LivePerson(US:LPSN)2022-05-10 02:50Financial Data and Key Metrics Changes - The company reported revenue of $230.2 million for Q1 2022, representing a 21% year-over-year growth, exceeding the high end of guidance [11][55] - Adjusted EBITDA loss was $17.6 million, which was $4.2 million better than the top end of guidance [11][56] - The company closed the quarter with nearly $1 million in cash and cash equivalents, a decrease of $41 million from the previous quarter [66] Business Line Data and Key Metrics Changes - B2B revenue grew 22% year-over-year, while hosted software revenue increased by 27% [59] - Professional services revenue declined by 3% year-over-year due to timing of projects, but a significant increase is expected in Q2 [59] - Average revenue per customer improved to $645,000, up 32% year-over-year [62] Market Data and Key Metrics Changes - U.S. revenue grew 27% year-over-year, representing 67% of total revenue, while international revenue grew 10% year-over-year, accounting for 33% of total revenue [60] - The consumer segment growth was flat at 1% year-over-year [60] - Total messaging volume on the conversational cloud increased by 27% year-over-year, with AI-powered messaging volume growing by 34% [63] Company Strategy and Development Direction - The company is focused on profitable growth and maintaining its leadership in the AI space, with a profit growth plan initiated at the beginning of the year [12][13] - The strategy includes enhancing the go-to-market approach and leveraging existing relationships for expansion [16][18] - The company aims to integrate voice capabilities into its platform, enhancing the consumer experience across both voice and messaging channels [34][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving free cash flow by Q4 2022 and positive adjusted EBITDA for the full year [14][79] - The company anticipates accelerating growth in the second half of 2022, despite a challenging comparison in Q2 due to record growth in the same period last year [81][115] - Management highlighted the importance of strategic investments in technology and partnerships to drive future growth [100][110] Other Important Information - The company has made significant progress in the healthcare vertical, signing major contracts with leading health insurance providers [46][50] - The acquisition of Wild Health is expected to enhance the company's capabilities in the healthcare sector [48][122] - The company was recognized as the Number One Most Innovative AI Company in the World by Fast Company [52][54] Q&A Session Summary Question: What should we expect in terms of marketing events and pipeline generation? - Management indicated that in-person events have historically driven new logo wins and they plan to continue hosting such events [90][92] Question: Can you elaborate on the healthcare opportunity and the Wild Health acquisition? - The platform from Wild Health will be utilized to provide actionable insights and enhance consumer experiences in healthcare [95][122] Question: Why does the international growth rate lag behind the U.S.? - Management attributed slower international growth to investment focus, emphasizing that North America remains a priority for returns [100][101] Question: How does the company view the competitive environment for live chat? - The company sees itself competing with both call center companies and AI automation firms, focusing on integrating its platform into various systems [108][110] Question: What are the expectations for revenue growth in the second half of the year? - Management expects to see acceleration in growth driven by a ramping salesforce and other favorable market conditions [115][116]