LivePerson, Inc.

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to LivePerson's fourth quarter 2022 earnings webcast. All participants are in listen-only mode. After the prepared remarks, the management team from LivePerson will conduct a question and answer session, which will be a little different this quarter than calls in the past. You'll be typing your question into the Q&A chat box, and it'll be read by Chad Cooper for the management team to answer. Conference participants will be given additional instructions to start the Q&A. Give everyone the opportunity to participate. Please limit yourselves to one question. As a reminder, this conference is being recorded. I would now like to turn the conference over to Mr. Chad Cooper, Senior Vice President, Investor Relations.

Thank you, Operator. Joining me on the call today is Rob Lacascio, LifePersons founder and CEO, John Collins, Chief Financial Officer, Joe Bradley, Chief Data Scientist, and Dr. Matt Dawson, founder and CEO of WildHealth. Please note that during today's call, we will make forward-looking statements, which are predictions, projections, and other statements about future results. These statements are based on our current expectations and assumptions as of today, March 15, 2023, and are subject to risks and uncertainties. Actual results may differ materially due to various factors, including those described in today's earnings press release and in the comments made during this conference call, as well as in 10-Ks, 10-Qs, and other reports we file from time to time with the SEC. We assume no obligation to update any forward-looking statements. Also during this call, we will discuss certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is included in today's press release. Both the press release and the supplemental slides, which include highlights for the quarter, are available on the investor relations section of LivePerson's website. With that, I will turn the call over to Rob. Rob?

Thanks, Chad. Thanks, everyone, for joining us for the Q4 2022 quarterly call. We'll be here with John Collins, our CFO, and Joe Bradley. Also, our chief data scientist will be joining us to talk about our AI platforms. And then we also have Dr. Matt Dawson, who's the founder and CEO of Wild Health. And he'll be talking about everything we're doing on the AI healthcare initiatives. Now, there's been a lot of excitement around AI, especially with everything that's going on with ChatGPT since November. And obviously, the consensus is that this is not an evolution of technology, but a revolution. And for LivePerson, this is a profound time in our history as we have waited over 20 years for this day to come. And we have spent the last five years investing heavily in being a leader in AI in the enterprise AI space. We've had a vision for a very long time that humans, that we could talk to a machine and that machine could help us through natural language, solve our most important aspects of our life, things in our health and things around our finances and our relationships with our brands that sometimes get strained when we're sitting on calls on hold. And so we made a big bet five years ago, and now we're here as one of the few companies in the world that can go after this opportunity as an AI company, especially in the enterprise. Now, we spent the last year getting the house in order and creating a foundation to go after this opportunity. And we created now a model for the business called that I think will allow us to go back to where we came from and generate EBITDA, generate cashflow. And I'm confident that the trajectory of what's about to happen to us is going to be built on a solid foundation. And obviously over the COVID time, there was a lot of things that happened to our company and others where we invested into areas that we went after different opportunities with our customers. But, you know, Q4, And Q1 is a place where there was a lot of noise. But we've all addressed and resolved those noises. And now what we're going to do is starting in Q2, we have a new company. We have a company that will generate, I think, strong earnings, cash flow, EBITDA. And from there, we'll go after this massive opportunity. Now, as we mentioned in previous calls, we're really focused on getting rid of non-core revenues. These are revenues that don't recur. These are revenues that are not supporting the core vision that we have around AI. And Q1 will be our trough in revenue, in EBITDA and cash flow. And then from there, in Q2, there'll be an inflection point up. EBITDA will be positive. Cash flow will be positive. And we will continue growing top-line revenue and bottom line throughout the year. Now the company, as well as our shareholders will benefit, I think, from simplifying the business and being more transparent about our revenues. And already, in starting Q2, we'll do a couple things, and John will go into them in a minute, but we're going to focus on the recurring revenue lines. We have about $340 million of recurring revenue. That's 80% of our total revenue. Now, the growth rates in that are single digits, but obviously, we've got the wind in our sails to bring that to another level. Obviously, we've balanced out. How do we get to a strong business model generating cash with growth? But from there, we can grow now at a different level. We're also focused on achieving annualized EBITDA margins of 16% to 19% by year-end. We'll start generating positive margins, as I said, in Q2. And we'll also start generating positive cash flow in Q2, targeting 7% to 10% cash flow by year-end. Those are facts. Those are things that will carry forward. Those are things that we had in this company for over 20 years. And that's what got us here. And that's what will get us to where we need to go now with this exciting opportunity in our hands. What I'd like to do now is hand it over to John Collins, who can do a deeper dive on the P&L and, you know, really show you what's making up the base that's allowing us to go after this big opportunity. John.