LivePerson, Inc.

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to LivePerson's second quarter 2025 earnings conference call. My name is Diego and I will be your conference operator today. At this time, all participants are in a listen-only mode. After the prepared remarks, the management team from LivePerson will conduct a question and answer session. And conference participants will be given instructions at that time. To give everyone the opportunity to participate, please limit yourself to one question and one follow-up. As a reminder, this conference is being recorded. I would now like to turn the conference call over to Mr. John Perracchio, Vice President Investor Relations.

Thank you, Diego. Joining me on today's call is John Sabino, CEO, and John Collins, CFO and COO. 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, August 11, 2025, 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 10Ks, 10Qs, and other reports we file with the SEC. We assume no obligation to update any forward-looking statements. Also during this call, we'll discuss certain non-GAAP financial measures. The reconciliation of GAAP to non-GAAP financial measures is included in today's earnings press release. Both the press release and supplemental slides, which include highlights for the quarter, are available on the Invest Relations section of LivePerson's website, .LivePerson.com. With that, I'll turn the call over to LivePerson CEO John Sabino.

Thank you so much, John. Thank you all for joining us today. Before discussing our results and business updates, I'll be outlining the refinancing agreement with the 2026 note holders announced today. I want to start here because strengthening our capital structure has been a top priority since I joined the company. Building on last year's successful transaction with Linoch Lake, I am pleased to share that this refinancing agreement represents a decisive step in strengthening our capital structure. It meaningfully delivers our balance sheet and extends debt maturities to 2029, providing a runway to execute our strategy. Equally important, it reinforces confidence in our customers and partners that LivePerson remains a long-term strategic partner. Refinancing is also intended to shift a greater proportion of enterprise value to equity holders by significantly reducing total indebtedness. Now, let me turn to our operational performance. We delivered revenue of $59.6 million, which was above the midpoint of our guidance range. Our adjusted EBITDA also came in at $2.9 million, exceeding the high end of our guidance range. John Collins will provide more detail about our financials shortly. Now I want to provide some color on our product strategy. In the second quarter, we experienced a 45% sequential increase in conversations powered by our Generative AI Suite. In fact, over 17% of all conversations on LivePerson's platform leverage at least one form of Generative AI feature, up 5 percentage points from a quarter ago. This increased adoption reflects a clear and measurable value that we are delivering by improving efficiency and elevating their customer experience. We're also seeing exciting new customer use cases emerge, which further validates our product strategy. As we continue to evolve our platform to be a true system of action and intelligence, we're empowering enterprises to transform customer interactions into real business outcomes. Our vision is to embed AI into every interaction, and we achieve this with an open, flexible workspace powered by our leading tools in automation, real-time transcription, and agent assistance. The true value of our platform is demonstrated by our customers' success. So let me share a few examples of what they're achieving. First, a premier diagnostic provider deployed our routing AI-ogenic bot and within three weeks saw a significant decrease in call volumes while increasing messaging volumes by 7x, demonstrating rapid adoption and scalability, while achieving a 97% routing accuracy and an 86% CSAT score. We're also using AI-powered summarization to automate CRM updates, improving agent efficiency. Second, a major media technology company is using our agentic AI-powered routing to fully contain 20% of conversations without human intervention, while achieving an 86% first contact resolution rate and an 89% CSAT score. And third, a leading technology services organization dramatically cut escalations and decreased resolution times by using our AI routing. This was possible because our AI is now far better at understanding what customers are asking for, reducing errors by 38% and resolving 62% more unique requests on the first try. These are examples with industry-leading brands and are not isolated cases. They are clear proof that our AI is delivering mission-critical business outcomes. Next, I want to highlight that our product strategy is being matched by a focused evolution in how we go to market, with our strategic partnerships playing a central role. Just last week, we announced that we're deepening our relationship with Google Cloud. This collaboration unifies our market-leading conversational platform and operations with Google Cloud's AI innovations, including their advanced large language models. This isn't just about integrating features. We're shifting to encompass a joint global -to-market initiatives in collaborative product innovation. This will allow us to jointly redefine enterprise customer experience and accelerate our mission to create a new era of highly efficient, personalized, and connected experiences worldwide. This strategic alliance is built on the foundation of our ongoing migration to Google Cloud. This long-term initiative is about optimizing our services on a -the-art, stable infrastructure. This not only improves resiliency, but frees up our engineers from managing underlying complexity to focus on delivering value to our customers. In fact, the partnership with Google and the high-performance AI technologies made available through Gemini and Vertex are added benefits which we are now well positioned to take advantage of. Building on our work with Google, we will be expanding our relationship with Databricks, which is foundational for our critical innovations. By underlying our conversational data, by unifying our conversational data into a single, extensible, high-performance system deployed within Google Cloud, we will unlock three key advantages. First, we can deliver smarter, faster outcomes for our clients in analytics and automation. Second, we can speed up how we build and iterate on agentic AI use cases. And third, enterprises and partners can securely build their own agentic AI solutions on their platform. Together, these partnerships make LivePerson's platform more intelligent, extensible, and attractive to enterprise buyers looking for proven AI capabilities. We believe these strategic partnerships will amplify our market presence and enable us to deliver integrated solutions to a wider range of enterprises, reinforcing our position as a strategic partner for all channels. Turning to our commercial results and our outlook for the rest of the year, second-quarter bookings improved sequentially over Q1, but the overall pace of new business in the first half was slower than anticipated. We've also experienced renewal hesitation from a few larger customers. Two primary factors have contributed to this. First, the broader macroeconomic uncertainty continues to extend enterprise buying cycles, especially for high-value AI solutions. These transformative deployments naturally require extensive customer due diligence, and this is what we see as extending these buying cycles. Second, uncertainty around our capital structure has been a clear headwind in our commercial process. Addressing that headwind was a top priority, and the refinancing agreement directly addresses consistent customer and partner feedback on this issue by providing reassurance on the company's financial stability. As a direct result of the commercial factors I've outlined, we're adjusting our financial outlook. Based on the slower bookings and renewal hesitation from the select large customers, we are revising our full-year revenue guidance to $235 million at the midpoint, a decrease of approximately 5%. At the same time, we're managing the business with financial discipline. Through significant adjustments to our cost structure and a focused approach to cash preservation, we're offsetting top-line declines. We are therefore increasing our full-year adjusted EBITDA guidance midpoint to a positive $2 million, an increase of $9 million. John Collins will provide more detail on this shortly. With a stronger capital structure in place, we will continue to focus on product innovation that drives meaningful business outcomes for our customers and our commercial progress. This quarter, that focus showed up in 45% sequential growth and generative AI conversations and expanded strategic partnerships with Google and Databricks, creating new momentum and opportunities. We have taken decisive action to address our challenges and strengthen the company. I am confident that these steps have laid the groundwork for us to enhance our commercial performance and continue executing on our strategy. Now, let me hand the call over to John Collins, who will provide further details on our financials. John?