LivePerson Inc. (NASDAQ:LPSN) Q4 2019 Earnings Conference Call - Final Transcript
Feb 13, 2020 • 05:00 pm ET
The management from LivePerson will conduct a question-and-answer session. And conference call participants will be given instructions at that time. As a reminder, this conference call is being recorded.
I would now like to turn the conference over to Mr. Matthew Kempler, the Company's Senior Vice President of Investor Relations and Planning. Please go ahead, sir.
Thank you very much, Ian. Joining me on the call today is Robert LoCascio, LivePerson's Founder and CEO; and Chris Greiner, our Chief Financial Officer; and John Collins.
Please note that during today's call we'll make forward-looking statements, 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 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. Both this press release and supplemental slides, which include highlights of the quarter, are available in Investor Relations section of LivePerson's website.
With that, I will turn the call over to Rob.
Thanks, Matt. Thank you for joining LivePerson's Q4 2019 earnings call. The fourth quarter marked yet another milestone for LivePerson, starting to create a new industry around conversational commerce and capped a year that demonstrated inflecting customer demand and market leadership.
One year ago, we set a target of LivePerson hitting 20% organic growth. We delivered on that goal in Q4, accelerating 6 percentage points from 14% growth in 2018. We signed five 7-figure deals in the fourth quarter and 24 for the entirety of 2019, 167% increase over 2018.
Annual contract values signed in 2019 grew by nearly 60% year-over-year. Within enterprise alone, the dollar weighted average term with of 31 month, a testament to the increasing strategic nature of our offerings and our growing backlog.
We invested in the sales and product momentum needed to reaffirm our goals of generating at least 20% growth in 2020 with continued acceleration towards at least 25% growth in 2021.
Among the many wins we had in Q4, our success in opening up the health care vertical warrants call out. We signed new contracts with a Fortune 500 global biopharma company and a top-5 U.S. health insurance provider. The former seeking improved consumer experience and enhanced agent efficiency by replacing the legacy chat vendor with messaging powered over the web and Facebook.
The latter is leaping straight to automation, leveraging LiveEngage and LiveIntent dashboards to create a highly scalable autonomous consumer engagement. 2019 we set our sights on healthcare as a key new vertical and I'm thrilled with a promising start.
Another vertical we had target in 2019 was travel. And