LiveVox Holdings, Inc.

Thank you for standing by. This is the conference operator. Welcome to the Livebox Holdings fourth quarter 2021 earnings conference call. As a reminder, all participants are in a 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 one 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, Vice President, Head of Investor Relations. Please go ahead.

Good afternoon, and thank you for your participation today. With me on the call are Louie Summey, Chief Executive Officer and Co-Founder of LiveOx, and Greg Clevenger, Executive Vice President and Chief Financial Officer. Before we get started, I would like to remind you that comments made during this conference call and webcast 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 in such forward-looking statements for any reason, including, without limitation, those listed in the risk factors sections of our SEC by-links. LIBOX assumes no obligation to update any such 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 will discuss non-GAAP financial measures as defined by SDC 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 Investors Relations website, investors.livebox.com. A recorded replay of this call together with related materials will be available on our Investor Relations website, investors.livebox.com. LiveVox's earnings release and Form 10-K will also be 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. My name is Louis Summey, and I'm the CEO and co-founder of LiveVox. Today, I'm pleased to share with you our strong finish to 2021, as well as our path to a strong 2022. We had record revenue in the fourth quarter, with contract revenue of $24.3 million and usage revenue of $7.5 million, for a total of $31.9 million, all of which were at the high end of our guidance range. Full year 2021 contract revenue was $90.5 million, up 26%, and total revenue was $119.2 million, up 16%. I'm also pleased to share that 2021 was a record bookings year, up 31% year-over-year. A key driver of this is that the size of our new logo bookings was up over 50% year-over-year. Additionally, the channel program we began implementing last year is already bearing positive results. The momentum in the CCaaS market continues to be strong, and the ease of use and full functionality of our next-generation, fully cloud-enabled platform is resonating with both new and existing customers. As larger, more risk-adverse enterprises increasingly adopt cloud solutions, security, compliance, and reliability are becoming even more important to contact center buyers. Powered by our contact center CRM, and our public cloud platform, these capabilities are core strengths of LiveAux, and they helped drive performance during the back half of 2021 and will be a key driver of 2022 success. Many of these larger enterprises have a significantly higher bar when it comes to security, compliance, and reliability. And as a strong leader of these capabilities in the cloud contact center, LiveAux is prepared to meet the challenge. Evidence of this is a year-long security audit we recently passed for a top five U.S. bank customer. It's a rigorous and time-consuming process, yet one that we achieved and is a clear point of differentiation for us. To be certain, the functionality and continued evolution of our platform is key, including seamless integration of omnichannel, AI, CRM, and workforce employee management. You have to have the goods. But when you add in our leading security compliance and reliability capabilities, it's very attractive to a wide variety of enterprise prospects. That's exactly what we're seeing in our bookings and in our pipeline. The following Q4 enterprise wins and upsells help illustrate my point. A top five U.S. bank implementation has gone live after extensive due diligence and vetting of security policies and infrastructure. In one call center alone, we are estimated to save them $7 million a year by increasing agent efficiencies and connection rates. In Q3, we sold the consumer credit operations of a leading U.S. tire retailer a $1.9 million deal for annual contract revenue with 18 products. In Q4, by leveraging the infrastructure of the original deal, we added an additional department to the engagement, resulting in an incremental increase annual contract revenue of $1.5 million. A leading fintech provider started with us as a voice-only customer, doing 30K contract revenue per month in early 2020. In Q4, they added seven products, and they are now at 113 contract revenue per month, using 10 products across our platform, including virtual agents. More than 10% of our customer base now uses 10 or more of our products, and that percentage continues to grow. A leading outsourcer added three new financial services customers onto their platform, displacing a legacy on-prem system with the full Livebox suite of products. They've gone from 10K of contract revenue per month in 2019 to 126K of contract revenue per month now. And finally, a new logo win against direct competitors for an online retail providing consumer leasing solutions for power equipment signed an initial deal with eight products, including voice, digital channels, CRM, and our quality management solution. This customer will have their voice solution online in 30 days with our Smart Start implementation program, which was announced in June 4th. We're excited about these wins and even more excited about the opportunities in our pipeline. It's a good position to be in. The security and compliance and reliability conscious segment represents the majority of the CCAT space. And according to analysts, it's one of the areas that is driving secular growth, especially as large banks announce their intention to increase cloud migration. As noted, we intend to continue to take advantage of these tailwinds and capitalize on the strength and differentiation of our platform. As we reflect on 2021, there were a number of noteworthy accomplishments. First and foremost, as a result of us entering the public market, it was a year of significant investment. Our two key areas of focus were to accelerate our go-to-market investments to help facilitate growth and to migrate 100% of our customers to the public cloud. I'm pleased to share that we've made significant progress on both fronts. From a go-to-market perspective, we accelerated hiring in 2021, growing our go-to-market headcount by over 60%. The team is in place and ramping, and we believe we have a terrific foundation to take us to the next level. We've implemented extensive sales productivity metrics and targets to ensure that our aggressive investments are paying off. Additionally, we built a channel program from the ground up that in less than 12 months is already contributing to bookings. In additional to building a strong team of seasoned leaders, we signed six master agents for complete coverage in the U.S. This is strategically important, as 40% to 50% of enterprise customers prefer to conduct business through the channel. Lastly, we significantly boosted our marketing spend to amplify our brand awareness and lead generation efforts. As mentioned, our other key area of focus and investment was to complete the migration of our customers to the public cloud. I'm excited to share we've accomplished this, and now 100% of our customers are in the public cloud. We're one of the first CCaaS platforms to hit this milestone. This enables numerous advantages relative to many of our competitors, including significantly less technical debt than private cloud data centers, which simplifies product management, operations, engineering and support, and increases the velocity of new feature development, while making it easier to deploy redundant data centers and on-demand capacity utilization, which are strong levers for increasing reliability and cost efficiency. Now that the migration is complete, we can optimize our AWS costs above the gross margin line, helping overall profitability. I'm also excited to share that we made significant progress with our product in 2021. U17, which will be GA in Q2 of this year, is a transformative release for us, taking our platform to the next level. This release enhances our fully integrated contact center platform, making it even easier for our customers to take advantage of our contact center CRM, AI, and the breadth and depth of our broad array of omnichannel communication tools and the full richness of data and insights that inform the contact center. Some of the new capabilities include multi-channel analytics with built-in quality management capabilities to further close the loop between interaction auditing and agent performance improvement. Enhanced ticketing and CRM capabilities, enabling care organizations to leverage smart features that make flagging and tracking customer issues more efficient and easier for agents, managers, and back office staff to resolve collaboratively. more robust customer and operational analytics that provide the insights necessary to improve performance at scale, and enhanced digital messaging capabilities to help agents optimally communicate with customers on their channel of choice. This includes the ability to ensure omni-channel outreach adheres to industry and government rules and regulations. Again, Livebox made significant progress across many fronts in 2021, But now let's turn to 2022. Looking at the year ahead, our focus will be capitalizing on the investments we put in place to accelerate growth and to ensure we continue to offer our customers the best possible service and products. More specifically, our focus will be to accelerate our sales and marketing efforts with an emphasis on upmarket, larger seat count opportunities where we can leverage our security, compliance, and reliability advantages. To continue expansion and proliferation of channel relationships and opportunities, where, as we noted, we already have strong traction, to focus our development and engineering efforts on new features and functionality that will keep our customers on the forefront of CCaaS 2.0 technology with an emphasis on digital and AI, and to expand our technology partner ecosystem to increase our appeal to enterprise prospects and customers. In summary, I'm excited about Lawbox and our opportunity for 2022 and beyond. The CCaaS market remains very attractive, And Labox's product strength is uniquely positioned as one of the only enterprise CCaaS providers 100% developed and hosted on the public cloud. Our best-in-class security, compliance, and reliability puts us in a strong position with large enterprises handling sensitive consumer information and managing financial transactions, and puts us in prime position to take advantage of secular tailwinds in the sector, like banking, retail, travel, and hospitality, and a return to a normal credit cycle. Not only does our public cloud leadership help us grow our revenue, it also positions us to drive steady improvements in our gross margin and EBITDA. I want to thank our team for all their hard work, our board, and, of course, our customers. I'll now turn it over to our CFO, Greg Clevenger, to review Q4 and 2021 financials and provide guidance.