LivePerson (LPSN) Q4 2013 earnings summary

Executive summary

• FY2013 revenue rose 13% to $177.8M, but results shifted to a $3.5M GAAP net loss from $6.4M net income as operating costs grew faster than revenue.

• Business operations drove growth, while 2014 priorities centered on LiveEngage rollout, platform analytics and execution of global expansion.

Financial highlights

• FY revenue increased 13% to $177.8M; Q4 revenue grew 10% YoY to $46.9M from $42.5M.

• FY operating loss was $4.5M vs. $10.3M operating income in 2012; net loss was $3.5M vs. $6.4M net income.

• FY costs and expenses rose 24% to $182.3M; sales and marketing increased 26% to $62.5M, G&A 26% to $40.0M and product development 21% to $36.4M.

• Q4 net loss was $0.7M vs. $1.5M net income in Q4 2012; Q4 operating loss was $0.6M vs. $2.4M operating income.

• Bookings rose 17% to $34.7M for FY and 15% to $10.0M in Q4; Q4 average new-booking deal size was $53,000.

Outlook and guidance

• 2014 priority was focused execution, including expanded LiveEngage functionality, intelligence and analytics, and implementation of strategic building blocks.

• FY2014 capital expenditures were expected not to exceed $11.0M, funded by cash and operating cash flow.

• Cash and cash equivalents were expected to cover working capital and capital requirements for at least 12 months; additional financing could be sought if needed.