LivePerson(US:LPSN)2024-11-09 00:07Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $74.2 million, exceeding the high end of guidance, driven by successful retention efforts [12][38] - Adjusted EBITDA was $7.3 million, also above guidance, attributed to cost structure adjustments [13][38] - B2B hosted services revenue was $62.7 million, down 27% year-over-year, while B2B core recurring revenue was $68.8 million, down 21% year-over-year [39] - Average revenue per customer increased by 6% year-over-year to $630,000 [40] - RPO declined to $256 million, with net revenue retention at 79%, down from 83% in the previous quarter [41] Business Line Data and Key Metrics Changes - Professional services revenue was $11.6 million, down 26% year-over-year [40] - The company signed 44 deals in Q3, including nine new logos and 35 expansions and renewals, marking a 19% increase in total deals from Q2 [35] Market Data and Key Metrics Changes - US revenue was $49.4 million, while international revenue was $24.9 million, representing 67% and 33% of total revenue, respectively [40] Company Strategy and Development Direction - The company is focusing on enhancing its omnichannel solutions and integrating voice interactions with digital capabilities [7][8] - Strategic partnerships, particularly with Avaya, are expected to drive bookings and pipeline momentum [9][27] - Future innovations will focus on expanding voice partnerships, increasing generative AI use cases, and enhancing digital channel capabilities [23] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued sequential improvement in bookings and greater visibility into churn risks [31] - There is an expectation of attrition continuing into the first half of 2025, offsetting revenue gains from sequential bookings improvement [33] - The company expects to see positive net new ARR in the second half of 2025 [34][46] Other Important Information - The company is maintaining its revenue guidance for the full year 2024 at $305 million to $310 million [43] - Cash on the balance sheet at the end of Q3 was $142 million [42] Q&A Session Summary Question: Discussion on ARR bottoming and renewal engagement challenges - Management noted that while initial expectations were optimistic, recent insights into customer health and adoption have revealed challenges in influencing renewal decisions due to past instability [54] Question: Progress on new sales motion and expectations - Management indicated that the new sales motion is ramping faster than expected, with pricing and packaging changes leading to shorter deal cycles and larger deal sizes [55] Question: Main use cases for new logo wins - New logo wins are primarily focused on integrating voice and providing unified analytics, with significant use of generative AI across customer interactions [57][58] Question: Competitors for seven-figure deals and value propositions - The competitive landscape remains stable, with consistent competitors such as Genesys and Salesforce, and the company's value proposition includes the ability to innovate without requiring full CCaaS migration [60][61]