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NEW YORK, NY - February 6, 2002 - LivePerson, Inc. (NASDAQ: LPSN), a leading Application Service Provider (ASP) of technology facilitating real-time sales and customer service for companies doing business on the Internet, today announced financial results for the quarter and year ended December 31, 2001.
Revenue for the three months ended December 31, 2001 was $1.8 million, a slight increase from $1.7 million in the quarter ended September 30, 2001, and down 23% from $2.3 million in the corresponding period of 2000. Revenue for the twelve months ended December 31, 2001 was $7.8 million, a 24% increase from $6.3 million in the prior year.
Historical net loss for the three months ended December 31, 2001 was $(1.2) million, as compared to $(13.7) million for the three months ended September 30, 2001, and $(8.4) million in the corresponding quarter of 2000. Historical net loss for the twelve months ended December 31, 2001 was $(27.3) million, as compared to $(61.3) million in the prior year.
Historical basic and diluted net loss per common share for the three months ended December 31, 2001 was $(0.03) per share, representing a 92% improvement as compared to $(0.40) per share for the three months ended September 30, 2001, and an 88% improvement as compared to $(0.25) per share for the corresponding quarter in 2000. Historical basic and diluted net loss per common share for the twelve months ended December 31, 2001 was $(0.80) per share, as compared to $(2.50) per share for the prior year.
Commenting on the results for the fourth quarter, Chief Executive Officer Robert LoCascio stated, "We continue to be pleased with the Company's consistent operating progress. We achieved a gross margin in the fourth quarter of better than 80%. We achieved cash breakeven results for the month of December and we expect that trend to continue for the full first quarter of 2002. We also reduced our fourth quarter pro forma loss to $(0.01) per share, or $0.03 per share better than our previous guidance. We're very pleased that we've been successfully able to strengthen our financial foundation while improving our margins."
Pro forma net loss for the three months ended December 31, 2001, excluding non-cash compensation and amortization of goodwill, was $(0.3) million, as compared to $(3.2) million for the three months ended September 30, 2001, and $(7.5) million in the corresponding quarter of 2000. Pro forma net loss for the twelve months ended December 31, 2001, excluding non-cash compensation, amortization of goodwill and restructuring charges, was $(12.6) million, as compared to $(29.5) million in the prior year. No restructuring charges were incurred in the fourth quarter of 2001.
Pro forma basic and diluted net loss per share for the three months ended December 31, 2001, excluding non-cash compensation and amortization of goodwill, was $(0.01) per share, representing an 89% improvement as compared to $(0.09) per share for the quarter ended September 30, 2001, and a 95% improvement as compared to $(0.22) per share for the corresponding period in 2000.
Pro forma basic and diluted net loss per share for the twelve months ended December 31, 2001, excluding non-cash compensation, amortization of goodwill and restructuring charges, was $(0.37), as compared to $(1.02) per share in the prior year.
President and Chief Financial Officer Tim Bixby stated, "In a grueling IT spending environment, we've reduced both our pro forma and historical net loss per share by roughly 90% versus the prior three months, and generated solid gross margins by dramatically reducing our cost of revenues. We have solidified our balance sheet and have no debt, positioning us well to benefit as the economy recovers."
LivePerson, Inc.
Condensed Consolidated Statements of Operations
(In Thousands, Except Share and Per Share Data)
Three Months Ended Year Ended
December 31, December 31,
(Unaudited)
2001 2000 2001 2000
Total revenues $1,789 $2,330 $7,806 $6,279
Operating expenses:
Cost of revenues 328 2,443 6,740 7,888
Product development 509 2,079 3,509 8,209
Sales and marketing 662 4,089 5,089 14,529
General and
administrative 662 1,670 5,694 6,994
Amortization of goodwill
and other intangibles 745 619 2,975 619
Non-cash compensation,
net of reversals 108 256 677 13,245
Non-cash compensation
credit related to
restructuring, net - - (1,720) -
Restructuring charges - - 12,740 -
Total operating
expenses 3,014 11,156 35,704 51,484
Loss from operations (1,225) (8,826) (27,898) (45,205)
Other income, net 58 459 637 1,871
Net loss (1,167) (8,367) (27,261) (43,334)
Non-cash preferred stock
dividend - - - 18,000
Net loss attributable to
common stockholders $(1,167) $(8,367) $(27,261) $(61,334)
Basic and diluted net loss
per common share $(0.03) $(0.25) $(0.80) $(2.50)
Weighted average shares
outstanding used in basic
and diluted
net loss per common
share calculation 34,003,610 33,441,094 33,987,895 24,535,078
Unaudited Supplemental Data
The following pro forma net loss information is not a financial measure
under generally accepted accounting principles. In addition, it should not
be construed as an alternative to any other measures of performance
determined in accordance with generally accepted accounting principles, 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
pro forma financial information because we believe that it is helpful to
some investors as one measure of our operations. We caution investors that
pro forma 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.
Revenues $1,789 $2,330 $7,806 $6,279
Cost of revenues 328 2,443 6,740 7,888
Gross Profit $1,461 $(113) $1,066 $(1,609)
Gross Margin 82% -5% 14% -26%
Net loss attributable to
common stockholders in
accordance
with generally accepted
accounting principles $(1,167) $(8,367) $(27,261) $(61,334)
Less:
(i) Amortization of
goodwill and other
intangibles 745 619 2,975 619
(ii) Non-cash compensation,
net of reversals 108 256 677 13,245
(iii) Non-cash compensation
credit related to
restructuring, net - - (1,720) -
(iv) Restructuring charges - - 12,740 -
(v) Non-cash preferred
stock dividend - - - 18,000
Pro forma net loss $(314) $(7,492) $(12,589) $(29,470)
Pro forma basic and
diluted net loss per
share (a) $(0.01) $(0.22) $(0.37) $(1.02)
Pro forma weighted average
shares used in
basic and diluted net
loss per share (a) 34,003,610 33,441,094 33,987,895 28,971,195
(a) Pro forma weighted average shares outstanding for 2000 assumes the
conversion of convertible preferred stock into an equivalent number of
shares of common stock at the time of their original issuance.
LivePerson, Inc.
Condensed Consolidated Balance Sheets
(In Thousands, Except Share and Per Share Data)
December 31, 2001 December 31, 2000
ASSETS
Current assets:
Cash, cash equivalents and
marketable securities $10,136 $21,449
Accounts receivable, net 620 1,271
Prepaid expenses and other current
assets 389 747
Total current assets 11,145 23,467
Property and equipment, net 915 12,883
Goodwill and other intangibles, net 5,338 8,291
Restricted cash related to leases - 2,000
Security deposits 122 68
Other non-current assets 107 -
Deferred costs, net - 291
Total assets $17,627 $47,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $592 $1,126
Accrued expenses 2,204 1,446
Deferred revenue 560 615
Total current liabilities 3,356 3,187
Long-term deferred revenue - 277
Deferred rent - 304
Deferred gain on sale-leaseback - 457
Commitments and contingencies
Total stockholders' equity 14,271 42,775
Total liabilities and
stockholders' equity $17,627 $47,000
About LivePerson
LivePerson (http://www.liveperson.com/) is a leading Application Service Provider (ASP) of technology facilitating real-time sales and customer service for companies doing business on the Internet. The LivePerson service enables online businesses to communicate with Internet users in real time, thereby enhancing the online experience. With LivePerson Exchange, consisting of Chat, FAQ, Email and Document Management, LivePerson offers clients the opportunity to increase sales, reduce customer service costs and increase responsiveness to customer needs. LivePerson is headquartered in New York City, with R&D facilities in Tel Aviv, Israel.
Pro Forma Financial Disclosure:
Investors are cautioned that the pro forma net loss information contained in this press release is not a financial measure under generally accepted accounting principles. In addition, it should not be construed as an alternative to any other measures of performance determined in accordance with generally accepted accounting principles, 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 pro forma financial information because we believe that it is helpful to some investors as one measure of our operations. We caution investors that pro forma financial information, by its very 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.
Forward Looking Statements:
Statements in this press release regarding LivePerson, Inc. that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. 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 progresses, and therefore it should be clearly understood that the internal projections and beliefs upon which the Company bases its expectations may change prior to the end of the quarter. Although these expectations may change, we are under no obligation to inform you if they do. Our company policy is generally to provide our expectations only once per quarter, and not to update that information until the next quarter. Actual events or results may differ materially from those contained in the projections or forward-looking statements. The following factors, among others, could cause LivePerson's actual results to differ materially from those described in a forward-looking statement: our possible delisting from Nasdaq; the limited history of providing the LivePerson services; our limited historical annual revenue and history of losses; the possible unavailability of financing as and if needed; an unproven business model; our dependence on the success of the LivePerson chat service; continued use by our clients of the LivePerson services; potential fluctuations in our quarterly and annual results; risks related to adverse business conditions experienced by our clients; risks related to managing our expanding operations and staff attrition; integration of acquisitions, including the acquisition of HumanClick Ltd. and other potential acquisitions; our dependence on key employees; risks related to our international operations; competition both for qualified personnel and in the market for real-time sales and customer service technology; building awareness of the LivePerson brand name; technology systems beyond LivePerson's control and technology-related defects that could disrupt the LivePerson services; our dependence on the growth of the Internet as a medium for commerce and the viability of the infrastructure of the Internet; and responding to rapid technological change. 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 LivePerson 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.
Contact: Maria Gomez LivePerson, Inc. 212-609-4219 mgomez@liveperson.com
SOURCE: LivePerson, Inc.
CONTACT: Younjee Kim, +1-212-609-4222, ykim@liveperson.com
Website: http://www.liveperson.com/
Mike Tague
mtague@liveperson.com