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LivePerson Announces Fourth Quarter and Full Year 2012 Financial Results



   LivePerson Announces Fourth Quarter and Full Year 2012 Financial Results

-- Reports Fourth Quarter Revenue of $42.5 Million --

-- Fourth Quarter Bookings of $8.7 Million Surpass Prior Quarter's Record --

PR Newswire

NEW YORK, Feb. 12, 2013

NEW YORK, Feb. 12, 2013 /PRNewswire/ -- LivePerson, Inc. (Nasdaq: LPSN), a
leading provider of intelligent engagement solutions that increase conversions
and improve the customer experience online, today announced financial results
for the fourth quarter and year ended December 31, 2012.

(Logo: http://photos.prnewswire.com/prnh/20110105/NY24753LOGO-a )

Revenue

Revenue from business operations (B2B) for the fourth quarter was $38.8
million, an 18% increase as compared to the fourth quarter of 2011 and a 7%
increase as compared to the third quarter of 2012.  Total revenue for the
fourth quarter was $42.5 million, a 16% increase from the fourth quarter of
2011, and a 7% sequential increase as compared to the third quarter of 2012.
  

B2B revenue for the full year was $142.3 million, a 20% increase from 2011. 
Total revenue, which includes our consumer operations, was $157.4 million for
the full year, an 18% increase over 2011.

Revenue from consumer operations for the fourth quarter and full year was $3.7
million and $15.1 million, respectively.

Bookings for the fourth quarter of 2012 were $8.7 million, a 38% increase from
the fourth quarter of 2011 and a 7% sequential increase as compared to the
third quarter of 2012.  Bookings are measured as incremental new contractual
commitments from new or existing midmarket or enterprise customers, excluding
nonrecurring and usage-based fees. 

"During the fourth quarter we expanded some of our larger global accounts,
exceeded our top line projections, and continued to see strong interest
surrounding our new products," said CEO Robert LoCascio.  "I believe the solid
foundation we built in people and processes should foster a natural evolution
in the business, especially during 2013 as we work to deliver a more
integrated, intelligent engagement platform."

Customer Expansion

LivePerson added 41 new enterprise and midmarket clients during the quarter,
and signed a total of 178 deals which consisted of both new and existing
customers.

Net Income

Net income for the fourth quarter of 2012 was $1.5 million or $0.03 per share
as compared to $3.9 million or $0.07 per share in the fourth quarter of 2011.
 Net income during the fourth quarter of 2012 was impacted by deal and
litigation related expenses of approximately $1.3 million.

Net income for the full year was $6.4 million or $0.11 per share, as compared
to $12.0 million or $0.22 per share in the prior year.  Net income for the
full year was impacted by deal and litigation related expenses of
approximately $5.0 million.

Adjusted Net Income and Adjusted EBITDA

LivePerson considers adjusted net income and adjusted earnings before other
income/(expense), taxes, depreciation, amortization, stock-based compensation
and other non-cash charges, if any (adjusted EBITDA) to be important financial
indicators of the Company's operational strength and the performance of its
business. These results should be considered in addition to results prepared
in accordance with generally accepted accounting principles (GAAP), but should
not be considered as a substitute for, or superior to, GAAP results.

The difference between adjusted EBITDA per share, a non-GAAP measure, and GAAP
EPS, is other income/(expense), taxes, depreciation, amortization, stock-based
compensation and other non-cash charges, if any.  The difference between
adjusted net income per share and GAAP EPS is amortization of intangible
assets and stock-based compensation.

A reconciliation of the differences between adjusted EBITDA and adjusted net
income, and the most comparable financial measure calculated and presented in
accordance with GAAP, is presented under the heading "Reconciliation of
Non-GAAP Financial Information to GAAP" immediately following the Condensed
Consolidated Statements of Income included below.

Adjusted net income for the fourth quarter of 2012 was $4.8 million or $0.08
per share, as compared to $5.8 million or $0.10 per share in the fourth
quarter of 2011.  Adjusted net income for the full year was $17.7 million or
$0.31 per share, as compared to $19.8 million or $0.36 per share in the prior
year.  Adjusted Net income during both the fourth quarter and full year 2012
was impacted by deal and litigation related expenses of approximately $1.3
million and $5.0 million, respectively.

Adjusted EBITDA for the fourth quarter of 2012 was $8.0 million or $0.14 per
share, as compared to $9.6 million or $0.17 per share in the fourth quarter of
2011.  Adjusted EBITDA for the full year was $29.0 million or $0.51 per share,
as compared to $34.0 million or $0.62 per share in the prior year.  Adjusted
EBITDA during both the fourth quarter and full year 2012 were impacted by deal
and litigation related expenses of approximately $1.3 million and $5.0
million, respectively.  

Cash

The Company's cash balance was $103.3 million at December 31, 2012 as compared
to $93.3 million as of December 31, 2011.  

The Company generated $12.0 million of cash from operations during the fourth
quarter. 

For the full year, the Company generated $29.7 million of cash from
operations, and incurred planned capital expenditures primarily related to the
purchase of servers and computer networking equipment and expansion of its
corporate offices, resulting in a cash outlay of approximately $11.2 million.
  

Financial Expectations

Following is the Company's current expectation for financial and operating
performance:

First Quarter 2013

  o Revenue of $42 - $43 million
  o Adjusted EBITDA of $0.11 - $0.13 per share
  o Adjusted net income per share of $0.06 - $0.08
  o GAAP EPS of $0.01 - $0.03
  o Fully diluted share count of approximately 58 million

Full Year 2013

  o Revenue of $181 - $186 million
  o Adjusted EBITDA of $0.52 - $0.55 per share
  o Adjusted net income per share of $0.30 - $0.33
  o GAAP EPS of $0.06 - $0.09
  o Fully diluted share count of approximately 60 million

Other Full Year 2013 Assumptions

  o Amortization of intangibles of approximately $5 million
  o Stock-compensation expense of approximately $13 million
  o Depreciation of approximately $10 million
  o Effective tax rate of approximately 37%
  o Cash tax rate of approximately 37%
  o Capital expenditures of approximately $12 million

Stock-Based Compensation

Included in the accompanying financial results are expenses related to
stock-based compensation, as follows (in thousands):

                           3 months ended    Year ended
                           December 31, 2012 December 31, 2012
Cost of revenue            $448              $1,579
Product development        759               2,964
Sales and marketing        765               2,878
General and administrative 1,097             3,294
  Total                    $3,069            $10,715

Amortization of Intangible Assets  

Included in the accompanying financial results are expenses related to the
amortization of intangible assets, as follows (in thousands):

                           3 months ended    Year ended
                           December 31, 2012 December 31, 2012
Cost of revenue            $166              $362
General and administrative 119               218
  Total                    $285              $580

Earnings Teleconference and Video Discussion Information

The Company will discuss its fourth quarter and full year 2012 financial
results during a teleconference today, February 12, 2013 at 5:00 p.m. ET.  To
participate via telephone domestic callers (U.S. and Canada) should dial
877-507-3684, while international callers should dial 706-634-9559, both
should reference the conference ID "96832818".  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:
http://www.liveperson.com/about/ir.   

If you are unable to participate on the live call, the teleconference will be
available for replay approximately two hours after the call.  To access the
replay, please call 855-859-2056 (U.S. and Canada) or 404-537-3406
(international).  Please reference the conference ID "96832818".

The Company will also post a video discussion of its fourth quarter and full
year results on YouTube.  To view, click on the following link:
http://www.youtube.com/user/myliveperson.

About LivePerson

LivePerson, Inc. (Nasdaq: LPSN) offers a cloud-based platform that enables
businesses to proactively connect in real-time with their customers via chat,
voice, and content delivery at the right time, through the right channel,
including websites, social media, and mobile devices. This "intelligent
engagement" is driven by real-time behavioral analytics, producing connections
based on a true understanding of business objectives and customer needs.

More than 8,500 companies rely on LivePerson's platform to increase
conversions and improve customer experience, including Hewlett-Packard, IBM,
Microsoft, Verizon, Sky, Walt Disney, PNC, QVC and Orbitz.

LivePerson received the CODiE award for Best Content Management Solution in
2012 and for Best Ecommerce Solution in 2011, and has been named a Company of
the Year by Frost and Sullivan in 2011.  LivePerson is headquartered in New
York City with offices in San Francisco, Atlanta, Santa Monica, Tel Aviv,
London and Melbourne.

For more information, please visit www.liveperson.com.  To view other press
releases about LivePerson, please visit pr.liveperson.com.

Non-GAAP Financial Disclosure

Investors are cautioned that the following financial measures used in this
press release are defined as "non-GAAP financial measures" by the Securities
and Exchange Commission, or SEC: adjusted EBITDA, or earnings/(loss) before
other income/(expense), taxes, depreciation, amortization, stock-based
compensation, other non-cash charges, if any; and adjusted net income, or net
income excluding amortization of intangible assets and stock-based
compensation.  These measures may be different from non-GAAP financial
measures used by other companies. The presentation of this financial
information, which is not prepared under any comprehensive set of accounting
rules or principles, is not intended to be considered in isolation.  In
addition, although we have provided a reconciliation of these measures to the
nearest comparable GAAP measures, they should not be construed as alternatives
to any other measures of performance determined in accordance with generally
accepted accounting principles, or as indicators of our operating performance,
liquidity or cash flows generated by operating, investing and financing
activities, as there may be significant factors or trends that they fail to
address.  We present this financial information because we believe that it is
helpful to some investors as a measure of our performance.  We caution
investors that non-GAAP financial information, by its nature, departs from
traditional accounting conventions; accordingly, its use can make it difficult
to compare our current results with our results from other reporting periods
and with the results of other companies.

Safe Harbor Provision

Statements in this press release 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 progresses, 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.  Actual events or results may differ
materially from those contained in the projections or forward-looking
statements.  Some of the factors that could cause actual results to differ
materially from the forward-looking statements contained herein include,
without limitation: potential fluctuations in our quarterly and annual
results; potential fluctuations in litigation, transaction-related and other
costs; costs associated with our international expansion; the adverse effect
that the global economic downturn may have on our business and results of
operations; competition in the online sales, marketing, customer service and
online engagement solutions markets; our ability to retain existing clients
and attract new clients; risks related to new regulatory or other legal
requirements that could materially impact our business; impairments to
goodwill that result in significant charges to earnings; volatility of the
value of certain currencies in relation to the US dollar, particularly the
currency of regions where we have operations; risks related to our
international operations, particularly our operations in Israel, and the civil
and political unrest in that region; responding to rapid technological change
and changing client preferences; our ability to retain key personnel and
attract new personnel; risks related to the ability to successfully integrate
past or potential future acquisitions; technology systems beyond our control
and technology-related defects that could disrupt the LivePerson services;
increased allowances for doubtful accounts as a result of an increasing amount
of receivables due from customers with greater credit risk; privacy concerns
relating to the Internet that could result in new legislation or negative
public perception; risks related to the regulation or possible
misappropriation of personal information belonging to our customers' Internet
users; legal liability and/or negative publicity for the services provided to
consumers via our technology platforms; risks related to protecting our
intellectual property rights or potential infringement of the intellectual
property rights of third parties; and risks related to our common stock being
traded on more than one securities exchange, which may result in additional
variations in the trading price of our common stock.  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 reports and documents filed from time to time by us with the
Securities and Exchange Commission for a discussion of these and other
important risk factors that could cause actual results to differ from those
discussed in forward-looking statements.

LivePerson, Inc.
Condensed Consolidated Statements of Income
(In Thousands, Except Share and Per Share Data)
Unaudited
                            Three Months Ended        Twelve Months Ended
                            December 31,              December 31,
                            2012         2011         2012         2011
Revenue                     $            $            $            $  
                             42,475       36,509       157,409      133,089
Operating expenses:
     Cost of revenue        10,128       8,047        35,579       33,195
     Product development    8,170        5,563        30,051       20,222
     Sales and marketing    12,795       10,738       49,614       38,884
     General and            8,823        6,008        31,606       21,044
     administrative
     Amortization of        119          77           218          109
     intangibles
               Total
               operating    40,035       30,433       147,068      113,454
               expenses
Income from operations      2,440        6,076        10,341       19,635
Other income (expense),     221          (117)        376          (485)
net
Income before provision     2,661        5,959        10,717       19,150
for income taxes
Provision for income taxes  1,169        2,083        4,362        7,112
Net income                  $            $            $            $      
                            1,492        3,876        6,355        12,038
Basic net income per        $            $            $            $          
common share                0.03         0.07         0.11         0.23
Diluted net income per      $            $            $            $          
common share                0.03         0.07         0.11         0.22
Weighted average shares
outstanding used in basic
net
     income per common      55,892,061   53,563,396   55,292,597   52,876,999
     share calculation
Weighted average shares
outstanding used in
diluted net
     income per common      57,589,248   55,756,350   57,131,041   55,008,742
     share calculation

 

 

LivePerson, Inc.
Reconciliation of Non-GAAP Financial Information to GAAP
(In Thousands, Except Share and Per Share Data)
Unaudited
Unaudited Supplemental
Data
  The following information is not a financial measure under generally
  accepted accounting principles (GAAP). In addition, it 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 this financial information because we believe that it is
  helpful to some investors as one measure of our operations. We caution
  investors that non-GAAP financial information, by its nature, departs from
  traditional accounting conventions; accordingly, its use can make it
  difficult to compare our results with our results from other reporting
  periods and with the results of other companies.
                            Three Months Ended        Twelve Months Ended
                            December 31,              December 31,
                            2012         2011         2012         2011
Net income in accordance
with generally
  accepted accounting       $            $            $            $    
  principles                 1,492        3,876        6,355        12,038
  Add/(less):
  (a) Amortization of       285          77           580          1,029
  intangibles
  (b) Stock-based           3,069        1,821        10,715       6,771
  compensation
  (c) Depreciation          2,160        1,634        7,329        6,563
  (d) Provision for income  1,169        2,083        4,362        7,112
  taxes
  (e) Other(income)         (221)        117          (376)        485
  expense, net
Adjusted EBITDA (1)         $            $            $            $      
                            7,954        9,608        28,965       33,998
Diluted Adjusted EBITDA     $            $            $            $          
per common share            0.14         0.17         0.51         0.62
Weighted average shares
used in diluted adjusted
EBITDA 
  per common share          57,589,248   55,756,350   57,131,041   55,008,742
Net income in accordance
with generally
  accepted accounting       $            $            $            $      
  principles                1,492        3,876        6,355        12,038
  Add:
  (a) Amortization of       285          77           580          1,029
  intangibles
  (b) Stock-based           3,069        1,821        10,715       6,771
  compensation
Adjusted net income         $            $            $            $      
                            4,846        5,774        17,650       19,838
Diluted adjusted net        $            $            $            $          
income per common share     0.08         0.10         0.31         0.36
Weighted average shares
used in diluted adjusted
net income
  per common share          57,589,248   55,756,350   57,131,041   55,008,742
Adjusted EBITDA             $            $            $            $    
                             7,954        9,608        28,965       33,998
  Add/(less):
  (a) Changes in operating  6,545        (132)        7,544        (1,849)
  assets and liabilities
  (b) Provision for         -            60           20           290
  doubtful accounts
  (c) Provision for income  (1,169)      (2,083)      (4,362)      (7,112)
  taxes
  (d) Deferred income       (1,547)      291          (2,872)      234
  taxes
  (e) Other expense, net    221          (117)        376          (485)
Net cash provided by        $            $            $            $    
operating activities         12,004       7,627        29,671       25,076
(1)  Earnings/(loss) before other income/(expense), taxes, depreciation,
amortization, stock-based compensation and other non-cash charges.

 

 

LivePerson, Inc.
Condensed Consolidated Balance Sheets
(In Thousands)
Unaudited
                                       December 31, 2012  December 31, 2011
ASSETS
Current assets:
 Cash and cash equivalents             $                  $                  
                                        103,339           93,278
 Accounts receivable, net              23,830             20,999
 Prepaid expenses and other current    6,369              5,390
 assets
 Deferred tax assets, net              2,616              2,342
   Total current assets                136,154            122,009
 Property and equipment, net           17,495             13,879
 Intangibles, net                      15,681             1,095
 Goodwill                              32,645             24,090
 Deferred tax assets, net              4,183              2,829
 Deferred implementation costs, net of 240                247
 current
 Security deposits                     669                356
 Other assets                          1,509              1,546
   Total assets                        $                  $              
                                        208,576            166,051
LIABILITIES AND STOCKHOLDERS' EQUITY 
Current liabilities:
 Accounts payable                      $                  $                  
                                         11,125             8,258
 Accrued expenses                      17,911             12,019
 Deferred revenue                      6,525              5,378
   Total current liabilities           35,561             25,655
Deferred revenue, net of current       1,263              1,152
Other liabilities                      1,509              1,546
   Total liabilities                   38,333             28,353
Commitments and contingencies
Total stockholders' equity             170,243            137,698
   Total liabilities and stockholders' $                  $              
   equity                               208,576            166,051

 

Investor contact:  
Stacey Yonkus  
212-609-4236  
syonkus@liveperson.com    

SOURCE LivePerson, Inc.

Website: http://www.liveperson.com
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