LivePerson, Inc. (NASDAQ:LPSN) Q3 2022 Earnings Call Transcript

Rob LoCascio: Hi, Jeff. Yeah, we’re, we’re, we’re clearly focused first and foremost on generating profits and, and specifically generating cash next year. And as I described in response to another question that framework will dictate kind of how and where we can make investment as we think about growth. We had a great third quarter as, as we noted, bookings were a significant improvement over the last four quarters, even normalizing for COVID 19 impact. We, we are expecting right, continued strength in B2B consistent with the prior guide that we put out. But I think before we give more color on 2023 we want to see where things land in the fourth quarter. To answer your specific question on PS again, in the prepared remarks, we said we expect PS to continue to be elevated in the fourth. I think it will start to moderate but we’ll still have more PS than we have had in historical years in in 2023.

Jeff Van Rhee: And just to round it out, any thoughts on consumer?

Rob LoCascio: Yeah, I don’t have expectations for consumer different from how it’s playing out this year, at this point in time.

Jeff Van Rhee: Okay. And then from a product standpoint, I know the platform particularly around AI and automation is the competitive strength. Help me reconcile the messaging growth. I think you said conversational messaging is up 25%, but automations were up 11% and it seems like it probably should be the inverse, unless I’m thinking about that incorrectly.

Rob LoCascio: No, it depends on the use of the automation and new, new logos and where we go live with agents first or the automation. So we don’t see anything different than, what we expect in a pattern right now. So there’s nothing there. I can get back to you on it, but there’s nothing that we see that’s not normal for growing our new customers and stuff like that.

Operator: Thank you. Our next question comes from the line of Arjun Bhatia from William Blair. Please go ahead.

UnidentifiedAnalyst: Hi, thanks. This is Chris on for Arjun. Thanks for taking my question. But I wanted to unpack the number of new logos being done a little bit year over year while the bookings dollar amount was up. It sounded like this was primarily, from better traction in the enterprise market. Can we discuss whether this is the result of kind of intentional go to market changes? So are you changing your message to fit the current macro backdrop or is there any way that you’re landing with customers at changing at all?

Rob LoCascio: No, I think it just because we’re doing big game hunting on the enterprise side, it kind of fluctuates quarter by quarter. So like last quarter we had a great new logos this quarter we’re expanding and bigger deals, the sales rep sort of optimized to deal size. But obviously we’re, we’re, we want to get as many new logos as we can so we can generate a future value for the company. But it, it’s sort of because your gate big game hunting, it’s this quarter by quarter up and down, it’s not really a trend. We’ll see what happens next quarter.

UnidentifiedAnalyst: Thank you. That’s, that’s helpful. And then once we touch on bringing third party platforms onto the conversational cloud, I was wondering how does this kind of fit in with the theme of customers using you as a hub and then how you’re thinking about the revenue opportunity that this generates going into 2023?