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Unassociated Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)
August 3, 2004
 
LivePerson, Inc.
(Exact name of registrant as specified in its charter)
     
Delaware
0-30141
13-3861628
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
   
462 Seventh Avenue, 21st Floor, New York, New York
10018
(Address of principal executive offices)
(Zip Code)
   
Registrant’s telephone number, including area code
(212) 609-4200
 
(Former name or former address, if changed since last report)

     

ITEM 7. Financial Statements and Exhibits.

(c) Exhibits. The following documents are included as exhibits to this report:

   99.1   Press release issued August 3, 2004.


ITEM 12. Results of Operations and Financial Condition.

A copy of the press release issued by LivePerson, Inc. on August 3, 2004, announcing its results of operations and financial condition for the quarter ended June 30, 2004, is included herewith as Exhibit 99.1 and is incorporated herein by reference. The information included in this Current Report on Form 8-K (including Exhibit 99.1 hereto) that is furnished pursuant to this Item 12 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a) (2) of the Securities Act of 1933, as amended. The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference into such filing.

 
     
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
 
 
LIVEPERSON, INC.
 
 
(Registrant)
     
August 3, 2004
 
/s/ TIMOTHY E. BIXBY
Date
 
Timothy E. Bixby
President, Chief Financial Officer and Secretary

 
     
 
EXHIBIT INDEX

Exhibit

  99.1       Press release issued August 3, 2004.

 
     
Unassociated Document

For Immediate Release

Media Contacts:    
Tim Bixby
LivePerson, Inc.
(212) 609-4200
bixby@liveperson.com
Budd Zuckerman
Genesis Select Corp.
(303) 415-0200
budd@genesisselect.com


LivePerson Second Quarter Revenue Increases 54%
From Prior Year

Quarterly sequential revenue growth is 7%

NEW YORK, NY – August 3, 2004 – LivePerson, Inc. (NasdaqSC: LPSN), a leading provider of software solutions for online communications including sales, marketing and customer service, today announced financial results for the second quarter ended June 30, 2004.

Revenue for the second quarter was $4.3 million, a 54% increase from the second quarter of 2003, and a 7% sequential increase versus the first quarter of 2004. Revenue growth versus the prior year was due primarily to existing client growth, the addition of new clients and to a lesser extent, the Island Data acquisition effective January 1, 2004. Revenue growth versus the prior quarter was due primarily to an increase in professional services revenue, the addition of new clients and existing client growth.

“We are pleased with the results in the second quarter,” CEO Robert LoCascio stated. “We were able to surpass our internal expectations and have added or expanded business with a solid list of large corporate customers.”

Clients added recently include American Airlines, Bell Quebec, EDS, Stanley Works, Steamboat Ski & Resort, Verizon Online and Verizon Wireless. Existing clients adding expanded services recently include Ameritrade, Bell Canada, Fujitsu, Neiman Marcus, Rackspace, Toyota and Verisign.

Net income for the second quarter of 2004 was $0.7 million or $0.02 per share, as compared to net income of $0.7 million or $0.02 per share in the first quarter of 2004, and a net loss of $(1.0) million, or $(0.03) per share in the second quarter of 2003. Net income in the second quarter of 2003 included the impact of a $1.0 million restructuring charge.

Earnings before interest, taxes, depreciation, amortization and non-cash compensation (EBITDA) for the second quarter of 2004 was $1.0 million versus $1.0 million in the first quarter of 2004 and a loss of $(0.6) million in the second quarter of 2003. EBITDA in the second quarter of 2003 included the impact of the restructuring charge.

A reconciliation of the differences between EBITDA and the most comparable financial measure calculated and presented in accordance with generally accepted accounting principles (GAAP) is located under the heading “Reconciliation of Non-GAAP Financial Information to GAAP” immediately following the Condensed Consolidated Statements of Operations included in this press release.

LivePerson considers EBITDA and cash from operations to be important financial indicators of the Company's operational strength and the performance of its business. EBITDA should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measures included in this press release have been reconciled to the nearest GAAP measure.

 
  1   
 
 
Financial Expectations
The Company currently expects the following financial results:

The difference between EBITDA per share, a non-GAAP measure, and GAAP EPS, is interest, taxes, depreciation, amortization and non-cash compensation and is expected to be $0.01 per share in Q3 and $0.04 per share for the full year 2004.


 
  2   
 
LivePerson, Inc.
Condensed Consolidated Statements of Operations
(In Thousands, Except Share and Per Share Data)
 
                           
     
Three Months Ended 
    
Six Months Ended 
  
     
June 30, 
    

June 30 

  
     
(Unaudited) 
    
(Unaudited) 
  
 
    
2004

 

 
2003

 

 
2004

 

 
2003

 

   
 
 
 
 
Total revenue
  
$
4,342
 
$
2,826
 
$
8,414
 
$
5,355
 
   
 
 
 
 
Operating expenses:
    
 
    
 
    
 
    
 
  
Cost of revenue
    
694
   
514
   
1,386
   
1,006
 
Product development
    
516
   
419
   
955
   
751
 
Sales and marketing
    
1,240
   
856
   
2,394
   
1,583
 
General and administrative
    
988
   
786
   
1,909
   
1,598
 
Amortization of other intangibles
    
179
   
253
   
358
   
507
 
Restructuring charge
    
-
   
1,024
   
-
   
1,024
 
   
 
 
 
 
Total operating expenses
    
3,617
   
3,852
   
7,002
   
6,469
 
   
 
 
 
 
Income (loss) from operations
    
725
   
(1,026
)
  
1,412
   
(1,114
)
 
    
 
    
 
    
 
    
 
  
Other income, net
    
11
   
6
   
23
   
11
 
   
 
 
 
 
Income (loss) before provision for income taxes
    
736
   
(1,020
)
  
1,435
   
(1,103
)
 
    
 
    
 
    
 
    
 
  
Provision for income taxes
    
33
   
-
   
33
   
-
 
   
 
 
 
 
Net income (loss)
  
$
703
 
$
(1,020
)
$
1,402
 
$
(1,103
)
   
 
 
 
 
Basic net income (loss) per share
  
$
0.02
 
$
(0.03
)
$
0.04
 
$
(0.03
)
   
 
 
 
 
Diluted net income (loss) per share
  
$
0.02
 
$
(0.03
)
$
0.04
 
$
(0.03
)
   
 
 
 
 
Weighted average shares outstanding used in basic
    net income (loss) per share calculation
    
37,318,804
   
34,229,236
   
37,164,618
   
34,192,755
 
   
 
 
 
 
Weighted average shares outstanding used in diluted
  net income (loss) per share calculation
    
38,241,702
   
34,229,236
   
38,277,664
   
34,192,755
 
   
 
 
 
 
 
 
 
  3   
 
 
LivePerson, Inc.
Reconciliation of Non-GAAP Financial Information to GAAP
(In Thousands, Except Share and Per Share Data)

Unaudited Supplemental Data

The following information is not a financial measure under generally accepted accounting principles (GAAP). In addition, it should not be construed as an alternative to any other measures of performance determined in accordance with GAAP, or as an indicator of our operating performance, liquidity or cash flows generated by operating, investing and financing activities as there may be significant factors or trends that it fails to address. We present this financial information because we believe that it is helpful to some investors as one measure of our operations. We caution investors that non-GAAP financial information, by its nature, departs from traditional accounting conventions; accordingly, its use can make it difficult to compare our results with our results from other reporting periods and with the results of other companies.

 

     
Three Months Ended 

 

 
Six Months Ended 
  
     
   
 
     
June 30,
June 30,
  
     
(Unaudited) 
    
(Unaudited)
  
     
2004 

 

 
2003 

 

 
2004 

 

 
2003 
  
   
 
 
 
 
Net income (loss) in accordance with generally
  accepted accounting principles
  
$
703
 
$
(1,020
)
$
1,402
 
$
(1,103
)
Add/(less):
    
 
    
 
    
 
    
 
  
(a) Amortization of other intangibles
    
179
   
253
   
358
   
507
 
(b) Non-cash compensation
    
69
   
42
   
129
   
48
 
(c) Depreciation
    
59
   
116
   
116
   
208
 
(d) Provision for income taxes
    
33
   
-
   
33
   
-
 
(e) Interest income, net
    
(11
)
  
(6
)
  
(23
)
  
(18
)
   
 
 
 
 
EBITDA (1)
 
$
1,032
 
$
(615
)
$
2,015
 
$
(358
)
   
 
 
 
 
Fully diluted EBITDA per share
  
$
0.03
 
$
(0.02
)
$
0.05
 
$
(0.01
)
   
 
 
 
 
Weighted average shares used in EBITDA per share calculation
    
 
    
 
    
 
    
 
  
Fully diluted
    
38,241,702
   
34,229,236
   
38,277,664
   
34,192,755
 
   
 
 
 
 
EBITDA
  
$
1,032
 
$
(615
)
$
2,015
 
$
(358
)
Add/(less):
    
 
    
 
    
 
    
 
  
Changes in operating assets and liabilities
    
(171
)
  
960
   
(1,304
)
  
1,023
 
Provision for doubtful accounts
    
-
   
-
   
15
   
15
 
Provision for income taxes
    
(33
)
  
-
   
(33
)
  
-
 
Interest income, net
    
11
   
6
   
23
   
18
 
   
 
 
 
 
Net cash provided by operating activities
  
$
839
 
$
351
 
$
716
 
$
698
 
   
 
 
 
 
                      
(1) Earnings before interest, taxes, depreciation, amortization and non-cash compensation.
  
 
    
 
    
 
  

 
  4   
 
 
LivePerson, Inc.
Condensed Consolidated Balance Sheets
(In Thousands, Except Share and Per Share Data)
 
     
June 30, 2004 
    
December 31, 003
  
   
 
 
     
(unaudited) 
        
ASSETS
    
 
    
 
  
Current assets:
    
 
    
 
  
Cash and cash equivalents
  
$
11,409
 
$
10,898
 
Accounts receivable, net
    
1,097
   
1,239
 
Prepaid expenses and other current assets
    
608
   
318
 
   
 
 
Total current assets
    
13,114
   
12,455
 
 
    
 
    
 
  
Property and equipment, net
    
491
   
341
 
Other intangibles, net
    
1,760
   
361
 
Security deposits
    
129
   
129
 
Other assets
    
298
   
251
 
   
 
 
Total assets
  
$
15,792
 
$
13,537
 
   
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
   
 
    
 
  
 
    
 
    
 
  
Current liabilities:
    
 
    
 
  
Accounts payable
  
$
184
 
$
116
 
Accrued expenses
    
1,445
   
2,577
 
Deferred revenue
    
1,199
   
1,276
 
   
 
 
Total current liabilities
    
2,828
   
3,969
 
 
    
 
    
 
  
Other liabilities
    
279
   
232
 
 
    
 
    
 
  
Commitments and contingencies
    
 
    
 
  
 
    
 
    
 
  
Total stockholders' equity
   
12,685
   
9,336
 
   
 
 
Total liabilities and stockholders' equity
 
$
15,792
 
$
13,537
 
   
 
 

 
 
  5   
 
 
About LivePerson
LivePerson is a leading provider of software solutions for online communications, including online sales, marketing and customer service. LivePerson’s services enable online businesses to communicate securely with Internet users in real time, thereby enhancing the online experience. With real-time solutions consisting of chat, marketing and selling tools, a self-service FAQ product and email management, LivePerson offers clients the opportunity to increase sales, lower customer service costs and increase responsiveness to customer needs. LivePerson is headquartered in New York City.

EBITDA Financial Disclosure
Investors are cautioned that the EBITDA, or earnings before interest, taxes, depreciation, amortization and non-cash compensation, information contained in this press release is not a financial measure under generally accepted accounting principles. In addition, it should not be construed as an alternative to any other measures of performance determined in accordance with generally accepted accounting principles, or as an indicator of our operating performance, liquidity or cash flows generated by operating, investing and financing activities, as there may be significant factors or trends that it fails to address. We present this financial information because we believe that it is helpful to some investors as one measure of our operations. We caution investors that non-GAAP financial information such as EBITDA, by its nature, departs from traditional accounting conventions; accordingly, its use can make it difficult to compare our current results with our results from other reporting periods and with the results of other companies.

Forward Looking Statements
Statements in this press release regarding LivePerson that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. Any such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. It is routine for our internal projections and expectations to change as the quarter progresses, and therefore it should be clearly understood that the internal projections and beliefs upon which we base our expectations may change prior to the end of the quarter. Although these expectations may change, we are under no obligation to inform you if they do. Our company policy is generally to provide our expectations only once per quarter, and not to update that information until the next quarter. Actual events or results may differ materially from those contained in the projections or forward-looking statements. The following factors, among others, could cause our actual results to differ materially from those described in a forward-looking statement: our history of losses; potential fluctuations in our quarterly and annual results; responding to rapid technological change and changing client preferences; competition in the real-time sales, marketing and customer service solutions market; continued use by our clients of the LivePerson services and their purchase of additional services; technology systems beyond our control and technology-related defects that could disrupt the LivePerson services; risks related to adverse business conditions experienced by our clients; our dependence on key employees; competition for qualified personnel; the possible unavailability of financing as and if needed; risks related to the operational integration of acquisitions; risks related to our international operations, particularly our operations in Israel, and the current civil and political unrest in that region; risks related to protecting our intellectual property rights or potential infringement of the intellectual property rights of third parties; our dependence on the continued use of the Internet as a medium for commerce and the viability of the infrastructure of the Internet; and risks related to the regulation or possible misappropriation of personal information. This list is intended to identify only certain of the principal factors that could cause actual results to differ from those discussed in the forward-looking statements. Readers are referred to the reports and documents filed from time to time by us with the Securities and Exchange Commission for a discussion of these and other important risk factors that could cause actual results to differ from those discussed in forward-looking statements.