UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________
FORM 8-K
_____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 8, 2018
_____________________
LivePerson, Inc.
(Exact Name of Registrant as Specified in its Charter)
_____________________
Delaware | 0-30141 | 13-3861628 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
475 Tenth Avenue, 5th Floor | ||
New York, New York 10018 | ||
(Address of principal executive offices, with zip code) | ||
(212) 609-4200 |
Registrant's telephone number, including area code |
N/A |
(Former name or former address, if changed since last report) |
_____________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02. Results of Operations and Financial Condition.
A copy of the press release issued by LivePerson, Inc. (the “Registrant”) on November 8, 2018, announcing its results of operations and financial condition for the quarter ended September 30, 2018, is included herewith as Exhibit 99.1 and is incorporated herein by reference. The information included in this Current Report on Form 8-K (including Exhibit 99.1 hereto) that is furnished pursuant to this Item 2.02 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a) (2) of the Securities Act of 1933, as amended. The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference into such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The following documents are included as exhibits to this report: | |
99.1 | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LIVEPERSON, INC. (Registrant) | |
Date: | November 8, 2018 | By: | /s/ CHRISTOPHER GREINER |
Christopher Greiner | |||
Chief Financial Officer | |||
LivePerson Announces Third Quarter 2018 Financial Results
-- Raises Revenue Guidance after Record Third Quarter Revenue and 14% Year-over-Year Growth --
-- Strong Quarter of Demand Generation, with Three Seven-Figure Deals Signed --
-- First Customer Reaches Goal on LiveEngage, No Longer Forcing Consumers to Call 1-800 Numbers --
-- Revises Earnings Guidance to Reflect Acquisitions of Two Early Stage Growth Companies and Landmark Customer Summit --
NEW YORK, November 8, 2018 /PRNewswire/ -- LivePerson, Inc. (NASDAQ: LPSN), a leading provider of conversational commerce solutions, today announced financial results for the third quarter ended September 30, 2018.
Third Quarter Highlights
Total revenue was $64.2 million for the third quarter of 2018, an increase of 14% as compared to the same period last year. Within total revenue, business operations revenue for the third quarter of 2018 increased 14% year over year to $59.3 million, and revenue from consumer operations increased 12% year over year to $4.9 million
Total deals signed in the quarter increased nearly 40% year over year, driven primarily by new customers. Trailing-twelve-months average revenue per enterprise and mid-market customer increased more than 25% in the third quarter to greater than $270,000, up from greater than $215,000 in the equivalent prior year period.
"In 2016, we introduced the world to the idea that consumers could message a brand just like friends and family,” said LivePerson CEO and founder, Rob LoCascio. "Now, just two years later, our initial goal for LiveEngage is being realized, as our first customer eliminated the call center "runaround," no longer forcing consumers to call a 1-800 number and talk to an IVR. Further, by year end, we expect more than 30% of our enterprise customers to be messaging on LiveEngage, with nearly 50% of those conversations touched by automation, positioning LiveEngage as an industry leading AI platform. Our goal is to make LiveEngage the digital contact platform of the future, replacing not just calls, but also the emails, websites and apps that have never delivered the answers consumers wanted or the self-service and sales for which brands hoped."
"Another strong quarter of demand generation, mid-teens revenue growth and strengthening key metrics, validate LivePerson's leadership in Conversational Commerce and our ability to tap into a substantially larger addressable market with LiveEngage," added CFO Chris Greiner. "T-Mobile's recent "un-carrier" move around their Teams of Experts highlights the transformation that we are helping to drive, and we had the opportunity to showcase this landmark event
at a customer summit in October. LivePerson's recent acquisitions of Conversable and AdvantageTec are expected to build on this momentum, providing key talent and technologies specialized for Conversational Commerce."
Customer Expansion
During the third quarter, the Company signed contracts with the following new customers:
• | One of the largest telcos in the U.S. |
• | One of the world's largest insurance brands |
• | A Fortune 100 multinational financial institution |
• | One of the largest airports in Southeast Asia |
• | A leading consumer credit company in Europe |
The Company also expanded business with:
• | One of the largest telcos in the U.S. |
• | One of the 10 largest telcos in the world |
• | A leading home improvement retailer in the U.S. |
• | One of Australia's largest financial institutions |
• | A leading global developer of financial and tax preparation software |
Net Loss and Adjusted Net Income
Net loss for the third quarter of 2018 was $7.0 million or $0.12 per share, as compared to a net loss of $1.3 million or $0.02 per share in the third quarter of 2017. Adjusted net income for the third quarter of 2018 was $1.6 million or $0.02 per share, as compared to adjusted net income of $3.0 million or $0.05 per share in the third quarter of 2017. 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 2018 included non-recurring expenses of $2.3 million ($0.04 per share), primarily associated with IP litigation, consulting services and severance. The third quarter of 2017 net loss included non-recurring expenses of $1.6 million ($0.03 per share) primarily associated with IP litigation.
Adjusted EBITDA
Adjusted EBITDA for the third quarter of 2018 was $5.8 million or $0.09 per share, as compared to $7.5 million or $0.13 per share in the third quarter of 2017. 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 $66.4 million at September 30, 2018, as compared to $57.6 million at year-end 2017.
Financial Expectations
The Company raised its 2018 revenue guidance to reflect better than expected year-to-date results and anticipation of continued strong returns on its growth investments. The Company now expects 2018 revenue in a range of $248.0 million to $250.0 million, up from previous guidance of $245.5 million to $247.5 million. Updated guidance implies year-over-year growth of 14% at the midpoint, demonstrating continued acceleration.
The Company also updated 2018 adjusted EBITDA guidance to a range of $18 to $20 million, from $22 to $25 million. This revision primarily reflects three new investments. The first two are the acquisitions of Conversable and AdvantageTec, early stage growth companies that are in investment mode. The third is tied to the significant upsizing of a fourth quarter global customer event after T-Mobile offered the opportunity to share the details behind their most recent Un-Carrier Move. Customer events such as these are material influencers of pipeline for LivePerson.
The Company's detailed financial expectations are as follows:
Fourth Quarter 2018
Guidance | |
Revenue (in millions) | $63.9 - $65.9 |
GAAP net loss per share | $(0.18) - $(0.14) |
Adjusted net income per share | $0.01 - $0.03 |
Diluted adjusted EBITDA per share | $0.07 - $0.10 |
Adjusted EBITDA (in millions) | $4.2 - $6.2 |
Fully diluted share count | 63.3 million |
Full Year 2018
Updated Guidance | Previous Guidance | ||||
Revenue (in millions) | $248.0 - $250.0 | $245.5 - $247.5 | |||
GAAP net loss per share | $(0.49) - $(0.45) | $(0.38) - $(0.32) | |||
Diluted adjusted net income per share | $0.05- $0.07 | $0.10 - $0.14 | |||
Diluted adjusted EBITDA per share | $0.29 - $0.32 | $0.36 - $0.41 | |||
Adjusted EBITDA (in millions) | $18.0 - $20.0 | $22.0 - $25.0 | |||
Fully diluted share count | 61.4 million | 61.0 million | |||
Other Full Year 2018 Assumptions
• | Estimated non-recurring expenses of $11.9 million ($0.21 per share) primarily tied to IP litigation, severance and restructuring |
• | Amortization of purchased intangibles of approximately $3.0 million |
• | Stock-based compensation expense of approximately $15.0 million |
• | Depreciation of approximately $14.0 million |
• | Cash taxes paid of $2.0 million to $4.0 million. Adjusted tax rate of approximately 25%. A GAAP tax liability of approximately $3.5 million to $3.7 million. |
• | Capital expenditures of approximately $17.0 million |
Furthermore, as a percent of revenue for the year, excluding non-recurring expenses discussed above, we anticipate gross profit to be approximately 75.0%, sales and marketing 41.5%, R&D 22.5% and G&A at 15.0%.
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, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cost of revenue | $ | 220 | $ | 108 | $ | 604 | $ | 301 | |||||||
Sales and marketing | 1,472 | 576 | 3,731 | 1,984 | |||||||||||
General and administrative | 1,368 | 622 | 3,390 | 2,058 | |||||||||||
Product development | 1,014 | 537 | 2,613 | 1,760 | |||||||||||
Total | $ | 4,074 | $ | 1,843 | $ | 10,338 | $ | 6,103 | |||||||
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, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cost of revenue | $ | 285 | $ | 639 | $ | 859 | $ | 2,556 | |||||||
Amortization of purchased intangibles | 424 | 470 | 1,272 | 1,412 | |||||||||||
Total | $ | 709 | $ | 1,109 | $ | 2,131 | $ | 3,968 | |||||||
Supplemental Third Quarter 2018 Presentation
LivePerson will post a presentation providing supplemental information for the third quarter 2018 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 2018 financial results during a teleconference today, November 8, 2018. 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 "9837217."
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 "9837217." 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 makes life easier by transforming how people communicate with brands. Our 18,000 customers, including leading brands like Citibank, HSBC, Orange, and The Home Depot, use our conversational commerce solutions to orchestrate humans and AI, at scale, and create a convenient, deeply personal relationship — a conversational
relationship — with their millions of consumers. For more information about LivePerson (NASDAQ: LPSN), please visit www.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; 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; technology systems beyond our control and technology-related defects that could disrupt the LivePerson services; 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, | ||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Revenue | $ | 64,213 | $ | 56,493 | $ | 184,114 | $ | 161,486 | |||||||||||
Costs and expenses: | |||||||||||||||||||
Cost of revenue | 15,689 | 14,541 | 45,679 | 43,456 | |||||||||||||||
Sales and marketing | 26,748 | 21,603 | 76,271 | 66,695 | |||||||||||||||
General and administrative | 11,972 | 10,398 | 33,594 | 30,528 | |||||||||||||||
Product development | 13,484 | 9,726 | 40,955 | 29,011 | |||||||||||||||
Restructuring costs | 722 | — | 2,806 | 2,315 | |||||||||||||||
Amortization of purchased intangibles | 424 | 470 | 1,272 | 1,412 | |||||||||||||||
Total costs and expenses | 69,039 | 56,738 | 200,577 | 173,417 | |||||||||||||||
Loss from operations | (4,826 | ) | (245 | ) | (16,463 | ) | (11,931 | ) | |||||||||||
Other (expense) income, net | (213 | ) | 191 | (53 | ) | 412 | |||||||||||||
Loss before provision for income taxes | (5,039 | ) | (54 | ) | (16,516 | ) | (11,519 | ) | |||||||||||
Provision for income taxes | 2,004 | 1,256 | 2,051 | 3,000 | |||||||||||||||
Net loss | $ | (7,043 | ) | $ | (1,310 | ) | $ | (18,567 | ) | $ | (14,519 | ) | |||||||
Net loss per share of common stock: | |||||||||||||||||||
Basic | $ | (0.12 | ) | $ | (0.02 | ) | $ | (0.32 | ) | $ | (0.26 | ) | |||||||
Diluted | $ | (0.12 | ) | $ | (0.02 | ) | $ | (0.32 | ) | $ | (0.26 | ) | |||||||
Weighted-average shares used to compute net loss per share: | |||||||||||||||||||
Basic | 60,014,246 | 56,524,990 | 58,667,289 | 56,153,428 | |||||||||||||||
Diluted | 60,014,246 | 56,524,990 | 58,667,289 | 56,153,428 | |||||||||||||||
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, | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||
Reconciliation of Adjusted EBITDA (1): | |||||||||||||||||
GAAP net loss | $ | (7,043 | ) | $ | (1,310 | ) | $ | (18,567 | ) | $ | (14,519 | ) | |||||
Add/(less): | |||||||||||||||||
Amortization of purchased intangibles | 709 | 1,109 | 2,131 | 3,968 | |||||||||||||
Stock-based compensation | 4,074 | 1,843 | 10,338 | 6,103 | |||||||||||||
Depreciation | 3,557 | 3,179 | 10,343 | 9,017 | |||||||||||||
Other non-recurring costs | 1,608 | (2) | 1,640 | (3) | 4,646 | (4) | 4,998 | (3) | |||||||||
Restructuring costs | 722 | (5) | — | 2,806 | (6) | 2,315 | (7) | ||||||||||
Provision for income taxes | 2,004 | 1,256 | 2,051 | 3,000 | |||||||||||||
Other expense (income), net | 213 | (191 | ) | 53 | (412 | ) | |||||||||||
Adjusted EBITDA (1) | $ | 5,844 | $ | 7,526 | $ | 13,801 | $ | 14,470 | |||||||||
Diluted adjusted EBITDA per common share | $ | 0.09 | $ | 0.13 | $ | 0.23 | $ | 0.26 | |||||||||
Weighted average shares used in diluted adjusted EBITDA per common share | 62,506,097 | 57,780,178 | 60,888,310 | 56,685,128 | |||||||||||||
Reconciliation of Adjusted Net Income: | |||||||||||||||||
Pre-tax GAAP loss | $ | (5,039 | ) | $ | (54 | ) | $ | (16,516 | ) | $ | (11,519 | ) | |||||
Add/(less): | |||||||||||||||||
Amortization of purchased intangibles | 709 | 1,109 | 2,131 | 3,968 | |||||||||||||
Stock-based compensation | 4,074 | 1,843 | 10,338 | 6,103 | |||||||||||||
Other non-recurring costs | 1,608 | (2) | 1,640 | (3) | 4,646 | (4) | 4,998 | (3) | |||||||||
Restructuring costs | 722 | (5) | — | 2,806 | (6) | 2,315 | (7) | ||||||||||
Pre-tax adjusted net income | 2,074 | 4,538 | 3,405 | 5,865 | |||||||||||||
Income tax effect of non-GAAP items (8) | (519 | ) | (1,588 | ) | (851 | ) | (2,053 | ) | |||||||||
Adjusted net income | $ | 1,555 | $ | 2,950 | $ | 2,554 | $ | 3,812 | |||||||||
Diluted adjusted net income per common share | $ | 0.02 | $ | 0.05 | $ | 0.04 | $ | 0.07 | |||||||||
Weighted average shares used in diluted adjusted net income per common share | 62,506,097 | 57,780,178 | 60,888,310 | 56,685,128 | |||||||||||||
(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 $1.1 million and consulting costs of $0.5 million for the three months ended September 30, 2018. | |||||||||||||||||
(3) Includes litigation costs of $1.6 million and $5.0 million for the three and nine months ended September 30, 2017, respectively. | |||||||||||||||||
(4) Includes litigation costs of $3.2 million, consulting costs of $0.9 million, executive recruitment costs of $0.3 million, and executive relocation costs of $0.2 million for the nine months ended September 30, 2018. | |||||||||||||||||
(5) Includes severance costs of $0.1 million and other compensation related costs of $0.6 million for the three months ended September 30, 2018. | |||||||||||||||||
(6) Includes severance costs of $2.2 million and other compensation related costs of $0.6 million for the nine months ended September 30, 2018. | |||||||||||||||||
(7) 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. | |||||||||||||||||
(8) The Company applies a standardized tax rate of 25% for the three and nine months ended September 30, 2018. The Company applied a standardized tax rate of 35% for the three and nine months ended September 30, 2017. | |||||||||||||||||
LivePerson, Inc.
Reconciliation of Non-GAAP Financial Information to GAAP - (continued)
(In Thousands)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Reconciliation of Net Cash (Used In) Provided By Operating Activities: | ||||||||||||||||
Adjusted EBITDA (1) | $ | 5,844 | $ | 7,526 | $ | 13,801 | $ | 14,470 | ||||||||
Add/(less): | ||||||||||||||||
Changes in operating assets and liabilities | (9,209 | ) | (9,505 | ) | (20,106 | ) | (10,425 | ) | ||||||||
Provision for doubtful accounts | 464 | 405 | 1,326 | 1,363 | ||||||||||||
Provision for income taxes | (2,004 | ) | (1,256 | ) | (2,051 | ) | (3,000 | ) | ||||||||
Deferred income taxes | 138 | 836 | 179 | 823 | ||||||||||||
Amortization of tenant allowance | (121 | ) | (42 | ) | (204 | ) | (125 | ) | ||||||||
Other (expense) income, net | (213 | ) | 191 | (53 | ) | 412 | ||||||||||
Net cash (used in) provided by operating activities | $ | (5,101 | ) | $ | (1,845 | ) | $ | (7,108 | ) | $ | 3,518 | |||||
(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, 2018 | December 31, 2018 | ||||||
Reconciliation of Projected Adjusted EBITDA: (1) | |||||||
GAAP net loss | $(12,500) - $(10,300) | $(31,100) - $(28,900) | |||||
Add/(less): | |||||||
Amortization of purchased intangibles | 800 | 3,000 | |||||
Stock-based compensation | 5,000 | 15,200 | |||||
Depreciation | 3,400 | 13,700 | |||||
Other non-recurring costs | 5,600 | 13,000 | |||||
Other income | — | 100 | |||||
Provision for income taxes | 1,900 - 1,700 | 4,100 - 3,900 | |||||
Adjusted EBITDA | $4,200 - $6,200 | $18,000 - $20,000 | |||||
Reconciliation of Projected Adjusted Net Income: (1) | |||||||
Pre-tax GAAP loss | $(10,600) - $(8,600) | $(27,100) - $(25,100) | |||||
Add/(less): | |||||||
Amortization of purchased intangibles | 800 | 3,000 | |||||
Stock-based compensation | 5,000 | 15,200 | |||||
Other non-recurring costs | 5,600 | 13,000 | |||||
Pre-tax adjusted income | 800 - 2,800 | 4,100 - 6,100 | |||||
Non-GAAP income tax effect | (200) - (700) | (1,000) - (1,500) | |||||
Adjusted net income | $600 - $2,100 | $3,100 - $4,600 | |||||
(1) | Certain items may not total due to rounding. | ||||||
LivePerson, Inc.
Condensed Consolidated Balance Sheets
(In Thousands)
September 30, 2018 | December 31, 2017 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | 66,351 | $ | 56,115 | |||||||
Cash held as collateral | — | 1,451 | |||||||||
Accounts receivable, net | 51,727 | 37,926 | |||||||||
Prepaid expenses and other current assets | 18,722 | 7,352 | |||||||||
Total current assets | 136,800 | 102,844 | |||||||||
Property and equipment, net | 39,788 | 34,705 | |||||||||
Intangibles, net | 13,249 | 12,366 | |||||||||
Goodwill | 85,467 | 80,531 | |||||||||
Deferred tax assets | 732 | 753 | |||||||||
Other assets | 1,818 | 1,600 | |||||||||
Total assets | $ | 277,854 | $ | 232,799 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accounts payable | $ | 6,603 | $ | 5,481 | |||||||
Accrued expenses and other current liabilities | 41,124 | 48,011 | |||||||||
Deferred revenue | 56,117 | 35,563 | |||||||||
Total current liabilities | 103,844 | 89,055 | |||||||||
Deferred revenue | 2,067 | — | |||||||||
Other liabilities | 3,972 | 2,766 | |||||||||
Deferred tax liability | 1,073 | 915 | |||||||||
Total liabilities | 110,956 | 92,736 | |||||||||
Commitments and contingencies | |||||||||||
Total stockholders' equity | 166,898 | 140,063 | |||||||||
Total liabilities and stockholders' equity | $ | 277,854 | $ | 232,799 | |||||||
Investor contact:
Matthew Kempler
212-609-4214
mkempler@liveperson.com