Second quarter total revenue of $28.9 million,
up 28.5% year-over-year
Second quarter contract revenue of $22.4
million, up 34.4% year-over-year
LiveVox Holdings, Inc. (“LiveVox” or the “Company”) (NASDAQ:
LVOX), a leading global enterprise cloud communications company,
today announced financial results for the second quarter ended June
30, 2021.
“We are very pleased by our record revenue results in the
quarter, particularly our bookings and contract revenue strength,
which lay the foundation for strong future revenue performance,”
said Louis Summe, CEO and Co-Founder of LiveVox. “We are also
optimistic about the rapid acceleration of our channel partner
opportunity pipeline and sales and believe this will be an
important piece of our business going forward. We have expanded our
internal sales and marketing investment by more than 35% over the
same period last year and as we continue to invest heavily in our
industry leading platform, we have great confidence in our business
and long-term prospects.”
Second Quarter 2021 Financial Highlights
- Revenue1: Total revenue for the second quarter of 2021
was $28.9 million, up 28.5% compared to $22.5 million in the second
quarter of 2020.
- Contract Revenue: Contract revenue was $22.4 million, up
34.4% compared to $16.6 million for the second quarter of
2020.
- Adjusted Gross Margin: Adjusted gross margin was 61.7%
after adjusting for stock-based compensation, depreciation and
amortization and long-term incentive compensation triggered by the
closing of the merger with Crescent Acquisition Corp. during the
quarter, compared to 61.6% in the second quarter of 2020.
- Adjusted EBITDA: Adjusted EBITDA loss was $(2.6) million
for the second quarter of 2021, compared to a loss of $(0.3)
million for the second quarter of 2020.
Additional information regarding the non-GAAP financial measures
discussed in this release, including an explanation of these
measures and how each is calculated, is included below under the
heading “Non-GAAP Financial Measures.” A reconciliation of GAAP to
non-GAAP financial measures has also been provided in the financial
tables included below. Management uses non-GAAP financial measures
to evaluate operating performance. We believe non-GAAP financial
measures provide useful information to investors and others to
understand and evaluate our operating results in the same manner as
our management and board of directors and allows for better
comparison of financial results among our competitors.
_____________________________ 1 Total revenue is comprised of
recurring subscription revenue and non-recurring professional
services revenue. Subscription revenue is comprised of contract
revenue (revenue derived from usage committed under contract) and
excess usage revenue (revenue derived from usage amounts higher
than the minimum usage under contract).
Business Outlook
In determining the financial guidance to provide to investors,
the Company considered its recent business trends and financial
results, current growth plans, strategic initiatives, global
economic outlook and the continued uncertainty of COVID-19 and its
potential impact on the Company’s results. Since the beginning of
the COVID-19 pandemic, excess usage revenue has been negatively
impacted by the effect of government stimulus provided to consumers
in response to the COVID-19 pandemic, including, without
limitation, direct stimulus payments to consumers, enhanced and
extended unemployment benefits, rent abatements and mortgage and
student loan forbearances. These programs have reduced consumer
credit origination and servicing activity for a significant number
of the Company’s customers. In determining the financial guidance
for the third quarter and the full year 2021 set forth below, the
Company has assumed that the negative impact to excess usage
revenue from such stimulus will remain the same as current levels
for the remainder of the year. As such, LiveVox is providing
guidance for its third quarter and full year 2021 as follows:
- Third Quarter 2021 Guidance:
- Total revenue is expected to be in the range of $29.0 to $30.0
million, representing growth of 14% to 18% year-over-year.
- Contract revenue is expected to be in the range of $22.5 to
$23.0 million, representing growth of 23% to 26%
year-over-year.
- Excess usage revenue is expected to be in the range of $6.5 to
$7.0 million, representing a decrease of 2% to 9% year-over-year,
assuming that the usage multiplier (total revenue divided by
contract revenue) remains at current pandemic-impacted levels for
the third quarter.
- Full Year 2021 Guidance:
- Total revenue is now expected to be in the range of $117.0 to
$119.0 million, representing growth of 14% to 16%
year-over-year.
- Contract revenue is now expected to be in the range of $89.5 to
$90.5 million, representing growth of 24% to 26%
year-over-year.
- Excess usage revenue is expected to be in the range of $27.5 to
$28.5 million, representing a decline of 7% to 10% year-over-year,
assuming that the usage multiplier (total revenue divided by
contract revenue) remains at current pandemic-impacted levels for
the remainder of the year.
- Full Year 2022 Guidance:
- Contract revenue will grow a minimum of 25% over 2021 contract
revenue.
LiveVox has not reconciled its third quarter and full-year
guidance related to non-GAAP net earnings or loss to GAAP net
earnings or loss and non-GAAP earnings or loss per share to GAAP
earnings or loss, because stock-based compensation cannot be
reasonably calculated or predicted at this time. Accordingly, a
reconciliation is not available without unreasonable effort. The
impact of these adjusting items could be significant to the
Company’s GAAP results.
Quarterly Conference Call
LiveVox will host a conference call today at 4:30 p.m. Eastern
Time to review the Company’s financial results for the Second
quarter ended June 30, 2021. To access this call, dial 855-327-6837
for the U.S. or Canada, or 631-891-4304 for callers outside the
U.S. or Canada. A live webcast of the conference call will be
accessible from the Investors section of LiveVox’s website, and a
recording will be archived. An audio replay of this conference call
will also be available through August 26, 2021, by dialing
844-512-2921 for the U.S. or Canada (or 412-317-6671 for callers
outside the U.S. or Canada) and entering passcode 10015697.
About LiveVox Inc.
LiveVox (NASDAQ: LVOX) is a next-generation contact center
platform that powers more than 14 billion interactions a year. By
seamlessly integrating omnichannel communications, CRM, AI, and WFO
capabilities, the Company’s technology delivers an exceptional
agent and customer experience while reducing compliance risk. With
20 years of cloud experience and expertise, LiveVox’s CCaaS 2.0
platform is at the forefront of cloud contact center innovation.
The Company has more than 500 global employees and is headquartered
in San Francisco, with offices in Atlanta, Columbus, Denver, New
York City, St. Louis, Medellin (Colombia) and Bangalore (India).
For more information visit: www.livevox.com
Forward-Looking Statements
Certain statements made in this release are "forward looking
statements" within the meaning of the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act of 1995.
When used in this press release, the words "estimates,"
"projected," "expects," "anticipates," "forecasts," "plans,"
"intends," "believes," "seeks," "may," "will," "would," "should,"
"future," "propose," "target," "goal," "objective," "outlook" and
variations of these words or similar expressions (or the negative
versions of such words or expressions) are intended to identify
forward-looking statements. These forward-looking statements are
not guarantees of future performance, conditions or results, and
involve a number of known and unknown risks, uncertainties,
assumptions and other important factors, many of which are outside
LiveVox’s control, that could cause actual results or outcomes to
differ materially from those discussed in the forward-looking
statements. Any such forward-looking statements are made pursuant
to the safe harbor provisions available under applicable securities
laws and speak only as of the date of this presentation. LiveVox
assumes no obligation to update or revise any such forward-looking
statements except as required by law.
Important factors, among others, that may affect actual results
or outcomes include the inability to recognize the anticipated
benefits of the Business Combination; costs related to the recently
completed business combination; LiveVox’s ability to manage growth;
LiveVox’s ability to execute its business plan and meet its
projections; potential litigation involving LiveVox; changes in
applicable laws or regulations; the possibility that LiveVox may be
adversely affected by other economic, business, and competitive
factors; the impact of the continuing COVID-19 pandemic on
LiveVox’s business as well as those factors described in the "Risk
Factors" section of our filings with the Securities and Exchange
Commission ("SEC").
The information contained in this press release is summary
information that is intended to be considered in the context of
LiveVox’s SEC filings and other public announcements that LiveVox
may make, by press release or otherwise, from time to time. LiveVox
also uses its website to distribute company information, including
performance information, and such information may be deemed
material. Accordingly, investors should monitor LiveVox’s website
(www.livevox.com). LiveVox undertakes no duty or obligation to
publicly update or revise the forward-looking statements or other
information contained in this presentation. These materials contain
information about LiveVox and its affiliates and certain of their
respective personnel and affiliates, information about their
respective historical performance and general information about the
market. You should not view information related to the past
performance of LiveVox or information about the market, as
indicative of future results, the achievement of which cannot be
assured.
Consolidated Statements of
Operations and Comprehensive Loss
For the Three and Six Months
Ended June 30, 2021 and 2020
(Unaudited) (In thousands,
except per share data)
For the three months ended
June 30,
For the six months ended June
30,
2021
2020
2021
2020
Revenue
$
28,913
$
22,505
$
56,858
$
49,024
Cost of revenue
21,615
9,613
32,795
19,585
Gross profit
7,298
12,892
24,063
29,439
Operating expenses
Sales and marketing expense
27,685
6,982
36,593
15,101
General and administrative expense
24,637
3,393
29,517
6,459
Research and development expense
30,169
4,765
36,349
9,503
Total operating expenses
82,491
15,140
102,459
31,063
Loss from operations
(75,193)
(2,248)
(78,396)
(1,624)
Interest expense, net
941
969
1,885
1,953
Change in the fair value of warrant
liability
(375)
—
(375)
—
Other expense (income), net
32
(50)
25
82
Total other expense, net
598
919
1,535
2,035
Pre-tax loss
(75,791)
(3,167)
(79,931)
(3,659)
Provision for income taxes
52
352
87
413
Net loss
$
(75,843)
$
(3,519)
$
(80,018)
$
(4,072)
Comprehensive loss
Net loss
(75,843)
(3,519)
(80,018)
(4,072)
Other comprehensive income (loss)
(25)
(9)
14
(114)
Comprehensive loss
$
(75,868)
$
(3,528)
$
(80,004)
$
(4,186)
Net loss per share—basic and diluted
$
(1.08)
$
(0.05)
$
(1.17)
$
(0.06)
Weighted average shares outstanding—basic
and diluted
69,945
66,637
68,291
66,637
Consolidated Balance
Sheets
As of June 30, 2021 and
December 31, 2020
(In thousands, except per
share data)
As of
June 30, 2021
December 31, 2020
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
161,423
$
18,098
Restricted cash, current
—
1,368
Accounts receivable, net
15,850
13,817
Deferred sales commissions, current
1,797
1,521
Prepaid expenses and other current
assets
5,390
2,880
Total Current Assets
184,460
37,684
Property and equipment, net
3,205
3,505
Goodwill
47,481
47,481
Intangible assets, net
22,425
18,688
Operating lease right-of-use assets
6,304
3,858
Deposits and other
538
2,334
Deferred sales commissions, net of
current
3,709
3,208
Deferred tax asset
37
—
Restricted cash, net of current
100
100
Total Assets
$
268,259
$
116,858
LIABILITIES & STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
3,912
$
3,521
Accrued expenses
53,721
11,667
Deferred revenue, current
1,178
1,140
Term loan, current
2,160
1,440
Operating lease liabilities, current
1,842
1,353
Finance lease liabilities, current
163
392
Total current liabilities
62,976
19,513
Long term liabilities:
Line of credit
—
4,672
Deferred revenue, net of current
166
237
Term loan, net of current
53,236
54,604
Operating lease liabilities, net of
current
5,038
3,088
Finance lease liabilities, net of
current
25
38
Deferred tax liability, net
—
193
Warrant liability
1,633
—
Other long-term liabilities
371
372
Total liabilities
123,445
82,717
Commitments and contingencies (Note 10 and
22)
Stockholders’ equity:
Preferred stock, $0.0001 par value per
share; 25,000 shares authorized, none issued and outstanding as of
June 30, 2021; none authorized, issued and outstanding as of
December 31, 2020
—
—
Common stock, $0.0001 par value per share;
500,000 shares authorized as of June 30, 2021 and December 31,
2020; 87,085 and 66,637 shares issued and outstanding as of June
30, 2021 and December 31, 2020
9
7
Additional paid-in capital
249,843
59,168
Accumulated other comprehensive loss
(192)
(206)
Accumulated deficit
(104,846)
(24,828)
Total stockholders’ equity
144,814
34,141
Total liabilities & stockholders’
equity
$
268,259
$
116,858
Consolidated Statements of
Cash Flows
For the Six Months Ended June
30, 2021 and 2020
(Unaudited) (Dollars in
thousands)
For the six months ended June
30,
2021
2020
Operating activities:
Net loss
$
(80,018)
$
(4,072)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
962
923
Amortization of identified intangible
assets
2,244
2,095
Amortization of deferred loan origination
costs
72
71
Amortization of deferred sales
commissions
832
552
Non-cash lease expense
801
679
Stock compensation expense
278
313
Equity incentive bonus
68,674
—
Bad debt expense
22
984
Deferred income tax benefit
(230)
(310)
Change in the fair value of the warrant
liability
(375)
—
Offering cost associated with Warrants
recorded as liabilities
41
—
Changes in assets and
liabilities
Accounts receivable
(1,358)
2,862
Other assets
(807)
(460)
Deferred sales commissions
(1,609)
(843)
Accounts payable
1,362
(743)
Accrued expenses
218
611
Deferred revenue
(33)
(5)
Operating lease liabilities
(724)
(623)
Other long-term liabilities
(1)
(12)
Net cash provided by (used in)
operating activities
(9,649)
2,022
Investing activities:
Purchases of property and equipment
(604)
(259)
Acquisition of businesses, net of cash
acquired
—
(20)
Asset acquisition
1,326
—
Net cash provided by (used in)
investing activities
722
(279)
Financing activities:
Proceeds from Merger and PIPE financing,
net of cash paid
157,383
—
Repayment on loan payable
(1,536)
(576)
Repayment of drawdown on line of
credit
(4,672)
4,672
Repayments on finance lease
obligations
(242)
(393)
Net cash provided by financing
activities
150,933
3,703
Effect of foreign currency translation
(49)
(120)
Net increase in cash, cash equivalents
and restricted cash
141,957
5,326
Cash, cash equivalents, and restricted
cash beginning of period
19,566
16,513
Cash, cash equivalents, and restricted
cash end of period
$
161,523
$
21,839
For the six months ended June
30,
2021
2020
Supplemental disclosure of cash flow
information:
Interest paid
$
1,805
$
1,896
Income taxes paid
175
73
Supplemental schedule of noncash
investing activities:
Additional right-of-use assets
$
3,246
$
—
Contingent consideration in asset
acquisition
7,000
—
Reconciliation of cash, cash equivalents and restricted cash to
the consolidated balance sheets (dollars in thousands):
As of June 30,
2021
2020
Cash and cash equivalents
$
161,423
$
20,388
Restricted cash, current
—
1,343
Restricted cash, net of current
100
108
Total cash, cash equivalents and
restricted cash
$
161,523
$
21,839
GAAP Net Income to Adjusted
EBITDA
(In $ Thousands)
Three Months Ended June
30, (unaudited)
Six Months Ended June 30,
(unaudited)
2021
2020
2021
2020
Net loss
$
(75,843)
$
(3,519)
$
(80,018)
$
(4,072)
Non-GAAP adjustments:
Depreciation and amortization
1,602
1,501
3,205
3,017
Long-term equity incentive bonus and
stock- based compensation expense
69,423
157
69,965
497
Interest expense, net
941
969
1,885
1,953
Change in the fair value of warrant
liability
(375)
—
(375)
—
Other expense (income), net
32
(50)
25
82
Acquisition and financing related fees and
expenses
1,041
—
1,041
25
Transaction-related costs
570
—
1,303
—
Golden Gate Capital management fee
expenses
(25)
274
146
431
Provision for income taxes
51
352
86
413
Adjusted EBITDA
$
(2,583)
$
(316)
$
(2,737)
$
2,346
GAAP Gross Profit to Adjusted
Gross Profit
(In $ thousands)
Three Months Ended June
30, (unaudited)
Six Months Ended June 30,
(unaudited)
2021
2020
2021
2020
Gross profit
$
7,298
$
12,892
$
24,063
$
29,439
Depreciation and amortization
911
951
1,858
1,920
Long-term equity incentive bonus and
stock- based compensation expense
9,633
16
9,687
32
Non-GAAP gross profit
$
17,842
$
13,859
$
35,608
$
31,391
Non-GAAP gross margin %
61.7
%
61.6
%
62.6
%
64.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210812005827/en/
Investor Contacts: Alexis Waadt awaadt@livevox.com Ryan Gardella
livevoxIR@icrinc.com Press contacts: Nick Bandy nbandy@livevox.com
Katie Creaser livevoxPR@icrinc.com
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