LivePerson Inc. (NASDAQ:LPSN) Q1 2018 Earnings Conference Call - Preliminary Transcript
May 03, 2018 • 05:00 pm ET
(Operator Instructions) And your first question comes from Koji Ikeda with Oppenheimer.
Great, thanks for taking questions and I welcome to the team Chris. My first question is from Rob. That new customer or the new enterprise and mid-market deal metric of 100 in the first quarter. I think that's the best first quarter absolute number we've seen in a long time. And based on the ARPU metric too, it looks like much bigger customers. So I guess my question is thinking about the new customers that are coming to the platform and I guess in the aggregate, what sort of initial penetration are you seeing at the customers to start? And what I'm really trying to get out I guess that I'm trying to understand the motion of the potential to expand opportunities in these new deals?
Yes I mean it's -- this is a huge opportunity. I mean it's -- when you start out, we'll start out usually in a single channel like IVR deflection in-app could be something with Apple Business Chat. And when I look at where we can go with these customers, it's even stuff I didn't envision a hundred percent over a year ago, when we launched the platform, which is we're doing retail for one customer where he can message back to people who are in retail operations. Apple Business Chat opens up a whole bunch of stuff that we're going to be able to do on selling.
I was just at the Facebook conference there's a whole push for, there's now a messaging ad unit on Facebook that you can advertise messaging and you click on it and it gives you right to Messenger. So we're really even if we look at the calls we're trying to deflect out of care, we'll start out getting -- try to target 5%, 10% of them and we're ultimately trying to get the 80% of them. So we're really at day one, and then all these other opportunities are opening as Apple Business Chat, Facebook. Now Google is coming out with their messaging product. So it's sort of a very much day one.
I think just in terms of the metrics we actually closed a bit over 100 in the fourth quarter, but that growth rate pales in comparison to where we are now at 32% just for a bit of color, the new deals signed with new clients, new logos was up 40%, but the cross sell and up sell up 29%. So it was really pretty broad based.
Great, thanks for that color. And I guess one question for Chris here, looking at the balance sheet (Technical Difficulty) prepayments, or big deals, I'm just trying to think about that with long-term deferred on there.
Yes you broke up a bit. So if I don't fully answer your question, just you can go ahead and repeat it. But yes I mean deferred revenues is quite strong. I think what you're seeing there is the success