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LiveVox Announces Second Quarter 2021 Financial Results

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Second quarter total revenue of $28.9 million, up 28.5% year-over-year

Second quarter contract revenue of $22.4 million, up 34.4% year-over-year

SAN FRANCISCO, August 12, 2021--(BUSINESS WIRE)--LiveVox Holdings, Inc. ("LiveVox" or the "Company") (NASDAQ: LVOX), a leading global enterprise cloud communications company, today announced financial results for the second quarter ended June 30, 2021.

"We are very pleased by our record revenue results in the quarter, particularly our bookings and contract revenue strength, which lay the foundation for strong future revenue performance," said Louis Summe, CEO and Co-Founder of LiveVox. "We are also optimistic about the rapid acceleration of our channel partner opportunity pipeline and sales and believe this will be an important piece of our business going forward. We have expanded our internal sales and marketing investment by more than 35% over the same period last year and as we continue to invest heavily in our industry leading platform, we have great confidence in our business and long-term prospects."

Second Quarter 2021 Financial Highlights

  • Revenue1: Total revenue for the second quarter of 2021 was $28.9 million, up 28.5% compared to $22.5 million in the second quarter of 2020.

  • Contract Revenue: Contract revenue was $22.4 million, up 34.4% compared to $16.6 million for the second quarter of 2020.

  • Adjusted Gross Margin: Adjusted gross margin was 61.7% after adjusting for stock-based compensation, depreciation and amortization and long-term incentive compensation triggered by the closing of the merger with Crescent Acquisition Corp. during the quarter, compared to 61.6% in the second quarter of 2020.

  • Adjusted EBITDA: Adjusted EBITDA loss was $(2.6) million for the second quarter of 2021, compared to a loss of $(0.3) million for the second quarter of 2020.

Additional information regarding the non-GAAP financial measures discussed in this release, including an explanation of these measures and how each is calculated, is included below under the heading "Non-GAAP Financial Measures." A reconciliation of GAAP to non-GAAP financial measures has also been provided in the financial tables included below. Management uses non-GAAP financial measures to evaluate operating performance. We believe non-GAAP financial measures provide useful information to investors and others to understand and evaluate our operating results in the same manner as our management and board of directors and allows for better comparison of financial results among our competitors.

_____________________________
1 Total revenue is comprised of recurring subscription revenue and non-recurring professional services revenue. Subscription revenue is comprised of contract revenue (revenue derived from usage committed under contract) and excess usage revenue (revenue derived from usage amounts higher than the minimum usage under contract).

Business Outlook

In determining the financial guidance to provide to investors, the Company considered its recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook and the continued uncertainty of COVID-19 and its potential impact on the Company’s results. Since the beginning of the COVID-19 pandemic, excess usage revenue has been negatively impacted by the effect of government stimulus provided to consumers in response to the COVID-19 pandemic, including, without limitation, direct stimulus payments to consumers, enhanced and extended unemployment benefits, rent abatements and mortgage and student loan forbearances. These programs have reduced consumer credit origination and servicing activity for a significant number of the Company’s customers. In determining the financial guidance for the third quarter and the full year 2021 set forth below, the Company has assumed that the negative impact to excess usage revenue from such stimulus will remain the same as current levels for the remainder of the year. As such, LiveVox is providing guidance for its third quarter and full year 2021 as follows:

  • Third Quarter 2021 Guidance:

    • Total revenue is expected to be in the range of $29.0 to $30.0 million, representing growth of 14% to 18% year-over-year.

    • Contract revenue is expected to be in the range of $22.5 to $23.0 million, representing growth of 23% to 26% year-over-year.

    • Excess usage revenue is expected to be in the range of $6.5 to $7.0 million, representing a decrease of 2% to 9% year-over-year, assuming that the usage multiplier (total revenue divided by contract revenue) remains at current pandemic-impacted levels for the third quarter.

  • Full Year 2021 Guidance:

    • Total revenue is now expected to be in the range of $117.0 to $119.0 million, representing growth of 14% to 16% year-over-year.

    • Contract revenue is now expected to be in the range of $89.5 to $90.5 million, representing growth of 24% to 26% year-over-year.

    • Excess usage revenue is expected to be in the range of $27.5 to $28.5 million, representing a decline of 7% to 10% year-over-year, assuming that the usage multiplier (total revenue divided by contract revenue) remains at current pandemic-impacted levels for the remainder of the year.

  • Full Year 2022 Guidance:

    • Contract revenue will grow a minimum of 25% over 2021 contract revenue.

LiveVox has not reconciled its third quarter and full-year guidance related to non-GAAP net earnings or loss to GAAP net earnings or loss and non-GAAP earnings or loss per share to GAAP earnings or loss, because stock-based compensation cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort. The impact of these adjusting items could be significant to the Company’s GAAP results.

Quarterly Conference Call

LiveVox will host a conference call today at 4:30 p.m. Eastern Time to review the Company’s financial results for the Second quarter ended June 30, 2021. To access this call, dial 855-327-6837 for the U.S. or Canada, or 631-891-4304 for callers outside the U.S. or Canada. A live webcast of the conference call will be accessible from the Investors section of LiveVox’s website, and a recording will be archived. An audio replay of this conference call will also be available through August 26, 2021, by dialing 844-512-2921 for the U.S. or Canada (or 412-317-6671 for callers outside the U.S. or Canada) and entering passcode 10015697.

About LiveVox Inc.

LiveVox (NASDAQ: LVOX) is a next-generation contact center platform that powers more than 14 billion interactions a year. By seamlessly integrating omnichannel communications, CRM, AI, and WFO capabilities, the Company’s technology delivers an exceptional agent and customer experience while reducing compliance risk. With 20 years of cloud experience and expertise, LiveVox’s CCaaS 2.0 platform is at the forefront of cloud contact center innovation. The Company has more than 500 global employees and is headquartered in San Francisco, with offices in Atlanta, Columbus, Denver, New York City, St. Louis, Medellin (Colombia) and Bangalore (India). For more information visit: www.livevox.com

Forward-Looking Statements

Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "would," "should," "future," "propose," "target," "goal," "objective," "outlook" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside LiveVox’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and speak only as of the date of this presentation. LiveVox assumes no obligation to update or revise any such forward-looking statements except as required by law.

Important factors, among others, that may affect actual results or outcomes include the inability to recognize the anticipated benefits of the Business Combination; costs related to the recently completed business combination; LiveVox’s ability to manage growth; LiveVox’s ability to execute its business plan and meet its projections; potential litigation involving LiveVox; changes in applicable laws or regulations; the possibility that LiveVox may be adversely affected by other economic, business, and competitive factors; the impact of the continuing COVID-19 pandemic on LiveVox’s business as well as those factors described in the "Risk Factors" section of our filings with the Securities and Exchange Commission ("SEC").

The information contained in this press release is summary information that is intended to be considered in the context of LiveVox’s SEC filings and other public announcements that LiveVox may make, by press release or otherwise, from time to time. LiveVox also uses its website to distribute company information, including performance information, and such information may be deemed material. Accordingly, investors should monitor LiveVox’s website (www.livevox.com). LiveVox undertakes no duty or obligation to publicly update or revise the forward-looking statements or other information contained in this presentation. These materials contain information about LiveVox and its affiliates and certain of their respective personnel and affiliates, information about their respective historical performance and general information about the market. You should not view information related to the past performance of LiveVox or information about the market, as indicative of future results, the achievement of which cannot be assured.

Consolidated Statements of Operations and Comprehensive Loss

For the Three and Six Months Ended June 30, 2021 and 2020

(Unaudited) (In thousands, except per share data)

For the three months ended
June 30,

For the six months ended
June 30,

2021

2020

2021

2020

Revenue

$

28,913

$

22,505

$

56,858

$

49,024

Cost of revenue

21,615

9,613

32,795

19,585

Gross profit

7,298

12,892

24,063

29,439

Operating expenses

Sales and marketing expense

27,685

6,982

36,593

15,101

General and administrative expense

24,637

3,393

29,517

6,459

Research and development expense

30,169

4,765

36,349

9,503

Total operating expenses

82,491

15,140

102,459

31,063

Loss from operations

(75,193)

(2,248)

(78,396)

(1,624)

Interest expense, net

941

969

1,885

1,953

Change in the fair value of warrant liability

(375)

(375)

Other expense (income), net

32

(50)

25

82

Total other expense, net

598

919

1,535

2,035

Pre-tax loss

(75,791)

(3,167)

(79,931)

(3,659)

Provision for income taxes

52

352

87

413

Net loss

$

(75,843)

$

(3,519)

$

(80,018)

$

(4,072)

Comprehensive loss

Net loss

(75,843)

(3,519)

(80,018)

(4,072)

Other comprehensive income (loss)

(25)

(9)

14

(114)

Comprehensive loss

$

(75,868)

$

(3,528)

$

(80,004)

$

(4,186)

Net loss per share—basic and diluted

$

(1.08)

$

(0.05)

$

(1.17)

$

(0.06)

Weighted average shares outstanding—basic and diluted

69,945

66,637

68,291

66,637

Consolidated Balance Sheets

As of June 30, 2021 and December 31, 2020

(In thousands, except per share data)

As of

June 30,
2021

December
31, 2020

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

161,423

$

18,098

Restricted cash, current

1,368

Accounts receivable, net

15,850

13,817

Deferred sales commissions, current

1,797

1,521

Prepaid expenses and other current assets

5,390

2,880

Total Current Assets

184,460

37,684

Property and equipment, net

3,205

3,505

Goodwill

47,481

47,481

Intangible assets, net

22,425

18,688

Operating lease right-of-use assets

6,304

3,858

Deposits and other

538

2,334

Deferred sales commissions, net of current

3,709

3,208

Deferred tax asset

37

Restricted cash, net of current

100

100

Total Assets

$

268,259

$

116,858

LIABILITIES & STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

3,912

$

3,521

Accrued expenses

53,721

11,667

Deferred revenue, current

1,178

1,140

Term loan, current

2,160

1,440

Operating lease liabilities, current

1,842

1,353

Finance lease liabilities, current

163

392

Total current liabilities

62,976

19,513

Long term liabilities:

Line of credit

4,672

Deferred revenue, net of current

166

237

Term loan, net of current

53,236

54,604

Operating lease liabilities, net of current

5,038

3,088

Finance lease liabilities, net of current

25

38

Deferred tax liability, net

193

Warrant liability

1,633

Other long-term liabilities

371

372

Total liabilities

123,445

82,717

Commitments and contingencies (Note 10 and 22)

Stockholders’ equity:

Preferred stock, $0.0001 par value per share; 25,000 shares authorized, none issued
and outstanding as of June 30, 2021; none authorized, issued and outstanding as of
December 31, 2020

Common stock, $0.0001 par value per share; 500,000 shares authorized as of
June 30, 2021 and December 31, 2020; 87,085 and 66,637 shares issued and
outstanding as of June 30, 2021 and December 31, 2020

9

7

Additional paid-in capital

249,843

59,168

Accumulated other comprehensive loss

(192)

(206)

Accumulated deficit

(104,846)

(24,828)

Total stockholders’ equity

144,814

34,141

Total liabilities & stockholders’ equity

$

268,259

$

116,858

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2021 and 2020

(Unaudited) (Dollars in thousands)

For the six months ended
June 30,

2021

2020

Operating activities:

Net loss

$

(80,018)

$

(4,072)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

962

923

Amortization of identified intangible assets

2,244

2,095

Amortization of deferred loan origination costs

72

71

Amortization of deferred sales commissions

832

552

Non-cash lease expense

801

679

Stock compensation expense

278

313

Equity incentive bonus

68,674

Bad debt expense

22

984

Deferred income tax benefit

(230)

(310)

Change in the fair value of the warrant liability

(375)

Offering cost associated with Warrants recorded as liabilities

41

Changes in assets and liabilities

Accounts receivable

(1,358)

2,862

Other assets

(807)

(460)

Deferred sales commissions

(1,609)

(843)

Accounts payable

1,362

(743)

Accrued expenses

218

611

Deferred revenue

(33)

(5)

Operating lease liabilities

(724)

(623)

Other long-term liabilities

(1)

(12)

Net cash provided by (used in) operating activities

(9,649)

2,022

Investing activities:

Purchases of property and equipment

(604)

(259)

Acquisition of businesses, net of cash acquired

(20)

Asset acquisition

1,326

Net cash provided by (used in) investing activities

722

(279)

Financing activities:

Proceeds from Merger and PIPE financing, net of cash paid

157,383

Repayment on loan payable

(1,536)

(576)

Repayment of drawdown on line of credit

(4,672)

4,672

Repayments on finance lease obligations

(242)

(393)

Net cash provided by financing activities

150,933

3,703

Effect of foreign currency translation

(49)

(120)

Net increase in cash, cash equivalents and restricted cash

141,957

5,326

Cash, cash equivalents, and restricted cash beginning of period

19,566

16,513

Cash, cash equivalents, and restricted cash end of period

$

161,523

$

21,839

For the six months ended
June 30,

2021

2020

Supplemental disclosure of cash flow information:

Interest paid

$

1,805

$

1,896

Income taxes paid

175

73

Supplemental schedule of noncash investing activities:

Additional right-of-use assets

$

3,246

$

Contingent consideration in asset acquisition

7,000

Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets (dollars in thousands):

As of June 30,

2021

2020

Cash and cash equivalents

$

161,423

$

20,388

Restricted cash, current

1,343

Restricted cash, net of current

100

108

Total cash, cash equivalents and restricted cash

$

161,523

$

21,839

GAAP Net Income to Adjusted EBITDA

(In $ Thousands)

Three Months Ended
June 30, (unaudited)

Six Months Ended June 30,
(unaudited)

2021

2020

2021

2020

Net loss

$

(75,843)

$

(3,519)

$

(80,018)

$

(4,072)

Non-GAAP adjustments:

Depreciation and amortization

1,602

1,501

3,205

3,017

Long-term equity incentive bonus and stock-
based compensation expense

69,423

157

69,965

497

Interest expense, net

941

969

1,885

1,953

Change in the fair value of warrant liability

(375)

(375)

Other expense (income), net

32

(50)

25

82

Acquisition and financing related fees and expenses

1,041

1,041

25

Transaction-related costs

570

1,303

Golden Gate Capital management fee expenses

(25)

274

146

431

Provision for income taxes

51

352

86

413

Adjusted EBITDA

$

(2,583)

$

(316)

$

(2,737)

$

2,346

GAAP Gross Profit to Adjusted Gross Profit

(In $ thousands)

Three Months Ended
June 30, (unaudited)

Six Months Ended June 30,
(unaudited)

2021

2020

2021

2020

Gross profit

$

7,298

$

12,892

$

24,063

$

29,439

Depreciation and amortization

911

951

1,858

1,920

Long-term equity incentive bonus and stock-
based compensation expense

9,633

16

9,687

32

Non-GAAP gross profit

$

17,842

$

13,859

$

35,608

$

31,391

Non-GAAP gross margin %

61.7

%

61.6

%

62.6

%

64.0

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210812005827/en/

Contacts

Investor Contacts:
Alexis Waadt
awaadt@livevox.com

Ryan Gardella
livevoxIR@icrinc.com

Press contacts:
Nick Bandy
nbandy@livevox.com

Katie Creaser
livevoxPR@icrinc.com