Third quarter total revenue of $30.5 million,
up 20.2% year-over-year
Third quarter contract revenue of $23.1
million, up 26.3% 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 third quarter ended
September 30, 2021.
“We executed incredibly well in Q3, highlighted by record
revenue of $30.5 million, and contract revenue of $23.1 million,
both of which exceeded the high end of our guidance range.
Additionally, we achieved record bookings in the quarter which puts
us on track for our strongest bookings year in company history,”
said Louis Summe, CEO and Co-Founder of LiveVox. “We are also
thrilled to announce our largest ever new logo deal with ARR1 of
$3.3 million, and we are seeing both new and existing customers opt
for an increasing number of our products. I am incredibly
optimistic about both the fundamentals of our business, and the
secular tailwinds driving momentum into our full enterprise,
blended omnichannel platform.”
Third Quarter 2021 Financial Highlights
- Revenue2: Total revenue for the third quarter of 2021
was $30.5 million, up 20.2% compared to $25.4 million in the third
quarter of 2020.
- Contract Revenue: Contract revenue was $23.1 million, up
26.3% compared to $18.2 million for the third quarter of 2020.
- Gross Profit: Gross profit was $17.0 million, up 8.4%
compared to $15.7 million for the third quarter of 2020.
- Non-GAAP Gross Profit3 and Non-GAAP Gross Margin3:
Non-GAAP gross profit was $18.1 million, up 8.5% compared to $16.7
million for the third quarter of 2020; Non-GAAP gross margin was
59.5% 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 65.9% in the third quarter of 2020.
- Net loss: Net loss was $11.3 million for the third
quarter of 2021, compared to net loss of $0.3 million for the third
quarter of 2020.
- Adjusted EBITDA3: Adjusted EBITDA loss was $6.3 million
for the third quarter of 2021, compared to Adjusted EBITDA of $2.7
million for the third quarter of 2020.
_____________________________ 1 ARR is defined as the annualized
recurring revenue of an active subscription contract. 2 Total
revenue is comprised of recurring subscription revenue and
implementation 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). 3 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.
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 fourth 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 fourth quarter and full year 2021 as follows:
- Fourth Quarter 2021 Guidance:
- Total revenue is expected to be in the range of $31.2 to $32.2
million, representing growth of 11% to 15% year-over-year.
- Contract revenue is expected to be in the range of $23.9 to
$24.4 million, representing growth of 19% to 22%
year-over-year.
- Excess usage revenue is expected to be in the range of $7.3 to
$7.8 million, representing a decrease of 4% to 9% year-over-year,
assuming that the usage multiplier (total revenue divided by
contract revenue) remains at current pandemic-impacted levels for
the fourth quarter.
- Full Year 2021 Guidance:
- Total revenue is now expected to be in the range of $118.6 to
$119.6 million, representing growth of 16% to 17%
year-over-year.
- Contract revenue is now expected to be in the range of $90.1 to
$90.6 million, representing growth of 25% to 26%
year-over-year.
- Excess usage revenue is expected to be in the range of $28.5 to
$29.0 million, representing a decline of 6% to 7% 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.
- Preliminary Full Year 2022 Guidance:
- For the full year 2022, while we are still not providing formal
guidance, we do reaffirm a minimum year-over-year growth rate in
Contract Revenue of 25% based on our recent bookings momentum.
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 third
quarter ended September 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 November 25, 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
10016535.
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: http://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
include, but are not limited to, statements relating to expected
bookings, expected revenue and annual recurring revenue from
contracts, growth expectations, and future financial results,
including guidance. These 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 with Crescent Acquisition
Corp.; costs related to the recently completed business combination
with Crescent Acquisition Corp.; 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
(http://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 (Unaudited) (In thousands, except
per share data)
For the three months ended
September 30,
For the nine months ended
September 30,
2021
2020
2021
2020
Revenue
$
30,507
$
25,390
$
87,365
$
74,414
Cost of revenue
13,479
9,682
46,274
29,267
Gross profit
17,028
15,708
41,091
45,147
Operating expenses
Sales and marketing expense
12,227
6,552
48,820
21,653
General and administrative expense
7,642
3,246
37,159
9,705
Research and development expense
8,130
5,157
44,479
14,660
Total operating expenses
27,999
14,955
130,458
46,018
Income (loss) from operations
(10,971
)
753
(89,367
)
(871
)
Interest expense, net
1,033
973
2,918
2,926
Change in the fair value of warrant
liability
(300
)
—
(675
)
—
Other expense (income), net
(460
)
(6
)
(435
)
76
Total other expense, net
273
967
1,808
3,002
Pre-tax loss
(11,244
)
(214
)
(91,175
)
(3,873
)
Provision for income taxes
100
116
187
529
Net loss
$
(11,344
)
$
(330
)
$
(91,362
)
$
(4,402
)
Comprehensive loss
Net loss
(11,344
)
(330
)
(91,362
)
(4,402
)
Other comprehensive income (loss)
(41
)
15
(27
)
(99
)
Comprehensive loss
$
(11,385
)
$
(315
)
$
(91,389
)
$
(4,501
)
Net loss per share—basic and diluted
$
(0.12
)
$
—
$
(1.20
)
$
(0.07
)
Weighted average shares outstanding—basic
and diluted
91,444
66,637
76,122
66,637
Consolidated Balance Sheets
(In thousands, except per share data)
As of
September 30, 2021
December 31, 2020
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
104,980
$
18,098
Restricted cash, current
—
1,368
Accounts receivable, net
17,052
13,817
Deferred sales commissions, current
2,490
1,521
Prepaid expenses and other current
assets
6,948
2,880
Total Current Assets
131,470
37,684
Property and equipment, net
3,286
3,505
Goodwill
47,481
47,481
Intangible assets, net
21,310
18,688
Operating lease right-of-use assets
5,897
3,858
Deposits and other
687
2,334
Deferred sales commissions, net of
current
6,219
3,208
Deferred tax asset
79
—
Restricted cash, net of current
100
100
Total Assets
$
216,529
$
116,858
LIABILITIES & STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
4,275
$
3,521
Accrued expenses
12,949
11,667
Deferred revenue, current
1,074
1,140
Term loan, current
561
1,440
Operating lease liabilities, current
1,894
1,353
Finance lease liabilities, current
80
392
Total current liabilities
20,833
19,513
Long term liabilities:
Line of credit
—
4,672
Deferred revenue, net of current
249
237
Term loan, net of current
54,572
54,604
Operating lease liabilities, net of
current
4,547
3,088
Finance lease liabilities, net of
current
18
38
Deferred tax liability, net
—
193
Warrant liability
1,333
—
Other long-term liabilities
370
372
Total liabilities
81,922
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
September 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 September 30, 2021 and December 31,
2020; 90,547 and 66,637 shares issued and outstanding as of
September 30, 2021 and December 31, 2020
9
7
Additional paid-in capital
251,021
59,168
Accumulated other comprehensive loss
(233
)
(206
)
Accumulated deficit
(116,190
)
(24,828
)
Total stockholders’ equity
134,607
34,141
Total liabilities & stockholders’
equity
$
216,529
$
116,858
Consolidated Statements of
Cash Flows (Unaudited) (Dollars in thousands)
For the nine months ended
September 30,
2021
2020
Operating activities:
Net loss
$
(91,362
)
$
(4,402
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
1,475
1,377
Amortization of identified intangible
assets
3,358
3,142
Amortization of deferred loan origination
costs
102
107
Amortization of deferred sales
commissions
1,368
887
Non-cash lease expense
1,207
898
Stock compensation expense
1,458
470
Equity incentive bonus
32,863
—
Bad debt expense
110
624
Loss on disposition of asset
—
10
Deferred income tax benefit
(272
)
(382
)
Change in the fair value of the warrant
liability
(675
)
—
Offering cost associated with Warrants
recorded as liabilities
41
—
Changes in assets and
liabilities
Accounts receivable
(2,648
)
1,892
Other assets
(2,514
)
(405
)
Deferred sales commissions
(5,347
)
(1,985
)
Accounts payable
1,725
460
Accrued expenses
1,225
1,696
Deferred revenue
(54
)
145
Operating lease liabilities
(1,202
)
(904
)
Other long-term liabilities
(2
)
(5
)
Net cash provided by (used in)
operating activities
(59,144
)
3,625
Investing activities:
Purchases of property and equipment
(1,210
)
(434
)
Acquisition of businesses, net of cash
acquired
—
(20
)
Asset acquisition
1,326
—
Net cash provided by (used in)
investing activities
116
(454
)
Financing activities:
Proceeds from Merger and PIPE financing,
net of cash paid
157,383
—
Repayment on loan payable
(1,676
)
(864
)
Repayment of drawdown on line of
credit
(4,672
)
4,672
Debt issuance costs
(153
)
—
Payment of contingent consideration
liability
(5,969
)
—
Repayments on finance lease
obligations
(331
)
(582
)
Net cash provided by financing
activities
144,582
3,226
Effect of foreign currency translation
(40
)
(102
)
Net increase in cash, cash equivalents
and restricted cash
85,514
6,295
Cash, cash equivalents, and restricted
cash beginning of period
19,566
16,513
Cash, cash equivalents, and restricted
cash end of period
$
105,080
$
22,808
For the nine months ended
September 30,
2021
2020
Supplemental disclosure of cash flow
information:
Interest paid
$
2,828
$
2,836
Income taxes paid
237
181
Supplemental schedule of noncash
investing activities:
Additional right-of-use assets
$
3,246
$
997
Reconciliation of cash, cash equivalents and restricted cash to
the consolidated balance sheets (dollars in thousands):
As of September 30,
2021
2020
Cash and cash equivalents
$
104,980
$
21,348
Restricted cash, current
—
1,360
Restricted cash, net of current
100
100
Total cash, cash equivalents and
restricted cash
$
105,080
$
22,808
Non-GAAP Financial Measures
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.
Adjusted EBITDA
We monitor Adjusted EBITDA, a non-generally accepted accounting
principle (“Non-GAAP”) financial measure, to analyze our financial
results and believe that it is useful to investors, as a supplement
to U.S. GAAP measures, in evaluating our ongoing operational
performance and enhancing an overall understanding of our past
financial performance. We believe that Adjusted EBITDA helps
illustrate underlying trends in our business that could otherwise
be masked by the effect of the income or expenses that we exclude
from Adjusted EBITDA. Furthermore, we use this measure to establish
budgets and operational goals for managing our business and
evaluating our performance. We also believe that Adjusted EBITDA
provides an additional tool for investors to use in comparing our
recurring core business operating results over multiple periods
with other companies in our industry. Adjusted EBITDA should not be
considered in isolation from, or as a substitute for, financial
information prepared in accordance with U.S. GAAP, and our
calculation of Adjusted EBITDA may differ from that of other
companies in our industry. We compensate for the inherent
limitations associated with using Adjusted EBITDA through
disclosure of these limitations, presentation of our consolidated
financial statements in accordance with U.S. GAAP and
reconciliation of Adjusted EBITDA to the most directly comparable
U.S. GAAP measure, net income (loss). We calculate Adjusted EBITDA
as net income (loss) before (i) depreciation and amortization, (ii)
stock-based compensation, (iii) interest expense, net and other
expense, net, (iv) provision (benefit from) for income taxes, and
(v) other items that do not directly affect what we consider to be
our core operating performance.
Non-GAAP Gross Profit and Non-GAAP Gross Margin
Percentage
U.S. GAAP defines gross profit as revenue less cost of revenue.
Cost of revenue includes all expenses associated with our various
product offerings. We define Non-GAAP gross profit as gross profit
after adding back the following items: (i) depreciation and
amortization; (ii) long-term equity incentive bonus and stock-based
compensation expense; and (iii) other non-recurring expenses. We
add back depreciation and amortization, long-term equity incentive
bonus and stock-based compensation expense and other non-recurring
expenses because they are one-time or non-cash items. We eliminate
the impact of these one-time or non-cash items because we do not
consider them indicative of our core operating performance. Their
exclusion facilitates comparisons of our operating performance on a
period-to-period basis. Therefore, we believe showing Non-GAAP
gross margin to remove the impact of these one-time or non-cash
expenses is helpful to investors in assessing our gross profit and
gross margin performance in a way that is similar to how management
assesses our performance. We calculate Non-GAAP gross margin
percentage by dividing Non-GAAP gross profit by revenue, expressed
as a percentage of revenue.
Management uses Non-GAAP gross profit and Non-GAAP gross margin
percentage to evaluate operating performance and to determine
resource allocation among our various product offerings. We believe
Non-GAAP gross profit and Non-GAAP gross margin percentage 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. Non-GAAP gross profit and
Non-GAAP gross margin percentage may not be comparable to similarly
titled measures of other companies because other companies may not
calculate Non-GAAP gross profit and Non-GAAP gross margin
percentage or similarly titled measures in the same manner as we
do.
Please see tables below for a reconciliation of non-GAAP
measures to the most directly comparable GAAP measures for the
periods presented.
GAAP Net Income (Loss) to
Adjusted EBITDA (Unaudited) (Dollars in thousands)
Three Months Ended
September 30, (unaudited)
Nine Months Ended September
30, (unaudited)
2021
2020
2021
2020
Net loss
$
(11,344
)
$
(330
)
$
(91,362
)
$
(4,402
)
Non-GAAP adjustments:
Depreciation and amortization
1,628
1,502
4,834
4,519
Long-term equity incentive bonus and
stock-based compensation expense
2,069
252
72,035
749
Interest expense, net
1,033
973
2,918
2,926
Change in the fair value of warrant
liability
(300
)
—
(675
)
—
Other expense (income), net
(460
)
(6
)
(435
)
76
Acquisition and financing related fees and
expenses
480
—
1,521
25
Transaction-related costs
531
—
1,834
—
Golden Gate Capital management fee
expenses
(11
)
171
135
602
Provision for income taxes
100
116
187
529
Adjusted EBITDA
$
(6,274
)
$
2,678
$
(9,008
)
$
5,024
GAAP Gross Profit to Adjusted
Gross Profit (Unaudited) (Dollars in thousands)
Three Months Ended
September 30, (unaudited)
Nine Months Ended September
30, (unaudited)
2021
2020
2021
2020
Gross profit
$
17,028
$
15,708
$
41,091
$
45,147
Depreciation and amortization
927
944
2,785
2,864
Long-term equity incentive bonus and
stock-based compensation expense
190
68
9,877
100
Non-GAAP gross profit
$
18,145
$
16,720
$
53,753
$
48,111
Non-GAAP gross margin %
59.5
%
65.9
%
61.5
%
64.7
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211111006070/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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