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

Operator: Thank you. Our next question comes from the line of Mark Schappel from Loop Capital. Please go ahead.

Mark Schappel: Hi, thank you for taking my question. And yeah, nice job on the quarter. John, given the strong 3Q performance, I was surprised to see that the profitability guidance looks like it remains pretty much unchanged here. Could you just run through some of the puts and takes there and why that is?

Rob LoCascio: Yeah, some of the upside relates to the one time components I described at the top of this call. And then other components relate to our sort of expectation for continued outperformance going forward, but less predictability in, in terms of wild health and also in terms of our ability to accelerate certain professional services deliverables. And I think the other component on the cost side is that as we continued to assess the business, we felt that there would be greater impact on our long term profitable growth strategy by staying the course and delivering on certain product roadmap deliverables on, on time with our customer base than simply cutting costs and dropping those to the bottom line. So it’s a balanced approach we’re taking here with respect to taking costs outta the business, but, but not harming growth opportunities as we look forward.

Mark Schappel: Okay, great. Thank you. And then I believe your international business, which is mainly Europe, was up about four and a half percent, if I recall correctly. Could you just talk about some of the dynamics you’re seeing there? It seems to continue to underperform, in the US

Rob LoCascio: Yeah, we are looking at sort of rethinking the investment in there and how we make some changes to accelerate the growth. Obviously, we feel the markets are still very strong for our products. But we feel like the European market is just has a lot of we have a lot of opportunity there, but we think we need to do a little bit better of a focused approach. I don’t have anything specific to talk about it right now. I think a lot of it’s around the execution and leadership, but we’re basically, rethinking that and how we, how we grow it at the same rates that we’d see in the us but there’s definitely demand there, so.

Mark Schappel: Great. Thank you. That’s all for me.

Operator: Thank you. Next question comes from the line of Siti Panigrahi from Mizuho. Please go ahead.

Siti Panigrahi: Thank you. Thanks for taking my question, Rob. Some of your peers in even platform contact center, they talked about macro pressure. So wondering what are you seeing among your enterprise base or yeah, among your install base? Are you seeing any sort of macro pressure or many, any kind of impact to your business?

Rob LoCascio: Not right now. I think, I think this quarter and what I talked about is becoming a tier one provider tells the story we’ve wanted to tell, which is that it’s not about the channel communication. We’re not like messaging as a channel to replace voice. It’s about being an AI automation company. And when you look at what the value of our platform is as we’ve said about 75% of the billion conversations we carry have some form of automation in it. And even when, when I was talking about that, I sat down with that CTO from one of the largest airlines in the world, he talked about the automation capabilities and, and you’re critical because we’re automating at a very high scale things that normally needed a human agent.