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/C O R R E C T I O N -- LivePerson, Inc./



                  /C O R R E C T I O N -- LivePerson, Inc./

PR Newswire

NEW YORK, May 8, 2013

In the news release, LivePerson Announces First Quarter 2013 Financial
Results, issued 08-May-2013 by LivePerson, Inc. over PR Newswire, we are
advised by the company that the number of deals in the sixth paragraph, first
sentence, should read "149 deals" rather than "123 deals" as originally issued
inadvertently. The complete, corrected release follows:

  LivePerson Announces First Quarter 2013 Financial Results

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

    -- First Quarter Bookings Reach $7.5 Million, a 22% Increase over Prior
    Year Period --

NEW YORK, May 8, 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 first quarter ended March 31, 2013.

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

Revenue

Revenue from business operations (B2B) for the first quarter was $38.9
million, an 18% increase as compared to the first quarter of 2012. Total
revenue, which includes our consumer operations, was $42.5 million for the
first quarter, a 16% increase from the first quarter of 2012.   

Revenue from consumer operations for the first quarter was $3.6 million.

Bookings for the first quarter of 2013 were $7.5 million, a 22% increase from
the first 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. 

"We spent a lot time over the past few years understanding the business
challenges our customers face, and aligning our product capabilities to
provide a more holistic approach to customer engagement," said CEO Robert
LoCascio.  "During the first quarter we made great progress on our platform
strategy with the roll out of LiveEngage to approximately 4,000 small business
customers."

Customer Expansion

LivePerson added 43 new enterprise and midmarket customers during the quarter,
and signed a total of 149 deals which consisted of both new and existing
customers.

Net (Loss) Income

Net loss for the first quarter of 2013 was $(0.2) million or $0.00 per share,
as compared to net income of $3.1 million or $0.06 per share in the first
quarter of 2012.    

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 Operations included below.

Adjusted net income for the first quarter of 2013 was $3.2 million or $0.06
per share, as compared to $5.4 million or $0.09 per share in the first quarter
of 2012.

Adjusted EBITDA for the first quarter of 2013 was $4.9 million or $0.09 per
share, which includes an expense of approximately $0.9 million due to currency
exchange rate fluctuations between the U.S. Dollar and U.K. Pound.  Excluding
the impact of the currency fluctuations, adjusted EBITDA for the first quarter
of 2013 was $5.9 million or $0.10 per share.  Adjusted EBITDA in the same
period of 2012 was  $8.7 million or $0.16 per share.  

Cash

The Company's cash balance was $94.8 million at March 31, 2013 as compared to
$103.3 million as of December 31, 2012.  The Company used approximately $0.7
million of cash from operations in the first quarter, 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 $1.7 million.  As part of its previously
announced stock repurchase program the Company spent approximately $7.4
million during the first quarter of 2013 to repurchase shares of its common
stock.

Financial Expectations

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

Second Quarter 2013

  o Revenue of $42.5 - $43.5 million
  o Adjusted EBITDA of $0.05 - $0.07 per share
  o Adjusted net income per share of $0.03 - $0.05
  o GAAP EPS of $(0.02) - $(0.04)
  o Fully diluted share count of approximately 58 million

Full Year 2013

  o Revenue of $174 - $179 million
  o Adjusted EBITDA of $0.32 - $0.35 per share
  o Adjusted net income per share of $0.18 - $0.21
  o GAAP EPS of $(0.02) - $(0.05)
  o Fully diluted share count of approximately 60 million

Other Full Year 2013 Assumptions

  o Amortization of intangibles of approximately $4 million
  o Stock-compensation expense of approximately $13 million
  o Depreciation of approximately $10 million
  o Effective tax rate of approximately 40% 
  o Cash tax rate of approximately 40%
  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
                           March 31, 2013
Cost of revenue            $420
Product development        870
Sales and marketing        746
General and administrative 1,015
  Total                    $3,051

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
                           March 31, 2013
Cost of revenue            $194
General and administrative 224
  Total                    $418

 

Earnings Teleconference and Video Discussion Information

The Company will discuss its first quarter 2013 financial results during a
teleconference today, May 8, 2013.  To participate via telephone, callers
should dial in five to ten minutes prior to the 5:00pm eastern start time;
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 "57583005".  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 in 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 "57583005".  A replay
will also be available on the investor relations section of the Company's web
site at http://www.liveperson.com/about/ir. 

The Company will also post a video discussion of its first quarter 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 has been named a Market Share Leader by Frost and Sullivan in 2012. 
LivePerson is headquartered in New York City with offices in San Francisco,
Atlanta, Santa Monica, Tel Aviv, London, Melbourne, and Amsterdam.

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 revenue and
operating results; the adverse effect that the global economic downturn may
have on our business and results of operations; competition in the markets for
online sales, marketing and customer service solutions, and online consumer
services; 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; additional regulatory requirements, tax liabilities, currency
exchange rate fluctuations and other risks as we expand internationally;
responding to rapid technological change and changing client preferences; our
ability to retain key personnel and attract new personnel; our ability to
expand our operations internationally; risks related to the ability to
successfully integrate past or potential future acquisitions; risks related to
the regulation or possible misappropriation of personal information belonging
to our customers' Internet users; technology systems beyond our control and
technology-related defects that could disrupt the LivePerson services; privacy
concerns relating to the Internet that could result in new legislation or
negative public perception; 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; increased allowances for
doubtful accounts as a result of an increasing amount of receivables due from
customers with greater credit risk; delays in our implementation cycles; risks
associated with our current or future stock repurchase programs, including
whether such programs will enhance long-term stockholder value, and whether
such stock repurchases could increase the volatility of the price of our
common stock and diminish our cash reserves; risks related to our operations
in Israel, and the civil and political unrest in that region; 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.

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

 

LivePerson, Inc.
Condensed Consolidated Statements of Operations
(In Thousands, Except Share and Per Share Data)
Unaudited
                                               Three Months Ended
                                               March 31,
                                               2013             2012
Revenue                                        $        42,496  $      36,759
Operating expenses:
      Cost of revenue                          10,134           7,923
      Product development                      8,021            6,657
      Sales and marketing                      14,478           11,089
      General and administrative               9,307            6,393
      Amortization of intangibles              224              77
                      Total operating          42,164           32,139
                      expenses
Income from operations                         332              4,620
Other (expense) income, net                    (897)            615
(Loss) income before (benefit from) provision  (565)            5,235
for income taxes
(Benefit from) provision for income taxes      (333)            2,112
Net (loss) income                              $                $        3,123
                                                (232)
Basic net (loss) income per common share       $                $          
                                               (0.00)           0.06
Diluted net (loss) income per common share     $                $          
                                               (0.00)           0.06
Weighted average shares outstanding used in
basic net (loss)
      income per common share calculation      55,864,045       54,419,498
Weighted average shares outstanding used in
diluted net (loss)
      income per common share calculation      55,864,045       56,389,729

 

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
                                            March 31,
                                            2013              2012
Net (loss) income in accordance with
generally
  accepted accounting principles            $                 $        3,123
                                             (232)
  Add/(less):
  (a)    Amortization of intangibles        418               77
  (b)    Stock-based compensation           3,051             2,155
  (c)    Depreciation                       2,050             1,628
  (d)    (Benefit from) provision for       (333)             2,112
         income taxes
  (e)    Other expense (income), net        897               (615)
Adjusted EBITDA (1)                         $        5,851    $        8,480
Diluted adjusted EBITDA per common share    $                 $          
                                            0.10              0.15
Weighted average shares used in diluted
adjusted EBITDA 
  per common share                          57,872,732        56,389,729
Net (loss) income in accordance with
generally
  accepted accounting principles            $                 $        3,123
                                             (232)
  Add:
  (a)    Amortization of intangibles        418               77
  (b)    Stock-based compensation           3,051             2,155
Adjusted net income                         $        3,237    $        5,355
Diluted adjusted net income per common      $                 $          
share                                       0.06              0.09
Weighted average shares used in diluted
adjusted net income
  per common share                          57,872,732        56,389,729
Adjusted EBITDA                             $        5,851    $        8,480
  Add/(less):
  (a)    Changes in operating assets and    (6,295)           5,258
         liabilities
  (b)    Benefit from (provision for)       333               (2,112)
         income taxes
  (c)    Deferred income taxes              358               (632)
  (d)    Provision for                      -                 20
         doubtful accounts
  (e)    Other (expense) income, net        (897)             615
Net cash (used in) provided by operating    $                 $      11,629
activities                                   (650)
(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
                                      March 31, 2013       December 31, 2012
ASSETS
Current assets:
   Cash and cash equivalents          $                    $              
                                      94,833                103,339
   Accounts receivable, net           24,601               23,830
   Prepaid expenses and other current 8,918                6,369
   assets
   Deferred tax assets, net           2,527                2,616
       Total current assets           130,879              136,154
   Property and equipment, net        18,159               17,495
   Intangibles, net                   15,313               15,681
   Goodwill                           32,724               32,645
   Deferred tax assets, net           4,005                4,183
   Deferred implementation costs      224                  240
   Security deposits                  669                  669
   Other assets                       1,498                1,509
       Total assets                   $                    $              
                                       203,471              208,576
LIABILITIES AND STOCKHOLDERS' EQUITY 
Current liabilities:
   Accounts payable                   $                    $                  
                                      10,737               11,125
   Accrued expenses                   16,214               17,911
   Deferred revenue                   6,746                6,525
       Total current liabilities      33,697               35,561
Deferred revenue, net of current      1,262                1,263
Other liabilities                     1,498                1,509
       Total liabilities              36,457               38,333
Commitments and contingencies
Total stockholders' equity            167,014              170,243
             Total liabilities and    $                    $              
             stockholders' equity      203,471              208,576

 

SOURCE LivePerson, Inc.

Website: http://www.liveperson.com
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