First quarter contract revenue year-over-year
growth of 21.4% to $25.2 million
First quarter total revenue year-over-year
growth of 14.8% to $32.1 million
LiveVox Holdings, Inc. (“LiveVox” or the “Company”) (NASDAQ:
LVOX), a leading global enterprise cloud communications company,
today announced financial results for the first quarter ended March
31, 2022.
“We had record revenue in Q1 of $32.1 million, driven by
contract revenue which was up 21% year over year and above the high
end of our guidance range, demonstrating continued momentum in the
business and the CCaaS space at large,” said Louis Summe, CEO. “Our
gross margins continue to expand as a result of our 100% transition
to AWS, giving us excellent visibility in our march towards
profitability without sacrificing future investment in the
business, and we see this trend continuing throughout 2022.”
First Quarter 2022 Financial Highlights
- Revenue: Total revenue was $32.1 million for the first
quarter of 2022, up 14.8% compared to $27.9 million for the first
quarter of 2021.
- Contract Revenue: Contract revenue was $25.2 million for
the first quarter of 2022, up 21.4% compared to $20.8 million for
the first quarter of 2021.
- Gross Profit: Gross profit was $18.5 million for the
first quarter of 2022, up 10.1% compared to $16.8 million for the
first quarter of 2021.
- Non-GAAP Gross Profit* and Non-GAAP Gross Margin*:
Non-GAAP gross profit was $19.4 million for the first quarter of
2022, up 9.4% compared to $17.7 million for the first quarter of
2021; Non-GAAP gross margin was 60.4% for the first quarter of 2022
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 59.0% for the fourth quarter of 2021 and
63.4% for the first quarter of 2021.
- Net loss: Net loss was $13.0 million for the first
quarter of 2022, compared to net loss of $4.2 million for the first
quarter of 2021.
- Adjusted EBITDA*: Adjusted EBITDA loss was $8.3 million
for the first quarter of 2022, compared to Adjusted EBITDA loss of
$0.3 million for the first quarter of 2021.
* 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 second
quarter of 2022 and reiterating its full year 2022 guidance with a
positive update to its Adjusted EBITDA guidance :
- Second Quarter of 2022 Guidance:
- Total revenue is expected to be in the range of $33.2 million
to $34.2 million, representing growth of 15% to 18%
year-over-year.
- Contract revenue is expected to be in the range of $26.3
million to $26.8 million, representing growth of 18% to 20%
year-over-year.
- Excess usage revenue is expected to be in the range of $6.9
million to $7.4 million, representing growth of 5% to 13%
year-over-year.
- Adjusted EBITDA loss is expected to be in the range of $6.7
million to $5.7 million.
- Full Year 2022 Guidance:
- Total revenue is expected to be in the range of $140 million to
$142 million, representing growth of 17% to 19%
year-over-year.
- Contract revenue is 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 now expected to be in the range of $22
million to $24 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 first
quarter ended March 31, 2022. 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 Investor Relations section of LiveVox’s
website, and a recording will be archived. An audio replay of this
conference call will also be available through May 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
10018874.
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 risks or liabilities assumed as a result of our
ability to meet financial and operating guidance, ability to
achieve financial targets, and successfully manage capital
expenditures; risks related to the high level of competition in the
cloud contact center industry and the intense competition and
competitive pressures from other companies in the industry in which
the Company operates; risks related to the Company’s reliance on
information systems and the ability to properly maintain the
confidentiality and integrity of data; risks related to the
occurrence of cyber incidents or a deficiency in cybersecurity
protocols; risks related to the ability to obtain third-party
software licenses for use in or with the Company’s products;
general economic and business conditions; the impact of COVID-19 on
LiveVox’s business; risks related to our intellectual property
rights, risks related to our ability to secure additional financing
on favorable terms, or at all, to meet our future capital needs;
increased taxes and surcharges (including Universal Service Fund,
whether labeled a “tax,” “surcharge,” or other designation) on our
products which may increase our customers’ cost of using our
products and/or increase our costs and reduce our profit margins to
the extent the costs are not passed through to our customers, and
our potential liability for past sales and other taxes, surcharges
and fees; changes in government regulation applicable to the
collections industry or any failure of us or our customers to
comply with existing regulations; changes in base interest rates
and significant market volatility on the Company’s business, the
Company’s industry and the global economy 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
March 31,
2022
2021
Revenue
$
32,093
$
27,945
Cost of revenue
13,632
11,180
Gross profit
18,461
16,765
Operating expenses
Sales and marketing expense
14,652
8,908
General and administrative expense
7,468
4,880
Research and development expense
8,490
6,180
Total operating expenses
30,610
19,968
Loss from operations
(12,149
)
(3,203
)
Interest expense, net
750
944
Change in the fair value of warrant
liability
(392
)
—
Other income, net
(64
)
(7
)
Total other expense, net
294
937
Pre-tax loss
(12,443
)
(4,140
)
Provision for income taxes
544
35
Net loss
$
(12,987
)
$
(4,175
)
Comprehensive loss
Net loss
$
(12,987
)
$
(4,175
)
Other comprehensive income (loss), net of
tax
Foreign currency translation
adjustment
(49
)
39
Net unrealized loss on marketable
securities
(888
)
—
Total other comprehensive income (loss),
net of tax
(937
)
39
Comprehensive loss
$
(13,924
)
$
(4,136
)
Net loss per share
Net loss per share—basic and diluted
$
(0.14
)
$
(0.06
)
Weighted average shares outstanding—basic
and diluted
91,478
66,637
Consolidated Balance
Sheets
(In thousands, except per
share data)
As of
March 31, 2022
December 31, 2021
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$ 32,092
$ 47,217
Restricted cash, current
100
100
Marketable securities, current
48,067
7,226
Accounts receivable, net
19,441
20,128
Deferred sales commissions, current
2,733
2,691
Prepaid expenses and other current
assets
6,321
6,151
Total Current Assets
108,754
83,513
Property and equipment, net
3,289
3,010
Goodwill
47,481
47,481
Intangible assets, net
19,123
20,195
Operating lease right-of-use assets
5,058
5,483
Deposits and other
511
664
Marketable securities, net of current
—
42,148
Deferred sales commissions, net of
current
6,661
6,747
Deferred tax asset, net
77
—
Total Assets
$ 190,954
$ 209,241
LIABILITIES & STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$ 4,357
$ 6,490
Accrued expenses
10,139
13,855
Deferred revenue, current
1,329
1,307
Term loan, current
561
561
Operating lease liabilities, current
1,886
1,946
Finance lease liabilities, current
27
26
Total current liabilities
18,299
24,185
Long term liabilities:
Deferred revenue, net of current
418
456
Term loan, net of current
54,345
54,459
Operating lease liabilities, net of
current
3,642
4,046
Finance lease liabilities, net of
current
5
11
Deferred tax liability, net
—
2
Warrant liability
375
767
Other long-term liabilities
337
337
Total liabilities
77,421
84,263
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value per
share; 25,000 shares authorized and none issued and outstanding as
of March 31, 2022 and December 31, 2021.
—
—
Common stock, $0.0001 par value per share;
500,000 shares authorized and 90,697 shares issued and outstanding
as of March 31, 2022 and December 31, 2021.
9
9
Additional paid-in capital
255,947
253,468
Accumulated other comprehensive loss
(1,414)
(477)
Accumulated deficit
(141,009)
(128,022)
Total stockholders’ equity
113,533
124,978
Total liabilities & stockholders’
equity
$ 190,954
$ 209,241
Consolidated Statements of
Cash Flows
(Unaudited) (Dollars in
thousands)
For the three months ended
March 31,
2022
2021
Operating activities:
Net loss
$ (12,987)
$ (4,175)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization
274
475
Amortization of identified intangible
assets
1,073
1,129
Amortization of deferred loan origination
costs
27
36
Amortization of deferred sales
commissions
740
397
Non-cash lease expense
453
377
Stock-based compensation expense
2,479
139
Bad debt expense
33
43
Deferred income tax benefit
(78)
(77)
Loss on sale of marketable securities
10
—
Amortization of premium paid on marketable
securities
131
—
Change in the fair value of the warrant
liability
(392)
—
Changes in assets and
liabilities
Accounts receivable
655
(139)
Other assets
(19)
(2,296)
Deferred sales commissions
(695)
(643)
Accounts payable
(2,134)
3,178
Accrued expenses
(3,716)
(2,979)
Deferred revenue
(16)
(209)
Operating lease liabilities
(464)
(347)
Net cash used in operating
activities
(14,626)
(5,091)
Investing activities:
Purchases of property and equipment
(536)
(190)
Purchases of marketable securities
(1,477)
—
Proceeds from sale of marketable
securities
1,515
—
Principal collected on matured marketable
securities
242
—
Proceeds from asset acquisition, net of
cash paid
—
1,326
Net cash (used in) provided by
investing activities
(256)
1,136
Financing activities:
Repayment on loan payable
(140)
(1,176)
Repayments on finance lease
obligations
(6)
(143)
Net cash used in financing
activities
(146)
(1,319)
Effect of foreign currency translation
(97)
(21)
Net increase in cash, cash equivalents
and restricted cash
(15,125)
(5,295)
Cash, cash equivalents, and restricted
cash beginning of period
47,317
19,566
Cash, cash equivalents, and restricted
cash end of period
$ 32,192
$ 14,271
For the three months ended
March 31,
2022
2021
Supplemental disclosure of cash flow
information:
Interest paid
$ 801
$ 897
Income taxes paid
56
29
Supplemental schedule of noncash
investing activities:
Change in unrealized loss on marketable
securities
$ 888
$ —
Additional right-of-use assets
—
2,637
Contingent consideration in asset
acquisition
—
5,969
Reconciliation of cash, cash equivalents and restricted cash to
the consolidated balance sheets (dollars in thousands):
As of March 31,
2022
2021
Cash and cash equivalents
$ 32,092
$ 14,171
Restricted cash, current
100
—
Restricted cash, net of current
—
100
Total cash, cash equivalents and
restricted cash
$ 32,192
$ 14,271
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
(Unaudited) (Dollars in
thousands)
Three Months Ended March
31,
2022
2021
Net loss
$ (12,987)
$ (4,175)
Non-GAAP adjustments:
Depreciation and amortization
1,347
1,604
Long-term equity incentive bonus and
stock-based compensation expenses
2,479
139
Interest expense, net
750
944
Change in the fair value of warrant
liability
(392)
—
Other expense (income), net
(64)
(7)
Acquisition and financing related fees and
expenses
10
284
Transaction-related costs
—
733
Golden Gate Capital management fee
expenses
—
171
Provision for income taxes
544
35
Adjusted EBITDA
$ (8,313)
$ (272)
GAAP Gross Profit to Adjusted
Gross Profit
(Unaudited) (Dollars in
thousands)
Three Months Ended
March 31,
2022
2021
Gross profit
$ 18,461
$ 16,765
Depreciation and amortization
609
944
Long-term equity incentive bonus and
stock-based compensation expenses
312
14
Non-GAAP gross profit
$ 19,382
$ 17,723
Gross margin %
57.5 %
60.0 %
Non-GAAP gross margin %
60.4 %
63.4 %
The following table presents the stock-based compensation
expenses included in Company’s results of operations for the three
months ended March 31, 2022 and 2021 (dollars in thousands):
Three Months Ended
March 31,
2022
2021
(Unaudited)
(Unaudited)
Cost of revenue
$
312
$
15
Sales and marketing expense
607
28
General and administrative expense
660
68
Research and development expense
900
28
Total stock-based compensation
$
2,479
$
139
There were no long-term equity incentive bonus in the periods
presented.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220510006331/en/
Investor: Alexis Waadt awaadt@livevox.com
Ryan Gardella livevoxIR@icrinc.com
Press: Nick Bandy nbandy@livevox.com
Katie Creaser livevoxPR@icrinc.com
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