Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $60.2 million, exceeding the high end of the guidance range of $60 million [5][17] - Adjusted EBITDA was $4.8 million, significantly above the high end of the guidance range, reflecting strong cost discipline [5][17] - Recurring revenue accounted for 92% of total revenue, amounting to $55.1 million [17] - Cash on the balance sheet at the end of Q3 was $107 million [18] Business Line Data and Key Metrics Changes - Revenue from hosted services was $51.2 million, down 18% year-over-year [17] - Professional services revenue was $9 million, down 23% year-over-year [18] - Average revenue per customer increased by 6% year-over-year to $665,000 [18] - RPO (Remaining Performance Obligations) declined to $182 million [18] Market Data and Key Metrics Changes - U.S. revenue was $37 million, representing 61% of total revenue, while international revenue was $23.2 million, or 39% of total revenue [18] - Net revenue retention improved to 80.4%, up from 78.2% in the previous quarter [18] Company Strategy and Development Direction - The company has closed a debt refinancing agreement and executed a cost restructuring to reduce cash burn, stabilizing its financial foundation [4][15] - The launch of the Conversation Simulator product aims to address challenges in deploying and scaling AI and human agent workforces, representing a significant new opportunity [8][10] - The partnership with Google enhances the company's market reach and product offerings, particularly through the integration with Google's RCS platform [6][14] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in customer conversations towards increased confidence in the company's financial stability, leading to improved renewal discussions [12][14] - The company raised its full-year revenue guidance to a range of $235 million-$240 million and adjusted EBITDA guidance to $7.5 million-$12.5 million, reflecting better-than-anticipated performance [15][19] - The company expects to see continued strong adoption of its generative AI capabilities and early traction with the Conversation Simulator [14][15] Other Important Information - The market for training, simulation, and compliance related to AI and human agents is projected to grow from $10 billion today to $20 billion by 2030 [11] - The company signed a total of 28 deals in the quarter, including two new logos and 26 expansions and renewals, indicating a sequential increase in total deal value of 14% [16] Q&A Session Summary Question: What drove the upside in the quarter? - Management indicated that the upside was primarily due to timing, with some deals recognized in Q3 that would have otherwise occurred in Q4, along with variable revenue [22][23] Question: What is the competitive landscape for the Conversation Simulator? - Management noted that while there are competitors, LivePerson uniquely addresses both human and bot training, providing a comprehensive customer experience perspective [24][25][26] Question: What are the implications of the cost restructuring? - The cost restructuring effects began in Q3 and are expected to fully materialize in Q4 and for the full year 2026, contributing to improved EBITDA guidance [27]

Financial Data and Key Metrics Changes - The company reported revenue of $59.6 million, which was above the midpoint of their guidance range [6][23] - Adjusted EBITDA was $2.9 million, exceeding the high end of the guidance range [6][23] - Full year revenue guidance was revised down to $235 million at the midpoint, a decrease of approximately 5% [17][27] - Cash on the balance sheet at the end of the second quarter was $162 million [27] Business Line Data and Key Metrics Changes - Revenue from hosted services was $50.3 million, down 25% year over year [24] - Professional services revenue was $9.3 million, down 26% year over year [24] - Recurring revenue accounted for 92% of total revenue, amounting to $55 million [24] - Average revenue per customer increased by 4% year over year to $655,000 [25] Market Data and Key Metrics Changes - U.S. revenue was $36.7 million, while international revenue was $22.9 million, representing 62% of total revenue [24] - Net revenue retention declined to 78%, down from 80% in the first quarter [25][26] Company Strategy and Development Direction - The company is focusing on strengthening its capital structure through a refinancing agreement, which extends debt maturities to 2029 [5][6] - Strategic partnerships with Google Cloud and Databricks are being deepened to enhance product offerings and market presence [12][14] - The vision is to embed AI into every interaction, transforming customer interactions into real business outcomes [8][12] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic uncertainty is extending enterprise buying cycles, particularly for high-value AI solutions [15][16] - The refinancing agreement is expected to alleviate concerns regarding financial stability and improve customer confidence [16][21] - The company anticipates that the strategic partnerships will amplify market presence and deliver integrated solutions to a wider range of enterprises [15][14] Other Important Information - The company signed a total of 38 deals in the second quarter, including three new logos and 35 expansions and renewals [21][22] - The refinancing agreement is expected to shift a greater proportion of enterprise value to equity holders by significantly reducing total indebtedness [5][21] Q&A Session Summary Question: How are win rates trending for new logo capture? - Management indicated that win rates remain consistent, but decision-making processes are being delayed due to RFPs being pushed out [32] Question: What is the impact of new AI-based competitors on decision-making cycles? - Management acknowledged that new competitors are increasing headwinds, contributing to longer decision-making cycles [34] Question: Are large customers primarily responsible for renewal pressures? - Yes, management confirmed that large customers are hesitant due to financial concerns, impacting renewal discussions [35] Question: What is the impact of macroeconomic uncertainty versus balance sheet issues? - Both factors are interrelated, with financial instability exposing the company to increased competition [42] Question: When will the migration to Google Cloud be fully completed? - Some customers will see benefits around October this year, with most migrations expected to be completed early next year [44]