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LivePerson Reports Second Quarter 2011 Financial Results
Aug 03, 2011 (04:08 PM EDT)
-- Second quarter revenue increased 21% from prior year to highest in company history
-- EBITDA per share of $0.13
-- Adjusted net income per share of $0.08
-- GAAP EPS of $0.04 per share
NEW YORK, Aug. 3, 2011 /PRNewswire/ -- LivePerson, Inc. (Nasdaq: LPSN), a leading provider of online, real-time intelligent engagement solutions, today announced financial results for the second quarter ended June 30, 2011.
Revenue for the second quarter was $31.9 million, a 21% increase from the second quarter of 2010, and a 5% sequential increase as compared to the first quarter of 2011. Revenue from business operations for the second quarter was $28.1 million, a 22% increase as compared to the second quarter of 2010 and a 5% increase as compared to the first quarter of 2011. Revenue from consumer operations for the second quarter was $3.7 million, a 9% increase as compared to the second quarter of 2010, and a 2% increase as compared to the first quarter of 2011.
"We are extremely pleased with our performance in the second quarter and for the first half of the year," said CEO Robert LoCascio. "Our clients continue to expand their use of new LivePerson offerings. By leveraging our capabilities in data intelligence and analytics, they are creating real time customer connections that drive on-site conversions and significantly improve the customer experience."
LivePerson added 23 new enterprise and midmarket clients in the quarter, including:
The company also expanded business with:
Net income for the second quarter of 2011 was $2.2 million or $0.04 per share as compared to $1.6 million or $0.03 per share in the second quarter of 2010, and net income of $3.2 million or $0.06 per share in the first quarter of 2011. Net income for the six months ended June 30, 2011 is $5.4 million or $0.10 per share compared to the same period last year of $3.8 million or $0.07 per share: a 42% increase over the same period last year.
Adjusted Net Income and EBITDA
LivePerson considers adjusted net income and earnings before other income/(expense), taxes, depreciation, amortization and stock-based compensation (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, stock-based compensation and other non-cash charges, if any. 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 second quarter of 2011 was $4.2 million or $0.08 per share, as compared to $3.1 million or $0.06 per share in the second quarter of 2010, and $5.1 million or $0.09 per share in the first quarter of 2011.
EBITDA for the second quarter of 2011 was $7.0 million or $0.13 per share, as compared to $5.4 million or $0.10 per share in the second quarter of 2010, and $8.6 million or $0.16 per share in the first quarter of 2011.
The company's cash balance was $74.4 million at June 30, 2011 as compared to $61.3 million as of December 31, 2010. The company generated $7.3 million of cash from operations in the second quarter. Also during the second quarter, the company incurred planned capital expenditures related primarily to the purchase of servers and computer networking equipment, and leasehold improvements, resulting in a cash outlay of approximately $2.0 million.
Following is the company's current expectation for financial and operating performance:
Third Quarter 2011
Full Year 2011
Other Full Year 2011 Assumptions
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):
Earnings Teleconference and Video Discussion Information
The company will discuss its second quarter 2011 financial results during a teleconference today, August 3, 2011, at 5:00 p.m. ET. To participate, please call 877-507-3684 before 5:00 p.m. ET. International callers, please dial 706-634-9559. Please reference the conference ID "83562427".
If you are unable to participate, the teleconference will be available for replay at 6:00 p.m. ET on August 3, 2011 until November 3, 2011, 11:59 p.m. ET. To access the replay, please call 800-642-1687 (U.S. and Canada) or 706-645-9291 (international). Please reference the conference ID "83562427".
The company will also post a video discussion of its second quarter 2011 results on YouTube. To view, click on the following link: http://www.youtube.com/user/myliveperson.
LivePerson, Inc. (NASDAQ and TASE: LPSN) is a leading provider of real-time intelligent engagement solutions that optimize online conversions, customer service and support for companies of all sizes. Our web-based solutions use a scalable application and system architecture, allowing for quick deployment. LivePerson offers a secure and reliable platform for delivery of relevant, compelling and personalized online experiences. More than 8,500 companies including Cisco, Hewlett-Packard, IBM, Microsoft, Verizon and Orbitz rely on LivePerson to maximize the impact of the online channel. LivePerson has been named one of America's 25 Fastest-Growing Tech Companies in 2010 by Forbes, and Company of the Year by Frost and Sullivan. LivePerson is headquartered in New York City with offices in Tel Aviv, Atlanta, London and San Francisco. For more information please visit http://www.liveperson.com.
Non-GAAP Financial Disclosure
Investors are cautioned that the EBITDA, or earnings/(loss) before other income/(expense), taxes, depreciation, amortization and stock-based compensation, and adjusted net income, or net income excluding amortization of intangible assets and stock-based compensation, information contained in this press release are not financial measures under generally accepted accounting principles. In addition, 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.
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 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 progresses, 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 and annual results; the adverse effect that the global recession may have on our business; competition in the real-time sales, marketing, customer service and online engagement solutions market; our ability to retain existing clients and attract new clients; risks related to new regulatory or other legal requirements that could materially impact our business; impairments to goodwill that result in significant charges to earnings; volatility of the value of certain currencies in relation to the US dollar, particularly the New Israeli Shekel, U.K. pound and Euro; risks related to our international operations, particularly our operations in Israel, and the civil and political unrest in that region; responding to rapid technological change and changing client preferences; our ability to retain key personnel and attract new personnel; risks related to the operational integration of acquisitions; technology systems beyond our control and technology-related defects that could disrupt the LivePerson services; privacy concerns relating to the Internet that could result in new legislation or negative public perception; risks related to the regulation or possible misappropriation of personal information; legal liability and/or negative publicity for the services provided to consumers via our technology platforms; risks related to protecting our intellectual property rights or potential infringement of the intellectual property rights of third parties; and risks related to our common stock being traded on more than one market, which may result in additional variations in the trading price of our common stock. 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 risk factors that could cause actual results to differ from those discussed in forward-looking statements.
SOURCE LivePerson, Inc.