Q4 total revenue year-over-year growth of 13.3%
to $31.9 million; full year total revenue growth of 16.3% to $119.2
million
Q4 contract revenue year-over-year growth of
21.3% to $24.3 million; full year contract revenue growth of 25.9%
to $90.5 million
LiveVox Holdings, Inc. (“LiveVox” or the “Company”) (NASDAQ:
LVOX), a leading global enterprise cloud communications company,
today announced financial results for the fourth quarter and full
year ended December 31, 2021.
“We achieved another quarter of record total revenue at $31.9
million and record full year total revenue of $119.2 million, both
of which were at the high end of our guidance range. I am
incredibly proud of how this team performed to close out our first
year as a public company and thrilled that we welcomed 166 new
members to our team in the same period,” said Louis Summe, CEO.
“2021 was a year of significant investments, and we are already
starting to see these bearing positive results with bookings up 31%
year-over-year. A significant milestone was moving all of our
customers to the public cloud, which substantially reduces our
technical debt and positions us for increased R&D efficiency
and reliability. We also started our channel efforts from scratch,
going from zero channel partners to six in the year, which we
believe will generate a solid pipeline of new bookings going
forward. I believe our blended inbound and outbound omnichannel
approach, on a secure and reliable public cloud platform, will
generate a significant competitive advantage over our peers.”
Fourth Quarter 2021 Financial Highlights
- Revenue1: Total revenue was $31.9 million for the fourth
quarter of 2021, up 13.3% compared to $28.1 million for the fourth
quarter of 2020.
- Contract Revenue: Contract revenue was $24.3 million for
the fourth quarter of 2021, up 21.3% compared to $20.1 million for
the fourth quarter of 2020.
- Gross Profit: Gross profit was $17.5 million for the
fourth quarter of 2021, down 2.3% compared to $17.9 million for the
fourth quarter of 2020.
- Non-GAAP Gross Profit* and Non-GAAP Gross Margin*:
Non-GAAP gross profit was $18.8 million for the fourth quarter of
2021, down 0.8% compared to $19.0 million for the fourth quarter of
2020; Non-GAAP gross margin was 59.0% for the fourth quarter of
2021 after adjusting for stock-based compensation associated with
restricted stock units and performance-based restricted stock units
granted under the 2021 Equity Incentive Plan and depreciation and
amortization, compared to 67.4% for the fourth quarter of
2020.
- Net loss: Net loss was $11.8 million for the fourth
quarter of 2021, compared to net loss of $0.2 million for the
fourth quarter of 2020.
- Adjusted EBITDA*: Adjusted EBITDA loss was $7.0 million
for the fourth quarter of 2021, compared to Adjusted EBITDA income
of $3.5 million for the fourth quarter of 2020.
Full Year 2021 Financial Highlights
- Revenue: Total revenue was $119.2 million for the full
year 2021, up 16.3% compared to $102.5 million for the full year
2020.
- Contract Revenue: Contract revenue was $90.5 million for
the full year 2021, up 25.9% compared to $71.9 million for the full
year 2020.
- Gross Profit: Gross profit was $58.6 million for the
full year 2021, down 7.1% compared to $63.1 million for the full
year 2020.
- Non-GAAP Gross Profit* and Non-GAAP Gross Margin*:
Non-GAAP gross profit was $72.6 million for the full year 2021, up
8.2% compared to $67.1 million for the full year 2020; Non-GAAP
gross margin was 60.9% for the full year 2021 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 year, compared to
65.4% for the full year 2020.
- Net loss: Net loss was $103.2 million for the full year
2021, compared to net loss of $4.6 million for the full year
2020.
- Adjusted EBITDA*: Adjusted EBITDA loss was $16.0 million
for the full year 2021, compared to Adjusted EBITDA income of $8.5
million for the full year 2020.
_______________________________ 1 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).
* 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. LiveVox emphasizes that
the guidance is subject to various important cautionary factors
referenced in the section entitled "Forward-Looking Statements"
below.
As such, LiveVox is providing guidance for its first quarter and
full year 2022 as follows:
- First Quarter 2022 Guidance:
- Total revenue is expected to be in the range of $31.1 million
to $32.1 million, representing growth of 11% to 15%
year-over-year.
- Contract revenue is expected to be in the range of $24.4
million to $24.9 million, representing growth of 18% to 20%
year-over-year.
- Excess usage revenue is expected to be in the range of $6.7
million to $7.2 million, representing a decrease of 7% to flat
year-over-year.
- Adjusted EBITDA loss is expected to be in the range of $8.7
million to $7.7 million.
- Full Year 2022 Guidance:
- Total revenue is now expected to be in the range of $140
million to $142 million, representing growth of 17% to 19%
year-over-year.
- Contract revenue is now expected to be in the range of $109
million to $111 million, representing growth of 20% to 23%
year-over-year.
- Excess usage revenue is expected to be in the range of $29
million to $34 million, representing a growth of 1% to 18%
year-over-year.
- Adjusted EBITDA loss is expected to be in the range of $24
million to $26 million.
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 full year
and fourth quarter ended December 31, 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 March
24, 2022, 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 10017859.
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 approximately 650 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
(In thousands, except per
share data)
For the three months ended
December 31,
For the years ended December
31,
2021
2020
2021
2020
2019
(Unaudited)
(Unaudited)
Revenue
$
31,866
$
28,131
$
119,231
$
102,545
$
92,755
Cost of revenue
14,365
10,209
60,639
39,476
38,253
Gross profit
17,501
17,922
58,592
63,069
54,502
Operating expenses
Sales and marketing expense
13,513
7,369
62,333
29,023
24,423
General and administrative expense
7,535
4,586
44,694
14,291
16,938
Research and development expense
8,083
5,500
52,562
20,160
16,607
Total operating expenses
29,131
17,455
159,589
63,474
57,968
Loss from operations
(11,630
)
467
(100,997
)
(405
)
(3,466
)
Interest expense, net
814
964
3,732
3,890
3,320
Change in the fair value of warrant
liability
(567
)
—
(1,242
)
—
—
Other expense (income), net
(26
)
78
(459
)
154
(22
)
Total other expense, net
221
1,042
2,031
4,044
3,298
Pre-tax loss
(11,851
)
(575
)
(103,028
)
(4,449
)
(6,764
)
Provision for income taxes
(19
)
(332
)
166
196
149
Net loss
$
(11,832
)
$
(243
)
$
(103,194
)
$
(4,645
)
$
(6,913
)
Comprehensive loss
Net loss
(11,832
)
(243
)
(103,194
)
(4,645
)
(6,913
)
Other comprehensive (loss) income, net of
tax
Foreign currency translation
adjustment
(67
)
111
(94
)
12
(48
)
Unrealized loss on marketable
securities
(177
)
—
(177
)
—
—
Total other comprehensive (loss) income,
net of tax
(244
)
111
(271
)
12
(48
)
Comprehensive loss
$
(12,076
)
$
(132
)
$
(103,465
)
$
(4,633
)
$
(6,961
)
Net loss per share
Net loss per share—basic and diluted
$
(0.13
)
$
—
$
(1.29
)
$
(0.07
)
$
(0.10
)
Weighted average shares outstanding—basic
and diluted
91,466
66,637
79,964
66,637
66,637
Consolidated Balance
Sheets
(In thousands, except per
share data)
As of
December 31, 2021
December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents
$
47,217
$
18,098
Restricted cash, current
100
1,368
Marketable securities, current
7,226
—
Accounts receivable, net
20,128
13,817
Deferred sales commissions, current
2,691
1,521
Prepaid expenses and other current
assets
6,151
2,880
Total Current Assets
83,513
37,684
Property and equipment, net
3,010
3,505
Goodwill
47,481
47,481
Intangible assets, net
20,195
18,688
Operating lease right-of-use assets
5,483
3,858
Deposits and other
664
2,334
Marketable securities, net of current
42,148
—
Deferred sales commissions, net of
current
6,747
3,208
Restricted cash, net of current
—
100
Total Assets
$
209,241
$
116,858
LIABILITIES & STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
6,490
$
3,521
Accrued expenses
13,855
11,667
Deferred revenue, current
1,307
1,140
Term loan, current
561
1,440
Operating lease liabilities, current
1,946
1,353
Finance lease liabilities, current
26
392
Total current liabilities
24,185
19,513
Long term liabilities:
Line of credit
—
4,672
Deferred revenue, net of current
456
237
Term loan, net of current
54,459
54,604
Operating lease liabilities, net of
current
4,046
3,088
Finance lease liabilities, net of
current
11
38
Deferred tax liability, net
2
193
Warrant liability
767
—
Other long-term liabilities
337
372
Total liabilities
84,263
82,717
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value per
share; 25,000 shares authorized, none issued and outstanding as of
December 31, 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 December 31, 2021 and 2020; 90,697
and 66,637 shares issued and outstanding as of December 31, 2021
and 2020
9
7
Additional paid-in capital
253,468
59,168
Accumulated other comprehensive loss
(477
)
(206
)
Accumulated deficit
(128,022
)
(24,828
)
Total stockholders’ equity
124,978
34,141
Total liabilities & stockholders’
equity
$
209,241
$
116,858
Consolidated Statements of
Cash Flows
(Dollars in thousands)
For the years ended December
31,
2021
2020
2019
Operating activities:
Net loss
$
(103,194
)
$
(4,645
)
$
(6,913
)
Adjustments to reconcile net loss to
net cash provided by (used in) operating activities:
Depreciation and amortization
2,106
1,876
1,559
Amortization of identified intangible
assets
4,473
4,189
3,335
Amortization of deferred loan origination
costs
129
143
154
Amortization of deferred sales
commissions
2,052
1,259
889
Non-cash lease expense
1,622
1,241
—
Stock-based compensation expense
3,905
556
—
Equity incentive bonus
32,626
—
—
Bad debt expense
195
636
340
Loss on disposition of asset
—
54
—
Deferred income tax benefit
(191
)
(127
)
(288
)
Change in the fair value of the warrant
liability
(1,242
)
—
—
Changes in assets and
liabilities
Accounts receivable
(5,810
)
1,934
(4,439
)
Other assets
(3,297
)
(2,296
)
(379
)
Deferred sales commissions
(6,761
)
(2,465
)
(1,599
)
Accounts payable
3,403
1,015
966
Accrued expenses
2,199
(1,666
)
5,510
Deferred revenue
385
579
655
Operating lease liabilities
(1,664
)
(1,281
)
—
Other long-term liabilities
7
68
1,778
Net cash (used in) provided by
operating activities
(69,057
)
1,070
1,568
Investing activities:
Purchases of property and equipment
(1,582
)
(753
)
(1,140
)
Purchases of marketable securities
(50,797
)
—
—
Proceeds from sale of marketable
securities
1,250
—
—
Acquisition of businesses, net of cash
acquired
—
(20
)
(11,018
)
Proceeds from asset acquisition, net of
cash paid
1,326
—
—
Net cash used in investing
activities
(49,803
)
(773
)
(12,158
)
Financing activities:
Proceeds from Merger and PIPE financing,
net of cash paid
159,691
—
—
Proceeds from borrowing on term loans
—
—
13,900
Repayment on loan payable
(1,816
)
(1,152
)
(844
)
Proceeds from drawdown on line of
credit
—
4,672
—
Repayment of drawdown on line of
credit
(4,672
)
—
—
Debt issuance costs
(153
)
—
(265
)
Payment of contingent consideration
liability
(5,969
)
—
—
Repayments on finance lease
obligations
(392
)
(752
)
(1,038
)
Net cash provided by financing
activities
146,689
2,768
11,753
Effect of foreign currency translation
(78
)
(12
)
(62
)
Net increase in cash, cash equivalents
and restricted cash
27,751
3,053
1,101
Cash, cash equivalents, and restricted
cash beginning of period
19,566
16,513
15,412
Cash, cash equivalents, and restricted
cash end of period
$
47,317
$
19,566
$
16,513
For the years ended December
31,
2021
2020
2019
Supplemental disclosure of cash flow
information:
Interest paid
$
3,484
$
3,768
$
3,329
Income taxes paid
292
241
228
Supplemental schedule of noncash
investing activities:
Equipment and software acquired under
finance lease obligations
$
—
$
74
$
403
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 December 31,
2021
2020
2019
Cash and cash equivalents
$
47,217
$
18,098
$
14,910
Restricted cash, current
100
1,368
171
Restricted cash, net of current
—
100
1,432
Total cash, cash equivalents and
restricted cash
$
47,317
$
19,566
$
16,513
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 loss. We calculate Adjusted EBITDA as net
loss before (i) depreciation and amortization, (ii) long-term
equity incentive bonus, (iii) stock-based compensation expense,
(iv) interest expense, net, (v) change in the fair value of warrant
liability, (vi) other expense (income), net, (vii) provision for
income taxes, and (viii) 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 expenses; and (iii) other non-recurring expenses. We
add back depreciation and amortization, long-term equity incentive
bonus and stock-based compensation expenses 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 Loss to Adjusted
EBITDA
(Dollars in thousands)
Three Months Ended
December 31,
Years Ended December
31,
2021
2020
2021
2020
2019
(Unaudited)
(Unaudited)
Net loss
$
(11,832
)
$
(243
)
$
(103,194
)
$
(4,645
)
$
(6,913
)
Non-GAAP adjustments:
Depreciation and amortization
1,745
1,546
6,579
6,065
4,894
Long-term equity incentive bonus and
stock-based compensation expenses
2,455
574
74,489
1,323
9,182
Interest expense, net
814
964
3,732
3,890
3,320
Change in the fair value of warrant
liability
(567
)
—
(1,242
)
—
—
Other expense (income), net
(26
)
78
(460
)
154
(22
)
Acquisition and financing related fees and
expenses
16
—
1,537
25
1,664
Transaction-related costs
429
707
2,263
707
—
Golden Gate Capital management fee
expenses
—
179
135
781
732
Other non-recurring expenses
—
—
—
—
249
Provision for income taxes
(19
)
(332
)
166
196
149
Adjusted EBITDA
$
(6,985
)
$
3,473
$
(15,995
)
$
8,496
$
13,255
GAAP Gross Profit to Adjusted
Gross Profit
(Dollars in thousands)
Three Months Ended
December 31,
Years Ended December
31,
2021
2020
2021
2020
2019
(Unaudited)
(Unaudited)
Gross profit
$
17,501
$
17,922
$
58,592
$
63,069
$
54,502
Depreciation and amortization
991
962
3,776
3,826
3,130
Long-term equity incentive bonus and
stock-based compensation expenses
320
81
10,197
180
1,007
Other non-recurring expenses
—
—
—
—
211
Non-GAAP gross profit
$
18,812
$
18,965
$
72,565
$
67,075
$
58,850
Non-GAAP gross margin %
59.0
%
67.4
%
60.9
%
65.4
%
63.4
%
The following table presents the long-term equity incentive
bonus included in Company’s results of operations for the three
months ended December 31, 2021 and 2020 and the years ended
December 31, 2021, 2020 and 2019 (dollars in thousands):
Three Months Ended
December 31,
Years Ended December
31,
2021
2020
2021
2020
2019
(Unaudited)
(Unaudited)
Cost of revenue
$
2
$
73
$
9,697
$
123
$
1,007
Sales and marketing expense
4
85
18,405
277
1,874
General and administrative expense
—
302
18,594
336
4,420
Research and development expense
2
28
23,888
31
1,881
Total long-term equity incentive bonus
$
8
$
488
$
70,584
$
767
$
9,182
The following table presents the stock-based compensation
expenses included in Company’s results of operations for the three
months ended December 31, 2021 and 2020 and the years ended
December 31, 2021, 2020 and 2019 (dollars in thousands):
Three Months Ended
December 31,
Years Ended December
31,
2021
2020
2021
2020
2019
(Unaudited)
(Unaudited)
Cost of revenue
$318
$
8
$
500
$
57
$
—
Sales and marketing expense
553
18
865
113
—
General and administrative expense
679
42
1,169
273
—
Research and development expense
897
18
1,371
113
—
Total stock-based compensation
$2,447
$
86
$
3,905
$
556
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220310005914/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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