LivePerson, Inc.

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to LivePerson's fourth quarter 2025 earnings conference call. My name is Joe, and I will be your conference operator today. At this time, all participants are in a listen-only mode. After the prepared remarks, 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 yourselves to one question and one follow-up. And as a reminder, this conference is being recorded. I would now like to turn the conference over to Mr. John Perracchio, Vice President of Investor Relations. Please go ahead.

Thank you, Joe. Joining me on today's call is John Sabino, CEO at John Collins CFO and COO. Please note that during today's call, we'll 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 12, 2026, 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 the comments made during this conference call, as well as in 10-Ks, 10-Qs, and other reports we fought 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. A reconciliation of GAAP to non-GAAP financial measures is included in today's earnings 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, ir.liveperson.com. With that, I'll turn the call over to LivePerson CEO, John Sabino.

Thank you so much, John, and thank you all for joining us today. 2026 marks a clear transition for LivePerson, from rebuilding to execution. Over the past year, we've strengthened our foundation by improving our balance sheet, optimizing our cost base, and sharpening our operations across the company. We are now carrying this discipline into three primary areas of focus that we believe can drive LivePerson towards a return to growth. First, we are continuing to prioritize customer growth and retention by leveraging our leading technology and improved balance sheet to solidify customer confidence in LivePerson as a stable, long-term strategic partner. Second, we're continuing to innovate our core conversational cloud platform while scaling our recently launched Centrix platform to offer best-in-class AI-led engagement and assurance. And third, we continue to expand our technology partnerships to broaden our platform's reach and unlock new commercial opportunities. We believe that our disciplined execution across these three areas of focus can drive LivePerson towards a return to growth in the future. Turning to our results, we outperformed our Q4 guidance on both the top and bottom lines. Revenue was $59.3 million, above the high end of our range, driven by higher variable revenue. Adjusted EBITDA was $10.8 million, also above the high end of our guidance range, driven by our improved cost structure and disciplined operational execution in the quarter. Now let me provide an update on our product strategy. Last week, we reached a significant milestone with the launch of Centrix. Syntrix is our simulation and evaluation platform that allows brands to launch customer-facing AI agents with confidence and validate human agent readiness at scale. It provides the critical assurance brands need to unlock the value of AI across their customer journey. This emphasis on assurance addresses a clear gap we see in the market. Many brands are not limited by AI capability, but by trust. They struggle to move high potential AI initiatives to production because they lack the confidence in performance, governance, and compliance. They also lack a structured way to evaluate AI agent outputs and continually verify adherence to their governance guardrails. As a result, innovation stalls and business impact remains unrealized. Centrix is our direct response to this challenge. It provides the orchestration and assurance layer enterprises need to confidently deploy AI at scale. Originally introduced in November, Conversation Simulator is now the first capability within the Centrix platform. It enables enterprises to safely and continuously test, evaluate, and validate AI behavior by identifying drift and failures before they reach real customers. With the formal launch of Centrix earlier last week, we are expanding beyond simulation into a broader assurance vision. Over the coming quarters, we plan to add additional capabilities across simulation, analytics, governance, and auditability to support compliance. As the roadmap unfolds, we expect that Centrix will become a comprehensive assurance layer that makes AI more predictable at the enterprise scale. Importantly, Centrix was built to integrate seamlessly into existing enterprise ecosystems. Centrix is designed to work in concert with our core conversational cloud platform, but it is also model and platform agnostic. Our conversational cloud remains the system of engagement where customers' interactions occur. Centrix provides an assurance layer for a safer, more predictable, and compliant interactions as AI usage scales. Together, they form a unified platform that allows enterprises to deploy conversational AI with confidence. Centrix does not replace conversational cloud. It supercharges it. Additionally, Centrix is designed to deliver the same level of assurance whether customers are using conversational cloud or other CX or CCaaS platforms, including those we compete with. This allows enterprises to apply a consistent governance standard across increasingly complex technology and CX stacks. We plan to continue expanding our out-of-the-box integrations throughout the year while also enabling partners and customers to integrate Centrix with their preferred platforms and AI technologies. Commercially, Centrix is already gaining traction. We have successfully moved from early access to general availability with paying enterprise customers across banking, telecommunications, and technology. This early response, combined with a significant addressable market, positions us to accelerate commercial execution. At this time, we continue to see deeper AI adoption across our core conversational cloud platform. In Q4, over 20% of all conversations leveraged our generative AI suite. We're also seeing strong traction with Copilot Translate, the newest addition to our agent-assist portfolio. It enables brands to eliminate language barriers by embedding real-time, AI native translation directly into the agent workflow. We also remain on track to complete our multi-year platform modernization in the first half of this year. This milestone is foundational to our long-term scalability. We are transitioning to a unified architecture designed to support significantly higher generative AI traffic with improved resiliency. Completing this work positions us to reallocate resources towards accelerating product innovation in 2026. Moving to our go-to-market performance, we're seeing continued confidence from our largest enterprise customers. This is reflected in several significant renewals this quarter, including seven major financial services institutions, two major airline carriers, three leading telecom and internet service providers, and a major healthcare provider. These renewals underscore the durability of our platform, the strength of our enterprise relationships, and our ability to deliver measurable value across highly regulated and customer-centric industries. Our partnership with Google Cloud is also delivering significant early results. In the fourth quarter, we secured a multimillion-dollar renewal with an upsell, the major European telecommunications provider through the Google Cloud Marketplace. Based on conversations with several customers, we now expect a material amount of revenue to flow through Marketplace by the end of 2026. delivering measurable improvements in churn. This validates our strategy to simplify procurement, leverage existing cloud commitments, and expand LivePerson's adoption through partner-led channels. Our momentum with Google continues to deepen across both products and go-to-market. We've standardized on Google Gemini as a default LLM across our platforms and launched LivePerson's RCS channel. Together, these efforts strengthen LivePerson's position within Google's ecosystems, and expand the joint opportunities that we can pursue. We're also scaling our Google Marketplace motion to enable enterprise customers to seamlessly procure our solutions using their existing cloud commitments. Our teams are now aligned with Google's field organizations to streamline procurement and accelerate sales cycles. While still a phased rollout, we are already seeing tangible traction with multiple marketplace transactions in process and a growing pipeline of joint opportunities. Today, this motion is performing as a high-impact retention lever. By enabling our customers to tap into their existing Google Cloud commitments, we're moving live person directly into the heart of the CTO's strategic spend. This is a fundamentally different relationship that elevates our strategic conversations with current and future customers. As we continue to scale these transactions and strengthen our position within Google's own ecosystem, We are creating a direct incentive for their field organizations to move beyond renewals and begin transacting net new business with us. Complementing this is our strategic collaboration with IT Solutions, which has been a significant win for our mid-market segment. By reallocating resources in 2025, we have created immediate value and efficiency in this channel, reflected in improved renewal rates and expansion. As we move into 2026, We intend to deepen this relationship further. We've also launched LivePerson Sync in partnership with Coral Active, a leader in enterprise contact center integrations. This solution enables seamless integrations with systems like Salesforce, Microsoft, and ServiceNow, bringing CRM data and workflows directly into the conversation and creating a single, unified workspace for agents. By eliminating the swivel chair effect, we've embedded LivePerson deeper into our customer service operations, improving productivity and overall agent experience. As brands streamline their technology stacks and demand tighter integrations between engagement and execution, LivePerson Sync expands our strategic footprint within the enterprise by differentiating our platform, deepening customer relationships, and creating new long-term growth opportunities. We're already seeing strong interest with a healthy pipeline of opportunities. While there's still work to be done with retention and growth, we're beginning to see the benefits of more focused and then disciplined approach. We are encouraged by the traction with our partnerships and our ecosystem. As these alliances are already expanding our market reach and simplifying how customers do business with us. As we move further into 2026, we remain focused on rigorous execution to convert this early traction into long-term stabilization and growth. In conclusion, 2025 was a defining year for LivePerson. I am incredibly proud of the resilience and discipline our team demonstrated throughout this period. We successfully stabilized our foundation, improved our balance sheet, and delivered a strong finish to the year. We launched the first phase of Centrix with Conversation Simulator and opened a critical new growth channel with Google's Marketplace. We also meet significant progress in our platform modernization, which is on track for completion in the first half of 2026. This unified architecture is designed to support significantly higher generative AI traffic with improved resiliency. Building on this, we are now focused on scaling Centrix and accelerating high-velocity partnerships that expand our market reach. While there is still work to be done to further improve our capital structure, we are better positioned today to execute our strategy. For the full year of 2026, we're providing the following guidance. We expect revenue to be in the range of $195 million to $207 million, and we expect adjusted EBITDA to be between a loss of $4 million and positive $7 million. While this guidance implies a year-over-year decline in revenue, we expect to achieve positive net new ARR in the second half of the year. With disciplines focused on executing our strategy, We're positioning LivePerson as the foundational layer for governable AI at scale and building the path for long-term sustainable growth and shareholder value. With that, I'll turn the call over to John Collins. John?