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LivePerson Inc. Reports Operating Results (10-Q)

November 08, 2010 | About:
10qk

10qk

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LivePerson Inc. (LPSN) filed Quarterly Report for the period ended 2010-09-30.

Liveperson Inc. has a market cap of $468.44 million; its shares were traded at around $9.18 with a P/E ratio of 41.73 and P/S ratio of 5.35. Liveperson Inc. had an annual average earning growth of 14% over the past 5 years.LPSN is in the portfolios of Jim Simons of Renaissance Technologies LLC.
This is the annual revenues and earnings per share of LPSN over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of LPSN.


Highlight of Business Operations:

Revenue - Business. Revenue increased by 29% and 28% to $24.6 million and $69.4 million in the three and nine months ended September 30, 2010, respectively, from $19.1 million and $54.2 million in the comparable periods in 2009. This increase is primarily attributable to increased revenue from new clients in the amount of approximately $2.9 million and $8.8 million, respectively, and, to a lesser extent, to existing clients in the amount of approximately $2.2 million and $5.4 million, respectively, net of cancellations, and an increase in professional services revenue of approximately $427,000 and $1.1 million, respectively. Our revenue growth has typically been driven by a mix of revenue from newly added clients as well as expansion of existing clients.

Cost of Revenue - Business. Cost of revenue consists of compensation costs relating to employees who provide customer service to our clients, compensation costs relating to our network support staff, the cost of supporting our server and network infrastructure and allocated occupancy costs and related overhead. Cost of revenue increased by 45% to $6.7 million in the three months ended September 30, 2010 from $4.6 million in the comparable period in 2009. This increase in expenses is primarily attributable to an increase for primary and backup server facilities and allocated overhead related to costs of supporting our server and network infrastructure of approximately $1.1 million as a result of increased revenue and an increase in total compensation and related costs for additional and existing customer service and network operations personnel in the amount of approximately $902,000. Cost of revenue increased by 50% to $18.6 million in the nine months ended September 30, 2010, from $12.4 million in the comparable period in 2009. This increase is primarily attributable to higher total compensation and related costs for additional and existing customer service and network operations personnel in the amount of approximately $3.3 million and an increase in expenses for primary and backup server facilities and allocated overhead related to costs of supporting our server and network infrastructure of approximately $2.8 million as a result of increased revenue.

Cost of Revenue - Consumer. Cost of revenue consists of compensation costs relating to employees who provide customer service to Experts and Users, compensation costs relating to our network support staff, the cost of supporting our server and network infrastructure, credit card and transaction processing fees and related costs, and allocated occupancy costs and related overhead. Cost of revenue increased by 5% to $937,000 in the three months ended September 30, 2010 from $892,000 in the comparable period in 2009. This increase is primarily attributable to an increase in compensation and related costs for additional and existing customer service and network support personnel in the amount of approximately $28,000. Cost of revenue increased by 7% to $2.8 million in the nine months ended September 30, 2010 from $2.6 million in the comparable period in 2009. This increase is primarily attributable to an increase in credit card and transaction processing fees and related costs in the amount of approximately $85,000 and to higher compensation and related costs for additional and existing customer service and network support personnel in the amount of approximately $60,000 and an increase in primary and backup server facilities in the amount of approximately $37,000.

Sales and Marketing - Business. Our sales and marketing expenses consist of compensation and related expenses for sales and marketing personnel, as well as advertising, public relations, trade show exhibit expenses and allocated occupancy costs and related overhead. Sales and marketing expenses increased by 39% to $6.7 million in the three months ended September 30, 2010, from $4.8 million in the comparable period in 2009. This increase is primarily attributable to an increase in compensation and related costs for additional and existing sales and marketing personnel of approximately $1.5 million, an increase in allocated occupancy costs and related overhead in the amount of approximately $134,000 and an increase in advertising, public relations and trade show exhibit expenses of approximately $126,000. Sales and marketing expenses increased by 32% to $19.4 million in the nine months ended September 30, 2010 from $14.7 million in the comparable period in 2009. The increase is primarily attributable to an increase in compensation and related costs for additional and existing sales and marketing personnel of approximately $4.0 million, an increase in allocated occupancy costs and related overhead in the amount of approximately $284,000 and an increase in advertising, public relations and trade show exhibit expenses of approximately $186,000.This increase relates to our continued efforts to enhance our brand recognition and increase sales lead activity.

General and Administrative. Our general and administrative expenses consist primarily of compensation and related expenses for executive, accounting, legal, human resources and administrative personnel. General and administrative expenses increased by 26% to $4.2 million in the three months ended September 30, 2010 from $3.3 million in the comparable period in 2009. This increase is primarily attributable to an increase in compensation and related expenses for additional and existing accounting, legal and human resource personnel in the amount of approximately $522,000 and an increase in recruiting and related costs, rent and other professional fees in the amount of approximately $354,000. General and administrative expenses increased by 22% to $12.1 million in the nine months ended September 30, 2010 from $10.0 million in the comparable period in 2009. This increase is primarily attributable to an increase in costs for corporate learning and development, recruiting and related costs, rent and other professional fees in the amount of approximately $1.5 million and an increase in compensation and related expenses for additional and existing accounting, legal and human resource personnel in the amount of approximately $673,000.

Net Income. We had net income of $2.8 million and $6.5 million in the three and nine months ended September 30, 2010, as compared to net income of $2.3 million and $4.7 million for the comparable periods in 2009. Revenue increased by $6.0 million and $17.2 million, respectively, while operating expenses increased by $5.5 million and $15.1 million, respectively, contributing to a net increase in income from operations of approximately $443,000 and $2.1 million, respectively.

Read the The complete Report

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