LIVEPERSON INC Q1 FY2024 earnings call

• Capital structure: Repaid $72.5 million principal of 2024 notes, working on update for 2026 notes. • Go-to-market: Hired new leadership (Chief Customer Officer, VP of Sales Operations, Chief Revenue Officer), restructured teams, improved processes. Rolled out simplified pricing and packaging pilot. • Product initiatives: Partnering with major global CCaaS player, voice AI live with leading airline and solar power provider, bring-your-own LLM capability, AI features for agents, social orchestration for Amazon Lex, improved web channel messaging performance.

Total revenue in the first quarter was $85.1 million. B2B hosted services revenue was $71.5 million. B2B core recurring revenue was $77.6 million. Professional services revenue was $13.7 million. U.S. revenue was $60.5 million (71% of total revenue), and international revenue was $24.6 million (29% of total revenue). First quarter deals were down 43% year-over-year and 35% sequentially, with 40 total deals including 12 new logos and 28 expansions/renewals.

• Q2 revenue expected: $76 million to $80 million. • Full-year revenue guidance: $300 million to $315 million. • Q2 adjusted EBITDA expected: $0 to $5 million. • Full-year adjusted EBITDA guidance: $15 million to $26 million. • B2B core recurring revenue expected to be ~92% of total revenue for full year. • Expect positive new ARR in fourth quarter.

• Potential delays in updating 2026 notes. • Impact of go-to-market changes on deal counts and customer churn. • Customers churning due to seeking functionality not on LivePerson's roadmap, and platform consolidation trends.

Q: Expand on common traits of churned customers?

A: Some churned customers wanted enhanced functionality not on roadmap (e.g., custom agent workspace). Others related to platform consolidation.

Q: Talk about weaker bookings in Q1?

A: Impact from commercial headwinds around debt, retooling go-to-market with new leadership and processes causing disruption, and customers waiting on debt update. Also, pilot of new pricing and packaging not fully in place.

Q: Sense of Wild Health loss impact?

A: Full-year losses expected well under $10 million, with update on selling/winding down later this month