Q4 2021 LiveVox Holdings Inc Earnings Call
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Thank you for standing by this is the conference operator.
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Welcome to the Livebox Holdings fourth quarter 2021 earnings conference call.
Welcome to the Lifelock Holdings fourth quarter 2021 earnings conference call.
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As a reminder, all participants are in a listen-only mode and the conference is being recorded.
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I would now like to turn the conference over to Alexis Watt, Vice President, Head of Investor Relations.
I would now like to turn the conference over to electric what Vice President head of Investor Relations.
Please go ahead.
Good afternoon, and thank you for your participation today with me on the call are Louisa <unk>, Chief Executive Officer, and co founder of Glamour and Great Clevinger Executive Vice President and Chief Financial Officer before we get started I would like to remind you that comments made during this conference call and webcast contain forward looking statements within the meaning of.
Alexis Watt: Good afternoon and thank you for your participation today. With me on the call are Louie Summey, Chief Executive Officer and Co-Founder of LiveOx, and Greg Clevenger, Executive Vice President and Chief Financial Officer.
Alexis Watt: Before we get started, I would like to remind you that comments made during this conference call and webcast contain forward looking statements within the meaning of the private security litigation format of 1995 and are subject to risks and uncertainty.
Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties any statements that refers to expectations projections or other characterizations of future events, including financial protection projections or future market conditions in the forward looking statements the company's actual future results could differ materially.
Alexis Watt: Any statement that refers to expectations, projections, or other characterizations of future events, including financial projections or future market conditions, is a forward-looking statement. The company's actual future results could differ materially from those expressed in such forward-looking statements for any reason, including, without limitation, those listed in the risk factor sections of our SEC guidelines.
From those expressed in such forward looking statements for any reason, including without limitation.
The risk factors section of our SEC filings.
Alexis Watt: LiveOx is in no obligation to update any switch forward looking statements.
My Doctor sees no obligation to update any such forward looking statements. Please also note that past performance or market information is not a guarantee of future results certain information discussed on this conference call was derived from third party sources and has not been independently verified and accordingly, the company makes no representation or warranty in respect.
Alexis Watt: Please also know that past performance or market information is not a guarantee of future results.
Alexis Watt: Certain information discussed on this conference call was derived from third-party sources and has not been independently verified. And accordingly, the company makes no representation or warranty in respect of this information.
During this conference call the company will discuss non-GAAP financial measures as defined by SEC regulation G. A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP financial measure can be found in the earnings press release, which is available on the investors relations.
Alexis Watt: During this conference call, the company will discuss non-GAAP financial measures as defined by SBC Regulation G. A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP financial measure can be found in the Earnings Threshold, which is available on the Investors Reports website.
Alexis Watt: relations website, investors.livebox.com. A recorded replay of this call together with related materials will be available on our investor relations website, investors.livebox.com. Livebox's earnings release and Form 10-K will also be available on the company's website. With that, I'll turn the call over to Bui to begin.
Relations website investors don't like Hawks Dot Com a recorded replay of this call together with related materials will be available on our Investor Relations website investors don't like box Dotcom lives off this earnings release and Form 10-K will also be available on the company's website.
That I will turn the call over to Julie to begin.
Good afternoon, everyone and thank you for joining US my name is Louis Xiaomi and I'm, the CEO and cofounder of <unk> today I'm pleased to share with you our strong finish to 2021 as well as our path to a strong 2022, we had record revenue in the fourth quarter with contract revenue was <unk>.
Louis Summey: Good afternoon, everyone, and thank you for joining us. My name is Louis Summey, and I'm the CEO and co-founder of LiveOps. Today, I'm pleased to share with you our strong finish to 2021, as well as our path to a strong 2022. We had record revenue in the fourth quarter, with contract revenue of $24.3 million and usage revenue of $7.5 million, for a total of $31.9 million, all of which were at the high end of our guidance rank.
$94 3 million and usage revenue of $7 five noise for a total of $31 9 million all of which were at the high end of our guidance range full year 2021 contract revenue was $90 5 million up 26% and total revenue was $119 two.
Louis Summey: Full year 2021 contract revenue was $90.5 million, up 26%, and total revenue was $119.2 million, up 16%.
<unk> up 16%.
I'm also pleased to share that 2021 was a record bookings year up 31% year over year.
Louis Summey: I'm also pleased to share that 2021 was a record bookings year, up 31% year-over-year. A key driver of this is what is that the size of our new logo bookings was up over 50% year-over-year. Additionally, the channel program we began implementing last year is already bearing positive results.
Key driver of this is what.
Is that the size of our new logo bookings was up over 50% year over year. Additionally, the channel program. We began implementing last year is already bearing positive results.
The momentum in the <unk> market continues to be strong and the ease of use and full functionality of our next generation fully cloud enabled platform is resonating with both new and existing customers.
Louis Summey: The momentum in the CCAS market continues to be strong and the ease of use and full functionality of our next generation, fully cloud enabled platform is resonating with both new and existing customers.
Louis Summey: As larger, more risk-adverse enterprises increasingly adopt cloud solutions, security, compliance, and reliability are becoming even more important to contact center buyers.
As larger more risk adverse enterprises increasingly adopt cloud solutions security compliance and reliability are becoming even more important contact center buyers.
Louis Summey: Powered by our contact center CRM and our public cloud platform, these capabilities are core strengths of LiveOx. And they help drive performance during the back half of 2021 and will be a key driver of 2022 success.
Powered by our contact center CRM and our public cloud platform. These capabilities are core strengths of la box and they help drive performance during the back half of 2021 and will be a key driver of 2022 success.
Louis Summey: Many of these larger enterprises have a significantly higher bar when it comes to security, compliance and reliability. And as a strong leader of these capabilities in the cloud contact center, LiveOx is prepared to meet the challenge. Evidence of this is a year-long security audit we recently passed for a top five U.S. bank customer. It's a rigorous and time-consuming process, yet one that we achieved and it's a clear point of differentiation for us.
Many of these larger enterprises have a significantly higher bar when it comes to security compliance and reliability.
They are a strong leader of these capabilities in the cloud contact center Lavazza is prepared to meet the challenge evidence of this is a year long security audits. We recently passed for a top five U S bank customer, it's a rigorous and time consuming process, but one that we achieved and its a clear point of differentiation for us.
Louis Summey: To be certain, the functionality and continued evolution of our platform is key, including seamless integration of omnichannel, AI, CRM, and workforce employee management.
To be certain the functionality and continued evolution evolution of our platform as Qi, including seamless integration of Omnichannel, AI, CRM and workforce employee management.
Louis Summey: You have to have the goods, but when you add in our leading security compliance and reliability capabilities, it's very attractive to a wide variety of enterprise prospects. That's exactly what we're seeing in our bookings and in our pipelines.
You have to have the goods, but when you add in our leading security compliance and reliability capabilities, it's very attractive to a wide variety of enterprise prospects, that's exactly what we're seeing in our bookings and in our pipeline.
The following Q4 enterprise wins and Upsells help illustrate my point.
Louis Summey: The following Q4 enterprise wins and upsells help illustrate my point.
Louis Summey: A top five U.S. bank implementation has gone live after extensive due diligence and vetting of security policies and infrastructure. In one call center alone, we are estimated to save them $7 million a year by increasing agent efficiencies and connection rates.
Top five U S Bank implementation has gone live after extensive due diligence and vetting of security policies and infrastructure and one call Center alone. We are estimated to save them 7 million a year by increasing agent efficiencies and collection rates.
In Q3, we sold the consumer credit operations are a leading U S tire retailer a one 9 million deal for annual contract revenue with 18 products.
Louis Summey: In Q3, we sold the consumer credit operations of a leading U.S. tire retailer a $1.9 million deal for annual contract revenue with 18 products.
In Q4 by leveraging the infrastructure of the original deal we added an additional department to the engagement, resulting in an incremental.
Louis Summey: In Q4, by leveraging the infrastructure of the original deal, we added an additional department to the engagement, resulting in an incremental annual contract revenue of $1.5 million.
Annual contract revenue of $1 5 million.
A leading fintech provider started with us as a voice only customer doing 30 K contract revenue per month in early 2020.
Louis Summey: a leading fintech provider, started with us as a voice-only customer, doing 30k contract revenue per month in early 2020.
Louis Summey: and Q4, they added seven products and they are now at 113 contract revenues per month using 10 products across their across our platform including virtual agents.
In Q4, they added seven products and they are now at 113 contract revenue per month, using 10 products across the across our platform, including virtual agents.
Louis Summey: More than 10% of our customer base now uses 10 or more of our products and that percentage continues to grow.
More than 10% of our customer base now uses 10 or more of our products and that percentage continues to grow.
Believing outsourcer added three new financial services customers onto their platform displacing the legacy on Prem systems with the full Lightbox suite of products they've gone from 10-K of contract revenue per month in 2019 to 120 6K of contract revenue per month.
Louis Summey: a leading outsourcer, added three new financial services customers onto their platform, displacing a legacy on-prem system with the full LiveOx suite of products.
Louis Summey: they've gone from 10K of contract revenue per month in 2019 to 126K of contract revenue per month now.
Now and finally, a new logo win against direct competitors for an online retail providing consumer leasing solutions for power equipment signed an initial deal with aged products, including voice and digital channels, CRM and our quality management solution.
Louis Summey: And finally, a new logo win against direct competitors for an online retail.
Louis Summey: providing consumer leasing solutions for power equipment, signed an initial deal with eight products, including voice, digital channels, CRM, and our quality management solution.
Louis Summey: This customer will have their voice solution online in 30 days with our Smart Start Implementation Program, which was announced in Q4.
This customer will have their voice solution online with 30 day with our smart start implementation program, which was announced in Q4.
Louis Summey: We're excited about these wins and even more excited about the opportunities in our pipeline. It's a good position to be in. The security and compliance and reliability conscience segment represents the majority of the CCAS space. And according to analysts, it's one of the areas that is driving secular growth, especially as large banks announced their intention to increase cloud migration.
We're excited about these wins and even more excited about the opportunities in our pipeline. It's a good position to be in the security and compliance and reliability conscience segment represents the majority of the seed cap space and according to analysts. It's one of the areas that are driving secular growth, especially as large banks announced their intention to.
The increased cloud migration.
As noted we intend to continue to take advantage of the tailwind and capitalize on the strength and differentiation of our platform.
Louis Summey: As noted, we intend to continue to take advantage of these tailwinds and capitalize on the strength and differentiation of our class.
Louis Summey: As we reflect on 2021, there were a number of noteworthy accomplishments. First and foremost, as a result of us entering the public market, it was a year of significant investment. Our two key areas of focus were to accelerate our go-to-market investments to help facilitate growth and to migrate 100% of our customers to the public cloud. I'm pleased to share that we've made significant progress on both fronts.
As we reflect on 2021, there were a number of noteworthy accomplishments first and foremost as a result of us entering the public market. It was a year of significant investments are two key areas of focus were to accelerate our go to market investments to help facilitate growth and to migrate 100% of our.
Customers to the public cloud.
I'm pleased to share that we've made significant progress on both fronts from a go to market perspective, we accelerated hiring in 2021.
Louis Summey: From a go-to-market perspective, we accelerated hiring in 2021.
Louis Summey: growing our go-to-market headcount by over 60%.
Growing our go to market head count by over 60%.
The team is in place and ramping and we believe we have a terrific foundation to take us to the next level, we've implemented extensive sales productivity metrics and targets to ensure that our aggressive investments are paying off.
Louis Summey: The team is in place and ramping, and we believe we have a terrific foundation to take us to the next level. We've implemented extensive sales productivity metrics and targets to ensure that our aggressive investments are paying off.
Additionally, we built a channel program from the ground up.
Louis Summey: Additionally, we built a channel program from the ground up that, in less than 12 months, is already contributing to booking.
In less than 12 months is already contributing to bookings.
Louis Summey: In addition to building a strong team of seasoned leaders, we signed six master agents.
In additional to building a strong team of seasoned leaders, we signed six master agents for complete coverage in the U S. This is strategically important.
Louis Summey: for complete coverage in the U.S. This is strategically important.
As 40% to 50% of enterprise customers prefer to conduct business through the channel.
Louis Summey: as 40-50% of enterprise customers prefer to conduct business through the channel.
Louis Summey: Lastly, we significantly boosted our marketing spend to amplify our brand awareness and lead generation efforts.
Lastly, we significantly boosted our marketing spend to amplify our brand awareness and lead generation efforts.
As mentioned our other key area of focus and investment was to complete the migration of our customers to the public cloud.
Louis Summey: As mentioned, our other key area of focus and investment was to complete the migration of our customers to the public cloud.
I'm excited to share we've accomplished this and now 100% of our customers are in the public cloud where one of the first <unk> platforms to hit this milestone.
Louis Summey: I'm excited to share, we've accomplished this and now 100% of our customers are in the public cloud. We're one of the first CTAS platforms to hit this milestone. This enables numerous advantages relative to many of our competitors, including significantly less technical debt than private cloud data centers, which simplifies product management, operations, engineering.
This enables numerous advantages relative to many of our competitors, including significantly less technical debt and private cloud data centers, which simplifies product management operations engineering and.
Fan support.
And increases the velocity of new feature development.
Louis Summey: and increases the velocity of new feature development, while making it easier to deploy redundant data centers and on-demand capacity utilization, which are strong levers for increasing reliability and cost efficiency. Now that the migration is complete, we can optimize our AWS cost above the gross margin line, helping overall profitability.
While making it easier to deploy redundant data centers and on demand capacity utilization, which are strong levers for increasing the liability and cost efficiency.
Now that the migration is complete we can optimize our AWS cost above the gross margin line, helping overall profitability.
I'm also excited to share that we've made significant progress with our product in 2021.
Louis Summey: I'm also excited to share that we made significant progress with our product in 2021.
Louis Summey: U17, which will be GA in Q2 of this year, is a transformative release for us, taking our platform to the next level.
<unk> 17, which will be GA in Q2 of this year is a transformative release for us taking our platform to the next level.
This release enhances our fully integrated contact center platform, making it even easier for our customers to take advantage of our contact center CRM AI and the breadth and depth of our broad array of Omnichannel communication tools and the full richness of data and insights that inform the contact center.
Louis Summey: This release enhances our fully integrated contact center platform making it even easier for our customers to take advantage of our contact center CRM, AI, and the breadth and depth of our broad array of omnichannel communication tools and the full richness of data and insights that inform the contact center.
Louis Summey: Some of the new capabilities include multi-channel analytics with built-in quality management capabilities to further close the loop between interaction auditing and agent performance improvement.
Some of the new capabilities include multichannel analytics with built in quality management capabilities to further close the loop between interaction auditing and agent performance improvement.
Louis Summey: and has ticketing and CRM capabilities, enabling care organizations to leverage smart features that make flagging and tracking customer issues more efficient and easier for agents, managers, and back office staff to resolve collaboratively.
Enhanced ticketing, the CRM capability, enabling care organizations to leverage smart features that make flagging and tracking customer issues more efficient and easier for agents managers.
And back office staff to resolve collaboratively.
More robust customer and operational except provide the insights necessary to improve the performance improved performance at scale.
Louis Summey: more robust customer and operational except provide the insights necessary to improve performance improve performance at scale.
Louis Summey: And enhanced digital messaging capabilities help agents optimally communicate with customers on their channel of choice.
That enhanced digital messaging capabilities help agent optimally communicate with customers on their channel of choice.
This includes the ability to ensure omnichannel outreach adheres to industry and government rules and regulations.
Louis Summey: This includes the ability to ensure Omnichannel Outreach adheres to industry and government rules and regulations.
Again, la box made significant progress across many fronts in 2021, but now let's turn to 2022 looking at the year ahead, our focus will be capitalizing on the investments we put in place to accelerate growth and to ensure we continue to offer our customers the best possible service and products.
Louis Summey: Again, LiveOx made significant progress across many fronts in 2021, but now let's turn to 2022. Looking at the year ahead, our focus will be capitalizing on the investments we put in place to accelerate growth and to ensure we continue to offer our customers the best possible service and products.
Louis Summey: More specifically, our focus will be to accelerate our sales and marketing efforts, with an emphasis on upmarket, larger seat count opportunities, where we can leverage our security, compliance, and reliability advantages.
More specifically, our focus will be to accelerate our sales and marketing efforts with an emphasis on up market larger seat count opportunities, where we can leverage our security compliance and reliability advantages.
Louis Summey: to continue expansion and proliferation of channel relationships and opportunities, where, as we noted, we already have strong traction.
To continue expansion and proliferation of channel relationships and opportunities, whereas we know that we already have strong traction.
Louis Summey: to focus our development and engineering efforts on new features and functionality that will keep our customers on the forefront of CCAS 2.0 technology, with an emphasis on digital and AI, and to expand our technology partner ecosystem to increase our appeal to enterprise prospects and customers.
To focus our development and engineering efforts on new features and functionality that will keep our customers on the forefront of <unk> technology with an emphasis on digital and AI and.
And to expand our technology partner ecosystem to increase our appeal Center prize prospects and customers.
Louis Summey: In summary, I'm excited about Lavox and our opportunity for 2022 and beyond. The CCAS market remains very attractive and Lavox's product strength is uniquely positioned as one of the only enterprise CCAS providers 100% developed and hosted on the public cloud. Our best-in-class security, compliance, and reliability puts us in a strong position with large enterprises handling sensitive consumer information and managing financial transactions.
In summary, I'm excited about la box and our opportunity for 2022 and beyond the <unk> market remains very attractive and a lot of options product strength is uniquely positioned as one of the only enterprise Cts providers are 100% developed and hosted on the public cloud are best in class security comply.
And reliability puts us in a strong position with large enterprises handling sensitive consumer information and managing financial transactions and puts us in prime position to take advantage of secular tailwind in the sector like banking retail travel and hospitality and a return to a normal credit cycle not.
Louis Summey: and puts us in prime position to take advantage of secular tailwinds in the sector like banking, retail, travel, and hospitality, and a return to a normal credit cycle.
Louis Summey: not only does our public cloud leadership help us grow our revenue, it also positions us to drive steady improvements in our gross margin and EBITDA.
Not only does our public cloud leadership help us grow our revenue. It also positioned us to drive steady improvement in our gross margin and EBITDA.
Louis Summey: I want to thank our team for all their hard work, our board, and of course, our customers. I'll now turn it over to our CFO , Greg Clevenger, to review Q4 and 2021 financials and provide guidance.
I want to thank our team for all their hard work, our board and of course our customers.
I'll now turn it over to our CFO , Greg Clevinger to review Q4, and 2021 financials and provide guidance.
Thanks, Louis and good afternoon, everyone I'll start off by reminding you that all non-GAAP financial figures that I discussed on the call today are reconciled in a presentation posted on the Investor Relations section on our website and our press release issued just prior to this call and in our 10-K, which we expect to be filed after the close tomorrow.
Greg Clevenger: Thanks, Louie, and good afternoon, everyone. I'll start off by reminding you that all non-GAAP financial figures that I discuss on the call today are reconciled in a presentation posted on the Investor Relations section on our website in our press release issued just prior to this call and in our 10-K, which we expect to be filed after the close tomorrow.
First a few words about our new sales bookings for the year for the full year 'twenty one our total new sales bookings were 31% higher than 2020, driven by strength in new logo bookings, which finished the year, 50% higher than last year importantly, our average new logo deal in 2021 was $280000.
Greg Clevenger: First, a few words about our new sales bookings for the year. For the full year 21, our total new sales bookings were 31 percent higher than 2020, driven by strength and new logo bookings which finished the year 50 percent higher than last year.
Greg Clevenger: Importantly, our average new logo deal in 2021 was $280,000 per year of contract revenue in the initial sale versus $166,000 in 2020, up 69% year over year, reflecting the increase in average products per new logo deal, which were 5.9 on average in 21 versus an average of three just two years ago.
Per year of contract revenue in the initial sale versus a 166000 in 2020 up 69% year over year, reflecting the increase in average products per new logo deal.
Which were $5 nine on average in 'twenty, one versus an average of three just two years ago.
We ended 2021 with 353 customers up from 324 customers at the end of 2020, adding 39, new logos over the course of the year as well as 30 customers from our business loan acquisition earlier in the year with customer churn largely coming from smaller customers acquired in prior acquisitions, our average annualized revenue per customer.
Greg Clevenger: We ended 2021 with 353 customers up from 324 customers at the end of 2020, adding 39 new logos over the course of the year, as well as 30 customers from our business phone acquisition earlier in the year, with customer churn largely coming from smaller customers acquired in prior acquisitions.
Greg Clevenger: Our average annualized revenue per customer at year-end 21 was $361,000 a year versus $347,000 a year at the end of 2020, up 4%. And our average monthly revenue per agent as of the end of 21 was $179 per agent per month versus 165 a year ago, up 8%. All of these measures excluding the impact of political customers, agents, and revenue.
At the at year end 'twenty, one was $361000 a year versus $347000 a year at the end of 2020 up 4% and our average monthly revenue per agent as of the end of 'twenty, one was $179 per agent per month versus 165, a year ago up 8%.
All of these measures excluding the impact of political customers agents and revenue.
Greg Clevenger: And finally, we ended the year with 27 customers billing more than a million dollars a year versus 22 customers at the end of 2020, further demonstrating the traction that we're getting with larger enterprise customers.
And finally, we ended the year with 27 customers doing more than $1 billion, a year versus 22 customers at the end of 2020 further demonstrating the traction that we're getting with larger enterprise customers.
Greg Clevenger: Now onto the pipeline. Our pipeline as we moved into 22 was as large as it's ever been and it continues to be strong and active even in the face of the uncertain geopolitical environment.
Now onto the pipeline our pipeline as we moved into 'twenty two was as large as it's ever been and it continues to be strong and active even in the face of the uncertainty geopolitical environment. Our total stage III plus pipeline at the beginning of the year.
Greg Clevenger: Our total Stage 3 plus pipeline at the beginning of the year, that's the deals for which formal proposals have been delivered, was about one third higher than the beginning of last year, while our total pipeline was about two thirds higher. And those comparisons have only improved since the beginning of the year now, more than two months in.
The deals for which formal proposals have been delivered was about one third higher than the beginning of last year, while our total pipeline was about two thirds higher than those comparisons have only improved since the beginning of the year now more than two months and.
We're excited about the impacts that our go to market investments are having in terms of new opportunities and we're confident in our ability to convert these opportunities into <unk>.
Greg Clevenger: We're excited about the impact that our go-to-market investments are having in terms of new opportunities, and we're confident in our ability to convert these opportunities into another strong bookings year in 2022.
Another strong bookings year in 2000 to 2022.
Now moving onto our revenue results for the quarter and for the full year. Our total revenue for the fourth quarter was $31 $9 million, 13% higher than the fourth quarter of last year, and 4% higher than last quarter and at the higher end of our guidance range of 31, 2% to $32 $2 million. This was supported by continued strength in our <unk>.
Greg Clevenger: Now, moving on to our revenue results for the quarter and for the full year, our total revenue for the fourth quarter was $31.9 million, 13% higher than the fourth quarter of last year, and 4% higher than last quarter.
Greg Clevenger: and at the higher end of our guidance range of $31.2 to $32.2 million.
Greg Clevenger: This was supported by continued strength in our contract revenue, which was $24.3 million for the fourth quarter, 21% higher than the fourth quarter of last year, 6% higher than last quarter, and at the higher end of our guided range of 23.9 to 24.4 million.
Contract revenue, which was $24 3 million for the fourth quarter, 21% higher than the fourth quarter of last year, 6% higher than last quarter and at the higher end of our guided range of $23 nine to $24 4 million.
Greg Clevenger: Total revenue for the full year was $119.2 million, 16% higher than 2020, and at the higher end of our guidance of $118.6 to $119.6 million, behind the strength of our full year contract revenue of $19.5 million, which was 26% higher than last year, and also at the high end of our guided range of $90.1 to $90.6 million.
Total revenue for the full year was $119 2 million, 16% higher than 2020 and at the higher end of our guidance of $118 six to $119 6 million behind the strength of our full year contract revenue of $98 5 million, which was 26% higher than last year and also at the high end of our guided range of <unk> 90.
Eight 1% to $90 6 million.
Greg Clevenger: Our excess usage revenue remained flat in the fourth quarter at $7.5 million, down 7% year-over-year, and in the middle of our guided range of $7.3 to $7.8 million. This was largely due to new dialing rules for collection agencies, which I will expand upon shortly.
Our excess usage revenue remained flat and the FERC fourth quarter at $7 $5 million down 7% year over year and in the middle of our guided range of seven 3% to $7 $8 million. This was largely due to new dialing rules for collection agencies, which I will expand upon shortly.
Greg Clevenger: A full year excess usage revenue of $28.7 million was also in the middle of our guided range of $28.5 to $29 million and down 6% year over year.
Full year excess usage revenue of $28 $7 million was also in the middle of our guided range of 28, 5% to $29 million and down 6% year over year.
The usage multiplier for the fourth quarter remember Thats total revenue divided by contract revenue was $1 three onex slightly lower than the 132 X multiplier in the third quarter and well below the one four multiplier in the fourth quarter of last year.
Greg Clevenger: The usage multiplier for the fourth quarter, remember that's total revenue divided by contract revenue, was 1.31X, slightly lower than the 1.32X multiplier in the third quarter and well below the 1.4 multiplier in the fourth quarter of last year.
Greg Clevenger: During the fourth quarter, at the beginning of December , new dialing rules for collection agencies went into effect, which temporarily impacted the usage volume from our collections customers.
During the fourth quarter at the beginning of December new dialing rules for collection agencies went into effect, which temporarily impacted the usage volume from our collections customers. While the rule change had been in the works for over a year and our customers have communicated to us that they did not believe that the real change would appreciably alter their overall byland volumes. It did have a bigger.
Greg Clevenger: While the rule change had been in the works for over a year and our customers had communicated to us that they did not believe that the rule change would appreciably alter their overall dialing volumes, it did have a bigger than expected impact on volumes in December and into the first quarter. And while volumes have now largely recovered to pre-December levels, the initial dip was deeper than we expected.
Than expected impact on volumes in December and into the first quarter and while volumes has now largely recovered to pre December levels. The initial dip was deeper than we expected.
As a result, some of our customers have requested that we provide them some relief to their minimum commitments are contract revenue and so we have worked with them to resize their contract commitments going forward.
Greg Clevenger: As a result, some of our customers have requested that we provide them some relief to their minimum commitments or contract revenue. And so we have worked with them to resize their contract commitments going forward.
While we're seeing a quick recovery towards the pre December volumes from these customers. These contract amendments will decrease our contract revenue relative to our prior expectations. Although we do expect that the volume recovery will be reflected in higher excess usage revenue largely if not fully minimizing the impact to total revenue I'll get to that.
Greg Clevenger: While we're seeing a quick recovery towards the pre-December volumes from these customers, these contract amendments will decrease our contract revenue relative to our prior expectations, although we do expect that the volume recovery will be reflected in higher excess usage revenue, largely if not fully minimizing the impact to total revenue. I'll get to that in more detail in a minute when I talk about the outlook for the first quarter and full year.
In more detail in a minute when I talk about the outlook for the fourth first quarter and full year.
Our adjusted gross margin for the fourth quarter was 59% a decline of 50 basis points versus last quarter, driven primarily by higher AWS cost as we continued to build capacity to migrate the final batch of our customers from our own data centers to our public cloud platform on AWS <unk>.
Greg Clevenger: Our adjusted gross margin for the fourth quarter was 59%, a decline of 50 basis points versus last quarter, driven primarily by higher AWS costs as we continue to build capacity to migrate the final batch of our customers from our own data centers to our public cloud platform on AWS.
Greg Clevenger: Importantly, finally, we completed the last customer transition in December , so we are now 100% in the public cloud for all development and for all current and future customers. And we expect to be able to now drive gross margin expansion from this fourth quarter low point. And I'll talk about that more in the guidance section.
Fortunately finally, we completed the last customer transition in December . So we are now 100% in the public cloud for all development and for all current and future customers and we expect to be able to now drive gross margin expansion from this fourth quarter low point and I'll talk about more talk.
Talk about that more in the guidance section.
We continue to increase our head count in the quarter.
Greg Clevenger: We continue to increase our head count in the quarter, although at a slower pace, ending the year at 672 employees, an increase of 33 in the quarter and 166 for the year, up 33% since the end of 2020. Roughly half of that growth, both in the quarter and during the full year, was in our go-to-market functions, which grew by over 60% year-over-year to 210 by year-end.
Although at a slower pace ending the year at 672 employees, an increase of 33 in the quarter and 166 for the year up 33% since the end of 2020, roughly half of that growth both in the quarter and during the full year was in our go to market functions, which grew by over 60% year over year to 210.
And by year end.
Greg Clevenger: Our adjusted EBITDA for the quarter was a negative $7 million, about $700,000 lower than last quarter, negatively impacted by the continued increase in OPEX, in line with our headcount growth, and mostly offset by the increase in revenue quarter over quarter. That brings our adjusted EBITDA for the full year to a loss of $16 million, which has been negatively impacted by COVID-related financial stimulus for most of the year. Otherwise, we would have been in positive territory for the full year.
Our adjusted EBITDA for the quarter was a negative $7 million about $700000 lower than last quarter negatively impacted by the continued increase in opex in line with our head count growth and mostly offset by the increase in revenue quarter over quarter that.
That brings our adjusted EBITDA for the full year to a loss of $16 million, which has been negatively impacted by COVID-19 related financial stimulus for most of the year otherwise we would've been in positive territory for the full year.
Greg Clevenger: As we've communicated in the past, we continue to lean heavily into our go-to-market investments over the course of last year to position ourselves for the opportunity in front of us. We believe that this has best positioned us for long-term value creation.
As we've communicated in the past we continue to lean heavily into our go to market investments over the course of last year to position ourselves for the opportunity in front of us, but we believe this is best positioned us for long term value creation.
Our earnings per share for the quarter were at negative 13 on both the basic and diluted basis versus breakeven in the fourth quarter of last year again, reflecting our aggressive spending to drive topline growth.
Greg Clevenger: Our earnings per share for the quarter were at negative 13 cents on both the basic and diluted basis versus break even in the fourth quarter of last year, again reflecting our aggressive spending to drive top line growth.
Capex for the quarter totaled $400000 coming to $1 $6 million for the full year 'twenty, one which was about double our 2020 capex with the increase driven primarily by new office build outs in Colombia and India.
Greg Clevenger: Our CapEx for the quarter totaled $400,000, coming to $1.6 million for the full year of 21, which was about double our 2020 CapEx with the increase driven primarily by new office build-outs in Columbia and India.
And lastly, we ended the year with $55 million of debt same as last quarter and $97 million of cash and cash equivalents and current and longer term marketable securities.
Greg Clevenger: And lastly, we ended the year with $55 million of debt, same as last quarter, and $97 million of cash and cash equivalents and current and longer-term marketable securities.
And with that let's pivot to forward looking guidance I'll first start with the first quarter revenue guidance. We expect first quarter total revenue to be between 31, 1% and $32 $1 million, 11% to 15% growth over the first quarter of 'twenty, one despite a slightly weaker usage multiplier in this first quarter due to the <unk>.
Greg Clevenger: And with that, let's pivot to forward-looking guidance. And I'll first start with the first quarter revenue guidance.
Greg Clevenger: We expect first-quarter total revenue to be between $31.1 and $32.1 million, 11 to 15 percent growth over the first quarter of 2021, despite a slightly weaker usage multiplier in this first quarter due to the lingering impact of the regulatory rule change that I discussed earlier.
<unk> impact of the regulatory rule change that I discussed earlier.
Greg Clevenger: We expect contract revenue to be between 24.4 and 24.9 million dollars, 18 to 20% growth over the 1st quarter of last year, again, impacted somewhat by the contract relief that I mentioned earlier.
We expect contract revenue to be between 24, 4% and $24 9 million, 18% to 20% growth over the first quarter of last year again impacted somewhat by the contract relief that I mentioned earlier, and we expect excess usage revenue to be between six 7% and $7 $2 million, which is flat to down 7% versus.
Greg Clevenger: And we expect excess usage revenue to be between $6.7 and $7.2 million, which is flat to down 7% versus the first quarter of last year, driven by a lower usage multiplier of 1.27x to 1.29x versus 1.35x in the first quarter of last year.
The first quarter of last year, driven by a lower usage multiplier of 127 X to $1 <unk> versus 135 X in the first quarter of last year.
Greg Clevenger: We expect our gross margin in the first quarter to be about the same as the fourth quarter of 21, 59%, and we expect that this will now trend up towards the mid-60s by the fourth quarter of this year as we optimize our AWS costs and scale on the public cloud infrastructure.
We expect our gross margin in the first quarter to be about the same as the fourth quarter of 'twenty, 159% and we expect that this will now trend up towards the mid <unk> by the fourth quarter of this year as we optimize our AWS costs and scale on the public cloud infrastructure.
Greg Clevenger: We expect our adjusted EBITDA to be between negative 8.7 and negative 7.7 million dollars in the first quarter, and we expect this to be the low point of 2022 and for adjusted EBITDA to trend towards breakeven by the beginning of 2024.
We expect our adjusted EBITDA to be between negative $8, seven and negative $7 7 million in the first quarter and we expect this to be the low point of 2022 and for adjusted EBITDA to trend towards breakeven by the beginning of 2024.
In terms of full year guidance for 'twenty, two we expect our total revenue for the year to be between 140 and $142 million, 17% to 19% growth over 'twenty. One we expect the contract revenue portion to grow a little more slowly than we have previously guided now 20% to 23% versus 25% impacted.
Greg Clevenger: In terms of full year guidance for 22, we expect our total revenue for the year to be between $140 and $142 million, 17 to 19% growth over 21. We expect the contract revenue portion to grow a little more slowly than we have previously guided, now 20 to 23% versus 25%, impacted by the contract relief I mentioned earlier.
By the contract relief I mentioned earlier.
Greg Clevenger: At the 20 to 23% growth rates, we expect contract revenue for the year to be between $109 and $111 million.
At the $20 to 23% growth rates, we expect contract revenue for the year to be between 109 and $111 million.
Greg Clevenger: We expect our full year usage multiplier to range between 1.26x and 1.3x, resulting in excess usage revenue of between $29 and $34 million for the full year, growth of 1 to 18% year over year.
We expect our full year usage multiplier to range between $1, two six X and one <unk>, resulting in excess usage revenue of between 29% and $34 million for the full year growth of 1% to 18% year over year.
Greg Clevenger: We expect our adjusted gross margin to be in the mid 60s percent by the fourth quarter, and we expect our adjusted EBITDA to be between negative 24 and negative 26 million for the full year, and to trend up throughout the year from the first quarter low point on the way towards breakeven by the beginning of 2024.
We expect our adjusted gross margin to be in the mid 60% by the fourth quarter and we expect our adjusted EBITDA to be between negative <unk> 24, and negative $26 million for the full year and to trend up throughout the year from the first quarter low point on the way towards breakeven by the beginning of 2024 with the improved performance in both adjusted <unk>.
Greg Clevenger: with the improved performance in both adjusted gross margin and adjusted EBITDA driven in large part by efficiencies we expect to be able to drive at our cost of service now that we have completed the full transition to the public cloud.
Gross margin and <unk>.
Adjusted EBITDA driven in large part by efficiencies, we expect to be able to drive in our cost of service now that we have completed the full transition to the public cloud.
And with that operator can you. Please open the line for Q&A.
Speaker Change: And with that, operator, can you please open the line for Q and A?
Speaker Change: Thank you. We will now begin the question and answer session.
Thank you.
We'll now begin the question and answer session.
Speaker Change: To join the question queue, you may press star, then 1 on your telephone keypad. You will hear a tone acknowledging your request.
Join the question queue, you May Press Star then one on your telephone keypad.
Gary Cohn acknowledging your request if you will.
Speaker Change: If you are using a speakerphone, please pick up your handset before pressing any keys.
We're using a speakerphone please pick up your handset before pressing any keys.
Speaker Change: To withdraw your question, please press star and two. We will pause for a moment as callers.
Withdraw your question. Please press Star then two.
I'll pause for a moment as colleagues join the queue.
Our first question comes from Parker Lein with Stifel.
Speaker Change: first question comes from Parker Lane with Stiefel.
Please go ahead.
Yes, hi, thanks for taking the question congrats on the quarter.
Parker Lane: Yeah, hi, thanks for taking the question. Congrats on the quarter. Wanted to dive into the security audit with the top five bank, really interesting development there. Can you talk about, you know, the ability to market the capabilities of the platform, the robustness of your solution and how tight you are on the security front across the base? What are some of the measures you're you're putting in place to sort of benefit from that and drive new demand in that vertical in particular?
Wanted to dive into the security audit with a top five bank really interesting development. There can you talk about.
The ability to market the capabilities of the platform.
The robustness of your solution and then I'll tell you on the security front across the base what are some of the measures you are putting in place too.
Sort of benefit from that and drive new demand in that vertical in particular.
Yes, no great question.
Speaker Change: Yeah, no, great question. Well, one of the measures that we have in place around security is, is PCI. So we, you know, we adhere to an ongoing PCI process on it by a third party every year. And so we're at the highest level of PCI certification. We also have other external auditors and other compliance that would go through like SOC.
We're one of the measures that we have in place around security is as PCI. So we we adhere to and ongoing PCI process on it.
Third party every year and somewhere at the highest level.
PCI certification, we also have other.
The external auditors and other compliance that would go through like sock and other related products, but I think that the.
Speaker Change: and other related audits. But I think that the information security topic when you're talking about larger enterprises, in particular, larger banks, it kind of goes to the next level beyond that. And really what they're looking for there is they're looking for a very robust security kit.
The information security topic, when you are talking about larger enterprises in particular.
Larger banks it kind of goes to the next level beyond that and really what they're looking for there is they're looking for a very robust security can't so that when they start the conversation they see that you've got all of your information well documented well laid out its thorough and it addresses all of their top concerns so us have.
Speaker Change: so that when they start the conversation, they see that you've got all of your information, well-documented, well-laid out, it's thorough and it addresses all of their concerns. So us having a strong security kit is an important marketing tool because it'll show up in all of our RFPs for large organizations.
A strong security Kent is an important marketing tool because it'll show up in all of our Rfps for larger organizations.
Got it very helpful. And then Greg just thinking about the impact of the collections business.
Speaker Change: Got it. Very helpful. And then, Greg, just thinking about the impact of the collections business, think I understand it pretty well, what you laid out there and how that'll flow through into Q1. But, you know, in the past, you've talked about, I think, 30%, 37% of the business with collections customers, revenue from those customers in 2021. Can you give us a sense of how that shook out here at the end of 22 and where you expect that to trend here? I know it's becoming a smaller component of the business, but maybe give us a sense of what that can look like over the midterm.
I think I understand it pretty well, which you laid out there and how that will flow through into Q1, but in the past you've talked about I think 30%, 37% of the business with collections customers revenue from those customers. In 2021 can you give us a sense of how that shook out here at the end of 'twenty two.
Where you expect that to trend here I know, it's becoming a smaller component of the business, but maybe give us a sense of what that can look like over the midterm.
Yes, it was about 33% last year. So it is continuing to trend to trend down.
Greg Clevenger: Yeah, it was about 33% last year, so it is continuing to trend down, and we expect it to continue to do so. It's not a rapid transition because we all are adding business from collections customers along the way, but it is on the downward path. Got it. Appreciate it.
We expect it to continue to do so.
It is.
<unk>.
Not a rapid.
Transition because we all are adding business from collections customers along the way.
But it is on the downward path.
Got it I appreciate the feedback thanks Scott.
Thank you.
The next question comes from Michael Funk with Bank of America.
Speaker Change: The next question comes from Michael Funk with Bank of America.
Please go ahead.
Yes. Thank you for taking the questions today, a couple if I, if I could I think I understand.
Michael Funk: Yeah. Thank you for taking the questions today. You know, a couple if I could. You know, I think I understand the guidance for 2022 and the comments around the amendments. You know, I'm sure you appreciate in the current market even companies that are guiding up the stocks aren't reacting that well. So, just to help us in the market understand this better, are you finished with the contract amendments? How many contracts?
The guidance for 2022 and are caught in the comments around the amendments I'm sure. You'll appreciate in the current market. Even companies are guiding up the stocks are reacting that that well so just to help us in the market under.
I understand that better.
Are you finished with the contract amendments.
Many contracts.
Where our Mandan and I guess whats the kind of what's the level of certain to your visibility at this point into the guidance relative to where you were a few months ago.
Michael Funk: were amended and I guess, you know, what's the kind of what's the level of certain to your visibility at this point into the guidance relative to where you were a few months.
Speaker Change: Yeah, I wouldn't say that we're we're completely finished, but we certainly have a, you know, kind of ring fenced what we believe is going to shake out.
Yes, I wouldn't say that we're completely.
Finished but we certainly have.
Kind of ring fence, what we believe is going to shake out and so we've taken that into consideration when we set the guidance. So.
Speaker Change: And and so, you know, we've taken that into consideration when we've set the guidance. So, you know, we're, we're, we're comfortable with how we've set guidance, but, you know, all loose ends, you know, nothing is ever sure in this world. And we, we don't have, you know, we're not fully insulated from from things that may happen that we don't anticipate, but we think we've got, we've got everything ring fenced in a way that that gives us confidence to be able to give the guidance that we've given.
We're comfortable with how we've set guidance.
But.
All loose ends nothing is ever share in this world and we we don't have.
We're not fully insulated from from things that may happen that we don't anticipate but we think we've got we've got everything ring fenced in a way that that gives us confidence to be able to give the guidance that we've given.
And one thing Eric literally.
Speaker Change: Yeah, and one thing that really triggered the adjustments was the fact that the customers sort of had to adjust to some new regulations created by the CFPB, and so we saw that that really kind of
One thing that really triggered the adjustments was the fact that the customers sort of had to adjust to some new regulations created by the CFPB and so we saw that that really kind of.
Speaker Change: Impacted that in a little more than they anticipated in December . But, but at this point, you can see that the customers have. You know, 99% adjusted to it at this point. So that. That transition for them to adjust to these new roles is. As, you know, it's over.
Impacted that in a little more than they anticipated in December but but at this point you can see that the customers have.
99% adjusted to it at this point, so that that transition for them to adjust to these new roles.
Yes.
It's over at this point.
Speaker Change: Okay, that's very helpful. Thank you for that. And good to see the hiring progress last year, pretty significant lift. I think you said 60% increase in the go-to-market head count. Can you just comment on retention, though? We've heard from a number of companies, retention has become more difficult. Obviously, hiring remains challenging across industries. Do you have any metrics to provide us on either retention efforts or ability to hire?
Okay, that's fair.
Helpful. Thank you for that.
Good to see the hiring progress last year pretty significant left I think you said, 60% increase in the go to market head count.
Can you just comment on retention, though.
A number of companies retention has become more difficult obviously hiring remained challenging across industries do you have any metrics to provide us on either retention, our retention efforts or ability to hire.
Speaker Change: I would say that historically, our retention rates at LiveOx have been...
I would say that historically, our retention rates at <unk> have been.
Speaker Change: a lot better than the industry norms that you would peg us, you know, to, and we have seen a little bit of step up in the retention rates or, I guess, attrition.
A lot better than the industry norms that you would peg us too.
And we have seen a little bit of step up in the retention rates or I guess attrition rates.
Speaker Change: over the past, you know, quarter, quarter and a half or so, but I still think well below what others are experiencing. We've got a great culture here, and people are super committed, and, you know, in the U.S., as well as in India and Colombia, we have still have, you know, retention rates that are a lot higher than, you know, what we understand the, you know, software and tech kind of averages are.
Over the past.
Quarter to quarter five or so.
But I still think.
Well below what others are experiencing.
We've got a great culture here and people are super committed and.
In the U S as well as in India, and Colombia, we have still have retention rates that are a lot higher than what we understand.
Software and tech kind of averages are.
Speaker Change: Okay, thank you. I want to keep it at two, but thank you very much for the questions.
Okay. Thank you so I want to keep it at two but thank you very much for the questions.
Okay. Thank you.
Speaker Change: The next question comes from Mike Lattimore with Northwind Capital Markets.
The next question comes from Mike Latimore with Northland capital markets.
Please go ahead.
Great. Thanks, Congrats on the year and getting all the customers onto the public cloud here.
Mike Lattimore: Great, yeah, thanks. Congrats on the year and getting all the customers onto the public cloud here. I guess, just in terms of the pipeline sounds like that has grown. Well, can you provide provide a little more color on. You know, the verticals that are maybe more salient in the pipeline and then. The split of customer engagement versus.
I guess just in terms of the pipeline. It sounds like that is growing well can you provide a little more color on that.
The verticals that are maybe more selling into the pipeline and then the split of customer engagement versus collections there.
Speaker Change: Yeah, absolutely. I mean, the sectors that are really, you know, looking strong right now for us in our pipeline include banking, retail.
Yes, absolutely I mean, the sectors that are really.
Looking strong right now for us in our pipeline include banking and retail.
Speaker Change: Travel and hospitality, I mean, a little bit of a.
Travel and hospitality I mean, a little bit of.
Speaker Change: You know, return to normal if you think about it, some of those sectors were were impacted negatively during the pandemic for a variety of reasons. And now, of course, they're.
Returned to normal if you think about it some of those sectors where were impacted negatively.
During the pandemic from a variety of reasons and now of course there.
Speaker Change: They're back into a normalization and or a growth mode. So that's, that's a big part of what we're, you know, what we're seeing in our, in our pipeline.
They are back into a normalization <unk>.
Growth mode. So that's that's a big part of what we are.
What we're seeing in our pipeline.
Great, Yes, I think and then from a from a.
Speaker Change: Yeah, Mike, just a little color on the from a collection standpoint, we still have, like I said, we have, you know, collection opportunities that that are still in our pipeline. And, you know, there's, they're, they're not insignificant, but they are, they are declining over time relative to relative to where they have been historically. And we expect that will continue to decline.
Mike just a little color on the from a collection standpoint, we still have like I said, we have.
Collection opportunities that.
We are still in our pipeline.
They're not insignificant, but there they are.
Declining over time relative to <unk>.
Relative to where they have been historically and we expect that will continue to decline.
Got it got it.
And then on the.
Speaker Change: the amendments related to contract revenue. Did all your collections customers ask for that or was it just a subcommittee?
The amendments related to contract revenue did all your collection of customers asked for that or was it just a subset of them.
No definitely not all not all had any reason too so.
Speaker Change: No, definitely not all. And not all had any reason to. So it's really concentrated in a small handful.
<unk>.
Really concentrated in a small handful.
Okay got it and just last professional services as a percent of revenue what was that again.
Speaker Change: Got it. And just last professional services as a percent of revenue. What was that?
I think about I think 2% I think it is a little higher than.
Speaker Change: Um, I think about, I think 2%, I think it's a little higher than than last year was, you know, these are these are hard rounds. I think it was 1% last year 2% this year.
Then last year was these are these are hard rounds, I think it was 1% last year, 2% this year.
Okay great.
Thanks, a lot.
Thank you Mike.
Once again, if you have a question. Please press Star then one.
Speaker Change: Once again, if you have a question, please press star, then 1.
The next question comes from Jim Fish with Piper Sandler.
Speaker Change: The next question comes from Jim Fish with Piper Sandler. Please go ahead.
Please go ahead.
Hey, guys. This is <unk> on for Jim. Thanks for taking my questions. Maybe first from a pipeline perspective can you just talk about larger banks and really just larger contact centers looking to move over from on premise to the cloud.
Jim Fish: Jim, thanks for taking our questions. Maybe first from a pipeline perspective, you just talked about larger banks and really just larger contact centers looking to move over from on-premise to the cloud. And as you guys target the upmarket, are there further professional services investments that you guys will need to make to kind of help these larger enterprises?
And as you guys target. The upmarket are there further professional services investments that you guys will need to make to kind of help these larger enterprises.
Jim Fish: basically hold their hand as they move from an on-premise solution to a cloud solution.
We hold their hand as they move from an on premise solution to a cloud solution.
Jim Fish: You know, a little bit, but we really design our platform to be easy to deploy easy to implement easy to configure easy to optimize. I mean, that's kind of.
A little bit, but we really designed our platform to be.
To deploy and easy to implement easy to configure easy to optimize I mean thats kind of.
Jim Fish: That's the benefit of getting a more complete integrated platform is that that work is is smaller. So, as as you saw our, our tick up a little bit, you know, go from, let's say, 1% in.
That's the benefit of getting a more complete integrated platform is that that work is smaller so as the as you saw our PFS tick up a little bit go from let's say, 1% and 2% to 2% in 'twenty, one you could see that kind of movement.
Jim Fish: 20 to 2% in 21. You could see that kind of movement again in the years to come, but not a substantial shift there. Because again, we're designed to be easy to implement. That's the focus of how we've engineered.
Again.
In the years to come but not but not a substantial shift there because again, we're just we're designed to be easy to implement and thats. The focus of how we've engineered.
Okay.
Speaker Change: That makes sense. And then maybe diving a little bit deeper into the top five banking customer that you guys talked about. Can you give us an idea of maybe what's penetrated today? Like, is it just one contact center that you guys were able to win there? Or maybe what percentage of that overall wallet share did you guys take? And then with them specifically, what was the use case that kind of drove the choice for Livebox? Or what's the main use case you're doing for them right now?
That makes sense, and then maybe diving a little bit deeper into the top five banking customer that you guys talked about.
Can you give us an idea of maybe whats penetrated today like is it just one contact center that you guys were able to win there or maybe what percentage of that overall wallet share did you guys take and then with them specifically what would be use case that that kind of drove the choice to buy box or what's the main use case, you are doing with them right now.
Yeah, I mean, we're in we're in kind of one department and.
Speaker Change: Yeah, I mean, we're, we're in, we're inside of one department and it's a, it's a small percentage of the bank. There's a, there's a tremendous opportunity to expand with the bank and we're, we're already engaged in additional RFPs, but, but you, you sort of.
It's a small percentage of the bank.
Theres, a tremendous opportunity to expand with the bank and where we're already engaged in additional rfps, but you sort of when the business Department by Department for sure.
Speaker Change: win the business department by department for sure. The use case that they focused around for us was compliance and helping them out ensure that they stay in alignment with federal and state regulations.
The use case that they focused around for us was with compliance.
And helping them out.
Sure.
Stay in alignment with.
Federal and state regulations.
Speaker Change: Makes sense. Then last one for me is, you know, you guys are really known and have been known historically for a really strong outbound effort, especially around security and compliance. And it seems like Livebox has talked about less on the inbound side, even though you guys do have those offerings. So what features or functionalities does the team need to invest more behind? Or is this just more of a marketing and education issue that needs to be worked out with kind of further spend? Thank you.
Then last one for me.
You guys are really known.
<unk> been known historically for a really strong outbound effort, especially around security and compliance and it seems like <unk> talked about less on the inbound side, even though you guys do have those offerings. So what features or functionality. So does the team need to invest more behind or is this just more of a marketing and educate.
An issue that needs to be worked out with kind of further spend thank you.
Yeah, I mean look the big opportunity for growth is there.
Speaker Change: Yeah, I mean, look, the big opportunity for growth is in digital and is in AI.
Digital and is an AI.
Speaker Change: And so we don't really talk about, you know, how much is.
And so we don't really talk about.
How much is.
Speaker Change: outbound or inbound versus how much is going digital? Because that's really where people wanna get to. And that's actually why bigger organizations have been slower. I mean, they've been slower to adopt digital AI because of concerns around security and reliability compliance. So when we bring a full digital and AI suite that gives that enterprise.
Outbound or inbound versus how much.
Is going digital because thats really where people want to get too and thats actually why bigger organizations have been slow they've been slower to adopt digital AI because of concerns around security and reliability to clients. So when we bring a full digital and AI suite.
That gives that enterprise level.
Speaker Change: of security and compliance, that's really kind of, that's our recipe right there. That's really what drives adoption. And that's where we need to continue to invest and continue to mature to make that, you know, that more and more mature for larger and larger organizations. Cause that's really where they want to get to is not so much inbound or outbound, but digital and AI.
Security and compliance that's really kind of that's our that's our recipe right Dan that's really what drives adoption and Thats why we need to continue to invest and continue to mature.
And mature.
To make that.
More and more.
Churn for for larger and larger organizations, because thats really where they want to get to is not so much inbound or outbound, but the digital and NII.
Makes sense. Thank you.
This concludes the question answer session.
Speaker Change: This concludes the question and answer session.
I would now like to turn the conference back over to bill extending for any closing remarks.
Speaker Change: I would like to turn the conference back over to Louie Summey for any closing remarks.
Great. Thank you I want to thank our team for all their hard work and our board and our customers.
Louie Summey: Great, thank you. I want to thank our team for all our hard work and our board and our customers and, you know, I'm grateful for all that we've accomplished and excited about all we've accomplished this quarter. And I think I thank them. I thank you all for joining us today and look forward to talking to you all soon. Thank you.
And.
I'm grateful for all that we've accomplished and excited about all of accomplished this quarter and I think I think Pam and I. Thank you all for joining us today and look forward to talking to you. All soon thank you.
And this concludes today's conference call.
Speaker Change: And this concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
May disconnect your lines.
Thank you for participating and have a pleasant day.
Okay.
Okay.
Okay.
Yes.
Okay.
Speaker Change: Thank you.
Okay.
Okay.
Speaker Change: © transcript Emily Beynon
Yes.
Yeah.