LivePerson, Inc. (NASDAQ:LPSN) Q4 2022 Earnings Call Transcript

Page 6 of 11

We’re going to let the AI do all of those tasks with the incredible data sets and algorithms that it already has. We know that these large language models have great potential. That’s clear. But if combined with extremely rich data, this precision data, then we have something truly transformative. It should be in the hands of every doctor and every patient in the world. And this combination of precision data and large language models is going to transform the health of millions of people. Thank you, Rob.

Robert LoCascio: Excellent, Matt. And when you think about why we acquired WildHealth is that like ourselves, we know we have this precision data set, and we looked at them and said, well, you’ve got the precision data set on humans and a way to collect that data and the way to correlate it. And so obviously, we’re excited about — what you just saw was the LivePerson platform with our large language models on it, combined with the Clarity platform. When you saw like page numbers, that’s the Clarity platform giving you the information that comes off the patients’ data. So it’s exciting. I think in itself, it’s a multibillion-dollar business one day because of the impact it’s going to have in the health care industry. I want to sort of put a period on the end of this hour and talk about something.

A year ago, I announced on our call that we were chosen as the #1 AI company in the world by Fast Company, and interesting enough, OpenAI was #3. And we were rated #1, if you go back and look at the article, is because we gave business outcomes. We are working with the — we work with the largest brands. And at that time, OpenAI was really a set of APIs that our engineers were using and stuff. Obviously, the impact of OpenAI is world-changing since November. And their success has really kicked off, I’ll call, the AI space race. And there’s going to be a handful of companies like LivePerson that are going to be the next set of technology leaders. And I’ve said this many times, I think the current technology companies, whether it’s Amazon, Google, and it was hard to understand that they could even be taken down and are impacted.

But the next set of companies will most likely be a set of AI companies, and LivePerson and our vision and all we’ve done with our data, our relationships with our customers, our ability to bring our platforms and this technology in a safe way, in a usable way to the enterprise is what puts us in the pole position right now. Obviously, that’s got to be sitting on top of a solid foundation, and we’ve been around 28 years. We didn’t get here from not having a solid foundation. And yes, we took some twists and turns, but starting in Q2, we will have that foundation, and generating cash flow has always been important for us. It creates a discipline in the company. And we’re really excited about our future. And I think as shareholders, and I’m still one of the largest shareholders, I just know that we’ve been waiting for this day.

And when you wait this long and it comes, you don’t squander the opportunity. And I know everyone in the company is excited. Even through all the tough times in the last year, we’re all excited. Everyone is working hard. We’re going to bring this stuff to the market in a very different way, in a LivePerson way, because we build and innovate. We don’t copy. And I just want to thank everyone in the company. And with that, I’ll turn it over to the operator. We can take a few questions before we end this Q4 call. Operator?

Operator:

Chad Cooper: Okay, first question comes from Ryan MacDonald at Needham. Can you help us quantify the sources of the revenue shortfall for fiscal ’23 relative to ’22? And how much is the lack of WildHealth revenue versus Gainshare versus weakness in the core business?

Page 6 of 11