-- Total Revenue of $95.5M, above the midpoint of our guidance range
--
-- Adjusted EBITDA above the midpoint of our
guidance range --
NEW
YORK, Feb. 28, 2024 /PRNewswire/
-- LivePerson, Inc. (NASDAQ: LPSN) ("LivePerson" the
"Company", "we" or "us"), the enterprise leader in digital customer
conversations, today announced financial results for the fourth
quarter ended December 31, 2023.
Fourth Quarter Highlights
Total revenue was $95.5 million
for the fourth quarter of 2023, above the midpoint of our prior
guidance and a decrease of 22.1% as compared to the same period
last year driven by our exit of lower-margin and non-core business
lines.
LivePerson signed 62 deals in total for the fourth quarter,
consisting of 16 new and 46 existing customer contracts, including
3 seven-figure deals. Trailing-twelve-months average revenue per
enterprise and mid-market customer increased 11.9% for the fourth
quarter to $610,000, up from
approximately $545,000 for the comparable prior-year period.
Beginning with the second quarter of 2022, in order to provide a
more consistent and meaningful measure of ARPC, we started
calculating this metric using only B2B Core recurring revenue,
which is consistent with the revenue base for calculating Net
Revenue Retention.
"This is a critical time in LivePerson's history, and I'm
honored to be leading the company through its transformation by
driving results through improved commercial and operational
execution," said CEO John Sabino.
"There is a multi-billion dollar market opportunity ahead of us as
we execute on our go-to-market strategy, lean into our product's
integration and orchestration capabilities, and strengthen our
capital structure. I am excited to share that these operational
initiatives are already underway, and I am confident they will
place LivePerson on a path to profitable growth."
"I'm excited to partner with John on the path ahead and I share
the board's confidence in his leadership," said CFO and COO
John Collins. "The rapid growth in
our market, coupled with repeated validation of our product by
customers, investors, and third party research, makes it clear that
LivePerson has a compelling growth opportunity following the
rebuild of its sales and customer success motion."
Customer Expansion
During the fourth quarter, the Company signed 62 total deals for
the quarter, including 3 seven-figure deals, 46 expansion &
renewals and 16 new logo deals. New logo deals included:
- A globally recognized designer;
- A major telecom services provider in Southeast Asia, through a partnership;
and
- A leading personal loan provider, through a partnership.
The Company also expanded/renewed business with:
- Several financial services companies including one of the
world's largest banks, a large U.K. financial services provider, a
growing U.S. credit card issuer, a major U.S. credit union, and a
large Australian retail bank; as well as
- A leading U.K. connectivity provider;
- A large U.S. luxury jewelry company; and
- A leading technology company.
Net Loss and Adjusted Operating Loss
Net loss for the fourth quarter of 2023 was $40.5 million or $0.48 per share, as compared to a net loss
of $41.7 million or $0.55 per
share for the fourth quarter of 2022. Adjusted operating
loss, a non-GAAP financial metric, for the fourth quarter of 2023
was $4.0 million, as compared to a $16.1 million adjusted operating loss for the
fourth quarter of 2022. Adjusted operating loss excludes
amortization of purchased intangibles and finance leases,
stock-based compensation expense, other litigation, consulting and
other employee costs, restructuring costs, impairment of goodwill,
impairment of intangibles and other assets, gain on divestiture,
leadership transition costs, contingent earn-out adjustments, IT
transformation costs, acquisition and divestiture costs, interest
(income) expense, and other (income) expense.
Adjusted EBITDA
Adjusted EBITDA, a non-GAAP financial measure, for the fourth
quarter of 2023 was $3.7 million as
compared to an adjusted EBITDA loss of $5.2 million for the fourth 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, impairment of goodwill, impairment of
intangibles and other assets, leadership transition costs, IT
transformation costs, gain on divestiture, contingent earn-out
adjustments, provision for income taxes, acquisition and
divestiture costs, interest (income) expense, and other (income)
expense.
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 $210.8 million at December 31, 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, impairment of goodwill, impairment of intangibles and other
assets, leadership transition costs, gain on divestiture,
contingent earn-out adjustments, provision for income taxes, IT
transformation costs, acquisition and divestiture costs, interest
(income) expense, and other (income) expense, 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.
For the full year 2024, we expect total revenue to range from
$300M - $315M or (24)% to (20)% year over year (excluding
$7.2M of Kasamba revenue generated in
Q1 2023). In addition, we expect B2B Core recurring revenue to
represent 92% of total revenue. For the full year 2024, we expect
adjusted EBITDA to range from $15M to
$26M, or a margin of 5.0% to
8.3%.
For the first quarter, we expect total revenue to range from
$79M - $83M or (21)% to (17)% year over year (excluding
$7.2M of Kasamba revenue generated in
Q1 2023). We expect B2B Core recurring revenue to
represent 92% of total revenue. For the first quarter,
we expect adjusted EBITDA to range from $(2) to $2M, or a
margin of (2.5)% to 2.4%.
For the tables below, year-over-year growth rates are on a
like-for-like basis (excluding $7.2M
of Kasamba contribution from Q1 2023).
First Quarter
2024
|
|
|
|
|
Guidance
|
Revenue (in
millions)
|
$79 - $83
|
Revenue growth
(year-over-year)
|
(21)% -
(17)%
|
Adjusted EBITDA (in
millions)
|
$(2) - $2
|
Adjusted EBITDA margin
(%)
|
(2.5)% -
2.4%
|
|
|
|
|
Full Year
2024
|
|
|
|
|
Guidance
|
Revenue (in
millions)
|
$300 - $315
|
Revenue growth
(year-over-year)
|
(24)% -
(20)%
|
Adjusted EBITDA (in
millions)
|
$15 - $26
|
Adjusted EBITDA margin
(%)
|
5.0% - 8.3%
|
Disaggregated Revenue
Included in the accompanying financial results are revenues
disaggregated by revenue source, as follows:
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Revenue:
|
|
|
|
|
|
|
|
Hosted
services (1)
|
$
78,600
|
|
$
94,085
|
|
$
332,971
|
|
$
412,467
|
Professional
services
|
16,868
|
|
28,392
|
|
69,012
|
|
102,333
|
Total
revenue
|
$
95,468
|
|
$
122,477
|
|
$
401,983
|
|
$ 514,800
|
|
|
(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 $7.1 million
for the year ended December 31, 2023 and $9.4 million
and $37.1 million for the three and twelve months
ended December 31, 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
December
31,
|
|
Year
Ended
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Cost of
revenue
|
$
577
|
|
$
777
|
|
$
1,456
|
|
$
9,933
|
Sales and
marketing
|
2,925
|
|
963
|
|
10,354
|
|
19,575
|
General and
administrative
|
364
|
|
4,987
|
|
(5,706)
|
|
40,690
|
Product
development
|
3,508
|
|
2,588
|
|
5,750
|
|
39,440
|
Total
|
$
7,374
|
|
$
9,315
|
|
$
11,854
|
|
$
109,638
|
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
December
31,
|
|
Year
Ended
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Cost of
revenue
|
$
4,966
|
|
$
4,646
|
|
$
18,691
|
|
$
18,434
|
Amortization of
purchased intangibles
|
861
|
|
936
|
|
3,505
|
|
3,678
|
Total
|
$
5,827
|
|
$
5,582
|
|
$
22,196
|
|
$
22,112
|
Supplemental Fourth Quarter 2023 Presentation
LivePerson will post a presentation providing supplemental
information for the fourth 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 fourth quarter of 2023 financial
results during a teleconference today, February 28, 2024, 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
"13743243."
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
"13743243." 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 enterprise leader in
digital customer conversations. 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 AI-powered
solutions to accelerate contact center transformation, supercharge
agent productivity, and deliver more personalized customer
experiences. 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 and on our earnings call are "non-GAAP
financial measures": (i) adjusted EBITDA, or loss before
provision for income taxes, interest (income) expense, other
(income) expense, depreciation, amortization of purchased
intangibles and finance leases, stock-based compensation expense,
contingent earn-out adjustments, restructuring costs, impairment of
goodwill, impairment of intangibles and other assets, leadership
transition costs, IT transformation costs, gain on divestiture,
acquisition and divestiture costs and other litigation, consulting
and other employee costs; (ii) adjusted EBITDA margin, or loss
before provision for income taxes, interest (income) expense, other
(income) expense, depreciation, amortization of purchased
intangibles and finance leases, stock-based compensation expense,
contingent earn-out adjustments, restructuring costs, impairment of
goodwill, impairment of intangibles and other assets, leadership
transition costs, IT transformation costs, gain on divestiture,
acquisition and divestiture costs and other litigation, consulting
and other employee costs divided by revenue; (iii) adjusted
operating loss, or operating loss excluding interest (income)
expense, other (income) expense, amortization of purchased
intangibles and finance leases, stock-based compensation expense,
contingent earn-out adjustments, restructuring costs, impairment of
goodwill, impairment of intangibles and other assets, leadership
transition costs, IT transformation costs, gain on divestiture,
acquisition and divestiture costs, 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: strain on our personnel resources and infrastructure
from supporting our customer base; our ability to retain existing
customers and cause them to purchase additional services and to
attract new customers; our ability to retain key personnel, attract
new personnel and to manage staff attrition; our ability to
successfully integrate past or potential future acquisitions; our
ability to refinance our substantial indebtedness before it becomes
due or to secure necessary additional financing on commercially
reasonable terms, or at all; lengthy sales cycles; delays in our
implementation cycles; payment-related risks; potential
fluctuations in our quarterly revenue and operating results;
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 data protection and AI and increased
public scrutiny of privacy,security and AI issues that could result
in increased government regulation and other legal obligations;
ongoing litigation and legal matters; 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 or by our vendors; 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; and risks related to our
common stock being traded on more than one securities exchange.
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.
Consolidated
Statements of Operations
(In Thousands, Except
Share and Per Share Data)
Unaudited
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
$
95,468
|
|
$
122,477
|
|
$ 401,983
|
|
$
514,800
|
|
|
|
|
|
|
|
|
Costs, expenses and
other:
|
|
|
|
|
|
|
|
Cost of
revenue
|
39,818
|
|
46,402
|
|
142,823
|
|
184,699
|
Sales and
marketing
|
32,365
|
|
46,464
|
|
125,677
|
|
214,027
|
General and
administrative
|
21,554
|
|
28,473
|
|
91,619
|
|
120,625
|
Product
development
|
29,859
|
|
37,120
|
|
124,792
|
|
193,688
|
Impairment of
goodwill
|
—
|
|
—
|
|
11,895
|
|
—
|
Impairment of
intangibles and other assets
|
5,015
|
|
—
|
|
7,974
|
|
—
|
Restructuring
costs
|
6,665
|
|
2,018
|
|
22,664
|
|
19,967
|
Gain on
divestiture
|
—
|
|
—
|
|
(17,591)
|
|
—
|
Amortization of
purchased intangible assets
|
861
|
|
936
|
|
3,505
|
|
3,678
|
Total costs, expenses
and other
|
136,137
|
|
161,413
|
|
513,358
|
|
736,684
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(40,669)
|
|
(38,936)
|
|
(111,375)
|
|
(221,884)
|
|
|
|
|
|
|
|
|
Other income (expense),
net:
|
|
|
|
|
|
|
|
Interest income
(expense), net
|
1,664
|
|
1,361
|
|
4,669
|
|
(352)
|
Other income (expense),
net
|
1,043
|
|
(3,692)
|
|
10,434
|
|
(1,784)
|
Total other income
(expense), net
|
2,707
|
|
(2,331)
|
|
15,103
|
|
(2,136)
|
|
|
|
|
|
|
|
|
Loss before provision
for income taxes
|
(37,962)
|
|
(41,267)
|
|
(96,272)
|
|
(224,020)
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
2,563
|
|
457
|
|
4,163
|
|
1,727
|
|
|
|
|
|
|
|
|
Net loss
|
$
(40,525)
|
|
$
(41,724)
|
|
$
(100,435)
|
|
$ (225,747)
|
|
|
|
|
|
|
|
|
Net loss per share of
common stock:
|
|
|
|
|
|
|
|
Basic
|
$
(0.48)
|
|
$
(0.55)
|
|
$
(1.28)
|
|
$
(3.03)
|
Diluted
|
$
(0.48)
|
|
$
(0.55)
|
|
$
(1.28)
|
|
$
(3.03)
|
|
|
|
|
|
|
|
|
Weighted-average shares
used to compute net loss per share:
|
|
|
|
|
|
|
|
Basic
|
83,610,995
|
|
75,538,133
|
|
78,593,274
|
|
74,509,404
|
Diluted
|
83,610,995
|
|
75,538,133
|
|
78,593,274
|
|
74,509,404
|
LivePerson,
Inc.
Consolidated
Statements of Cash Flows
(In
Thousands)
Unaudited
|
|
|
Year Ended December 31,
|
|
2023
|
|
2022
|
OPERATING
ACTIVITIES:
|
|
|
|
Net loss
|
$ (100,435)
|
|
$ (225,747)
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
Stock-based
compensation expense
|
11,854
|
|
109,638
|
Depreciation
|
32,557
|
|
32,284
|
Amortization of
purchased intangible assets and finance leases
|
22,196
|
|
22,112
|
Amortization of debt
issuance costs
|
4,043
|
|
3,778
|
Accretion of debt
discount on convertible senior notes
|
—
|
|
—
|
Impairment of
goodwill
|
11,895
|
|
—
|
Impairment of
intangible and other assets
|
7,974
|
|
—
|
Change in fair value
of contingent consideration
|
4,629
|
|
(8,516)
|
Gain on repurchase of
convertible notes
|
(7,200)
|
|
—
|
Allowance for credit
losses
|
3,319
|
|
5,644
|
Gain on
divestiture
|
(17,591)
|
|
—
|
Gain on settlement of
leases
|
—
|
|
(242)
|
Deferred income
taxes
|
1,046
|
|
(1,161)
|
Equity loss in joint
venture
|
2,264
|
|
—
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
Accounts
receivable
|
1,457
|
|
(38)
|
Prepaid expenses and
other current assets
|
(3,411)
|
|
(5,979)
|
Contract acquisition
costs
|
4,992
|
|
(6,370)
|
Other
assets
|
1,361
|
|
(153)
|
Accounts
payable
|
(13,570)
|
|
12,050
|
Accrued expenses and
other current liabilities
|
24,343
|
|
7,485
|
Deferred
revenue
|
(3,169)
|
|
(12,341)
|
Operating lease
liabilities
|
(523)
|
|
(2,638)
|
Other
liabilities
|
(7,796)
|
|
8,093
|
Net cash used in
operating activities
|
(19,765)
|
|
(62,101)
|
INVESTING
ACTIVITIES:
|
|
|
|
Purchases of property
and equipment, including capitalized software
|
(28,657)
|
|
(48,486)
|
Proceeds from
divestiture
|
13,819
|
|
—
|
Payments for
acquisitions, net of cash acquired
|
—
|
|
(3,430)
|
Purchases of
intangible assets
|
(4,004)
|
|
(2,680)
|
Investment in joint
venture
|
—
|
|
(2,264)
|
Net cash used in
investing activities
|
(18,842)
|
|
(56,860)
|
FINANCING
ACTIVITIES:
|
|
|
|
Principal payments for
financing leases
|
(3,330)
|
|
(3,734)
|
Repurchase of common
stock
|
—
|
|
(221)
|
Proceeds from issuance
of common stock in connection with the exercise of options and
ESPP
|
1,890
|
|
5,573
|
Payment for repurchase
of convertible senior notes
|
(149,702)
|
|
—
|
Net cash (used in)
provided by financing activities
|
(151,142)
|
|
1,618
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
465
|
|
(3,980)
|
Net decrease in cash,
cash equivalents, and restricted cash
|
(189,284)
|
|
(121,323)
|
Cash classified within
current assets held for sale
|
10,011
|
|
(10,011)
|
Cash, cash equivalents,
and restricted cash - beginning of year
|
392,198
|
|
523,532
|
|
|
|
|
Cash, cash equivalents,
and restricted cash - end of year
|
$
212,925
|
|
$
392,198
|
LivePerson,
Inc.
Reconciliation of
Non-GAAP Financial Information to GAAP
(In
Thousands)
Unaudited
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of
Adjusted EBITDA (Loss):
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
(40,525)
|
|
$
(41,724)
|
|
$
(100,435)
|
|
$ (225,747)
|
Add/(less):
|
|
|
|
|
|
|
|
Depreciation
|
7,705
|
|
10,870
|
|
32,557
|
|
32,284
|
Other litigation,
consulting and other employee costs (1)
|
5,553
|
|
4,569
|
|
32,266
|
|
17,212
|
Restructuring costs
(2)
|
6,665
|
|
2,018
|
|
22,664
|
|
19,967
|
Amortization of
purchased intangibles and finance leases
|
5,827
|
|
5,582
|
|
22,196
|
|
22,112
|
Impairment of
goodwill
|
—
|
|
—
|
|
11,895
|
|
—
|
Stock-based
compensation expense (3)
|
8,525
|
|
9,315
|
|
10,187
|
|
109,638
|
Leadership transition
costs
|
1,418
|
|
—
|
|
8,384
|
|
—
|
Impairment of
intangibles and other assets
|
5,015
|
|
—
|
|
7,974
|
|
—
|
Contingent earn-out
adjustments
|
(812)
|
|
52
|
|
4,629
|
|
(8,516)
|
Provision for income
taxes
|
2,563
|
|
457
|
|
4,163
|
|
1,727
|
IT transformation
costs (4)
|
3,576
|
|
—
|
|
3,576
|
|
—
|
Acquisition and
divestiture costs
|
96
|
|
1,368
|
|
3,131
|
|
4,492
|
Interest (income)
expense, net
|
(1,664)
|
|
(1,361)
|
|
(4,669)
|
|
352
|
Gain on
divestiture
|
—
|
|
—
|
|
(17,591)
|
|
—
|
Other (income)
expense, net (5)
|
(231)
|
|
3,640
|
|
(15,063)
|
|
10,300
|
Adjusted EBITDA
(loss)
|
$
3,711
|
|
$
(5,214)
|
|
$
25,864
|
|
$
(16,179)
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Operating Loss
|
|
|
|
|
|
|
|
Loss before provision
for income taxes
|
(37,962)
|
|
(41,267)
|
|
(96,272)
|
|
(224,020)
|
Add/(less):
|
|
|
|
|
|
|
|
Other
litigation, consulting and other employee costs
(1)
|
5,553
|
|
4,569
|
|
32,266
|
|
17,212
|
Restructuring
costs (2)
|
6,665
|
|
2,018
|
|
22,664
|
|
19,967
|
Amortization of
purchased intangibles and finance leases
|
5,827
|
|
5,582
|
|
22,196
|
|
22,112
|
Impairment of
goodwill
|
—
|
|
—
|
|
11,895
|
|
—
|
Stock-based
compensation expense (3)
|
8,525
|
|
9,315
|
|
10,187
|
|
109,638
|
Leadership
transition costs
|
1,418
|
|
—
|
|
8,384
|
|
—
|
Impairment of
intangibles and other assets
|
5,015
|
|
—
|
|
7,974
|
|
—
|
Contingent
earn-out adjustments
|
(812)
|
|
52
|
|
4,629
|
|
(8,516)
|
IT
transformation costs (4)
|
3,576
|
|
—
|
|
3,576
|
|
—
|
Acquisition and
divestiture costs
|
96
|
|
1,368
|
|
3,131
|
|
4,492
|
Interest
(income) expense, net
|
(1,664)
|
|
(1,361)
|
|
(4,669)
|
|
352
|
Gain on
divestiture
|
—
|
|
—
|
|
(17,591)
|
|
—
|
Other (income)
expense, net (5)
|
(231)
|
|
3,640
|
|
(15,063)
|
|
10,300
|
Adjusted operating
loss
|
$
(3,994)
|
|
$
(16,084)
|
|
$
(6,693)
|
|
$
(48,463)
|
|
|
|
|
|
|
|
|
(1)
|
Includes litigation
costs of $4.4 million and consulting fees and related costs of $1.2
million for the three months ended December 31, 2023. Includes
litigation costs of $3.6 million, employee benefit costs of $0.5
million and consulting costs of $0.5 million for the three months
ended December 31, 2022. Includes litigation costs of $28.0
million, consulting fees and related costs of $4.4 million, offset
by sales tax liability reversals of $0.1 million for the year ended
December 31, 2023. Includes litigation costs of $11.0 million,
employee benefit costs of $1.6 million, consulting fees and related
costs of $2.2 million, employee-related costs of $2.1 million and
reserve for sales and use tax liability of $0.3 million for the
year ended December 31, 2022.
|
(2)
|
Includes IT contract
termination cost of $5.7 million and severance costs and other
compensation related costs of $0.9 million for the three months
ended December 31, 2023. Includes severance costs and other
compensation related costs of $1.9 million and lease restructuring
costs of $0.1 million for the three months ended December 31, 2022.
Includes severance costs and other compensation related costs of
$16.9 million and IT contract termination costs of $5.7 million for
the year ended December 31, 2023. Includes severance costs and
other compensation related costs of $19.5 million and lease
restructuring costs of $0.4 million for the year ended December 31,
2022.
|
(3)
|
Excludes $1.7 million
of accelerated stock-based compensation for the three months ended
and year ended December 31, 2023 in connection with the CEO
departure, as these costs are presented in leadership transition
costs.
|
(4)
|
Includes IT
infrastructure realignment costs related to consolidating and
migrating data centers to the cloud. We expect these costs to
continue in 2024.
|
(5)
|
Includes $10.0 million
of other income related to a litigation settlement, a $7.2 million
gain related to convertible senior notes repurchases and losses
related to the Company's equity method investment during the year
ended December 31, 2023. The remaining amount of other (income)
expense, net fluctuation is attributable to currency rate
fluctuations for the three months and year ended December 31, 2023.
Includes $3.3 million of losses related to the Company's equity
method investment for the three months ended December 31, 2022.
Includes $0.2 million of other income related to the settlement of
leases, offset by $7.7 million of losses related to the Company's
equity method investment for the year ended December 31,
2022.
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Calculation of Free
Cash Flow:
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
$
4,537
|
|
$
17,370
|
|
$
(19,765)
|
|
$
(62,101)
|
Purchases of property
and equipment, including capitalized software
|
(6,220)
|
|
(13,274)
|
|
(28,657)
|
|
(48,486)
|
Total Free Cash
Flow
|
$
(1,683)
|
|
$
4,096
|
|
$
(48,422)
|
|
$ (110,587)
|
LivePerson,
Inc.
Consolidated
Balance Sheets
(In
Thousands)
Unaudited
|
|
|
December 31,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
210,782
|
|
$
391,781
|
Restricted
cash
|
2,143
|
|
417
|
Accounts receivable,
net
|
81,802
|
|
86,537
|
Prepaid expenses and
other current assets
|
26,981
|
|
23,747
|
Assets held for
sale
|
—
|
|
30,984
|
Total current
assets
|
321,708
|
|
533,466
|
|
|
|
|
Operating lease
right-of-use asset
|
4,135
|
|
1,604
|
Property and
equipment, net
|
119,325
|
|
126,499
|
Contract acquisition
costs
|
37,354
|
|
43,804
|
Intangible assets,
net
|
61,625
|
|
78,103
|
Goodwill
|
285,631
|
|
296,214
|
Deferred tax assets,
net
|
4,527
|
|
4,423
|
Investment in joint
venture
|
—
|
|
2,264
|
Other
assets
|
1,208
|
|
2,563
|
Total
assets
|
$
835,513
|
|
$
1,088,940
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts
payable
|
$
13,555
|
|
$
25,303
|
Accrued expenses and
other current liabilities
|
97,024
|
|
129,244
|
Deferred
revenue
|
81,858
|
|
84,494
|
Convertible senior
notes
|
72,393
|
|
—
|
Operating lease
liabilities
|
2,719
|
|
2,160
|
Liabilities associated
with assets held for sale
|
—
|
|
10,357
|
Total current
liabilities
|
267,549
|
|
251,558
|
|
|
|
|
Convertible senior
note, net of current portion
|
511,565
|
|
737,423
|
Operating lease
liabilities, net of current portion
|
2,173
|
|
682
|
Deferred tax
liabilities
|
2,930
|
|
2,550
|
Other
liabilities
|
3,158
|
|
28,639
|
Total
liabilities
|
787,375
|
|
1,020,852
|
Total stockholders'
equity
|
48,138
|
|
68,088
|
Total liabilities
and stockholders' equity
|
$
835,513
|
|
$
1,088,940
|
Investor Relations contact
ir-lp@liveperson.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/liveperson-announces-fourth-quarter-2023-financial-results-302074769.html
SOURCE LivePerson