First quarter total revenue year-over-year
growth of 14.9% to $36.9 million
First quarter ARR of $143.0 million up 13.8%
year-over-year
First quarter GAAP net loss of $8.5 million
First quarter positive adjusted EBITDA of $0.8
million
LiveVox Holdings, Inc. (“LiveVox” or the “Company”) (NASDAQ:
LVOX), a leading global enterprise cloud communications company,
today announced financial results for its first quarter ended March
31, 2023.
“I’m pleased to announce a record quarter with both revenue and
adjusted EBITDA coming in ahead of our expectations,” said John
DiLullo, Chief Executive Officer of LiveVox. “This was a fantastic
start to the year and a testament to the execution and
determination of the LiveVox team, the loyalty of our customers,
and the value of our cloud-based contact center solutions.”
First Quarter 2023 Financial Highlights
- Revenue: Total revenue was $36.9 million for the first
quarter of 2023, up 14.9% compared to $32.1 million for the first
quarter of 2022.
- Gross Profit and Gross Margin: Gross profit was $23.6
million for the first quarter of 2023, up 27.9% compared to $18.5
million for the first quarter of 2022; Gross margin was 64.0% for
the first quarter of 2023, compared to 57.5% for the first quarter
of 2022.
- Non-GAAP Gross Profit* and Non-GAAP Gross Margin*:
Non-GAAP gross profit was $25.2 million for the first quarter of
2023, up 30.0% compared to $19.4 million for the first quarter of
2022; Non-GAAP gross margin was 68.3% for the first quarter of
2023, compared to 60.4% for the first quarter of 2022.
- Net loss: Net loss was $8.5 million for the first
quarter of 2023, compared to net loss of $13.0 million for the
first quarter of 2022.
- Adjusted EBITDA*: Adjusted EBITDA was $0.8 million for
the first quarter of 2023, compared to Adjusted EBITDA loss of $8.3
million for the first quarter of 2022.
* Additional information regarding the non-GAAP financial
measures discussed in this release, including an explanation of
these measures and how each is calculated, is included below under
the heading “Non-GAAP Financial Measures.” A reconciliation of GAAP
to non-GAAP financial measures has also been provided in the
financial tables included below.
Business Outlook
In determining the financial guidance to provide to investors,
the Company considered its recent business trends and financial
results, current growth plans, strategic initiatives and global
economic outlook. LiveVox emphasizes that the guidance provided is
subject to various important cautionary factors referenced in the
section entitled “Forward-Looking Statements” below.
As such, LiveVox is providing guidance for its second quarter
and full year 2023 as follows:
- Second Quarter of 2023 Guidance:
- Total revenue is expected to be in the range of $34 million to
$35 million, representing growth of 3% to 6% year-over-year.
- Adjusted EBITDA is expected to be in the range of $0.0 million
to $0.5 million.
- Full Year 2023 Guidance:
- Total revenue is still expected to be in the range of $143
million to $148 million, representing growth of 5% to 9%
year-over-year.
- Adjusted EBITDA is now expected to be in the range of $4
million to $7 million.
A reconciliation of non-GAAP guidance measures to corresponding
GAAP measures is not available on a forward-looking basis without
unreasonable effort due to the uncertainty regarding, and the
potential variability of, many of the future costs and expenses for
which the Company adjusts, such as depreciation and amortization,
long-term equity incentive bonus and stock-based compensation
expense, interest income or expense, change in the fair value of
warrant liability, other income or expense, benefit from or
provision for income taxes and restructuring cost, the effect of
which may be significant. Annualized Recurring Revenue (“ARR”) is
calculated as the sum of the most recent quarter of (i) recurring
subscription amounts and (ii) platform usage charges for all
customers, multiplied by four.
Quarterly Conference Call
LiveVox will host a conference call today at 4:30 p.m. Eastern
Time to review the Company’s financial results for its first
quarter ended March 31, 2023. To access this call, dial
844-825-9789 for the U.S. or Canada, or 412-317-5180 for callers
outside the U.S. or Canada using passcode 5236861. A live webcast
of the conference call will be accessible from the Investor
Relations section of LiveVox’s website, and a recording will be
archived. An audio replay of this conference call will also be
available through 11:59 p.m. Eastern Time , May 23, 2023, by
dialing 844-512-2921 for the U.S. or Canada or 412-317-6671 for
callers outside the U.S. or Canada with access code 10177487.
About LiveVox
LiveVox (Nasdaq: LVOX) is a proven cloud CCaaS platform that
helps business leaders redefine customer engagement and transform
their contact center’s performance. Decision-makers use LiveVox to
improve customer experience, boost agent productivity, empower
their managers, and enhance their system orchestration
capabilities. Everything needed to deliver game-changing results
can be seamlessly integrated and configured to maximize your
success: Omnichannel Communications, AI, a Contact Center CRM, and
Workforce Engagement Management tools. For more than 20 years,
clients of all sizes and industries have trusted LiveVox’s scalable
and reliable cloud platform to power billions of omnichannel
interactions every year. LiveVox is headquartered in San Francisco,
with international offices in Medellin, Colombia and Bangalore,
India. To stay up to date with everything LiveVox, follow us at
@LiveVox or visit http://livevox.com.
Forward-Looking Statements
Certain statements made in this release are “forward looking
statements” within the meaning of the “safe harbor” provisions of
the United States Private Securities Litigation Reform Act of 1995.
When used in this press release, the words “estimates,”
“projected,” “expects,” “anticipates,” “forecasts,” “plans,”
“intends,” “believes,” “seeks,” “may,” “will,” “would,” “should,”
“future,” “propose,” “target,” “goal,” “objective,” “outlook” and
variations of these words or similar expressions (or the negative
versions of such words or expressions) are intended to identify
forward-looking statements. These forward-looking statements
include, but are not limited to, the quotations of management,
statements relating to expected bookings, expected revenue and
annual recurring revenue from contracts, growth expectations, and
future financial results, including guidance for the 2023 second
quarter and full fiscal year. These statements are not guarantees
of future performance, conditions or results, and involve a number
of known and unknown risks, uncertainties, assumptions and other
important factors, many of which are outside LiveVox’s control,
that could cause actual results or outcomes to differ materially
from those discussed in the forward-looking statements. Any such
forward-looking statements are made pursuant to the safe harbor
provisions available under applicable securities laws and speak
only as of the date of this presentation. LiveVox assumes no
obligation to update or revise any such forward-looking statements
except as required by law.
Important factors, among others, that may affect actual results
or outcomes include risks or liabilities assumed as a result of our
ability to meet financial and operating guidance, ability to
achieve financial targets, and successfully manage capital
expenditures; risks related to the high level of competition in the
cloud contact center industry and the intense competition and
competitive pressures from other companies in the industry in which
the Company operates; risks related to the Company’s reliance on
information systems and the ability to properly maintain the
confidentiality and integrity of data; risks related to the
occurrence of cyber incidents or a deficiency in cybersecurity
protocols; risks related to the ability to obtain third-party
software licenses for use in or with the Company’s products;
general economic and business conditions, including but not limited
to challenges associated with a tight labor market, inflationary
pressures, volatility in foreign exchange rates, supply chain
constraints, recessionary fears, and impacts from the invasion of
Ukraine by Russia; the impact of COVID-19 on LiveVox’s business;
risks related to our intellectual property rights, risks related to
our ability to secure additional financing on favorable terms, or
at all, to meet our capital needs; increased taxes and surcharges
(including Universal Service Fund, whether labeled a “tax,”
“surcharge,” or other designation) on our products which may
increase our customers’ cost of using our products and/or increase
our costs and reduce our profit margins to the extent the costs are
not passed through to our customers, and our potential liability
for past sales and other taxes, surcharges and fees; changes in
government regulation applicable to the collections industry or any
failure of us or our customers to comply with existing regulations;
changes in base interest rates and significant market volatility on
the Company’s business, the Company’s industry and the global
economy; the Company’s ability to successfully manage its recent
leadership transition; as well as those factors described under the
captions “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operation” and elsewhere in
the Company’s most recent filings with the Securities and Exchange
Commission (“SEC”), including the Company’s most recently filed
reports on Form 10-K and Form 10-Q and subsequent filings.
The information contained in this press release is summary
information that is intended to be considered in the context of
LiveVox’s SEC filings and other public announcements that LiveVox
may make, by press release or otherwise, from time to time. LiveVox
also uses its website to distribute company information, including
performance information, and such information may be deemed
material. Accordingly, investors should monitor LiveVox’s website
(http://www.livevox.com). LiveVox undertakes no duty or obligation
to publicly update or revise the forward-looking statements or
other information contained in this presentation. These materials
contain information about LiveVox and its affiliates and certain of
their respective personnel and affiliates, information about their
respective historical performance and general information about the
market. You should not view information related to the past
performance of LiveVox or information about the market, as
indicative of future results, the achievement of which cannot be
assured.
Consolidated Statements of
Operations and Comprehensive Loss (Unaudited) (In thousands,
except per share data)
For the three months ended
March 31,
2023
2022
Revenue
$
36,866
$
32,093
Cost of revenue
13,262
13,632
Gross profit
23,604
18,461
Operating expenses
Sales and marketing expense
13,480
14,652
General and administrative expense
9,171
7,468
Research and development expense
7,983
8,490
Total operating expenses
30,634
30,610
Loss from operations
(7,030
)
(12,149
)
Interest expense, net
1,096
750
Change in the fair value of warrant
liability
(67
)
(392
)
Other income, net
(70
)
(64
)
Total other expense, net
959
294
Pre-tax loss
(7,989
)
(12,443
)
Provision for income taxes
480
544
Net loss
$
(8,469
)
$
(12,987
)
Comprehensive loss
Net loss
$
(8,469
)
$
(12,987
)
Other comprehensive income (loss), net of
tax
Foreign currency translation
adjustment
66
(49
)
Net unrealized gain (loss) on marketable
securities
427
(888
)
Total other comprehensive income (loss),
net of tax
493
(937
)
Comprehensive loss
$
(7,976
)
$
(13,924
)
Net loss per share
Net loss per share—basic and diluted
$
(0.09
)
$
(0.14
)
Weighted average shares outstanding—basic
and diluted
92,842
91,478
Consolidated Balance
Sheets (In thousands, except per share data)
As of
March 31, 2023
December 31, 2022
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
19,266
$
20,742
Marketable securities—available for sale
debt securities, current (amortized cost of $44,702 and $49,593 as
of March 31, 2023 and December 31, 2022, respectively)
43,718
48,182
Accounts receivable, net of allowance of
credit losses of $1,868 and $1,459 as of March 31, 2023 and
December 31, 2022, respectively
21,000
21,447
Deferred sales commissions, current
3,375
3,171
Prepaid expenses and other current
assets
5,966
5,211
Total current assets
93,325
98,753
Property and equipment, net
2,405
2,618
Goodwill
47,481
47,481
Intangible assets, net
15,854
16,655
Operating lease right-of-use assets
4,069
4,920
Deposits and other
320
371
Deferred sales commissions, net of
current
7,728
7,356
Deferred tax asset, net
23
1
Total assets
$
171,205
$
178,155
LIABILITIES & STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
5,892
$
5,987
Accrued expenses
11,296
12,399
Deferred revenue, current
1,456
1,318
Term loan, current
1,122
982
Operating lease liabilities, current
1,500
1,655
Finance lease liabilities, current
5
11
Total current liabilities
21,271
22,352
Line of credit
320
—
Deferred revenue, net of current
395
338
Term loan, net of current
53,041
53,585
Operating lease liabilities, net of
current
3,416
3,649
Warrant liability
566
633
Other long-term liabilities
363
363
Total liabilities
79,372
80,920
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value per
share; 25,000 shares authorized and none issued and outstanding as
of March 31, 2023 and December 31, 2022.
—
—
Common stock, $0.0001 par value per share;
500,000 shares authorized and 92,937 shares issued and outstanding
as of March 31, 2023; 500,000 shares authorized and 92,729 shares
issued and outstanding as of December 31, 2022.
9
9
Additional paid-in capital
267,493
264,919
Accumulated other comprehensive loss
(1,703
)
(2,196
)
Accumulated deficit
(173,966
)
(165,497
)
Total stockholders’ equity
91,833
97,235
Total liabilities & stockholders’
equity
$
171,205
$
178,155
Consolidated Statements of
Cash Flows (Unaudited) (Dollars in thousands)
For the three months ended
March 31,
2023
2022
Operating activities:
Net loss
$
(8,469
)
$
(12,987
)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization
243
274
Amortization of identified intangible
assets
800
1,073
Amortization of deferred loan origination
costs
36
27
Amortization of deferred sales
commissions
845
740
Non-cash lease expense
349
453
Stock-based compensation expense
2,649
2,479
Credit loss expense
413
33
Loss on disposition or impairment of
asset
509
—
Deferred income tax benefit
(22
)
(78
)
Net realized loss on sale of marketable
securities
50
10
Amortization of premium paid on marketable
securities
46
131
Change in the fair value of the warrant
liability
(67
)
(392
)
Changes in assets and
liabilities
Accounts receivable
34
655
Other assets
(702
)
(19
)
Deferred sales commissions
(1,420
)
(695
)
Accounts payable
(95
)
(2,134
)
Accrued expenses
(662
)
(3,716
)
Deferred revenue
195
(16
)
Operating lease liabilities
(389
)
(464
)
Net cash used in operating
activities
(5,657
)
(14,626
)
Investing activities:
Purchases of property and equipment
(9
)
(536
)
Purchases of marketable securities
(8,600
)
(1,477
)
Proceeds from sale of marketable
securities
7,604
1,515
Proceeds from maturities and principal
paydowns of marketable securities
5,791
242
Net cash provided by (used in)
investing activities
4,786
(256
)
Financing activities:
Repayments on loan payable
(140
)
(140
)
Proceeds from drawdown on line of
credit
320
—
Debt issuance costs
(299
)
—
Repayments on finance lease
obligations
(7
)
(6
)
Payments of employees’ withholding taxes
on net share settlement of share-based awards
(294
)
—
Principal payments under the structured
payable arrangement
(441
)
—
Net transfer from LiveVox TopCo
219
—
Net cash used in financing
activities
(642
)
(146
)
Effect of foreign currency translation
37
(97
)
Net decrease in cash, cash equivalents
and restricted cash
(1,476
)
(15,125
)
Cash, cash equivalents, and restricted
cash beginning of period
20,742
47,317
Cash, cash equivalents, and restricted
cash end of period
$
19,266
$
32,192
For the three months ended
March 31,
2023
2022
Supplemental disclosure of cash flow
information:
Interest paid
$
1,300
$
801
Income taxes paid
47
56
Supplemental schedule of noncash
investing activities:
Net unrealized loss (gain) on marketable
securities
$
(427
)
$
888
Reconciliation of cash, cash equivalents and restricted cash to
the consolidated balance sheets (dollars in thousands):
As of March 31,
2023
2022
Cash and cash equivalents
$
19,266
$
32,092
Restricted cash, current
—
100
Total cash, cash equivalents and
restricted cash
$
19,266
$
32,192
Non-GAAP Financial Measures
Management uses non-GAAP financial measures to evaluate
operating performance. We believe non-GAAP financial measures
provide useful information to investors and others to understand
and evaluate our operating results in the same manner as our
management and board of directors and allows for better comparison
of financial results among our competitors.
There are material limitations associated with the use of
non-GAAP financial measures since they exclude significant expenses
and income that are required by GAAP to be recorded in our
financial statements. The definitions of our non-GAAP measures may
differ from the definitions used by other companies and therefore
comparability may be limited. In addition, other companies may
utilize metrics that are not similar to ours. We compensate for
these limitations by analyzing current and future results on a GAAP
basis as well as a non-GAAP basis and by providing specific
information regarding the GAAP items excluded from these non-GAAP
financial measures.
Adjusted EBITDA
We monitor Adjusted EBITDA, a non-generally accepted accounting
principle (“Non-GAAP”) financial measure, to analyze our financial
results and believe that it is useful to investors, as a supplement
to U.S. GAAP measures, in evaluating our ongoing operational
performance and enhancing an overall understanding of our past
financial performance. We believe that Adjusted EBITDA helps
illustrate underlying trends in our business that could otherwise
be masked by the effect of the income or expenses that we exclude
from Adjusted EBITDA. Furthermore, we use this measure to establish
budgets and operational goals for managing our business and
evaluating our performance. We also believe that Adjusted EBITDA
provides an additional tool for investors to use in comparing our
recurring core business operating results over multiple periods
with other companies in our industry. Adjusted EBITDA should not be
considered in isolation from, or as a substitute for, financial
information prepared in accordance with U.S. GAAP, and our
calculation of Adjusted EBITDA may differ from that of other
companies in our industry. We compensate for the inherent
limitations associated with using Adjusted EBITDA through
disclosure of these limitations, presentation of our consolidated
financial statements in accordance with U.S. GAAP and
reconciliation of Adjusted EBITDA to the most directly comparable
U.S. GAAP measure, net loss. We calculate Adjusted EBITDA as net
loss before (i) depreciation and amortization, (ii) long-term
equity incentive bonus, (iii) stock-based compensation expense,
(iv) interest income or expense, net, (v) change in the fair value
of warrant liability, (vi) other income or expense, net, (vii)
benefit from or provision for income taxes, and (viii) other items
that do not directly affect what we consider to be our core
operating performance.
Non-GAAP Gross Profit and Non-GAAP Gross Margin
Percentage
U.S. GAAP defines gross profit as revenue less cost of revenue.
Cost of revenue includes all expenses associated with our various
product offerings. We define Non-GAAP gross profit as gross profit
after adding back the following items: (i) depreciation and
amortization; (ii) long-term equity incentive bonus and stock-based
compensation expense; and (iii) restructuring cost. We add back
depreciation and amortization, long-term equity incentive bonus and
stock-based compensation expense, and restructuring cost because
they are one-time or non-cash items. We eliminate the impact of
these one-time or non-cash items because we do not consider them
indicative of our core operating performance. Their exclusion
facilitates comparisons of our operating performance on a
period-to-period basis. Therefore, we believe showing Non-GAAP
gross margin to remove the impact of these one-time or non-cash
expenses is helpful to investors in assessing our gross profit and
gross margin performance in a way that is similar to how management
assesses our performance. We calculate Non-GAAP gross margin
percentage by dividing Non-GAAP gross profit by revenue, expressed
as a percentage of revenue.
Management uses Non-GAAP gross profit and Non-GAAP gross margin
percentage to evaluate operating performance and to determine
resource allocation among our various product offerings. We believe
Non-GAAP gross profit and Non-GAAP gross margin percentage provide
useful information to investors and others to understand and
evaluate our operating results in the same manner as our management
and board of directors and allows for better comparison of
financial results among our competitors. Non-GAAP gross profit and
Non-GAAP gross margin percentage may not be comparable to similarly
titled measures of other companies because other companies may not
calculate Non-GAAP gross profit and Non-GAAP gross margin
percentage or similarly titled measures in the same manner as we
do.
Please see tables below for a reconciliation of non-GAAP
measures to the most directly comparable GAAP measures for the
periods presented.
GAAP Net Loss to Adjusted
EBITDA (Unaudited) (Dollars in thousands)
Three Months Ended March
31,
2023
2022
Net loss
$
(8,469
)
$
(12,987
)
Non-GAAP adjustments:
Depreciation and amortization
1,043
1,347
Long-term equity incentive bonus and
stock-based compensation expense
2,649
2,479
Interest expense, net
1,096
750
Change in the fair value of warrant
liability
(67
)
(392
)
Other income, net
(70
)
(64
)
Acquisition and financing related fee and
expense
—
10
Provision for income taxes
480
544
Restructuring cost
3,569
—
Other non-recurring expenses
594
—
Adjusted EBITDA
$
825
$
(8,313
)
GAAP Gross Profit to Non-GAAP
Gross Profit (Unaudited) (Dollars in thousands)
Three Months Ended March
31,
2023
2022
Gross profit
$
23,604
$
18,461
Depreciation and amortization
308
609
Long-term equity incentive bonus and
stock-based compensation expense
108
312
Restructuring cost
1,175
—
Non-GAAP gross profit
$
25,195
$
19,382
Gross margin %
64.0
%
57.5
%
Non-GAAP gross margin %
68.3
%
60.4
%
There were no long-term equity incentive bonus during the
periods presented. Stock-based compensation expenses included in
our results of operations for the three months ended March 31, 2023
and 2022 are as follows (dollars in thousands):
Three Months Ended March 31,
(unaudited)
2023
2022
Cost of revenue
$
108
$
312
Sales and marketing expense
319
607
General and administrative expense
1,377
660
Research and development expense
845
900
Total stock-based compensation
expenses
$
2,649
$
2,479
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230509006131/en/
Investor Contacts: Alexis Waadt awaadt@livevox.com Ryan Gardella
livevoxIR@icrinc.com Press Contacts: Nick Bandy nbandy@livevox.com
Katie Creaser livevoxPR@icrinc.com
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