LiveVox Holdings, Inc.

Thank you for standing by. This is the conference operator. Welcome to the Live Vox Holdings Second Quarter 2021 Earnings Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Alexis Watt, head of IR. Please go ahead.

Good afternoon, and thank you for your participation today. With me on the call are Louis Summey, Chief Executive Officer and co-founder of LIVOX, and Greg Clevenger, Executive Vice President and Chief Financial Officer. Before we get started, I would like to remind you of the company's Safe Harbor language. Comments made during this conference call and webcast and any other company document contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. Any statement that refers to expectations, projections, or other characterizations of future events, including financial projections or future market conditions, is a forward-looking statement. The company's actual future results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in its SEC filings. LiveVox assumes no obligation to update any forward-looking statements. Please also note that past performance or market information is not a guarantee of future results. Certain information discussed on this conference call was derived from third-party sources and has not been independently verified and accordingly, the company makes no representation or warranty in respect of this information. During this conference call, the company may discuss non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP financial measure can be found in the earnings press release, which is available on the Investor Relations website, www.investors.livebox.com. A recorded replay of this call together with related materials will be available on our investor relations website, investors.livebox.com. Livebox's earning release and 10Q are also available on the company's website. With that, I'll turn the call over to Louie to begin.

Good afternoon, everyone, and thank you for joining us. Welcome to the Livebox Earning Call, our first as a public company. My name is Lewis Summey and I am the CEO and co-founder of Labox. This moment has been 20 years in the making and we are very excited with how all of the pieces have come together to create a tremendous opportunity for Labox and our shareholders. As most of you know, Labox is a next generation cloud contact center platform that seamlessly integrates digital and voice communications, CRM, AI, and workforce optimization to help enterprises drive customer service performance. This year, our platform will facilitate more than 14 billion interactions on behalf of our customers. Simply put, our platform is more integrated than our competitors. As digital engagement increasingly becomes the new storefront for the enterprise, Livebox's unique capabilities offer seamless out-of-the-box integration between online touchpoints and contact center agents, providing our clients with a material advantage in growing revenue and improving customer experience. Not only is our platform primed and ready, but the market is as well. McKinsey estimates the overall contact center software market is $27 billion currently, and will grow to $83 billion over the next 10 years. Our market focus The cloud contact center software space is currently only 10% to 15% of the $27 billion of annual expense and has gained significant growth momentum as more enterprises look to adopt digital and AI capabilities. By 2030, McKinsey expects the cloud to be nearly 100% of the market, providing a substantial macro tailwind for us to accelerate our revenue growth. In terms of our financial results for the quarter, we achieved total revenue of $28.9 million, up 28% year over year. This strong performance was fueled by the strength in our contract revenue, which grew 34% year over year to a record of $22.4 million. And contract revenue is on target to be approximately $90 million for the full year 2021. which would be approximately 25% growth over last year. As a reminder, given the way our contract revenue works, this number is effectively locked in for the remainder of the year. Although our contract revenue is strong, our excess usage revenue is recovering more slowly than expected, as COVID-related government consumer stimulus programs have reduced non-contracted utilization on our platform. Those programs have lasted longer, and the recovery of our excess usage revenue is taking longer than we had initially predicted to return to a normal pre-COVID level. Although these COVID headwinds continue to slow our excess usage revenue recovery, we have multiple vectors for growing our contract revenue, which I will review now. One of our primary purposes for going public is to provide the company with increased resources to capitalize on this generational opportunity in the cloud contact center space. With our entry into the public markets, we have added more than $100 million to our balance sheet, and we are well positioned to increase our growth investments, in particular, our go-to-market capacity. We are accelerating our investments in growth and generating more leads for our pipelines. hiring more sales executives to drive bookings, signing up more distribution partners to increase our market reach, adding more features to increase our revenue per client, and shrinking our time to implement new customers and products. Even though we have just started many of these investments, we're already seeing promising results. This includes adding approximately 35% more resources to sales and marketing just since the beginning of the year, building a channel team from scratch to focus on partners who, by the way, have already signed agreements with Teleris and Intellisys, both of whom are major channel organizations. And this team is also in discussions to add several additional partners in the near future. We are also seeing 10% of our new sales bookings in the second quarter from the agent channel versus zero in the first quarter. And we are building relations with third-party analysts. For example, just a couple of weeks ago, Forrester published a total economic impact study on the benefits of our platform powered by omni-channel communications and purpose-built CRM. The results were very positive, highlighted by a 229% return on investment based on Forrester's direct interviews with several of our customers. I encourage you to take a look at this study, which is available on our website. In addition to our sales and marketing investments, the second quarter was another incredible milestone for Livebox in terms of product innovation, setting the stage for us to continue to increase our revenue per customer and increase our speed of implementation. We released over 60 product features during the quarter with a focus on AI, self-service, contact center compliance, as well as ease of use. For example, in Q2, we launched our enhanced chatbot builder, which helps clients to optimize messaging conversations and improve customer self-service out of the box. The tool comes pre-integrated with our CRM suite and WFO capabilities and allows clients to easily launch bots within minutes. Additionally, we have enhanced our AI virtual agent product by embedding real-time monitoring and quality management tools which enhance feedback loops for clients who are better able to optimize virtual agents in minutes rather than months. Our contact center CRM platform continues to be focused on helping agents to optimize every customer interaction. With our AI virtual agents and bot library, clients can seamlessly integrate third-party platforms, automate processes, prevent errors, and boost agent productivity, delivering better customer experience and greater efficiency. Improvements in our standard delivery process, including out-of-the-box solution, enables us to onboard new customers 25% faster than just where we were at the beginning of the year. These preconfigured modules contain contact center industry best practice configurations across our platform, with automated training content available to help expedite platform optimization. And in terms of the new stir-shaken regulations, we have taken the necessary steps to ensure that all our clients continue to abide by the new set of FCC standards, which impact contact centers. With the call attestation and authentication framework in place as part of our latest release, clients can be assured that all their calls are properly delivered and received through the carrier networks. and that consumers are provided with proper notifications per the new regulations. With that, I'll now turn it over to Greg to cover our financials in more detail.