LivePerson Inc. (NASDAQ:LPSN) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 03, 2018 • 05:00 pm ET

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LivePerson Inc. (NASDAQ:LPSN) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Executive
Chris Greiner

majority will be reinvested back into the business. As conveyed in the past, we believe LivePerson has a 12-to-18-month lead in a greenfield market that persons a multi billion dollar revenue opportunity. We do not intend to sit on that lead. Instead, we plan to expand it and we are directing our investments to proven areas of ROI, technology innovation, demand generation, sales capability and capacity expansion. With the payback on these investments increasingly evident, we view this decision as the best option for fueling accelerated growth while also delivering profit improvement. I will now review our detailed financial expectations.

For the second quarter of 2018, we expect revenue of $59 million to $60 million, GAAP net loss per share of $0.13 to $0.11, adjusted net income per share of breakeven to a penny and adjusted EBITDA of $3.5 million to $4.1 million or $0.06 to $0.07 per share. For the full year 2018, our expectations are as follows.

Revenue of $239 million to $243 million, GAAP net loss per share of $0.29 to $0.23, adjusted net income per share of $0.11 to $0.15 and adjusted EBITDA of $22 million to $25 million or $0.37 to $0.42 per share. Furthermore, as a percent of revenue for the year, we anticipate gross profit to be approximately 76%, sales and marketing, 41%, R&D 23%, and G&A excluding non-recurring litigation of 14.5%. As a reminder due to changes under the Trump administration Tax Cuts and Jobs Act, we are applying a 25% tax rate to our non-GAAP income in 2018 as compared to 35% last year and we estimate that this more closely aligns with the expected long-term tax rate of the company. We expect to pay cash taxes in 2018 of $2 million to $4 million.

Please refer to LivePerson's earnings release issued earlier today for additional details on our full year 2018 assumptions. We have also published a supplemental presentation that reviews key points from the earnings call on the Investors Relations section of the website. Now as we conclude and prepare to open up for Q&A, I will briefly wrap up.

First, we have a clear aligned vision that guides our capital deployment decisions in a conversational market that's accelerating in size and scope. Second, we're attracting the industry's best talent and repositioning the company to be more nimble and accelerating software development cycles and capturing customer demand. And third, we're building toward a financial business model that we believe will sustain our double-digit revenue growth while generating greater operating leverage. In summary, LivePerson is executing well on its strategy.

With that I'll hand the call back to the operator for us to take your questions. Operator?