LivePerson Inc. (NASDAQ:LPSN) Q1 2018 Earnings Conference Call - Final Transcript
May 03, 2018 • 05:00 pm ET
Thank you for joining the LivePerson's First Quarter 2018 Earnings Call. On the call today are LivePerson's CEO and Founder, Rob LoCascio; LivePerson's CFO, Chris Greiner; and LivePerson's VP Investor Relations, Matthew Kempler.
I would now like to turn the call over to Mr. Matthew Kempler. Sir, you may begin your conference.
Thanks very much. Before we begin, please note that we will make forward-looking statements during today's call, which are predictions, projections or other statements about future results. These statements are based on our current expectations and assumptions as of today and are subject to risks and uncertainties. Actual results may differ materially due to various factors, including those described in today's earnings press release, in the comments made during this conference call and in the 10-Ks, 10-Qs and other reports we file from time to time with the SEC. We assume no obligation to update any forward-looking statements. Also, during this call, we will discuss certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is included in today's earnings press release, which is available in the Investor Relations section of our website.
I will now turn the meeting over to Robert LoCascio, CEO and Founder of LivePerson.
Thank you for joining LivePerson's first quarter conference call. We entered 2018 with a really strong start exceeding the high end of our first quarter guidance ranges for both revenue and adjusted EBITDA. We increased revenue sequentially for the fourth consecutive quarter and generated 14% year-over-year revenue growth. Our return to mid-teens growth is a great testament to the momentum we are building around LiveEngage. It's also a key milestone for LivePerson as we continue along our targeted path of generating 20% plus growth. The leading indicators for continuing to push along this path remain promising.
After closing our best quarter ever for contract signings in the fourth quarter and winning our largest deal ever, we once again saw strong demand in the first quarter. Mobile activity continues to fuel our growth accounting for 45% of interactions in the first quarter, up from 35% a year ago. Our trailing 12-month average revenue per enterprise and mid-market customer continues to set new records, climbing nearly 20% year-over-year in the first quarter to more than $240,000. The LiveEngage revenue retention rate once again exceeded 100% and hit its highest level since we began tracking the metric.
With another strong quarter of achievement, we are raising the low end of our 2018 revenue guidance by $2 million. We now expect 2018 revenue in the range of $239 million to $243 million, up from $237 million to $243 million previously. We're also raising our 2018 adjusted EBITDA guidance to the range of $22 million to $25 million from $20 million to $23 million previously. Updated adjusted EBITDA guidance reflects a favorable impact from the completion of our ASC 606 review, which is reducing our commission expense forecast for 2018. Chris will discuss this in more detail.
The investments we are making in sales,