NEW YORK, Feb. 10, 2011 /PRNewswire/ -- LivePerson, Inc. (Nasdaq: LPSN), a leading provider of online engagement solutions that facilitate real-time assistance and expert advice, today announced financial results for the fourth quarter and full year ended December 31, 2010.
(Logo: http://photos.prnewswire.com/prnh/20110105/NY24753LOGO-a)
Revenue
Revenue for the fourth quarter was $29.9 million, a 21% increase from the fourth quarter of 2009, and a 6% sequential increase as compared to the third quarter of 2010. Revenue from business operations for the fourth quarter was $26.2 million, a 23% increase as compared to the fourth quarter of 2009 and a 7% increase as compared to the third quarter of 2010. Revenue from consumer operations for the fourth quarter was $3.7 million, a 9% increase as compared to the fourth quarter of 2009, and a 3% increase as compared to the third quarter of 2010.
Revenue for the full year was $109.9 million, a 26% increase from $87.5 million in 2009. Revenue from business operations for the full year was $95.7 million, a 27% increase from $75.5 million in 2009. Revenue from consumer operations for the full year was $14.2 million, a 19% increase from $11.9 million in 2009.
"The fourth quarter capped a very strong 2010 for LivePerson," said CEO Robert LoCascio. "We were able to exceed our original revenue guidance for the year by 4%, successfully launched our developer platform, and continued investing in new product initiatives and infrastructure, all while maintaining impressive operating margins."
Customer Expansion
LivePerson added 14 new enterprise clients in the quarter, including:
The company also expanded business with
Net Income
Net income for the fourth quarter of 2010 was $2.7 million or $0.05 per share as compared to $3.1 million or $0.06 per share in the fourth quarter of 2009, and net income of $2.8 million or $0.05 per share in the third quarter of 2010. Net income for the full year was $9.3 million or $0.18 per share, as compared to $7.8 million or $0.16 per share in the prior year.
Adjusted Net Income and EBITDA
LivePerson considers adjusted net income and earnings before other income/(expense), taxes, depreciation, amortization and stock-based compensation (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.
A reconciliation of the differences between 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.
The difference between EBITDA per share, a non-GAAP measure, and GAAP EPS, is interest, 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.
Adjusted net income for the fourth quarter of 2010 was $4.6 million or $0.09 per share, as compared to $4.7 million or $0.09 per share in the fourth quarter of 2009, and $4.6 million or $0.09 per share in the third quarter of 2010. Adjusted net income for the full year was $15.9 million or $0.30 per share, as compared to $14.5 million or $0.30 per share in the prior year.
EBITDA for the fourth quarter of 2010 was $7.9 million or $0.15 per share, as compared to $7.1 million or $0.14 per share in the fourth quarter of 2009, and $7.5 million or $0.14 per share in the third quarter of 2010. EBITDA for the full year 2010 was $26.8 million or $0.51 per share, as compared to $22.8 million or $0.47 per share in the prior year.
Cash
The company's cash balance was $61.3 million at December 31, 2010 as compared to $50.4 million as of September 30, 2010, and $45.6 million at December 31, 2009. The company generated $7.9 million of cash from operations in the fourth quarter. Also during the fourth quarter, the company incurred planned capital expenditures related primarily to the purchase of servers and computer networking equipment, resulting in a cash outlay of approximately $2.0 million.
For the full year, the company generated $15.5 million of cash from operations, and incurred planned capital expenditures related primarily to the purchase of servers and computer networking equipment, resulting in a cash outlay of approximately $8.0 million.
Board of Directors Transition
In addition, the company announced today that Emmanuel Gill will retire from LivePerson's Board of Directors after nearly 10 years of dedicated service, effective as of February 11, 2011. "We are extremely grateful for Emmanuel's many years of contribution and service to the company, having been with us through nearly a decade of extraordinary change and growth," said Mr. LoCascio. Mr. Gill indicated that he is very proud of the company's growth and achievements to date, and is leaving for personal reasons in the interest of dedicating more of his time to other businesses. The company intends to fill Mr. Gill's board seat, and has commenced a search for a replacement. Longstanding director William Wesemann has been appointed by the Board to replace Mr. Gill on the company's Audit Committee, effective as of Mr. Gill's departure.
Financial Expectations
Following is the company's current expectation for financial and operating performance:
First Quarter 2011
Full Year 2011
Other Full Year 2011 Assumptions
Stock-Based Compensation
Included in the accompanying financial results are expenses related to stock-based compensation, as follows (in thousands):
Q4 2010 | Q4 2009 | FY 2010 | FY 2009 | ||
Cost of revenue | $211 | $211 | $865 | $790 | |
Product development | 307 | 372 | 1,329 | 1,402 | |
Sales and marketing | 401 | 376 | 1,371 | 1,337 | |
General and administrative | 620 | 276 | 1,577 | 1,197 | |
Total | $1,539 | $1,235 | $5,142 | $4,726 | |
Amortization of Intangible Assets
Included in the accompanying financial results are expenses related to the amortization of intangible assets, as follows (in thousands):
Q4 2010 | Q4 2009 | FY 2010 | FY 2009 | ||
Cost of revenue | $307 | 307 | $1,226 | $1,228 | |
General and administrative | 11 | 83 | 260 | 745 | |
Total | $318 | $390 | $1,486 | $1,973 | |
Earnings Teleconference and Video Discussion Information
The company will discuss its fourth quarter and full year 2010 financial results during a teleconference today, February 10, 2011, at 5:00 p.m. ET. To participate, please call 877-507-3684 before 5:00 p.m. ET. International callers, please dial 706-634-9559. Please reference the conference ID "40530761."
If you are unable to participate, the teleconference will be available for replay at 6:00 p.m. ET on February 10, 2011 until May 10, 2011. To access the replay, please call 800-642-1687 (U.S. and Canada) or 706-645-9291 (international). Please reference the conference ID "40530761."
The company will also post a video discussion of its fourth quarter 2010 results on YouTube. To view, click on the following link: http://www.youtube.com/user/myliveperson.
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, | |||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||
Revenue | $ 29,935 | $ 24,768 | $ 109,862 | $ 87,490 | ||||||||
Operating expenses: | ||||||||||||
Cost of revenue | 8,235 | 6,068 | 29,640 | 21,076 | ||||||||
Product development | 4,257 | 3,163 | 15,711 | 12,111 | ||||||||
Sales and marketing | 8,404 | 7,408 | 32,835 | 27,355 | ||||||||
General and administrative | 4,931 | 3,427 | 17,077 | 13,417 | ||||||||
Amortization of intangibles | 11 | 83 | 259 | 745 | ||||||||
Total operating expenses | 25,838 | 20,149 | 95,522 | 74,704 | ||||||||
Income from operations | 4,097 | 4,619 | 14,340 | 12,786 | ||||||||
Other income (expense), net | (43) | (35) | (7) | 14 | ||||||||
Income before provision for income taxes | 4,054 | 4,584 | 14,333 | 12,800 | ||||||||
Provision for income taxes | 1,312 | 1,493 | 5,074 | 5,037 | ||||||||
Net income | $ 2,742 | $ 3,091 | $ 9,259 | $ 7,763 | ||||||||
Basic net income per common share | $ 0.05 | $ 0.06 | $ 0.18 | $ 0.16 | ||||||||
Diluted net income per common share | $ 0.05 | $ 0.06 | $ 0.18 | $ 0.16 | ||||||||
Weighted average shares outstanding used in basic net income per common share calculation | 51,133,917 | 48,786,986 | 50,721,880 | 47,962,688 | ||||||||
Weighted average shares outstanding used in diluted net income per common share calculation | 53,831,339 | 51,065,181 | 52,907,541 | 49,008,440 | ||||||||
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, | |||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||
Net income in accordance with generally | ||||||||||||
accepted accounting principles | $ 2,742 | $ 3,091 | $ 9,259 | $ 7,763 | ||||||||
Add/(less): | ||||||||||||
(a) | Amortization of intangibles | 318 | 390 | 1,486 | 1,973 | |||||||
(b) | Stock-based compensation | 1,539 | 1,235 | 5,142 | 4,726 | |||||||
(c) | Depreciation | 1,903 | 899 | 5,791 | 3,347 | |||||||
(d) | Provision for income taxes | 1,312 | 1,493 | 5,074 | 5,037 | |||||||
(e) | Other (income) expense, net | 43 | 35 | 7 | (14) | |||||||
EBITDA (1) | $ 7,857 | $ 7,143 | $ 26,759 | $ 22,832 | ||||||||
Diluted EBITDA per common share | $ 0.15 | $ 0.14 | $ 0.51 | $ 0.47 | ||||||||
Weighted average shares used in diluted EBITDA | ||||||||||||
per common share | 53,831,339 | 51,065,181 | 52,907,541 | 49,008,440 | ||||||||
Net income in accordance with generally | ||||||||||||
accepted accounting principles | $ 2,742 | $ 3,091 | $ 9,259 | $ 7,763 | ||||||||
Add: | ||||||||||||
(a) | Amortization of intangibles | 318 | 390 | 1,486 | 1,973 | |||||||
(b) | Stock-based compensation | 1,539 | 1,235 | 5,142 | 4,726 | |||||||
Adjusted net income | $ 4,599 | $ 4,716 | $ 15,887 | $ 14,462 | ||||||||
Diluted adjusted net income per common share | $ 0.09 | $ 0.09 | $ 0.30 | $ 0.30 | ||||||||
Weighted average shares used in diluted adjusted net income per common share | 53,831,339 | 51,065,181 | 52,907,541 | 49,008,440 | ||||||||
EBITDA | $ 7,857 | $ 7,143 | $ 26,759 | $ 22,832 | ||||||||
Add/(less): | ||||||||||||
(a) | Changes in operating assets and liabilities | 585 | 308 | (7,127) | 293 | |||||||
(b) | Provision for doubtful accounts | 101 | 25 | 166 | 55 | |||||||
(c) | Provision for income taxes | (1,312) | (1,493) | (5,074) | (5,037) | |||||||
(d) | Deferred income taxes | 694 | 2,229 | 832 | 2,865 | |||||||
(e) | Other income (expense), net | (43) | (35) | (7) | 14 | |||||||
Net cash provided by operating activities | $ 7,882 | $ 8,177 | $ 15,549 | $ 21,022 | ||||||||
(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, 2010 | December 31, 2009 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 61,336 | $ 45,572 | ||||
Accounts receivable, net | 16,491 | 10,265 | ||||
Prepaid expenses and other current assets | 6,341 | 3,661 | ||||
Deferred tax assets, net | 1,529 | 1,460 | ||||
Total current assets | 85,697 | 60,958 | ||||
Property and equipment, net | 12,762 | 9,551 | ||||
Intangibles, net | 2,124 | 2,821 | ||||
Goodwill | 24,015 | 23,920 | ||||
Deferred tax assets, net | 3,876 | 4,777 | ||||
Deferred implementation costs, net of current | 164 | 136 | ||||
Security deposits | 499 | 326 | ||||
Other assets | 2,006 | 1,792 | ||||
Total assets | $ 131,143 | $ 104,281 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ 6,416 | $ 5,375 | ||||
Accrued expenses | 12,111 | 10,895 | ||||
Deferred revenue | 5,570 | 4,692 | ||||
Total current liabilities | 24,097 | 20,962 | ||||
Deferred revenue, net of current | 513 | 506 | ||||
Other liabilities | 1,890 | 1,676 | ||||
Total liabilities | 26,500 | 23,144 | ||||
Commitments and contingencies | ||||||
Total stockholders' equity | 104,643 | 81,137 | ||||
Total liabilities and stockholders' equity | $ 131,143 | $ 104,281 | ||||
About LivePerson
LivePerson is a leading provider of online engagement solutions that facilitate real-time assistance and expert advice. Connecting businesses and experts with consumers seeking help on the Web, LivePerson's hosted software platform creates more relevant, compelling and personalized online experiences. Every month, LivePerson's intelligent platform helps millions of people succeed online; more than 8,500 companies, including Cisco, Hewlett-Packard, IBM, Microsoft and Verizon, rely on LivePerson to maximize the impact of the online channel. LivePerson is headquartered in New York City.
Non-GAAP Financial Disclosure
Investors are cautioned that the EBITDA, or earnings/(loss) before other income/(expense), taxes, depreciation, amortization and stock-based compensation, and adjusted net income, or net income excluding amortization of intangible assets and stock-based compensation, information contained in this press release are not financial measures under generally accepted accounting principles. In addition, 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 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; the adverse effect that the global recession may have on our business; competition in the real-time sales, marketing, customer service and online engagement solutions market; risks related to the operational integration of acquisitions; risks related to new regulatory or other legal requirements that could materially impact our business; risks related to our international operations, particularly our operations in Israel, and the civil and political unrest in that region; 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 New Israeli Shekel, U.K. pound and Euro; continued use by our clients of the LivePerson services and their purchase of additional services; responding to rapid technological change and changing client preferences; 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; risks related to the regulation or possible misappropriation of personal information; legal liability and/or negative publicity for the services provided to consumers via our technology platforms; and risks related to protecting our intellectual property rights or potential infringement of the intellectual property rights of third parties. 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.
SOURCE LivePerson, Inc.
Mike Tague
mtague@liveperson.com