LivePerson Inc. (LPSN, Financial) filed Quarterly Report for the period ended 2010-06-30.
Liveperson Inc. has a market cap of $354.1 million; its shares were traded at around $6.96 with a P/E ratio of 33.1 and P/S ratio of 4.1. 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, Steven Cohen of SAC Capital Advisors.
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 44% to $6.3 million in the three months ended June 30, 2010 from $4.3 million in the comparable period in 2009. The increase is primarily attributable to expenses for primary and backup server facilities and allocated overhead related costs of supporting our server and network infrastructure of approximately $1.1 million as a result of increased revenue and costs related to additional account management and network operations personnel and to increased compensation costs for existing personnel in the amount of $769,000. Cost of revenue increased by 54% to $11.9 million in the six months ended June 30, 2010 from $7.8 million in the comparable period in 2009. The increase is primarily attributable to expenses for primary and backup server facilities and allocated overhead related costs of supporting our server and network infrastructure of approximately and $1.7 million as a result of increased revenue and costs related to additional account management and network operations personnel and to increased compensation costs for existing personnel in the amount of $2.3 million.
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 4% to $928,000 in the three months ended June 30, 2010 from $888,000 in the comparable period in 2009. The increase is primarily attributable to an increase in credit card and transaction processing fees of approximately $28,000. Cost of revenue increased by 7% to $1.9 million in the six months ended June 30, 2010, from $1.7 million in the comparable period in 2009. The increase is primarily attributable to an increase in credit card and transaction processing fees of approximately $73,000, an increase in costs related to additional customer service and network support personnel of approximately $23,000 and costs of supporting our server and network infrastructure in the amount of approximately $22,000.
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 as well as allocated occupancy costs and related overhead. Sales and marketing expenses increased by 33% to $6.7 million in the three months ended June 30, 2010 from $5.0 million in the comparable period in 2009. This increase is primarily attributable to an increase in costs related to additional sales and marketing personnel of approximately $1.3 million, an increase in advertising, public relations and trade show exhibit expenses of approximately $237,000 and allocated occupancy cost and related overhead in the amount of approximately $105,000. Sales and marketing expenses increased by 28% to $12.7 million in the six months ended June 30, 2010 from $9.9 million in the comparable period in 2009. This increase is primarily attributable to an increase in costs related to additional sales and marketing personnel of approximately $2.3 million, an increase in advertising, public relations and trade show exhibit expenses of approximately $139,000 and allocated occupancy cost and related overhead in the amount of approximately $150,000. This increase relates to our continued efforts to enhance our brand recognition and increase sales lead activity.
Other (Expense) Income. Financial expense was $41,000 in the three months ended June 30, 2010 and relates to unfavorable currency rate movements related to our Israeli operations. Financial income was $23,000 in the three months ended June 30, 2009 and relates to favorable currency rate movements related to our Israeli operations. Financial expense was $90,000 and $96,000 in the six months ended June 30, 2010 and 2009, respectively, and relates to unfavorable currency rate movements related to our Israeli operations. Interest income was $30,000 and $53,000 in the three and six months ended June 30, 2010, compared to $21,000 and $56,000 in the comparable periods in 2009, respectively, and consists of interest earned on cash and cash equivalents. These increases are primarily attributable to our increases in cash and cash equivalents.
Net Income. We had net income of $1.6 million and $3.8 million in the three and six months ended June 30, 2010, as compared to net income of $1.1 million and $2.4 million for the comparable periods in 2009, respectively. Revenue increased by $5.9 million and $11.2 million, respectively, while operating expenses increased by $5.1 million and $9.6 million, respectively, contributing to a net increase in income from operations of approximately $765,000 and $1.6 million, respectively. Our increase in income from operations is partially offset by decreases in other income of approximately $56,000, for the three months ended June 30, 2010, and increases in income taxes of $227,000 and $289,000 in the three and six months ended June 30, 2010, respectively.
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Liveperson Inc. has a market cap of $354.1 million; its shares were traded at around $6.96 with a P/E ratio of 33.1 and P/S ratio of 4.1. 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, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Revenue – Business. Revenue increased by 30% and 28% to $23.0 million and $44.8 million in the three and six months ended June 30, 2010, respectively, from $17.7 million and $35.1 million in the comparable periods in 2009. This increase is primarily attributable to revenue from new clients in the amount of approximately $2.5 million and $5.1 million, respectively, increased revenue from existing clients in the amount of approximately $2.3 million and $3.8 million, respectively, net of cancellations, and an increase in professional services revenue of approximately $427,000 and $688,000, 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 increased by 44% to $6.3 million in the three months ended June 30, 2010 from $4.3 million in the comparable period in 2009. The increase is primarily attributable to expenses for primary and backup server facilities and allocated overhead related costs of supporting our server and network infrastructure of approximately $1.1 million as a result of increased revenue and costs related to additional account management and network operations personnel and to increased compensation costs for existing personnel in the amount of $769,000. Cost of revenue increased by 54% to $11.9 million in the six months ended June 30, 2010 from $7.8 million in the comparable period in 2009. The increase is primarily attributable to expenses for primary and backup server facilities and allocated overhead related costs of supporting our server and network infrastructure of approximately and $1.7 million as a result of increased revenue and costs related to additional account management and network operations personnel and to increased compensation costs for existing personnel in the amount of $2.3 million.
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 4% to $928,000 in the three months ended June 30, 2010 from $888,000 in the comparable period in 2009. The increase is primarily attributable to an increase in credit card and transaction processing fees of approximately $28,000. Cost of revenue increased by 7% to $1.9 million in the six months ended June 30, 2010, from $1.7 million in the comparable period in 2009. The increase is primarily attributable to an increase in credit card and transaction processing fees of approximately $73,000, an increase in costs related to additional customer service and network support personnel of approximately $23,000 and costs of supporting our server and network infrastructure in the amount of approximately $22,000.
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 as well as allocated occupancy costs and related overhead. Sales and marketing expenses increased by 33% to $6.7 million in the three months ended June 30, 2010 from $5.0 million in the comparable period in 2009. This increase is primarily attributable to an increase in costs related to additional sales and marketing personnel of approximately $1.3 million, an increase in advertising, public relations and trade show exhibit expenses of approximately $237,000 and allocated occupancy cost and related overhead in the amount of approximately $105,000. Sales and marketing expenses increased by 28% to $12.7 million in the six months ended June 30, 2010 from $9.9 million in the comparable period in 2009. This increase is primarily attributable to an increase in costs related to additional sales and marketing personnel of approximately $2.3 million, an increase in advertising, public relations and trade show exhibit expenses of approximately $139,000 and allocated occupancy cost and related overhead in the amount of approximately $150,000. This increase relates to our continued efforts to enhance our brand recognition and increase sales lead activity.
Other (Expense) Income. Financial expense was $41,000 in the three months ended June 30, 2010 and relates to unfavorable currency rate movements related to our Israeli operations. Financial income was $23,000 in the three months ended June 30, 2009 and relates to favorable currency rate movements related to our Israeli operations. Financial expense was $90,000 and $96,000 in the six months ended June 30, 2010 and 2009, respectively, and relates to unfavorable currency rate movements related to our Israeli operations. Interest income was $30,000 and $53,000 in the three and six months ended June 30, 2010, compared to $21,000 and $56,000 in the comparable periods in 2009, respectively, and consists of interest earned on cash and cash equivalents. These increases are primarily attributable to our increases in cash and cash equivalents.
Net Income. We had net income of $1.6 million and $3.8 million in the three and six months ended June 30, 2010, as compared to net income of $1.1 million and $2.4 million for the comparable periods in 2009, respectively. Revenue increased by $5.9 million and $11.2 million, respectively, while operating expenses increased by $5.1 million and $9.6 million, respectively, contributing to a net increase in income from operations of approximately $765,000 and $1.6 million, respectively. Our increase in income from operations is partially offset by decreases in other income of approximately $56,000, for the three months ended June 30, 2010, and increases in income taxes of $227,000 and $289,000 in the three and six months ended June 30, 2010, respectively.
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