LivePerson Reports Strong Growth in Q1 Staff

Updated · May 02, 2003

LivePerson Inc. , a New York-based ASP that offers real-time online customer service applications, yesterday announced that for the first quarter of 2003 revenue increased 38 percent to $2.5 million.

The company also reported a 7 percent sequential increase versus the fourth quarter of 2002.

“LivePerson continues to see the impact of a strengthening sales pipeline,” CEO Robert LoCascio said in statement. “This enabled us to surpass our expectations of 5 percent sequential growth.” LoCascio also said LivePerson increased its direct sales force by 65 percent since Jan. 1, a move that he expects will begin generating revenue by the beginning of the fourth quarter.

The company attributes its growth to combination of new customer wins, increased revenue from existing clients and a greater proportion of new clients purchasing the higher-priced Sales Edition.

LivePerson reports that new clients added during the quarter include Enterasys, Playboy and WellPoint. It also said it experienced growth with existing clients including Bell Canada, EarthLink, eBay and Forex.

The overall net loss for the quarter was $83,000 or $(.00) per share, as compared to a net loss of $1.2 million or $.04 per share in the prior quarter, and net loss of $(5.4) million, or $(.16) per share in the first quarter of 2002. Net loss included a net restructuring charge of $1.2 million in the prior quarter, and a $5.2 million charge related to the cumulative effect of an accounting change in the prior year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter was $257,000 versus $47,000 in the first quarter of 2002. The company also reports that its cash balance increased by $379,000 to $8.4 million.
Going forward, the company reports the following financial expectations:

  • For the second quarter of 2003, the company expects sequential quarterly revenue growth of at least 5 percent
  • For the entire year, the company estimates an annual revenue growth of at least 35 percent to $11 million
  • LivePerson expects EBITDA of $0.01 per share and breakeven EPS in the second quarter
  • EBITDA for the entire year, the company estimates, will be $0.05 per share and EPS of $0.01

LivePerson also reports that it has received strong initial interest to Live Keyword, a feature designed to enable LivePerson users to increase the effectiveness of their online keyword search efforts. The alert function ties search engine information to specific customers in real time. Live Keyword, the company reports, operates with all standard search results technology, including FindWhat, Google, Overture, Yahoo and others.

LivePerson is listed by ASPnews as a Top 20 Service Provider.

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