NEW YORK, Nov. 1, 2017 /PRNewswire/ -- LivePerson,
Inc. (NASDAQ: LPSN), a leading provider of mobile and online
business messaging solutions, today announced financial results for
the third quarter ended September 30,
2017.
The company also announced that Chief Financial Officer
Dan Murphy will be leaving the
Company in early 2018 after more than six years of service. Mr.
Murphy will assist the Company in effecting an orderly
transition.
On Mr. Murphy's decision, Robert
LoCascio, LivePerson's CEO, stated, "Dan has played an
instrumental role in getting the Company to a new chapter of its
growth story on LiveEngage. During the past six years, he has
developed a globally scalable infrastructure and top-notch finance
organization, and is leaving us with a solid balance sheet upon
which to build our future. Dan will be working with me, our Board
and our finance team to facilitate an orderly transition, and will
assist us in identifying a successor. I want to thank Dan for all
of his contributions to LivePerson and wish him all the best on his
next journey."
"I want to share my appreciation for all the amazing
opportunities that LivePerson has presented these past six years,"
said Mr. Murphy. "As I look forward to new challenges, I am
confident that I am leaving LivePerson with a solid foundation for
continued success. LivePerson's transition to LiveEngage is
complete. We are growing, and we have established a leading
position in a greenfield market with enormous potential. This is
the perfect time to pass the baton to someone who will see the
Company through the next chapter, and I will be working alongside
Rob and the Board to ensure an orderly transition. I want to thank
Rob, all of our employees, our customers, our investors and our
analysts. This has been a tremendously rewarding experience."
Third Quarter Highlights
Total revenue in the third quarter of 2017 was $56.5 million, compared to the previously issued
guidance range of $54.0 million to $55.0
million. Within total revenue, business operations
(B2B) revenue for the third quarter of 2017 was $52.1 million and revenue from consumer
operations was $4.4 million.
LivePerson signed 76 deals in the quarter, which includes the
addition of 30 new customers. Trailing-twelve-months average
revenue per enterprise and mid-market customer increased to greater
than $215,000.
"We are excited to see LivePerson return to year-over-year
growth two quarters ahead of schedule," said CEO and founder
Rob LoCascio. "For the past several
quarters, we have been sharing healthy growth metrics around
LiveEngage, and highlighting messaging adoption in key industries
such as financial services, telecommunications and travel. It is
rewarding to now see those data points reflected in our reported
financial results. This is a significant milestone for LivePerson
that coincides with the completion of our transition to LiveEngage,
an industry leading platform that is transforming how brands engage
with consumers."
Customer Expansion
During the third quarter, the Company signed contracts with the
following new customers:
- One of the top three diversified insurance companies in the
U.S.
- A Fortune 100 multinational finance company
- A FTSE 100 fashion brand with approximately 500 global
locations
- A national provider of healthcare solutions
- A global luxury jewelry brand
The Company also expanded business with:
- A London headquartered
multinational telecommunications company
- Two of the top three banks in Australia
- One of the premier subscription music providers
- An Asian-based global consumer electronics manufacturer
- A local government agency in Ohio
Net Loss and Adjusted Net Income
Net loss for the third quarter of 2017 was $1.3 million or $0.02 per share, as compared to a net loss of
$5.9 million or $0.10 per share in the third quarter of 2016.
Adjusted net income for the third quarter of 2017 was $2.9 million or $0.05 per share, as compared to adjusted net
income of $1.2 million or
$0.02 per share in the third quarter
of 2016. Adjusted net income excludes amortization, stock-based
compensation, restructuring costs, acquisition costs, deferred tax
asset valuation allowance, other non-recurring charges and the
related income tax effect of these adjustments.
Net loss in the third quarter of 2017 included non-recurring
expenses of $1.6 million
($0.03 per share) primarily
associated with IP litigation. Net loss in the third quarter of
2016 included net non-recurring expenses of $0.5 million ($0.01
per share) primarily associated with IP litigation.
Adjusted EBITDA
Adjusted EBITDA for the third quarter of 2017 was $7.5 million or $0.13 per share, as compared to $4.6 million or $0.08 per share in the third quarter of 2016.
Adjusted EBITDA excludes provision for (benefit from) income taxes,
other (income)/expense, net, depreciation and amortization,
stock-based compensation, restructuring costs, acquisition costs
and other non-recurring charges.
A reconciliation of the 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 $55.8
million at September 30, 2017,
including $1.5 million of cash used
as collateral for foreign currency hedging instruments. During the
third quarter of 2017, the Company utilized approximately
$1.8 million of cash from operations,
and incurred capital expenditures of approximately $5.2 million.
Financial Expectations
The Company is raising revenue guidance for full-year 2017 to a
range of $217.5 million to $218.5
million as compared to previously issued guidance of
$213.0 million to $216.0 million.
The Company also expects a slightly higher than previously
guided GAAP net loss in 2017, primarily due to an increase in
forecasted GAAP taxes. Expectations for 2017 cash taxes paid of
$1 million to $3 million are
unchanged.
The Company's detailed financial expectations are as
follows:
Fourth Quarter 2017
|
Guidance
|
Revenue (in
millions)
|
$56.0 -
$57.0
|
GAAP net loss per
share
|
$(0.10) -
$(0.09)
|
Adjusted net income
per share
|
$0.00 -
$0.01
|
Diluted adjusted
EBITDA per share
|
$0.06 -
$0.07
|
Adjusted EBITDA (in
millions)
|
$3.5 -
$3.9
|
Fully diluted share
count
|
59.0
million
|
Full Year 2017
|
|
|
Updated
Guidance
|
|
Previous
Guidance
|
Revenue (in
millions)
|
|
|
$217.5 -
$218.5
|
|
$213.0 -
$216.0
|
GAAP net loss per
share
|
|
|
$(0.36) -
$(0.35)
|
|
$(0.34) -
$(0.28)
|
Diluted adjusted net
income per share
|
|
|
$0.07 -
$0.08
|
|
$0.07 -
$0.11
|
Diluted adjusted
EBITDA per share
|
|
|
$0.31 -
$0.32
|
|
$0.32 -
$0.37
|
Adjusted EBITDA (in
millions)
|
|
|
$18.0 -
$18.4
|
|
$18.0 -
$21.3
|
Fully diluted share
count
|
|
|
57.3
million
|
|
56.5
million
|
Other Full Year 2017 Assumptions
- Estimated non-recurring and restructuring charges of
$2.8 million to $3.0 million
($0.06 per share) tied to winding
down the Legacy offering and realigning around our LiveEngage
strategy
- Estimated non-recurring legal expense of approximately
$6.5 million ($0.14 per share) related to litigation
- Amortization of purchased intangibles of approximately
$4.7 million
- Stock-based compensation expense of approximately $8.5 million
- Depreciation of approximately $12.0
million
- Cash taxes paid of $1.0 million to $3.0
million. Adjusted net income tax rate of approximately
35%
- Capital expenditures of approximately $14.5 million
*Changes to Future and Historical Presentation of Non-GAAP
Financial Measures
Note that in 2017, the Company updated the methodology for
calculating adjusted net income. Whereas the Company previously
incorporated the GAAP tax rate into its calculation, the Company
now starts with GAAP pre-tax profit (loss), adds back
restructuring, non-recurring and non-cash expenses, and then
applies a standardized 35% tax rate.
The goal of the revised calculation is to limit the volatility
of GAAP tax rate fluctuations and to more closely align non-GAAP
taxes with cash taxes. A full reconciliation of 2016 adjusted net
income under the historical and updated methodologies is available
on the Supplemental Third Quarter Earnings Presentation that you
may find on the investor relations section of the Company's web
site at http://www.liveperson.com/company/ir.
Stock-Based Compensation
Included in the accompanying financial results are expenses
related to stock-based compensation, as follows (in thousands):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cost of
revenue
|
$
|
108
|
|
|
$
|
121
|
|
|
$
|
301
|
|
|
$
|
342
|
|
Sales and
marketing
|
576
|
|
|
502
|
|
|
1,984
|
|
|
1,936
|
|
General and
administrative
|
622
|
|
|
759
|
|
|
2,058
|
|
|
2,552
|
|
Product
development
|
537
|
|
|
873
|
|
|
1,760
|
|
|
2,770
|
|
Total
|
$
|
1,843
|
|
|
$
|
2,255
|
|
|
$
|
6,103
|
|
|
$
|
7,600
|
|
Amortization of Purchased Intangibles
Included in the accompanying financial results are expenses
related to the amortization of purchased intangibles, as follows
(in thousands):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cost of
revenue
|
$
|
639
|
|
|
$
|
697
|
|
|
$
|
2,556
|
|
|
$
|
2,091
|
|
Amortization of
purchased intangibles
|
470
|
|
|
1,013
|
|
|
1,412
|
|
|
2,954
|
|
Total
|
$
|
1,109
|
|
|
$
|
1,710
|
|
|
$
|
3,968
|
|
|
$
|
5,045
|
|
Supplemental Third Quarter 2017 Presentation
LivePerson will post a presentation providing supplemental
information for the third quarter 2017 on the investor relations
section of the Company's web site at
http://www.liveperson.com/ir.
Earnings Teleconference and Video Discussion
Information
The Company will discuss its third quarter 2017 financial
results during a teleconference today, November 1, 2017. 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 877-507-3684, while international callers should dial
928-328-1244, and both should reference the conference ID
"90295327."
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/company/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 "90295327." A replay will also be available on the
investor relations section of the Company's web site at
http://www.liveperson.com/company/ir.
About LivePerson
LivePerson, Inc. (NASDAQ: LPSN) is a leading provider of
cloud-based mobile and online business messaging solutions,
enabling a meaningful connection between brands and consumers.
LiveEngage, the Company's enterprise-class platform, empowers
consumers to stop wasting time on hold with 1-800 numbers, and
instead message their favorite brands, just as they do with friends
and family. More than 18,000 businesses, including Adobe, Citibank,
HSBC, EE, IBM, L'Oreal, Orange, PNC and The Home Depot rely on the
unparalleled intelligence, security and scalability of LiveEngage
to reduce costs, increase lifetime value and create meaningful
connection with consumers.
For more information, please visit www.liveperson.com. To
view other global press releases about LivePerson, please visit
pr.liveperson.com.
Non-GAAP Financial Measures
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: adjusted
EBITDA, or earnings/(loss) before provision for (benefit from)
income taxes, other (income)/expense, depreciation and
amortization, stock-based compensation, restructuring costs,
acquisition costs and other non-recurring charges; and adjusted net
income, or net income excluding amortization, stock-based
compensation, restructuring costs, acquisition costs, deferred tax
asset valuation allowance, other non-recurring charges and the
related income tax effect of these adjustments. 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.
A reconciliation of non-GAAP financial information to GAAP
financial information is not a financial measure under generally
accepted accounting principles (GAAP). In addition, 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.
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 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. 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; competition in the market
for digital engagement technology; our ability to retain existing
clients and attract new clients; potential adverse impact due to
foreign currency exchange rate fluctuations; privacy concerns
relating to the Internet that could result in new legislation or
negative public perception; risks related to new regulatory or
other legal requirements that could materially impact our business;
our ability to effectively operate on mobile devices; failures or
security breaches in our services, those of our third party
providers, or in the websites of our customers; risks related to
industry-specific regulation and unfavorable industry-specific
laws, regulations or interpretive positions; the adverse effect
that the global economic downturn may have on our business and
results of operations; economic conditions and regulatory changes
caused by the United Kingdom's
likely exit from the European Union; our ability to retain key
personnel, attract new personnel and to manage staff attrition;
risks related to the ability to successfully integrate past or
potential future acquisitions; additional regulatory requirements,
tax liabilities, currency exchange rate fluctuations and other
risks as we expand internationally and/or as we expand into
direct-to-consumer services; risks related to the regulation or
possible misappropriation of personal information belonging to our
customers' Internet users; potential failure to meeting service
level commitments to certain customers; technology systems beyond
our control and technology-related defects that could disrupt the
LivePerson services; risks related to protecting our intellectual
property rights or potential infringement of the intellectual
property rights of third parties; legal liability and/or negative
publicity for the services provided to consumers via our technology
platforms; errors, failures or "bugs" in our products may be
difficult to correct; increased allowances for doubtful accounts as
a result of an increasing amount of receivables due from customers
with greater credit risk; payment-related risks; delays in our
implementation cycles; impairments to goodwill that result in
significant charges to earnings; risks associated with the recent
volatility in the capital markets; our ability to secure additional
financing to execute our business strategy; our ability to license
necessary third party software for use in our products and
services, and our ability to successfully integrate third party
software; our ability to maintain our reputation; risks related to
our recognition of revenue from subscriptions; our lengthy sales
cycles; risks related to our operations in Israel, and the civil and political unrest in
that region; changes in accounting principles generally accepted in
the United States; risks
associated with our current or any 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; natural catastrophic events and
interruption to our business by man-made problems; the high
volatility of our stock price; 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
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.
|
Condensed
Consolidated Statements of Operations
|
(In Thousands, Except
Share and Per Share Data)
|
(Unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenue
|
$
|
56,493
|
|
|
$
|
54,518
|
|
|
$
|
161,486
|
|
|
$
|
166,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
14,541
|
|
|
14,837
|
|
|
43,456
|
|
|
48,210
|
|
|
Sales and
marketing
|
21,603
|
|
|
22,067
|
|
|
66,695
|
|
|
67,831
|
|
|
General and
administrative
|
10,398
|
|
|
10,069
|
|
|
30,528
|
|
|
29,758
|
|
|
Product
development
|
9,726
|
|
|
9,495
|
|
|
29,011
|
|
|
29,428
|
|
|
Restructuring
costs
|
—
|
|
|
(384)
|
|
|
2,315
|
|
|
(384)
|
|
|
Amortization of
purchased intangibles
|
470
|
|
|
1,013
|
|
|
1,412
|
|
|
2,954
|
|
|
Total
costs and expenses
|
|
56,738
|
|
|
57,097
|
|
|
173,417
|
|
|
177,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(245)
|
|
|
(2,579)
|
|
|
(11,931)
|
|
|
(11,135)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
191
|
|
|
(123)
|
|
|
412
|
|
|
(135)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision
for income taxes
|
(54)
|
|
|
(2,702)
|
|
|
(11,519)
|
|
|
(11,270)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
1,256
|
|
|
3,177
|
|
|
3,000
|
|
|
5,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(1,310)
|
|
|
$
|
(5,879)
|
|
|
$
|
(14,519)
|
|
|
$
|
(16,308)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share of
common stock:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.02)
|
|
|
$
|
(0.10)
|
|
|
$
|
(0.26)
|
|
|
$
|
(0.29)
|
|
|
Diluted
|
$
|
(0.02)
|
|
|
$
|
(0.10)
|
|
|
$
|
(0.26)
|
|
|
$
|
(0.29)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used to compute net loss per share:
|
|
|
|
|
|
|
|
|
Basic
|
56,524,990
|
|
|
56,047,645
|
|
|
56,153,428
|
|
|
56,131,818
|
|
|
Diluted
|
56,524,990
|
|
|
56,047,645
|
|
|
56,153,428
|
|
|
56,131,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LivePerson,
Inc.
|
Reconciliation of
Non-GAAP Financial Information to GAAP
|
(In Thousands, Except
Share and Per Share Data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Reconciliation of
Adjusted EBITDA (1):
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
|
(1,310)
|
|
|
$
|
(5,879)
|
|
|
$
|
(14,519)
|
|
|
$
|
(16,308)
|
|
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangibles
|
1,109
|
|
|
1,710
|
|
|
3,968
|
|
|
5,045
|
|
|
|
Stock-based
compensation
|
1,843
|
|
|
2,255
|
|
|
6,103
|
|
|
7,600
|
|
|
|
Depreciation
|
3,179
|
|
|
2,650
|
|
|
9,017
|
|
|
9,445
|
|
|
|
Other non-recurring
costs
|
1,640
|
|
(2)
|
930
|
|
(4)
|
4,998
|
|
(2)
|
3,368
|
|
(6)
|
|
Restructuring
costs
|
—
|
|
|
(384)
|
|
(5)
|
2,315
|
|
(3)
|
(384)
|
|
(5)
|
|
Provision for income
taxes
|
1,256
|
|
|
3,177
|
|
|
3,000
|
|
|
5,038
|
|
|
|
Other (income)
expense, net
|
(191)
|
|
|
123
|
|
|
(412)
|
|
|
135
|
|
|
Adjusted EBITDA
(1)
|
$
|
7,526
|
|
|
$
|
4,582
|
|
|
$
|
14,470
|
|
|
$
|
13,939
|
|
|
Diluted adjusted
EBITDA per common share
|
$
|
0.13
|
|
|
$
|
0.08
|
|
|
$
|
0.26
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in diluted adjusted EBITDA
per common share
|
57,780,178
|
|
|
56,438,763
|
|
|
56,685,128
|
|
|
56,405,945
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Net Income: (8)
|
|
|
|
|
|
|
|
|
Pre-tax GAAP loss
(8)
|
$
|
(54)
|
|
|
$
|
(2,702)
|
|
|
$
|
(11,519)
|
|
|
$
|
(11,270)
|
|
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangibles
|
1,109
|
|
|
1,710
|
|
|
3,968
|
|
|
5,045
|
|
|
|
Stock-based
compensation
|
1,843
|
|
|
2,255
|
|
|
6,103
|
|
|
7,600
|
|
|
|
Other non-recurring
costs
|
1,640
|
|
(2)
|
930
|
|
(4)
|
4,998
|
|
(2)
|
3,718
|
|
(7)
|
|
Deferred tax asset
valuation allowance
|
—
|
|
|
—
|
|
|
—
|
|
|
692
|
|
|
|
Restructuring
costs
|
—
|
|
|
(384)
|
|
(5)
|
2,315
|
|
(3)
|
(384)
|
|
(5)
|
Pre-tax adjusted net
income
|
4,538
|
|
|
1,809
|
|
|
5,865
|
|
|
5,401
|
|
|
|
Income tax effect of
non-GAAP items (8)
|
(1,588)
|
|
|
(633)
|
|
|
(2,053)
|
|
|
(1,890)
|
|
|
Adjusted net
income
|
$
|
2,950
|
|
|
$
|
1,176
|
|
|
$
|
3,812
|
|
|
$
|
3,511
|
|
|
Diluted adjusted net
income per common share
|
$
|
0.05
|
|
|
$
|
0.02
|
|
|
$
|
0.07
|
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in diluted adjusted net income
per common share
|
57,780,178
|
|
|
56,438,763
|
|
|
56,685,128
|
|
|
56,405,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Earnings/(loss) before provision for (benefit from) income taxes,
other (income)/expense, net, depreciation and amortization,
stock-based compensation, restructuring costs, acquisition costs
and other non-recurring charges.
|
(2)
Includes litigation costs of $1.6 million and $5.0 million for the
three and nine months ended September 30, 2017,
respectively.
|
(3)
Includes wind down costs of legacy platform of $1.9 million and
severance costs of $0.4 million for the nine months ended September
30, 2017.
|
(4)
Includes litigation costs of $0.9 million for the three months
ended September 30, 2016.
|
(5)
Includes $0.4 million of cash collected on previously written off
bad debt.
|
(6)
Includes litigation costs of $2.9 million and severance costs of
$0.5 million for the nine months ended September 30,
2016.
|
(7)
Includes litigation costs of $2.9 million, write off of office
facility depreciation of $0.3 million and severance costs of $0.5
million for the nine months ended September 30, 2016.
|
(8)
During 2017, the Company updated the methodology for calculating
adjusted net income. In 2016, the Company incorporated the GAAP tax
rate into the calculation, whereas in 2017, the Company now starts
the calculation with GAAP pre-tax (loss) income, then adds back
amortization, stock-based compensation, other non-recurring,
restructuring, and then applies a standardized 35% long-term
projected tax rate. The prior period, September 30, 2016, was
adjusted to conform to the current period presentation.
|
LivePerson,
Inc.
|
Reconciliation of
Non-GAAP Financial Information to GAAP - (continued)
|
(In
Thousands)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Reconciliation of
Net Cash (Used In) Provided By Operating Activities:
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
$
|
7,526
|
|
|
$
|
4,582
|
|
|
$
|
14,470
|
|
|
$
|
13,939
|
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
Changes in operating
assets and liabilities
|
(9,505)
|
|
|
(46)
|
|
|
(10,425)
|
|
|
6,381
|
|
|
Provision for
doubtful accounts
|
405
|
|
|
533
|
|
|
1,363
|
|
|
1,240
|
|
|
Provision for income
taxes
|
(1,256)
|
|
|
(3,177)
|
|
|
(3,000)
|
|
|
(5,038)
|
|
|
Deferred income
taxes
|
836
|
|
|
19
|
|
|
823
|
|
|
163
|
|
|
Amortization of
tenant allowance
|
(42)
|
|
|
—
|
|
|
(125)
|
|
|
—
|
|
|
Other (income)
expense, net
|
191
|
|
|
(123)
|
|
|
412
|
|
|
(135)
|
|
Net cash (used in)
provided by operating activities
|
$
|
(1,845)
|
|
|
$
|
1,788
|
|
|
$
|
3,518
|
|
|
$
|
16,550
|
|
|
|
|
|
|
|
|
|
|
(1)
Earnings/(loss) before provision for (benefit from) income taxes,
other (income)/expense, net, depreciation and amortization,
stock-based
compensation, restructuring costs, acquisition costs and other
non-recurring charges.
|
LivePerson,
Inc.
|
Reconciliation of
Projected Non-GAAP Financial Information to GAAP
|
(In
Thousands)
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December 31,
2017
|
|
December 31,
2017
|
Reconciliation of
Projected Adjusted EBITDA: (1)
|
|
|
|
|
GAAP net
loss
|
|
$(5,900) -
$(5,500)
|
|
$(20,500) -
$(20,000)
|
|
Add/(less):
|
|
|
|
|
|
Amortization of
purchased intangibles
|
|
700
|
|
|
4,700
|
|
|
Stock-based
compensation
|
|
2,400
|
|
|
8,500
|
|
|
Depreciation
|
|
3,000
|
|
|
12,000
|
|
|
Other non-recurring
costs
|
|
2,100
|
|
|
9,400
|
|
|
Other
income
|
|
—
|
|
|
(400)
|
|
|
Provision for income
taxes
|
|
1,200 -
1,100
|
|
|
4,200 -
4,100
|
|
Adjusted
EBITDA
|
|
$3,500 -
$3,900
|
|
|
$18,000 -
$18,400
|
|
|
|
|
|
|
|
Reconciliation of
Projected Adjusted Net Income: (1)
|
|
|
|
|
Pre-tax GAAP
loss
|
|
$(4,800) -
$(4,400)
|
|
$(16,300) -
$(15,900)
|
|
Add/(less):
|
|
|
|
|
|
Amortization of
purchased intangibles
|
|
700
|
|
|
4,700
|
|
|
Stock-based
compensation
|
|
2,400
|
|
|
8,500
|
|
|
Other non-recurring
costs
|
|
2,100
|
|
|
9,400
|
|
|
Pre-tax adjusted
income
|
|
500 - 800
|
|
|
6,300 -
6,700
|
|
|
Non-GAAP income tax
effect
|
|
(200) -
(300)
|
|
|
(2,200) -
(2,400)
|
|
Adjusted net
income
|
|
$300 -
$500
|
|
|
$4,100 -
$4,400
|
|
|
|
|
|
|
|
(1)
|
Certain items may not
total due to rounding.
|
|
|
|
|
LivePerson,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(In
Thousands)
|
|
|
|
|
|
|
September 30,
2017
|
|
December 31,
2016
|
|
|
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
54,361
|
|
|
$
|
50,889
|
|
|
Cash held as
collateral
|
1,451
|
|
|
3,962
|
|
|
Accounts receivable,
net
|
32,180
|
|
|
31,823
|
|
|
Prepaid expenses and
other current assets
|
7,734
|
|
|
5,477
|
|
|
|
Total current
assets
|
95,726
|
|
|
92,151
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
32,183
|
|
|
28,397
|
|
|
Intangibles,
net
|
12,974
|
|
|
16,510
|
|
|
Goodwill
|
80,499
|
|
|
80,245
|
|
|
Deferred tax
assets
|
699
|
|
|
773
|
|
|
Other
assets
|
1,487
|
|
|
1,562
|
|
|
|
Total
assets
|
$
|
223,568
|
|
|
$
|
219,638
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Accounts
payable
|
$
|
3,443
|
|
|
$
|
7,288
|
|
|
Accrued expenses and
other current liabilities
|
37,207
|
|
|
40,250
|
|
|
Deferred
revenue
|
35,694
|
|
|
27,145
|
|
|
|
Total current
liabilities
|
76,344
|
|
|
74,683
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
2,745
|
|
|
3,147
|
|
|
Deferred tax
liability
|
4,082
|
|
|
3,332
|
|
|
|
Total
liabilities
|
83,171
|
|
|
81,162
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
Total stockholders'
equity
|
140,397
|
|
|
138,476
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
223,568
|
|
|
$
|
219,638
|
|
Investor contact:
Matthew Kempler
212-609-4214
mkempler@liveperson.com
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SOURCE LivePerson, Inc.