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LivePerson Reports First Quarter 2008 Financial Results
NEW YORK, NY – May 1, 2008 – LivePerson, Inc. (Nasdaq: LPSN), a provider of online engagement solutions that facilitate real-time assistance and expert advice, today announced financial results for the first quarter ended March 31, 2008. RevenueRevenue for the first quarter was $17.1 million, a 56% increase from the first quarter of 2007, and a 2% sequential increase as compared to the fourth quarter of 2007. Excluding the impact of the acquisition of Kasamba, Inc., revenue for the first quarter was $14.4 million, a 31% increase from the first quarter of 2007, and a 3% sequential increase as compared to the preceding quarter. The Kasamba transaction closed on October 3, 2007. “During the quarter, we added and expanded business with several global enterprise companies, our small business group continued to excel with 8% sequential growth, and revenue for our consumer group was right in line with our expectations,” CEO Robert LoCascio said. “We achieved a number of operational and strategic milestones since our last earnings release, including a full US-based customer migration to our new colocation server facility, as well as the unification of the Kasamba and LivePerson websites at www.liveperson.com.” Client and Partner ExpansionThe company added several new clients with global reach, including:
The company also contracted for expansions with several clients in the US and UK, including:
LivePerson and TELUS, a leading Canadian telecommunications company, announced a relationship that enables TELUS to sell LivePerson’s proactive chat and click-to-call applications under the brand name “TELUS LiveSales powered by LivePerson” to TELUS business customers. Net IncomeNet loss for the first quarter of 2008 was $0.2 million or $0.00 per share as compared to net income of $0.9 million or $0.02 per share in the first quarter of 2007, and net income of $2.4 million or $0.05 per share in the fourth quarter of 2007. Included in net income for the three months ended December 31, 2007 is a net tax benefit of $1.7 million, resulting from the release of the company’s valuation allowance against deferred tax assets based on current estimates of future taxable income. Adjusted Net Income and EBITDALivePerson considers adjusted net income and earnings before interest, taxes, depreciation and amortization (EBITDA) to be important financial indicators of the company's operational strength and the performance of its business. These results should be considered in addition to results prepared in accordance with generally accepted accounting principles (GAAP), but should not be considered as a substitute for, or superior to, GAAP results. A reconciliation of the differences between EBITDA and adjusted net income, and the most comparable financial measure calculated and presented in accordance with GAAP, is presented under the heading “Reconciliation of Non-GAAP Financial Information to GAAP” immediately following the Condensed Consolidated Statements of Income included below. The difference between EBITDA per share, a non-GAAP measure, and GAAP EPS, is interest, taxes, depreciation, amortization and stock-based compensation. The difference between adjusted net income per share and GAAP EPS is amortization of intangible assets and stock-based compensation. Adjusted net income for the first quarter of 2008 was $1.4 million or $0.03 per share, as compared to $2.1 million or $0.05 per share in the comparable period in 2007, and $4.4 million or $0.09 per share in the fourth quarter of 2007. Included in adjusted net income for the three months ended December 31, 2007 is the $1.7 million net tax benefit noted above. EBITDA for the first quarter of 2008 was $1.7 million or $0.03 per share, as compared to $2.0 million or $0.05 per share in the first quarter of 2007, and $2.8 million or $0.06 per share in the fourth quarter of 2007. CashThe company’s cash balance was $21.5 million at March 31, 2008 as compared to $26.2 million as of December 31, 2007. During the first quarter, the company repurchased stock resulting in a cash outlay of $2.0 million, and purchased computer hardware related primarily to the colocation facility resulting in a cash outlay of $2.5 million. Also in the quarter, the company paid annual incentive compensation accrued in 2007 resulting in a cash outlay of approximately $2.6 million. Excluding these items, the company generated approximately $2.4 million from ongoing operations. Financial ExpectationsSecond Quarter 2008
Full Year 2008
Stock-Based Compensation Included in the accompanying financial results are expenses related to stock-based compensation, as follows (in thousands):
Amortization of Intangible Assets Included in the accompanying financial results are expenses related to the amortization of intangible assets, as follows (in thousands):
Q1 2008
Cost of revenue $307
General and administrative 391
Total $698
LivePerson, Inc.
Condensed Consolidated Statements of Income
(In Thousands, Except Share and Per Share Data)
Unaudited
Three Months Ended
March 31,
2008 2007
Total revenue $17,085 $10,969
Operating expenses:
Cost of revenue 4,886 2,789
Product development 3,074 1,820
Sales and marketing 5,798 3,402
General and administrative 3,180 2,020
Amortization of intangibles 391 242
Total operating expenses 17,329 10,273
(Loss) income from operations (244) 696
Other income, net 81 222
(Loss) income before provision for income taxes (163) 918
Provision for income taxes 49 -
Net (loss) income $(212) $918
Basic net (loss) income per common share $(0.00) $0.02
Diluted net (loss) income per common share $(0.00) $0.02
Weighted average shares outstanding
used in basic net (loss) income per
common share calculation 47,892,703 41,297,515
Weighted average shares outstanding
used in diluted net (loss) income per
common share calculation 47,892,703 44,761,279
LivePerson, Inc.
Reconciliation of Non-GAAP Financial Information to GAAP
(In Thousands, Except Share and Per Share Data)
Unaudited
Unaudited Supplemental Data
The following information is not a financial measure under generally
accepted accounting principles (GAAP). In addition, it 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 this financial information because
we believe that it is helpful to some investors as one measure of our
operations. 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 results with
our results from other reporting periods and with the results of other
companies.
Three Months Ended
March 31,
2008 2007
Net (loss) income in accordance with generally
accepted accounting principles $(212) $918
Add/(less):
(a)Amortization of intangibles 698 325
(b)Stock-based compensation 959 815
(c)Depreciation 323 208
(d)Provision for income taxes 49 -
(e)Interest income, net (81) (222)
EBITDA (1) $1,736 $2,044
Diluted EBITDA per common share $0.03 $0.05
Weighted average shares used in
diluted EBITDA per common share 49,775,947 44,761,279
Net (loss) income in accordance with generally
accepted accounting principles $(212) $918
Add:
(a)Amortization of intangibles 698 325
(b)Stock-based compensation 959 815
Adjusted net income $1,445 $2,058
Diluted Adjusted net income per common share $0.03 $0.05
Weighted average shares used in diluted
adjusted net income per common share 49,775,947 44,761,279
EBITDA (1) $1,736 $2,044
Add/(less):
Changes in operating assets and liabilities (2,150) (577)
Provision for doubtful accounts 68 20
Provision for income taxes (49) -
Deferred income taxes (13) (1,029)
Interest income, net 81 222
Net cash (used in) provided by operating
activities $(327) $680
(1) Earnings before interest, taxes, depreciation, amortization and
stock-based compensation.
LivePerson, Inc.
Condensed Consolidated Balance Sheets
(In Thousands)
Unaudited
March 31, 2008 December 31, 2007
ASSETS
Current assets:
Cash and cash equivalents $21,542 $26,222
Accounts receivable, net 7,247 6,026
Prepaid expenses and other current assets 1,844 1,802
Deferred tax assets, net - 42
Total current assets 30,633 34,092
Property and equipment, net 4,752 3,733
Intangibles, net 6,255 6,953
Goodwill 51,783 51,684
Deferred tax assets, net 4,272 4,202
Security deposits 337 499
Other assets 1,527 1,325
Total assets $99,559 $102,488
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,770 $3,067
Accrued expenses 5,759 9,191
Deferred revenue 4,941 4,000
Deferred tax liabilities, net 208 193
Total current liabilities 14,678 16,451
Other liabilities 1,527 1,325
Commitments and contingencies
Total stockholders' equity 83,354 84,712
Total liabilities and
stockholders' equity $99,559 $102,488
About LivePerson
Non-GAAP Financial Disclosure
Safe Harbor Provision
Source: LivePerson, Inc. |
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