LivePerson(US:LPSN)2024-02-28 23:54Financial Data and Key Metrics Changes - Total revenue for Q4 2023 was $95.5 million, exceeding the midpoint of guidance, with a year-over-year decline in Hosted Services revenue of 7% [41][66] - B2B core recurring revenue was $83 million, up 2% year-over-year, driven by customer expansions [41] - Adjusted EBITDA for Q4 was $3.7 million, slightly above the midpoint of guidance [66] - Net revenue retention (NRR) was 95% in Q4, down from 98% in Q3, indicating challenges in customer retention [68] Business Line Data and Key Metrics Changes - Professional Services revenue was $16.8 million, down 41% year-over-year, primarily due to the completion of a major engagement [41] - The company signed a total of 62 deals in Q4, including 46 expansions and renewals, with total bookings up 33% year-over-year [64] Market Data and Key Metrics Changes - U.S. revenue was $68.3 million, representing 72% of total revenue, while international revenue was $27.2 million, or 28% [67] - The financial services vertical was a primary driver of strong results in Q4, with significant renewals from major banks and financial institutions [64] Company Strategy and Development Direction - The company is refocusing its go-to-market strategies, product development, and strategic partnerships to unlock a new phase of growth [4][6] - A key priority is strengthening the capital structure to support strategic initiatives and improve financial performance [8][18] - The strategy includes enhancing product integration and orchestration capabilities to avoid vendor lock-in and improve customer flexibility [15][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the lack of a robust customer success motion has led to increased cancellations and down-sells [69][96] - The company is committed to improving customer engagement and retention through a more consultative customer success approach [104] - Future guidance reflects a significant transformation, with expectations for revenue in the range of $300 million to $315 million for the full year [44] Other Important Information - The company is actively marketing the sale of its non-core asset, Wild Health, which contributed $3.4 million to total revenue in Q4 [38][66] - The company plans to settle a $73 million balance of notes maturing in 2024 using cash from the balance sheet [36] Q&A Session Summary Question: Can you repeat the bookings growth commentary? - Total bookings in Q4 were up 33% year-over-year and 27% sequentially, marking the highest bookings quarter since Q3 2022 [48] Question: What drove the renewal challenges over the past year? - The cancellations were primarily due to a lack of robust customer success engagement and corporate instability affecting customer satisfaction [52][96] Question: Can you elaborate on potential changes to pricing and packaging? - The company aims to simplify pricing and packaging to enhance customer experience and retention, making it easier for clients to utilize the full suite of products [85][104]