-- Total Revenue of $97.5M, above the midpoint of our guidance range
--
-- Adjusted EBITDA above the top end of our
guidance range --
--2023 Total Revenue guidance range
$388M - $400M (excludes Kasamba contribution in
Q1)--
--2023 Total Adjusted EBITDA guidance range to
$19M - $32M--
NEW
YORK, Aug. 8, 2023 /PRNewswire/ -- LivePerson,
Inc. (NASDAQ: LPSN) ("LivePerson" the "Company", "we" or "us"), a
global leader in conversational AI, today announced financial
results for the second quarter ended June
30, 2023.
Second Quarter Highlights
Total revenue was $97.5 million
for the second quarter of 2023, above the midpoint of our prior
guidance and a decrease of 26.4% as compared to the same period
last year as the company continues to execute on its plan to exit
lower-margin and non-core lines of business.
LivePerson signed 69 deals in total for the second quarter,
consisting of 33 new and 36 existing customer contracts, including
3 seven-figure deals. Trailing-twelve-months average revenue per
enterprise and mid-market customer increased 14% for the second
quarter to $575,000, up from
approximately $505,000 for the
comparable prior-year period. In order to provide a more consistent
and meaningful measure of ARPC, we expect to calculate this metric
using only B2B Core recurring revenue going forward, which is
consistent with the revenue base for calculating Net Revenue
Retention.
"Consistent with the expectations we set last quarter, including
the completion of the restructuring plan, the divestiture and wind
down of non-core business lines, and the renewed focus on the B2B
Core, we posted strong financial results in Q2," said Interim CEO
and CFO John Collins. "Now that we
support voice interactions and leverage generative AI to address a
virtually limitless range of intents, our customers can efficiently
automate an estimated 75% of their aggregate conversational volume
over time. At a high level, that's a potential market opportunity
of 3 times today's recurring revenue just from expanding with our
existing base of customers."
On July 24, 2023, Starboard Value
and Opportunity Master Fund Ltd withdrew its previously submitted
notice of intent to nominate three persons for election to the
Company's board of directors at the 2023 Annual Meeting.
Customer Expansion
During the second quarter, the Company signed 69 total deals for
the quarter, including 3 seven-figure deals, 36 expansion &
renewals and 33 new logo deals. New logo deals included:
- One of the largest banks in the world;
- A digital only European bank; and
- A leading health solutions company.
The Company also expanded/renewed business with:
- Hyundai Capital America, one of the largest captive auto
finance companies;
- The leading audio entertainment company in North America; and
- A large Australian bank.
Net Income (Loss) and Adjusted Operating Income
(Loss)
Net income for the second quarter of 2023 was $10.8 million or $0.14 per share, as compared to a net loss of
$75.4 million or $0.98 per share for the second quarter of
2022. Adjusted operating income, a non-GAAP financial metric,
for the second quarter of 2023 was $3.1 million, as
compared to a $12.6 million adjusted
operating loss for the second quarter of 2022. The increase in
profitability was partially attributable to a settlement agreement
reached with former Wild Health shareholders during the quarter,
which resulted in an elimination of a multi-year contingent
earn-out payment of up to $120.0
million and a reversal of previously accrued stock-based
compensation, in exchange for a lump-sum payment of $12.0 million. Adjusted operating income (loss)
excludes amortization of purchased intangibles and finance leases,
stock-based compensation expense, other litigation, consulting and
other employee costs, restructuring costs, gain on divestiture,
contingent earn-out adjustments, acquisition and divestiture costs,
interest (income) expense, and other expense (income).
Adjusted EBITDA
Adjusted EBITDA, a non-GAAP financial measure, for the second
quarter of 2023 was $12.8 million as compared to an adjusted
EBITDA loss of $5.5 million for the second quarter of
2022. Adjusted EBITDA excludes amortization of purchased
intangibles and finance leases, stock-based compensation expense,
depreciation, other litigation, consulting and other employee
costs, restructuring costs, gain on divestiture, contingent
earn-out adjustments, (benefit from) provision for income taxes,
acquisition and divestiture costs, interest (income) expense, and
other expense (income).
A reconciliation of 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 $213.8
million at June 30, 2023, as compared to $391.8
million at December 31, 2022.
Financial Expectations
The following forward-looking measures and the underlying
assumptions involve significant known and unknown risks and
uncertainties, and actual results may vary materially from these
forward-looking measures. The Company does not present a
quantitative reconciliation of the forward-looking non-GAAP
financial measures, adjusted EBITDA and adjusted EBITDA margin to
the most directly comparable GAAP financial measures (or otherwise
present such forward-looking GAAP measures) because it is
impractical to forecast certain items without unreasonable efforts
due to the uncertainty and inherent difficulty of predicting,
within a reasonable range, the occurrence and financial impact of
and the periods in which such items may be recognized. In
particular, these non-GAAP financial measures exclude certain
items, including amortization of purchased intangibles and finance
leases, stock-based compensation expense, depreciation, other
litigation, consulting and other employee costs, restructuring
costs, gain on divestiture, contingent earn-out adjustments,
(benefit from) provision for income taxes, acquisition and
divestiture costs, interest (income) expense, and other
expense (income), which depend on future events that the Company is
unable to predict. Depending on the size of these items, they could
have a significant impact on the Company's GAAP financial
results.
As previously announced, in the fourth quarter of 2022 the
Company deferred recognition of certain revenue attributable to its
WildHealth business due to suspension of Medicare reimbursements
that was pending further review. The Company currently
anticipates that the review will be completed and that it will
recognize the corresponding revenue in the second half of the year,
likely in the third quarter.
In terms of full year 2023 revenue guidance, we are maintaining
the midpoint of $394M, but narrowing
the range to $388M - $400M from the prior range of $387M - $401M. This
range excludes the $7.2M contribution
from Kasamba in Q1.
Inclusive of the Kasamba contribution in Q1, the new full year
2023 revenue guidance range is $395M
- $407M, narrowed from the prior
range of $394M - $408M.
As for the B2B Core, we expect recurring revenue to represent
86% of total revenue.
For full year 2023 Adjusted EBITDA guidance, we are increasing
the range to $19M - $32M from our prior range of $15M - $32M, an
increase of $2M, midpoint to
midpoint.
Finally for WildHealth, we continue to expect strong growth from
its core business.
For the third quarter, we expect total revenue to range from
$97M - $101M. Further, we expect B2B Core
recurring revenue to represent 85% of total revenue due to a
one-time increase in non-core revenue. As for adjusted
EBITDA, we are expecting a range of $5.9M - $12.9M.
For the tables below, year-over-year growth rates are on a
like-for-like basis (excluding Kasamba contribution from 2022).
Third Quarter 2023
|
Guidance
|
Revenue (in
millions)
|
$97 - $101
|
Revenue growth
(year-over-year)
|
(19)% -
(16)%
|
Adjusted EBITDA (in
millions)
|
$5.9 - $12.9
|
Adjusted EBITDA margin
(%)
|
6.1% - 12.8%
|
Full Year 2023 (excludes Consumer revenue generated in Q1
2023)
|
Guidance
|
Revenue (in
millions)
|
$388 - $400
|
Revenue growth
(year-over-year)
|
(19) % -
(16)%
|
Adjusted EBITDA (in
millions)
|
$19 - $32
|
Adjusted EBITDA margin
(%)
|
4.9% - 8.0%
|
Disaggregated Revenue
Included in the accompanying financial results are revenues
disaggregated by revenue source, as follows:
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30, 2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Revenue:
|
|
|
|
|
|
|
|
Hosted
services (1)
|
$
81,286
|
|
$
103,985
|
|
$
168,624
|
|
$
219,431
|
Professional
services
|
16,236
|
|
28,580
|
|
36,559
|
|
43,331
|
Total
revenue
|
$
97,522
|
|
$
132,565
|
|
$
205,183
|
|
262,762
|
|
|
|
|
|
|
|
|
(1)
|
On March 20, 2023, the
Company completed the sale of Kasamba and therefore ceased
recognizing revenue related to Kasamba effective on the transaction
close date. Further, this sale eliminated the entire Consumer
segment, as a result of which revenue is presented within a single
consolidated segment. Hosted services includes $7.2 million for the
six months ended June 30, 2023, and $9.1 million and $18.3 million
of revenue for the three and six months ended June 30, 2022,
respectively, relating to Kasamba.
|
Stock-Based Compensation
Included in the accompanying financial results are expenses
related to stock-based compensation, as follows:
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30, 2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Cost of
revenue
|
$
(1,232)
|
|
$
4,120
|
|
$
803
|
|
$
6,251
|
Sales and
marketing
|
2,299
|
|
5,942
|
|
4,703
|
|
12,591
|
General and
administrative
|
(13,882)
|
|
13,231
|
|
(11,250)
|
|
23,669
|
Product
development
|
(5,333)
|
|
13,224
|
|
(1,072)
|
|
25,872
|
Total
|
$
(18,148)
|
|
$
36,517
|
|
$
(6,816)
|
|
$
68,383
|
Amortization of Purchased Intangibles and Finance
Leases
Included in the accompanying financial results are expenses
related to the amortization of purchased intangibles and finance
leases, as follows:
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30, 2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Cost of
revenue
|
$
4,578
|
|
$
4,561
|
|
$
9,139
|
|
$
8,977
|
Amortization of
purchased intangibles
|
876
|
|
923
|
|
1,750
|
|
1,822
|
Total
|
$
5,454
|
|
$
5,484
|
|
$
10,889
|
|
$
10,799
|
Supplemental Second Quarter 2023 Presentation
LivePerson will post a presentation providing supplemental
information for the second quarter 2023 on the investor relations
section of the Company's web site at www.ir.liveperson.com.
Earnings Teleconference Information
The Company will discuss its second quarter of 2023 financial
results during a teleconference today, August 8, 2023, at
5:00 PM ET. 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 1-877-407-0784, while international callers should dial
1-201-689-8560, and both should reference the conference ID
"13739032."
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 www.ir.liveperson.com.
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 1-844-512-2921
(U.S. and Canada) or
1-412-317-6671 (international). Please reference the conference ID
"13739032." A replay will also be available on the investor
relations section of the Company's web site at
www.ir.liveperson.com.
About LivePerson, Inc.
LivePerson (NASDAQ: LPSN) is the global leader in enterprise
conversations. Hundreds of the world's leading brands — including
HSBC, Chipotle, and Virgin Media — use our award-winning
Conversational Cloud platform to connect with millions of
consumers. We power nearly a billion conversational interactions
every month, providing a uniquely rich data set and safety tools to
unlock the power of Conversational AI for better business outcomes.
Fast Company named us the #1 Most Innovative AI Company in the
world. To talk with us or our AI, please visit liveperson.com.
Non-GAAP Financial Measures
Investors are cautioned that the following financial measures
used in this press release are "non-GAAP financial measures": (i)
adjusted EBITDA, or earnings/(loss) before (benefit from) provision
for income taxes, interest (income) expense, other expense
(income), depreciation, amortization of purchased intangibles
and finance leases, stock-based compensation expense, contingent
earn-out adjustments, restructuring costs, gain on divestiture,
acquisition and divestiture costs and other litigation, consulting
and other employee costs; (ii) adjusted EBITDA margin, or
earnings/(loss) before (benefit from) provision for income taxes,
interest (income) expense, other expense (income), depreciation,
amortization of purchased intangibles and finance leases,
stock-based compensation expense, contingent earn-out adjustments,
restructuring costs, gain on divestiture, acquisition and
divestiture costs and other litigation, consulting and other
employee costs divided by revenue; (iii) adjusted operating
(loss) income, or operating income (loss) excluding interest
(income) expense, other expense (income), amortization of
purchased intangibles and finance leases, stock-based compensation
expense, contingent earn-out adjustments, restructuring costs, gain
on divestiture, acquisition and divestiture costs, deferred tax
asset valuation allowance, and other litigation, consulting and
other employee costs and (iv) free cash flow, or net cash
provided by operating activities less purchases of property and
equipment, including capitalized software.
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.
Forward-Looking Statements
Statements in this press release and on our earnings call
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. Some of the
factors that could cause actual results to differ materially from
the forward-looking statements contained herein include, without
limitation: our ability to retain key personnel, attract new
personnel and to manage staff attrition; strain on our personnel
resources and infrastructure from supporting our existing and
growing customer base; our ability to retain existing customers and
cause them to purchase additional services and to attract new
customers; major public health issues; the ability to successfully
integrate past or potential future acquisitions; our ability to
secure additional financing to execute our business strategy;
lengthy sales cycles; delays in our implementation cycles;
payment-related risks; potential fluctuations in our quarterly
revenue and operating results; the material weakness in our
internal controls and limitations on the effectiveness of our
controls; non-payment or late payment of amounts due to us from a
significant number of customers; volatility in the capital markets;
recognition of revenue from subscriptions; customer retention and
engagement; our ability to develop and maintain successful
relationships with partners, service partners, social media and
other third-party consumer messaging platforms and endpoints; our
ability to effectively operate on mobile devices; the highly
competitive markets in which we operate; general economic
conditions; failures or security breaches in our services, those of
our third party service providers, or in the websites of our
customers; regulation or possible misappropriation of personal
information belonging to our customers' Internet users; US and
international laws and regulations regarding privacy and data
protection and increased public scrutiny of privacy and security
issues that could result in increased government regulation and
other legal obligations; new regulatory or other legal requirements
that could materially impact our business; governmental export
controls and economic sanctions; industry-specific regulation and
unfavorable industry-specific laws, regulations or interpretive
positions; future regulation of the Internet or mobile devices;
technology-related defects that could disrupt the LivePerson
services; our ability to protect our intellectual property rights
or potential infringement of the intellectual property rights of
third parties; the use of AI in our product offerings; the presence
of, and difficulty in correcting, errors, failures or "bugs" in our
products; our ability to license necessary third party software for
use in our products and services, and our ability to successfully
integrate third party software; potential adverse impact due to
foreign currency and cryptocurrency exchange rate
fluctuations; additional regulatory requirements, tax liabilities,
currency exchange rate fluctuations and other risks if and as we
expand; risks related to our operations in Israel; potential failure to meeting service
level commitments to certain customers; legal liability and/or
negative publicity for the services provided to consumers via our
technology platforms; technological or other defects that could
disrupt or negatively impact our services; our ability to maintain
our reputation; changes in accounting principles generally accepted
in the United States; 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 related to our common
stock being traded on more than one securities exchange; and other
factors described in the "Risk Factors" section of the Company's
Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on
March 16, 2023. 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 Company's
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
June 30,
|
|
Six Months Ended
June 30, 2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
$
97,522
|
|
$
132,565
|
|
$
205,183
|
|
$
262,762
|
|
|
|
|
|
|
|
|
Costs, expenses and
other:
|
|
|
|
|
|
|
|
Cost of
revenue
|
30,888
|
|
45,049
|
|
73,984
|
|
94,616
|
Sales and
marketing
|
26,724
|
|
59,983
|
|
61,194
|
|
118,115
|
General and
administrative
|
8,170
|
|
30,246
|
|
39,617
|
|
59,981
|
Product
development
|
22,839
|
|
55,752
|
|
59,358
|
|
111,824
|
Restructuring
costs
|
2,387
|
|
10,861
|
|
13,902
|
|
10,838
|
Gain on
divestiture
|
—
|
|
—
|
|
(17,591)
|
|
—
|
Amortization of
purchased intangibles
|
876
|
|
923
|
|
1,750
|
|
1,822
|
Total costs, expenses
and other
|
91,884
|
|
202,814
|
|
232,214
|
|
397,196
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
5,638
|
|
(70,249)
|
|
(27,031)
|
|
(134,434)
|
|
|
|
|
|
|
|
|
Other income (expense),
net
|
|
|
|
|
|
|
|
Interest income
(expense), net
|
136
|
|
(682)
|
|
1,937
|
|
(2,114)
|
Other income (expense),
net
|
4,893
|
|
(3,266)
|
|
19,555
|
|
(3,206)
|
Total Income (loss)
before (benefit from) provision for income taxes
|
5,029
|
|
(3,948)
|
|
21,492
|
|
(5,320)
|
|
|
|
|
|
|
|
|
Income (loss) before
(benefit from) provision for income taxes
|
10,667
|
|
(74,197)
|
|
(5,539)
|
|
(139,754)
|
|
|
|
|
|
|
|
|
(Benefit from)
provision for income taxes
|
(155)
|
|
1,214
|
|
1,059
|
|
1,021
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
10,822
|
|
$
(75,411)
|
|
$
(6,598)
|
|
$
(140,775)
|
|
|
|
|
|
|
|
|
Net income (loss) per
share of common stock:
|
|
|
|
|
|
|
|
Basic
|
$
0.14
|
|
$
(0.98)
|
|
$
(0.09)
|
|
$
(1.84)
|
Diluted
|
$
0.12
|
|
$
(0.98)
|
|
$
(0.09)
|
|
$
(1.84)
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
76,902,416
|
|
77,290,465
|
|
76,341,729
|
|
76,555,518
|
Diluted
|
91,500,059
|
|
77,290,465
|
|
76,341,729
|
|
76,555,518
|
LivePerson, Inc.
Condensed Consolidated Statements of Cash
Flows
(In
Thousands)
Unaudited
|
|
Six Months Ended
|
|
June 30,
|
|
2023
|
|
2022
|
OPERATING ACTIVITIES:
|
|
|
|
Net Loss
|
(6,598)
|
|
(140,775)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Stock-based
compensation expense
|
(6,816)
|
|
68,383
|
Depreciation
|
17,088
|
|
14,351
|
Amortization of
purchased intangible assets and finance leases
|
10,889
|
|
10,799
|
Amortization of debt
issuance costs
|
2,727
|
|
1,885
|
Change in fair value
of contingent consideration
|
(5,304)
|
|
—
|
Gain on repurchase of
convertible notes
|
(6,100)
|
|
—
|
Allowance for doubtful
accounts
|
1,809
|
|
3,477
|
Gain on
divestiture
|
(17,591)
|
|
—
|
Deferred income
taxes
|
722
|
|
926
|
Equity loss in joint
venture
|
1,384
|
|
—
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
Accounts
receivable
|
(20,537)
|
|
(32,734)
|
Prepaid expenses and
other current assets
|
(9,126)
|
|
(7,981)
|
Contract acquisition
costs non-current
|
3,534
|
|
(4,758)
|
Other
assets
|
75
|
|
(111)
|
Accounts
payable
|
(19,757)
|
|
6,816
|
Accrued expenses and
other current liabilities
|
16,737
|
|
3,941
|
Deferred
revenue
|
15,652
|
|
13,049
|
Operating lease
liabilities
|
(437)
|
|
(1,721)
|
Other
liabilities
|
(7,800)
|
|
86
|
Net cash used in
operating activities
|
(29,449)
|
|
(64,367)
|
INVESTING ACTIVITIES:
|
|
|
|
Purchases of property
and equipment, including capitalized software
|
(16,997)
|
|
(25,197)
|
Payments for
acquisitions, net of cash acquired
|
—
|
|
(3,458)
|
Purchases of
intangible assets
|
(2,457)
|
|
(1,129)
|
Proceeds from
divestiture
|
13,819
|
|
—
|
Investment in joint
venture
|
—
|
|
(3,651)
|
Net cash used in
investing activities
|
(5,635)
|
|
(33,435)
|
FINANCING ACTIVITIES:
|
|
|
|
Principal payments for
financing leases
|
(1,926)
|
|
(1,849)
|
Proceeds from issuance
of common stock in connection with the exercise of options and
ESPP
|
1,256
|
|
895
|
Payments on repurchase
of convertible senior notes
|
(150,853)
|
|
—
|
Net cash used in
financing activities
|
(151,523)
|
|
(954)
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
840
|
|
1,578
|
Net decrease in cash,
cash equivalents, and restricted cash
|
(185,767)
|
|
(97,178)
|
Cash, cash equivalents,
and restricted cash - beginning of year
|
392,198
|
|
523,532
|
Plus: cash classified
within current assets held for sale - beginning of year
|
10,011
|
|
—
|
Cash, cash equivalents,
and restricted cash - end of period
|
$
216,442
|
|
$
426,354
|
LivePerson, Inc.
Reconciliation of Non-GAAP Financial Information to
GAAP
(In
Thousands)
Unaudited
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30, 2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of Adjusted EBITDA
(Loss):
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
10,822
|
|
$
(75,411)
|
|
$
(6,598)
|
|
$
(140,775)
|
Add/(less):
|
|
|
|
|
|
|
|
Amortization of
purchased intangibles and finance leases
|
5,454
|
|
5,483
|
|
10,889
|
|
10,799
|
Stock-based
compensation expense
|
(18,148)
|
|
36,517
|
|
(6,816)
|
|
68,383
|
Contingent earn-out
adjustments
|
(2,691)
|
|
—
|
|
(982)
|
|
—
|
Restructuring costs
(1)
|
2,387
|
|
10,861
|
|
13,902
|
|
10,838
|
Gain on
divestiture
|
—
|
|
—
|
|
(17,591)
|
|
—
|
Depreciation
|
9,726
|
|
7,127
|
|
17,088
|
|
14,351
|
Other litigation,
consulting and other employee costs (2)
|
7,079
|
|
3,053
|
|
18,201
|
|
4,804
|
(Benefit from)
provision for income taxes
|
(155)
|
|
1,214
|
|
1,059
|
|
1,021
|
Acquisition and
divestiture costs
|
706
|
|
1,703
|
|
2,909
|
|
2,122
|
Interest (income)
expense, net
|
(136)
|
|
682
|
|
(1,937)
|
|
2,114
|
Other expense
(income), net (3)
|
(2,202)
|
|
3,266
|
|
(18,573)
|
|
3,206
|
Adjusted EBITDA
(loss)
|
$
12,842
|
|
$
(5,505)
|
|
$
11,551
|
|
$
(23,137)
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Operating Income
(Loss)
|
|
|
|
|
|
|
|
Income (loss) before
provision for (benefit from) income taxes
|
10,667
|
|
(74,197)
|
|
(5,539)
|
|
(139,754)
|
Add/(less):
|
|
|
|
|
|
|
|
Amortization of
purchased intangibles and finance leases
|
5,454
|
|
5,483
|
|
10,889
|
|
10,799
|
Stock-based
compensation expense
|
(18,148)
|
|
36,517
|
|
(6,816)
|
|
68,383
|
Contingent earn-out
adjustments
|
(2,691)
|
|
—
|
|
(982)
|
|
—
|
Restructuring costs
(1)
|
2,387
|
|
10,861
|
|
13,902
|
|
10,838
|
Gain on
divestiture
|
—
|
|
—
|
|
(17,591)
|
|
—
|
Other litigation,
consulting and other employee costs (2)
|
7,079
|
|
3,053
|
|
18,201
|
|
4,804
|
Acquisition and
divestiture costs
|
706
|
|
1,703
|
|
2,909
|
|
2,122
|
Interest (income)
expense, net
|
(136)
|
|
682
|
|
(1,937)
|
|
2,114
|
Other expense
(income), net (3)
|
(2,202)
|
|
3,266
|
|
(18,573)
|
|
3,206
|
Adjusted operating
income (loss)
|
$
3,116
|
|
$
(12,632)
|
|
$
(5,537)
|
|
$
(37,488)
|
(1)
|
Includes severance
costs and other compensation related costs of $2.4 million and
$13.9 million for the three months and six months ended June 30,
2023. Includes severance costs and other compensation related costs
of $10.5 million and lease restructuring costs of $0.4 million for
the three months ended June 30, 2022. Includes severance costs and
other compensation related costs of $10.5 million and lease
restructuring costs of $0.3 million for the six months ended June
30, 2022.
|
(2)
|
Includes litigation
costs of $5.8 million, consulting costs of $0.2 million, accrued
expenses and fees of $0.6 million, and sales tax liability of $0.5
million for the three months ended June 30, 2023. Includes
consulting costs of $0.2 million, litigation costs of $2.3 million
and accrued expenses and fees of $0.5 million for the three
months ended June 30, 2022. Includes litigation costs of $15.3
million, accrued expenses and fees of $2.0 million, sales tax
liability of $0.5 million, and consulting costs of $0.4 million for
the six months ended June 30, 2023. Includes litigation costs of
$3.0 million, employee benefit costs of $0.7 million, consulting
costs of $0.8 million, and an increase to the reserve for sales and
use tax liability of $0.3 million for the six months ended June 30,
2022.
|
(3)
|
Includes a gain on
settlement of a loan obligation and losses from our Equity Method
Investment during the three months ended June 30, 2023.
Includes $10.0 million of other income related to a litigation
settlement, a $7.2 million of gain related to convertible senior
notes repurchases, a gain on settlement of a loan obligation and
losses from our Equity Method Investment during the six months
ended June 30, 2023. The remaining amount of other expense (income)
for the three and six months ended June 30, 2023 is attributable to
currency rate fluctuations. Includes $0.2 million of other income
related to the settlement of leases, offset by $1.8 million of
losses related to our Equity Method Investment, for the three and
six months ended June 30, 2022. The remaining amount of other
(income) expense for the three and six months ended June 30, 2022
is attributable to currency rate fluctuations.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30, 2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Calculation of Free Cash Flow:
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
$
(23,531)
|
|
$
(41,495)
|
|
$
(29,449)
|
|
$
(64,367)
|
Purchases of property
and equipment, including capitalized software
|
(7,372)
|
|
(12,062)
|
|
(16,997)
|
|
(25,197)
|
Total free cash
flow
|
(30,903)
|
|
(53,557)
|
|
(46,446)
|
|
(89,564)
|
LivePerson, Inc.
Condensed Consolidated Balance
Sheets
(In
Thousands)
Unaudited
|
|
June 30,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
213,763
|
|
$
391,781
|
Accounts receivable,
net
|
105,171
|
|
86,537
|
Prepaid expenses and
other current assets
|
32,657
|
|
23,747
|
Restricted
cash
|
2,679
|
|
417
|
Assets held for
sale
|
—
|
|
30,984
|
Total current
assets
|
354,270
|
|
533,466
|
|
|
|
|
Operating lease right
of use assets
|
415
|
|
1,604
|
Property and
equipment, net
|
127,307
|
|
126,499
|
Contract acquisition
costs
|
39,465
|
|
43,804
|
Intangibles,
net
|
71,503
|
|
78,103
|
Goodwill
|
296,973
|
|
296,214
|
Deferred tax
assets
|
4,840
|
|
4,423
|
Investment in joint
venture
|
880
|
|
2,264
|
Other
assets
|
2,634
|
|
2,563
|
Total assets
|
$
898,287
|
|
$ 1,088,940
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts
payable
|
$
8,307
|
|
$
25,303
|
Accrued expenses and
other current liabilities
|
109,531
|
|
129,244
|
Deferred
revenue
|
100,416
|
|
84,494
|
Convertible senior
notes
|
72,097
|
|
—
|
Operating lease
liabilities
|
654
|
|
2,160
|
Liabilities associated
with assets held for sale
|
—
|
|
10,357
|
Total current
liabilities
|
291,005
|
|
251,558
|
|
|
|
|
Deferred revenue, net
of current portion
|
301
|
|
174
|
Convertible senior
notes, net of current portion
|
510,545
|
|
737,423
|
Operating lease
liabilities, net of current portion
|
602
|
|
682
|
Deferred tax
liabilities
|
2,757
|
|
2,550
|
Other
liabilities
|
2,932
|
|
28,465
|
Total liabilities
|
808,142
|
|
1,020,852
|
Total stockholders' equity
|
90,145
|
|
68,088
|
Total liabilities and stockholders'
equity
|
$
898,287
|
|
$ 1,088,940
|
Investor Relations contact
ir-lp@liveperson.com
212-609-4214
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SOURCE LivePerson, Inc.