continue to
track ahead of our growth plan as the investments we are making in
go-to-market, delivery and product are powering new customer
signings, a host of new solutions, and existing customer upsells.
In a dynamic market we are remaining agile in our investment
decision making while maintaining strong controls and investment
rigor. This discipline, in turn, has increased our confidence and
visibility into the Company's 2020 goal of accelerating to at least
20% revenue growth."
Customer Expansion
During the third quarter, the
Company signed contracts with the following new customers:
- One of the five largest airlines in the world
- One of the five largest cable companies in North America
- A leading furniture brand with more than 800 retail locations
across the Americas
- A leading telco in Latin
America
- Two European utility companies
The Company also expanded business with:
- A Global Fortune 100 financial institution
- One of the world's five largest international technology
companies
- One of Australia's top three
telcos
- A multi-billion dollar data storage provider
- A FTSE 100 European financial services provider
Net Loss and Adjusted Operating (Loss) Income
From a
profit perspective, expenses were higher than planned in the third
quarter, as a rapidly evolving and favorable market environment
compelled the Company to meet heightened customer demand by
investing in three areas.
- The first area relates to stronger-than-planned interest in the
Company's customer events, which resulted in an approximate
$2.0 million expense impact. In the
third quarter, the Company conducted over 20 programs globally,
including three major events. These events have historically
generated a strong ROI, and we anticipate a similar payback from
the third quarter events, based on the pipeline they have created
and the subsequent customer wins and product launches.
- Next, due to rapid growth in contract activity, strong AI
adoption, and a host of new products coming to market, the Company
is experiencing increased demand for its delivery expertise,
particularly in areas such as conversational design and bot tuning,
endpoint deployment, and customizations of APIs and Function as a
Service. This expertise is a key differentiator for LivePerson,
enabling smoother implementations and a faster customer return on
investment, which, in turn, increases platform usage. In the third
quarter, the Company spent an incremental $2.0 million to build out these delivery
teams.
- Finally, in 2019, the Company committed to renewed Midmarket
and Small Business revenue growth by reinvesting in go-to-market
resources. That strategy has proven successful. Now, the Company
sees an opportunity to compound that success and drive higher
retention rates, by placing customer management and renewals in its
own hands, rather than continuing to rely on third parties. As a
result, during the third quarter, the Company built up internal
teams that ran concurrently with third parties in order to minimize
customer disruption during the transition. This overlap of
investment, which increased expenses by approximately $2.0 million in the third quarter, is expected to
be immaterial by the first quarter of 2020.
Including the impact of these incremental investments, net loss
for the third quarter of 2019 was $25.9
million or $0.41 per share, as
compared to a net loss of $7.0
million or $0.12 per share in
the third quarter of 2018. Adjusted operating loss for the third
quarter of 2019 was $10.4 million, as
compared to adjusted operating income of $2.3 million in the third quarter of 2018.
Adjusted operating (loss) income excludes amortization of purchased
intangibles, stock-based compensation, other litigation and
consulting costs, restructuring costs, acquisition costs, and other
income, net.
Net loss in the third quarter of 2019 included charges of
$2.9 million ($0.05 per share), primarily associated with IP
litigation, severance and consulting services. The third quarter of
2018 net loss included non-recurring expenses of $2.3
million ($0.04 per share),
primarily associated with IP litigation, severance and consulting
services.
Adjusted EBITDA
Adjusted EBITDA for the third quarter
of 2019 was a loss of $6.3 million or
$0.10 per share, as compared to
income of $5.8 million or
$0.09 per share in the third quarter
of 2018. Adjusted EBITDA excludes amortization of purchased
intangibles, stock-based compensation, depreciation, other
litigation and consulting costs, restructuring costs, acquisition
costs, provision for (benefit from) income taxes, and other income,
net.
A reconciliation of the 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 $205.2 million at September 30, 2019, as compared to $66.4 million at December
31, 2018. Cash, net of the carrying amount of our
convertible debt, was $28.8
million.
Financial Expectations
With strong demand in the third
quarter, a robust sales pipeline, a host of new products coming to
market, and ramping productivity from new sales hires, the Company
anticipates that revenue growth will continue to accelerate in the
fourth quarter. The Company is raising 2019 revenue guidance to a
range of $289.5 million to
$292.5 million, from the previously
guided range of $288.5 million to
$292.0 million. The new guidance
range calls for 2019 revenue growth of 16% to 17%, and anticipates
acceleration to 17% to 22% growth in the fourth quarter.
Reflecting the above approximate $6.0
million of investment decisions in the third quarter, and
carrying forward the full impact of technical delivery and customer
success resources into the fourth quarter, the Company is revising
guidance for 2019 adjusted EBITDA to a loss in a range of
$14.8 million to $11.8 million from previous guidance for a profit
of $0.0 million to $5.0 million. Please see the third quarter 2019
supplemental slide deck posted on the investor relations section of
the Company's web site at http://www.liveperson.com/ir for more
information.
The Company's detailed financial expectations are as
follows:
Fourth Quarter
2019
|
|
|
Guidance
|
Revenue (in
millions)
|
$77.0 -
$80.0
|
GAAP net loss per
share
|
$(0.40) -
$(0.35)
|
Adjusted operating
loss (in millions)
|
$(5.1) -
$(2.1)
|
Adjusted EBITDA
income (in millions)
|
$0.0 -
$3.0
|
Fully diluted share
count (in millions)
|
65.8
|
Full Year
2019
|
|
|
|
|
|
|
|
|
Updated
Guidance
|
|
Previous
Guidance
|
Revenue (in
millions)
|
|
|
$289.5 -
$292.5
|
|
$288.5 -
$292.0
|
GAAP net loss per
share
|
|
|
$(1.51) -
$(1.45)
|
|
$(1.15) -
$(1.06)
|
Adjusted operating
loss (in millions)
|
|
|
$(31.7) -
$(28.7)
|
|
$(15.6) -
$(10.6)
|
Adjusted EBITDA
income (loss) (in millions)
|
|
|
$(14.8) -
$(11.8)
|
|
$0.0 -
$5.0
|
Fully diluted share
count (in millions)
|
|
|
63.1
|
|
63.7
|
Other Full Year 2019 Assumptions
- Estimated IP litigation expense of approximately $5.5 million ($0.09
per share) and consulting, severance and restructuring of
$5.2 million ($0.08 per share)
- Amortization of purchased intangibles of approximately
$3.0 million
- Stock-based compensation expense of approximately $39.0 million
- Depreciation of approximately $17.0
million
- Interest and other expense of $6.0
million
- Cash taxes paid of $2.0 million
to $4.0 million. A GAAP tax liability
of approximately $3.8 million
- Capital expenditures of approximately $42.0 million
Furthermore, as a percent of revenue for the year, including
amortization of purchased intangibles and stock-based compensation,
but excluding non-recurring expenses discussed above, we anticipate
gross profit to be approximately 73.0%, sales and marketing 53.0%,
product development 28.0% and G&A at 16.5%.
Stock-Based Compensation
Included in the accompanying
financial results are expenses related to stock-based compensation,
as follows (in thousands):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Cost of
revenue
|
$
|
763
|
|
|
$
|
220
|
|
|
$
|
1,911
|
|
|
$
|
604
|
|
Sales and
marketing
|
2,050
|
|
|
1,472
|
|
|
5,744
|
|
|
3,731
|
|
General and
administrative
|
2,605
|
|
|
1,368
|
|
|
7,995
|
|
|
3,390
|
|
Product
development
|
3,650
|
|
|
1,014
|
|
|
9,889
|
|
|
2,613
|
|
Total
|
$
|
9,068
|
|
|
$
|
4,074
|
|
|
$
|
25,539
|
|
|
$
|
10,338
|
|
Amortization of Purchased Intangibles
Included in the
accompanying financial results are expenses related to the
amortization of purchased intangibles, as follows (in
thousands):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Cost of
revenue
|
$
|
285
|
|
|
$
|
285
|
|
|
$
|
854
|
|
|
$
|
859
|
|
Amortization of
purchased intangibles
|
447
|
|
|
424
|
|
|
1,346
|
|
|
1,272
|
|
Total
|
$
|
732
|
|
|
$
|
709
|
|
|
$
|
2,200
|
|
|
$
|
2,131
|
|
Supplemental Third Quarter 2019
Presentation
LivePerson will post a presentation providing
supplemental information for the third quarter 2019 on the investor
relations section of the Company's web site at
http://www.liveperson.com/ir.
Earnings Teleconference Information
The Company will
discuss its third quarter 2019 financial results during a
teleconference today, November 7,
2019. 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 877-507-3684,
while international callers should dial 928-328-1244, and both
should reference the conference ID "2685208."
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/company/ir.
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
855-859-2056 (U.S. and Canada) or
404-537-3406 (international). Please reference the conference
ID "2685208." A replay will also be available on the investor
relations section of the Company's web site at
http://www.liveperson.com/company/ir.
About LivePerson
LivePerson makes life easier by
transforming how people communicate with brands. Our 18,000
customers, including leading brands like HSBC, Orange, GM
Financial, and The Home Depot, use our conversational commerce
solutions to orchestrate humans and AI, at scale, and create a
convenient, deeply personal relationship — a conversational
relationship — with their millions of consumers. 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 defined as "non-GAAP financial measures" by the Securities and
Exchange Commission: adjusted EBITDA, or earnings/(loss) before
provision for (benefit from) income taxes, other (income)/expense,
depreciation and amortization, stock-based compensation,
restructuring costs, acquisition costs and other costs; and
adjusted operating income excluding amortization, stock-based
compensation, restructuring costs, acquisition costs, deferred tax
asset valuation allowance, and other costs.
A reconciliation of non-GAAP financial information to GAAP
financial information is not a financial measure under generally
accepted accounting principles (GAAP). In addition, 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.
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 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. 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 revenue and operating results; competition in the markets
for mobile and online business messaging and digital engagement
technology ; our ability to retain existing clients and attract new
clients; privacy concerns relating to the Internet that could
result in new legislation or negative public perception; risks
related to new regulatory or other legal requirements that could
materially impact our business; failures or security breaches in
our services, those of our third party providers, or in the
websites of our customers; potential adverse impact due to foreign
currency exchange rate fluctuations; economic conditions and
regulatory changes caused by the United
Kingdom's exit from the European Union; our ability to
retain key personnel, attract new personnel and to manage staff
attrition; supporting our existing and growing customer base could
strain our personnel resources and infrastructure; risks relating
to governmental export controls and economic sanctions; our ability
to effectively operate on mobile devices; risks related to
industry-specific regulation and unfavorable industry-specific
laws, regulations or interpretive positions; the adverse effect
that the global economic downturn may have on our business and
results of operations; risks related to the ability to successfully
integrate past or potential future acquisitions; additional
regulatory requirements, tax liabilities, currency exchange rate
fluctuations and other risks as we expand internationally and/or as
we expand into direct-to-consumer services; risks related to the
regulation or possible misappropriation of personal information
belonging to our customers' Internet users; potential failure to
meeting service level commitments to certain customers; technology
systems beyond our control and technology-related defects that
could disrupt the LivePerson services; risks related to protecting
our intellectual property rights or potential infringement of the
intellectual property rights of third parties; legal liability
and/or negative publicity for the services provided to consumers
via our technology platforms; technological or other defects could
disrupt or negatively impact our services; errors, failures or
"bugs" in our products may be difficult to correct; increased
allowances for doubtful accounts as a result of an increasing
amount of receivables due from customers with greater credit risk;
payment-related risks; delays in our implementation cycles;
impairments to goodwill that result in significant charges to
earnings; risk associated with the limitations on the effectiveness
of our controls; our history of losses; risks associated with the
recent volatility in the capital markets; our ability to secure
additional financing to execute our business strategy; our ability
to license necessary third party software for use in our products
and services, and our ability to successfully integrate third party
software; our ability to maintain our reputation; risks related to
our recognition of revenue from subscriptions; our lengthy sales
cycles; risks related to our operations in Israel, and the civil and political unrest in
that region; changes in accounting principles generally accepted in
the United States; risks
associated with any future stock repurchase programs, including
whether such programs will enhance long-term stockholder value, and
whether such stock repurchases could increase the volatility of the
price of our common stock and diminish our cash reserves; 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 relating to
recently-enacted changes to the U.S. tax laws; and risks related to
our common stock being traded on more than one securities exchange.
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 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
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenue
|
$
|
75,175
|
|
|
$
|
64,213
|
|
|
$
|
212,536
|
|
|
$
|
184,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
20,120
|
|
|
15,689
|
|
|
56,818
|
|
|
45,679
|
|
|
Sales and
marketing
|
41,774
|
|
|
26,748
|
|
|
114,153
|
|
|
76,271
|
|
|
General and
administrative
|
13,958
|
|
|
11,972
|
|
|
41,889
|
|
|
33,594
|
|
|
Product
development
|
20,577
|
|
|
13,484
|
|
|
58,932
|
|
|
40,955
|
|
|
Restructuring
costs
|
1,425
|
|
|
722
|
|
|
1,909
|
|
|
2,806
|
|
|
Amortization of
purchased intangibles
|
447
|
|
|
424
|
|
|
1,346
|
|
|
1,272
|
|
|
|
Total costs and
expenses
|
98,301
|
|
|
69,039
|
|
|
275,047
|
|
|
200,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(23,126)
|
|
|
(4,826)
|
|
|
(62,511)
|
|
|
(16,463)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense),
net
|
(1,810)
|
|
|
(213)
|
|
|
(4,011)
|
|
|
(53)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision
for income taxes
|
(24,936)
|
|
|
(5,039)
|
|
|
(66,522)
|
|
|
(16,516)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
936
|
|
|
2,004
|
|
|
2,227
|
|
|
2,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(25,872)
|
|
|
$
|
(7,043)
|
|
|
$
|
(68,749)
|
|
|
$
|
(18,567)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share of
common stock:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.41)
|
|
|
$
|
(0.12)
|
|
|
$
|
(1.10)
|
|
|
$
|
(0.32)
|
|
|
Diluted
|
$
|
(0.41)
|
|
|
$
|
(0.12)
|
|
|
$
|
(1.10)
|
|
|
$
|
(0.32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used to compute net loss per share:
|
|
|
|
|
|
|
|
|
Basic
|
63,014,802
|
|
|
60,014,246
|
|
|
62,268,439
|
|
|
58,667,289
|
|
|
Diluted
|
63,014,802
|
|
|
60,014,246
|
|
|
62,268,439
|
|
|
58,667,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LivePerson,
Inc.
|
Reconciliation of
Non-GAAP Financial Information to GAAP
|
(In Thousands, Except
Share and Per Share Data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Reconciliation of
Adjusted EBITDA (1):
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
|
(25,872)
|
|
|
$
|
(7,043)
|
|
|
$
|
(68,749)
|
|
|
$
|
(18,567)
|
|
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangibles
|
732
|
|
|
709
|
|
|
2,200
|
|
|
2,131
|
|
|
|
Stock-based
compensation
|
9,068
|
|
|
4,074
|
|
|
25,539
|
|
|
10,338
|
|
|
|
Depreciation
|
4,157
|
|
|
3,557
|
|
|
11,805
|
|
|
10,343
|
|
|
|
Other litigation and
consulting costs
|
1,464
|
|
(2)
|
1,608
|
|
(2)
|
6,256
|
|
(4)
|
4,646
|
|
(4)
|
|
Restructuring
costs
|
1,425
|
|
(3)
|
722
|
|
(3)
|
1,909
|
|
(5)
|
2,806
|
|
(5)
|
|
Provision for income
taxes
|
936
|
|
|
2,004
|
|
|
2,227
|
|
|
2,051
|
|
|
|
Other expense,
net
|
1,810
|
|
|
213
|
|
|
4,011
|
|
|
53
|
|
|
Adjusted EBITDA
(1)
|
$
|
(6,280)
|
|
|
$
|
5,844
|
|
|
$
|
(14,802)
|
|
|
$
|
13,801
|
|
|
Diluted adjusted
EBITDA per common share
|
$
|
(0.10)
|
|
|
$
|
0.09
|
|
|
$
|
(0.24)
|
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in diluted
adjusted EBITDA per common share
|
63,014,802
|
|
|
62,506,097
|
|
|
62,268,439
|
|
|
60,888,310
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Operating (Loss) Income:
|
|
|
|
|
|
|
|
|
Loss before provision
for income taxes:
|
$
|
(24,936)
|
|
|
$
|
(5,039)
|
|
|
$
|
(66,522)
|
|
|
$
|
(16,516)
|
|
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangibles
|
732
|
|
|
709
|
|
|
2,200
|
|
|
2,131
|
|
|
|
Stock-based
compensation
|
9,068
|
|
|
4,074
|
|
|
25,539
|
|
|
10,338
|
|
|
|
Other litigation and
consulting costs
|
1,464
|
|
(2)
|
1,608
|
|
(2)
|
6,256
|
|
(4)
|
4,646
|
|
(4)
|
|
Restructuring
costs
|
1,425
|
|
(3)
|
722
|
|
(3)
|
1,909
|
|
(5)
|
2,806
|
|
(5)
|
|
Other expense,
net
|
1,810
|
|
|
213
|
|
|
4,011
|
|
|
53
|
|
|
Adjusted operating
(loss) income
|
$
|
(10,437)
|
|
|
$
|
2,287
|
|
|
$
|
(26,607)
|
|
|
$
|
3,458
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Earnings/(loss)
before provision for (benefit from) income taxes, other
(income)/expense, net, depreciation and amortization, stock-based
compensation, restructuring costs, acquisition costs and other
costs.
|
(2) Includes
litigation costs of $1.1 million, consulting costs of $0.7 million
offset by a fair value earn-out adjustment of $0.3 million for the
three months ended September 30, 2019 and litigation costs of $1.1
million, consulting costs of $0.5 million for the three months
ended September 30, 2018.
|
(3) Includes
severance costs and other compensation related costs of $1.4
million for the three months ended September 30, 2019 and $0.7
million for the three months ended September 30,
2018.
|
(4) Includes
litigation costs of $3.3 million, consulting costs of $2.7 million
and fair value earn-out adjustment of $0.3 million for the nine
months ended September 30, 2019 and litigation costs of $3.2
million, consulting costs of $0.9 million, executive recruitment
costs of $0.3 million, and executive relocation costs of $0.2
million for the nine months ended September 30, 2018.
|
(5) Includes
severance costs and other compensation related costs of $1.9
million for the nine months ended September 30, 2019 and $2.8
million for the nine months ended September 30,
2018.
|
LivePerson,
Inc.
|
Reconciliation of
Non-GAAP Financial Information to GAAP - (continued)
|
(In
Thousands)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Reconciliation of
Net Cash Used In Operating Activities:
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
$
|
(6,280)
|
|
|
$
|
5,844
|
|
|
$
|
(14,802)
|
|
|
$
|
13,801
|
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
Changes in operating
assets and liabilities
|
(5,668)
|
|
|
(9,209)
|
|
|
(26,726)
|
|
|
(20,106)
|
|
|
Accretion of debt
discount
|
2,288
|
|
|
—
|
|
|
5,278
|
|
|
—
|
|
|
Provision for
doubtful accounts
|
632
|
|
|
464
|
|
|
1,570
|
|
|
1,326
|
|
|
Provision for income
taxes
|
(936)
|
|
|
(2,004)
|
|
|
(2,227)
|
|
|
(2,051)
|
|
|
Deferred income
taxes
|
84
|
|
|
138
|
|
|
198
|
|
|
179
|
|
|
Amortization of
tenant allowance
|
(129)
|
|
|
(121)
|
|
|
(387)
|
|
|
(204)
|
|
|
Debt issuance
costs
|
287
|
|
|
—
|
|
|
663
|
|
|
—
|
|
|
Other expense,
net
|
(1,810)
|
|
|
(213)
|
|
|
(4,011)
|
|
|
(53)
|
|
Net cash used in
operating activities
|
$
|
(11,532)
|
|
|
$
|
(5,101)
|
|
|
$
|
(40,444)
|
|
|
$
|
(7,108)
|
|
|
|
|
|
|
|
|
|
|
(1)
Earnings/(loss) before provision for (benefit from) income taxes,
other (income)/expense, net, depreciation and amortization,
stock-based compensation, restructuring costs, acquisition costs
and other costs.
|
LivePerson,
Inc.
|
Reconciliation of
Projected Non-GAAP Financial Information to GAAP
|
(In
Thousands)
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December 31,
2019
|
|
December 31,
2019
|
Reconciliation of
Projected Adjusted EBITDA: (1)
|
|
|
|
|
GAAP net
loss
|
|
$(25,500) -
$(22,300)
|
|
$(94,300) -
$(91,100)
|
|
Add/(less):
|
|
|
|
|
|
Amortization of
purchased intangibles
|
|
700
|
|
|
3,000
|
|
|
Stock-based
compensation
|
|
13,600
|
|
|
39,000
|
|
|
Depreciation
|
|
5,100
|
|
|
17,000
|
|
|
Other
costs
|
|
2,500
|
|
|
10,700
|
|
|
Other expense,
net
|
|
2,000
|
|
|
6,000
|
|
|
Provision for income
taxes
|
|
1,700 -
1,500
|
|
|
3,800 -
3,600
|
|
Adjusted EBITDA
(loss)
|
|
$0 -
$3,000
|
|
|
$(14,800) -
$(11,800)
|
|
|
|
|
|
|
|
Reconciliation of
Projected Adjusted Operating Loss: (1)
|
|
|
|
|
Loss before provision
for income taxes
|
|
$(23,900) -
$(20,900)
|
|
|
$(90,400) -
$(87,400)
|
|
|
Add/(less):
|
|
|
|
|
|
Amortization of
purchased intangibles
|
|
700
|
|
|
3,000
|
|
|
Stock-based
compensation
|
|
13,600
|
|
|
39,000
|
|
|
Other
costs
|
|
2,500
|
|
|
10,700
|
|
|
Other expense,
net
|
|
2,000
|
|
|
6,000
|
|
Adjusted operating
(loss)
|
|
$(5,100) -
$(2,100)
|
|
|
$(31,700) -
$(28,700)
|
|
|
|
|
|
|
|
(1)
|
Certain items may not
total due to rounding.
|
|
|
|
|
LivePerson,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(In
Thousands)
|
|
|
|
|
|
|
September 30,
2019
|
|
December 31,
2018
|
|
|
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
205,153
|
|
|
$
|
66,449
|
|
|
Accounts receivable,
net
|
53,787
|
|
|
46,023
|
|
|
Prepaid expenses and
other current assets
|
41,806
|
|
|
22,613
|
|
|
|
Total current
assets
|
300,746
|
|
|
135,085
|
|
|
|
|
|
|
|
|
|
|
Operating lease right
of use asset
|
14,521
|
|
|
—
|
|
|
Property and
equipment, net
|
66,859
|
|
|
43,735
|
|
|
Intangibles,
net
|
12,303
|
|
|
13,832
|
|
|
Goodwill
|
94,928
|
|
|
95,031
|
|
|
Deferred tax
assets
|
717
|
|
|
713
|
|
|
Other
assets
|
1,855
|
|
|
1,707
|
|
|
|
Total
assets
|
$
|
491,929
|
|
|
$
|
290,103
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Accounts
payable
|
$
|
9,152
|
|
|
$
|
8,174
|
|
|
Accrued expenses and
other current liabilities
|
50,290
|
|
|
50,662
|
|
|
Deferred
revenue
|
72,115
|
|
|
55,015
|
|
|
Operating lease
liability
|
6,015
|
|
|
—
|
|
|
|
Total current
liabilities
|
137,572
|
|
|
113,851
|
|
|
|
|
|
|
|
|
|
|
Deferred
revenue
|
1,064
|
|
|
222
|
|
|
Convertible senior
note, net
|
176,392
|
|
|
—
|
|
|
Other
liabilities
|
217
|
|
|
4,205
|
|
|
Operating lease
liability, net of current portion
|
12,323
|
|
|
—
|
|
|
Deferred tax
liability
|
1,299
|
|
|
1,096
|
|
|
|
Total
liabilities
|
328,867
|
|
|
119,374
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
Total stockholders'
equity
|
163,062
|
|
|
170,729
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
491,929
|
|
|
$
|
290,103
|
|
Investor contact:
Matthew Kempler
212-609-4214
mkempler@liveperson.com
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SOURCE LivePerson, Inc.