LIVEPERSON INC Q4 FY2023 earnings call

• John Sabino emphasized refocusing go-to-market strategies, product development, and strategic partnerships to unlock growth. - Focus on strengthening capital structure, including reviewing refinancing of convertible notes. - Improve go-to-market operations: address renewal motion, enhance pricing and packaging strategy, drive partnerships with voice providers. - Hired key personnel like Chief Customer Officer Kevin Meeks and VP of Sales Operations Eric Johnson. - Product initiatives in 2024: focus on voice channel integration, bring more data into product for personalization, improve messaging experience in web and in-app channels, enhance third-party bot connectors for AI orchestration.

In the fourth quarter, total revenue was $95.5 million. Hosted Services contributed $78.6 million, down 7% year-over-year. Within Hosted, B2B core recurring revenue was $83 million, up 2% year-over-year. Professional Services revenue was $16.8 million, down 41% year-over-year, but excluding the Claire JV engagement, it improved 8% year-over-year. Wild Health contributed $3.4 million to total revenue in the fourth quarter.

• Q1 2024 revenue expected in range of $79 million to $83 million, sequential decline due to customer cancellations, down-sells, and one-time Medicare reimbursement. Adjusted EBITDA expected in range of negative 2% to positive 2%. - Full year 2024 revenue expected $300 million to $315 million, adjusted EBITDA $15 million to $26 million, B2B core recurring revenue expected ~92% of total revenue, B2B business free cash flow positive.

• Past lack of focus led to disruption in sales and renewal cycles. - Capital structure issues with convertible notes due in 2026. - Customer cancellations due to lack of robust customer success motion and LivePerson being perceived as a point solution rather than a full digital transformation platform.

Q: Jeff Van Rhee asked about bookings growth commentary.

A: John Collins replied total bookings in Q4 were up 33% year-over-year, 27% sequentially, highest since Q3 2022.

Q: Jeff Van Rhee asked about WildHealth EBITDA contribution.

A: John Collins said it's a negative value and they're actively marketing the sale of the business.

Q: Jeff Van Rhee asked about sudden revenue miss.

A: John Sabino and John Collins discussed renewal cycles starting 9-12 months ago, lack of customer success motion causing cancellations.

Q: Dan asked about renewal challenges.

A: John Sabino talked about LivePerson being a point solution previously, need for integration and orchestration across enterprise, and John Collins mentioned issues began 9-12 months ago.

Q: Zach Cummins asked about pricing/packaging and cost structure.

A: John Sabino talked about packaging capabilities and pricing easier to buy full suite, John Collins said they've restructured costs and are reevaluating based on performance.

Q: Chris asked about transformation alignment and WildHealth contribution.

A: John Sabino talked about communication strategy and operational improvements, John Collins said little contribution from WildHealth in guidance with low-to-mid-single-digit expectation.