LivePerson Inc. (LPSN, Financial) filed Quarterly Report for the period ended 2009-06-30.
LivePerson Inc. is a provider of technology that facilitates real-time sales and customer service for companies doing business on the Internet. The company is an application service provider and they offer the proprietary real-time interaction technology as an outsourced service. The service appears as a LivePerson-branded or custom-created icon on the clients\' Web sites. When an Internet user clicks on the icon a pop-up dialogue window appears enabling the clients to communicate directly with Internet users via text-based chat. LivePerson Inc. has a market cap of $190.3 million; its shares were traded at around $4 with a P/E ratio of 50 and P/S ratio of 2.5. LivePerson Inc. had an annual average earning growth of 14.3% over the past 5 years.
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 remained flat at $4.3 million in the three months ended June 30, 2009 compared to the same period in 2008. An increase in expenses for primary and backup server facilities of approximately $265,000 was offset by a decrease in total compensation costs related to customer service and network operations personnel in the amount of approximately $250,000. Cost of revenue decreased by 6% to $7.8 million in the six months ended June 30, 2009, from $8.3 million in the comparable period in 2008. This decrease is primarily attributable to lower total compensation costs related to customer service and network operations personnel in the amount of approximately $650,000 partially offset by an increase in expenses for primary and backup server facilities of approximately $99,000.
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 decreased by 9% to $3.2 million in the three months ended June 30, 2009, from $3.5 million in the comparable period in 2008. This decrease is primarily attributable to a decrease in franchise taxes, bank fees, and recruiting costs in the amount of approximately $355,000, partially offset by an increase in compensation and related expenses in the amount of $193,000. General and administrative expenses increased by less than 1% to $6.7 million in the six months ended June 30, 2009, from $6.6 million in the comparable period in 2008. An increase in compensation and related expenses in the amount of $479,000 was partially offset by decreases in recruiting, legal and accounting expenses in the amount of approximately $435,000.
Amortization of Intangibles. Amortization expense was $579,000 and $1.2 million in the three and six months ended June 30, 2009, respectively, as compared to $698,000 and $1.4 million in the comparable periods in 2008, respectively. Amortization expense included in cost of revenue – consumer was $307,000 and $614,000 in the three and six months ended June 30, 2009 and 2008, respectively. Amortization expense in 2009 and 2008 relates primarily to intangible assets as a result of our acquisitions of Kasamba in October 2007 and Proficient in July 2006. Amortization expense is expected to be approximately $2.0 million in the year ended December 31, 2009.
Other Income (Expense). Financial income was $23,000 and $37,000 in the three months ended June 30, 2009 and 2008, respectively, and relates to favorable currency rate movements related to our Israeli operations. Financial expense was $96,000 and $2,000 in the six months ended June 30, 2009 and 2008, respectively, and relates to unfavorable currency rate movements related to our Israeli operations. Interest income was $21,000 and $56,000 in the three and six months ended June 30, 2009, as compared to $71,000 and $191,000 in the comparable periods in 2008, respectively, and consists of interest earned on cash and cash equivalents. These decreases are primarily attributable to decreases in short-term interest rates.
Net Income (Loss). We had net income of $1.1 million and $2.4 million in the three and six months ended June 30, 2009, as compared to a net loss of $191,000 and $403,000 for the comparable periods in 2008, respectively. Revenue increased by $2.0 million and $4.8 million, respectively, while operating expenses decreased by $323,000 and $368,000, respectively, contributing to a net increase in income from operations of approximately $2.3 million and $5.2 million, respectively. Our increase in income from operations is partially offset by decreases in other income of $64,000 and $229,000, for the three and six months ended June 30, 2009, respectively, and increases in income taxes of $887,000 and $2.1 million in the three and six months ended June 30, 2009, respectively.
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LivePerson Inc. is a provider of technology that facilitates real-time sales and customer service for companies doing business on the Internet. The company is an application service provider and they offer the proprietary real-time interaction technology as an outsourced service. The service appears as a LivePerson-branded or custom-created icon on the clients\' Web sites. When an Internet user clicks on the icon a pop-up dialogue window appears enabling the clients to communicate directly with Internet users via text-based chat. LivePerson Inc. has a market cap of $190.3 million; its shares were traded at around $4 with a P/E ratio of 50 and P/S ratio of 2.5. LivePerson Inc. had an annual average earning growth of 14.3% over the past 5 years.
Highlight of Business Operations:
Revenue - Business. Revenue increased by 12% and 16% to $17.7 million and $35.1 million in the three and six months ended June 30, 2009, respectively, from $15.8 million and $30.2 million in the comparable periods in 2008. This increase is primarily attributable to increased revenue from existing clients in the amount of approximately $1.5 million and $3.5 million, respectively, net of cancellations and, to a lesser extent, to revenue from new clients in the amount of approximately $762,000 and $1.9 million, respectively, partially offset by a decrease in professional services revenue of approximately $288,000 and $304,000, respectively. Our revenue growth has typically been driven by a mix of revenue from newly added clients as wells 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 remained flat at $4.3 million in the three months ended June 30, 2009 compared to the same period in 2008. An increase in expenses for primary and backup server facilities of approximately $265,000 was offset by a decrease in total compensation costs related to customer service and network operations personnel in the amount of approximately $250,000. Cost of revenue decreased by 6% to $7.8 million in the six months ended June 30, 2009, from $8.3 million in the comparable period in 2008. This decrease is primarily attributable to lower total compensation costs related to customer service and network operations personnel in the amount of approximately $650,000 partially offset by an increase in expenses for primary and backup server facilities of approximately $99,000.
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 decreased by 9% to $3.2 million in the three months ended June 30, 2009, from $3.5 million in the comparable period in 2008. This decrease is primarily attributable to a decrease in franchise taxes, bank fees, and recruiting costs in the amount of approximately $355,000, partially offset by an increase in compensation and related expenses in the amount of $193,000. General and administrative expenses increased by less than 1% to $6.7 million in the six months ended June 30, 2009, from $6.6 million in the comparable period in 2008. An increase in compensation and related expenses in the amount of $479,000 was partially offset by decreases in recruiting, legal and accounting expenses in the amount of approximately $435,000.
Amortization of Intangibles. Amortization expense was $579,000 and $1.2 million in the three and six months ended June 30, 2009, respectively, as compared to $698,000 and $1.4 million in the comparable periods in 2008, respectively. Amortization expense included in cost of revenue – consumer was $307,000 and $614,000 in the three and six months ended June 30, 2009 and 2008, respectively. Amortization expense in 2009 and 2008 relates primarily to intangible assets as a result of our acquisitions of Kasamba in October 2007 and Proficient in July 2006. Amortization expense is expected to be approximately $2.0 million in the year ended December 31, 2009.
Other Income (Expense). Financial income was $23,000 and $37,000 in the three months ended June 30, 2009 and 2008, respectively, and relates to favorable currency rate movements related to our Israeli operations. Financial expense was $96,000 and $2,000 in the six months ended June 30, 2009 and 2008, respectively, and relates to unfavorable currency rate movements related to our Israeli operations. Interest income was $21,000 and $56,000 in the three and six months ended June 30, 2009, as compared to $71,000 and $191,000 in the comparable periods in 2008, respectively, and consists of interest earned on cash and cash equivalents. These decreases are primarily attributable to decreases in short-term interest rates.
Net Income (Loss). We had net income of $1.1 million and $2.4 million in the three and six months ended June 30, 2009, as compared to a net loss of $191,000 and $403,000 for the comparable periods in 2008, respectively. Revenue increased by $2.0 million and $4.8 million, respectively, while operating expenses decreased by $323,000 and $368,000, respectively, contributing to a net increase in income from operations of approximately $2.3 million and $5.2 million, respectively. Our increase in income from operations is partially offset by decreases in other income of $64,000 and $229,000, for the three and six months ended June 30, 2009, respectively, and increases in income taxes of $887,000 and $2.1 million in the three and six months ended June 30, 2009, respectively.
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