8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________

FORM 8-K

___________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): November 11, 2021

___________________________________

LIVEVOX HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

___________________________________

Delaware (State or other jurisdiction of incorporation or organization)	001-38825 (Commission File Number)	82-3447941 (I.R.S. Employer Identification Number)
655 Montgomery Street, Suite 1000 San Francisco, CA 94111
(Address of principal executive offices and zip code)
(844) 207-6663
(Registrant's telephone number, including area code)
___________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol	Name of each exchange on which registered
Class A common stock, par value $0.0001 per share	LVOX	The NASDAQ Stock Market LLC
Redeemable Warrants, each whole Warrant exercisable to purchase one share of Class A common stock at an exercise price of $11.50	LVOXW	The NASDAQ Stock Market LLC
Units, each consisting of one share of Class A common stock and one-half of one redeemable Warrant	LVOXU	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company    ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 - Results of Operations and Financial Condition

On November 11, 2021, LiveVox Holdings, Inc. (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended September 30, 2021, and hosted a conference call to discuss its financial results. A copy of the press release and the earnings transcript from the Company’s earnings call are furnished hereby as Exhibits 99.1 and 99.2.

The information furnished with this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 - Financial Statements and Exhibits

(d) The following exhibits are being filed herewith:

Exhibit No.	Description
99.1	Press Release, dated November 11, 2021
99.2	Transcript of the November 11, 2021 Earnings Conference Call
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	LIVEVOX HOLDINGS, INC.
Date: November 12, 2021	By:	/s/ Gregg Clevenger
	Name:	Gregg Clevenger
	Title:	Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

LiveVox Announces Third Quarter 2021 Financial Results

Third quarter total revenue of $30.5 million, up 20.2% year-over-year

Third quarter contract revenue of $23.1 million, up 26.3% year-over-year

SAN FRANCISCO, CA – November 11, 2021 - LiveVox Holdings, Inc. (“LiveVox” or the “Company”) (NASDAQ: LVOX), a leading global enterprise cloud communications company, today announced financial results for the third quarter ended September 30, 2021.

“We executed incredibly well in Q3, highlighted by record revenue of $30.5 million, and contract revenue of $23.1 million, both of which exceeded the high end of our guidance range. Additionally, we achieved record bookings in the quarter which puts us on track for our strongest bookings year in company history,” said Louis Summe, CEO and Co-Founder of LiveVox. “We are also thrilled to announce our largest ever new logo deal with ARR1 of $3.3 million, and we are seeing both new and existing customers opt for an increasing number of our products. I am incredibly optimistic about both the fundamentals of our business, and the secular tailwinds driving momentum into our full enterprise, blended omnichannel platform.”

Third Quarter 2021 Financial Highlights

•Revenue2: Total revenue for the third quarter of 2021 was $30.5 million, up 20.2% compared to $25.4 million in the third quarter of 2020.

•Contract Revenue: Contract revenue was $23.1 million, up 26.3% compared to $18.2 million for the third quarter of 2020.

•Gross Profit: Gross profit was $17.0 million, up 8.4% compared to $15.7 million for the third quarter of 2020.

•Non-GAAP Gross Profit* and Non-GAAP Gross Margin*: Non-GAAP gross profit was $18.1 million, up 8.5% compared to $16.7 million for the third quarter of 2020; Non-GAAP gross margin was 59.5% 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 65.9% in the third quarter of 2020.

•Net loss: Net loss was $11.3 million for the third quarter of 2021, compared to net loss of $0.3 million for the third quarter of 2020.

1ARR is defined as the annualized recurring revenue of an active subscription contract.

2Total revenue is comprised of recurring subscription revenue and implementation 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).

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•Adjusted EBITDA*: Adjusted EBITDA loss was $6.3 million for the third quarter of 2021, compared to Adjusted EBITDA of $2.7 million for the third 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.

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 fourth 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 fourth quarter and full year 2021 as follows:

•Fourth Quarter 2021 Guidance:

◦Total revenue is expected to be in the range of $31.2 to $32.2 million, representing growth of 11% to 15% year-over-year.

◦Contract revenue is expected to be in the range of $23.9 to $24.4 million, representing growth of 19% to 22% year-over-year.

◦Excess usage revenue is expected to be in the range of $7.3 to $7.8 million, representing a decrease of 4% to 9% year-over-year, assuming that the usage multiplier (total revenue divided by contract revenue) remains at current pandemic-impacted levels for the fourth quarter.

•Full Year 2021 Guidance:

◦Total revenue is now expected to be in the range of $118.6 to $119.6 million, representing growth of 16% to 17% year-over-year.

◦Contract revenue is now expected to be in the range of $90.1 to $90.6 million, representing growth of 25% to 26% year-over-year.

◦Excess usage revenue is expected to be in the range of $28.5 to $29.0 million, representing a decline of 6% to 7% 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.

•Preliminary Full Year 2022 Guidance:

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◦For the full year 2022, while we are still not providing formal guidance, we do reaffirm a minimum year-over-year growth rate in Contract Revenue of 25% based on our recent bookings momentum.

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 third quarter ended September 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 November 25, 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 10016535.

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: http://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 include, but are not limited to, statements relating to expected bookings, expected revenue and annual recurring revenue from contracts, growth expectations, and future financial results, including guidance. These 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 with Crescent Acquisition Corp.; costs related to the recently completed business combination with Crescent Acquisition Corp.; 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").

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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 (http://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.

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Consolidated Statements of Operations and Comprehensive Loss

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

	For the three months ended September 30,				For the nine months ended September 30,
	2021		2020		2021		2020
Revenue	$	30,507	$	25,390	$	87,365	$	74,414
Cost of revenue	13,479		9,682		46,274		29,267
Gross profit	17,028		15,708		41,091		45,147
Operating expenses
Sales and marketing expense	12,227		6,552		48,820		21,653
General and administrative expense	7,642		3,246		37,159		9,705
Research and development expense	8,130		5,157		44,479		14,660
Total operating expenses	27,999		14,955		130,458		46,018
Income (loss) from operations	(10,971)		753		(89,367)		(871)
Interest expense, net	1,033		973		2,918		2,926
Change in the fair value of warrant liability	(300)		—		(675)		—
Other expense (income), net	(460)		(6)		(435)		76
Total other expense, net	273		967		1,808		3,002
Pre-tax loss	(11,244)		(214)		(91,175)		(3,873)
Provision for income taxes	100		116		187		529
Net loss	$	(11,344)	$	(330)	$	(91,362)	$	(4,402)
Comprehensive loss
Net loss	(11,344)		(330)		(91,362)		(4,402)
Other comprehensive income (loss)	(41)		15		(27)		(99)
Comprehensive loss	$	(11,385)	$	(315)	$	(91,389)	$	(4,501)
Net loss per share—basic and diluted	$	(0.12)	$	—	$	(1.20)	$	(0.07)
Weighted average shares outstanding—basic and diluted	91,444		66,637		76,122		66,637

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Consolidated Balance Sheets

(In thousands, except per share data)

	As of
	September 30, 2021		December 31, 2020
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	104,980	$	18,098
Restricted cash, current	—		1,368
Accounts receivable, net	17,052		13,817
Deferred sales commissions, current	2,490		1,521
Prepaid expenses and other current assets	6,948		2,880
Total Current Assets	131,470		37,684
Property and equipment, net	3,286		3,505
Goodwill	47,481		47,481
Intangible assets, net	21,310		18,688
Operating lease right-of-use assets	5,897		3,858
Deposits and other	687		2,334
Deferred sales commissions, net of current	6,219		3,208
Deferred tax asset	79		—
Restricted cash, net of current	100		100
Total Assets	$	216,529	$	116,858
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,275	$	3,521
Accrued expenses	12,949		11,667
Deferred revenue, current	1,074		1,140
Term loan, current	561		1,440
Operating lease liabilities, current	1,894		1,353
Finance lease liabilities, current	80		392
Total current liabilities	20,833		19,513
Long term liabilities:
Line of credit	—		4,672
Deferred revenue, net of current	249		237
Term loan, net of current	54,572		54,604
Operating lease liabilities, net of current	4,547		3,088
Finance lease liabilities, net of current	18		38
Deferred tax liability, net	—		193
Warrant liability	1,333		—
Other long-term liabilities	370		372
Total liabilities	81,922		82,717
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value per share; 25,000 shares authorized, none issued and outstanding as of September 30, 2021; none authorized, issued and outstanding as of December 31, 2020	—		—

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Common stock, $0.0001 par value per share; 500,000 shares authorized as of September 30, 2021 and December 31, 2020; 90,547 and 66,637 shares issued and outstanding as of September 30, 2021 and December 31, 2020	9		7
Additional paid-in capital	251,021		59,168
Accumulated other comprehensive loss	(233)		(206)
Accumulated deficit	(116,190)		(24,828)
Total stockholders’ equity	134,607		34,141
Total liabilities & stockholders’ equity	$	216,529	$	116,858

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Consolidated Statements of Cash Flows

(Unaudited) (Dollars in thousands)

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	For the nine months ended September 30,
	2021		2020
Operating activities:
Net loss	$	(91,362)	$	(4,402)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,475		1,377
Amortization of identified intangible assets	3,358		3,142
Amortization of deferred loan origination costs	102		107
Amortization of deferred sales commissions	1,368		887
Non-cash lease expense	1,207		898
Stock compensation expense	1,458		470
Equity incentive bonus	32,863		—
Bad debt expense	110		624
Loss on disposition of asset	—		10
Deferred income tax benefit	(272)		(382)
Change in the fair value of the warrant liability	(675)		—
Offering cost associated with Warrants recorded as liabilities	41		—
Changes in assets and liabilities
Accounts receivable	(2,648)		1,892
Other assets	(2,514)		(405)
Deferred sales commissions	(5,347)		(1,985)
Accounts payable	1,725		460
Accrued expenses	1,225		1,696
Deferred revenue	(54)		145
Operating lease liabilities	(1,202)		(904)
Other long-term liabilities	(2)		(5)
Net cash provided by (used in) operating activities	(59,144)		3,625
Investing activities:
Purchases of property and equipment	(1,210)		(434)
Acquisition of businesses, net of cash acquired	—		(20)
Asset acquisition	1,326		—
Net cash provided by (used in) investing activities	116		(454)
Financing activities:
Proceeds from Merger and PIPE financing, net of cash paid	157,383		—
Repayment on loan payable	(1,676)		(864)
Repayment of drawdown on line of credit	(4,672)		4,672
Debt issuance costs	(153)		—
Payment of contingent consideration liability	(5,969)		—
Repayments on finance lease obligations	(331)		(582)
Net cash provided by financing activities	144,582		3,226
Effect of foreign currency translation	(40)		(102)
Net increase in cash, cash equivalents and restricted cash	85,514		6,295
Cash, cash equivalents, and restricted cash beginning of period	19,566		16,513
Cash, cash equivalents, and restricted cash end of period	$	105,080	$	22,808

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	For the nine months ended September 30,
	2021		2020
Supplemental disclosure of cash flow information:
Interest paid	$	2,828	$	2,836
Income taxes paid	237		181
Supplemental schedule of noncash investing activities:
Additional right-of-use assets	$	3,246	$	997

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

	As of September 30,
	2021		2020
Cash and cash equivalents	$	104,980	$	21,348
Restricted cash, current	—		1,360
Restricted cash, net of current	100		100
Total cash, cash equivalents and restricted cash	$	105,080	$	22,808

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Non-GAAP Financial Measures

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.

Adjusted EBITDA

We monitor Adjusted EBITDA, a non-generally accepted accounting principle (“Non-GAAP”) financial measure, to analyze our financial results and believe that it is useful to investors, as a supplement to U.S. GAAP measures, in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance. We believe that Adjusted EBITDA helps illustrate underlying trends in our business that could otherwise be masked by the effect of the income or expenses that we exclude from Adjusted EBITDA. Furthermore, we use this measure to establish budgets and operational goals for managing our business and evaluating our performance. We also believe that Adjusted EBITDA provides an additional tool for investors to use in comparing our recurring core business operating results over multiple periods with other companies in our industry. Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP, and our calculation of Adjusted EBITDA may differ from that of other companies in our industry. We compensate for the inherent limitations associated with using Adjusted EBITDA through disclosure of these limitations, presentation of our consolidated financial statements in accordance with U.S. GAAP and reconciliation of Adjusted EBITDA to the most directly comparable U.S. GAAP measure, net income (loss). We calculate Adjusted EBITDA as net income (loss) before (i) depreciation and amortization, (ii) stock-based compensation, (iii) interest expense, net and other expense, net, (iv) provision (benefit from) for income taxes, and (v) other items that do not directly affect what we consider to be our core operating performance.

Non-GAAP Gross Profit and Non-GAAP Gross Margin Percentage

U.S. GAAP defines gross profit as revenue less cost of revenue. Cost of revenue includes all expenses associated with our various product offerings. We define Non-GAAP gross profit as gross profit after adding back the following items: (i) depreciation and amortization; (ii) long-term equity incentive bonus and stock-based compensation expense; and (iii) other non-recurring expenses. We add back depreciation and amortization, long-term equity incentive bonus and stock-based compensation expense and other non-recurring expenses because they are one-time or non-cash items. We eliminate the impact of these one-time or non-cash items because we do not consider them indicative of our core operating performance. Their exclusion facilitates comparisons of our operating performance on a period-to-period basis. Therefore, we believe showing Non-GAAP gross margin to remove the impact of these one-time or non-cash expenses is helpful to investors in assessing our gross profit and gross margin performance in a way that is similar to how management assesses our performance. We calculate Non-GAAP gross margin percentage by dividing Non-GAAP gross profit by revenue, expressed as a percentage of revenue.

Management uses Non-GAAP gross profit and Non-GAAP gross margin percentage to evaluate operating performance and to determine resource allocation among our various product offerings. We believe Non-GAAP gross profit and Non-GAAP gross margin percentage 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. Non-GAAP gross profit and Non-GAAP

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gross margin percentage may not be comparable to similarly titled measures of other companies because other companies may not calculate Non-GAAP gross profit and Non-GAAP gross margin percentage or similarly titled measures in the same manner as we do.

Please see tables below for a reconciliation of non-GAAP measures to the most directly comparable GAAP measures for the periods presented.

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GAAP Net Income (Loss) to Adjusted EBITDA

(Unaudited) (Dollars in thousands)

	Three Months Ended September 30, (unaudited)				Nine Months Ended September 30, (unaudited)
	2021		2020		2021		2020
Net loss	$	(11,344)	$	(330)	$	(91,362)	$	(4,402)
Non-GAAP adjustments:
Depreciation and amortization	1,628		1,502		4,834		4,519
Long-term equity incentive bonus and stock-based compensation expense	2,069		252		72,035		749
Interest expense, net	1,033		973		2,918		2,926
Change in the fair value of warrant liability	(300)		—		(675)		—
Other expense (income), net	(460)		(6)		(435)		76
Acquisition and financing related fees and expenses	480		—		1,521		25
Transaction-related costs	531		—		1,834		—
Golden Gate Capital management fee expenses	(11)		171		135		602
Provision for income taxes	100		116		187		529
Adjusted EBITDA	$	(6,274)	$	2,678	$	(9,008)	$	5,024

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GAAP Gross Profit to Adjusted Gross Profit

(Unaudited) (Dollars in thousands)

	Three Months Ended September 30, (unaudited)						Nine Months Ended September 30, (unaudited)
	2021			2020			2021			2020
Gross profit	$	17,028		$	15,708		$	41,091		$	45,147
Depreciation and amortization	927			944			2,785			2,864
Long-term equity incentive bonus and stock-based compensation expense	190			68			9,877			100
Non-GAAP gross profit	$	18,145		$	16,720		$	53,753		$	48,111
Non-GAAP gross margin %	59.5		%	65.9		%	61.5		%	64.7		%

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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

Source: LiveVox Holdings, Inc.

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EX-99.2

Exhibit 99.2

<Speaker: Alexis Waadt, Vice President of Investor Relations>

Good afternoon and thank you for your participation today. 

With me on the call are Louis Summe, Chief Executive Officer and Co-Founder of LiveVox, and Gregg

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 expressed in such forward-looking statement for any reason including those listed in its SEC filings. LiveVox 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 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, investors.livevox.com. A recorded replay of this call together with related materials will be available on our Investor Relations website, investorslivevox.com. LiveVox’s earnings release and Form 10-Q will also available on the Company’s website.

With that, I'll turn the call over to Louis to begin.

<Speaker: Louis Summe, CEO>

Good afternoon, everyone, and thank you for joining us. My name is Louis Summe, and I’m the CEO and co-founder of LiveVox. This is our second earnings call as a public company, and I’m pleased to share very strong third quarter results. We had record revenue in Q3 of $30.5 million, a half million dollars above the high end of our guidance range, and up 20% year over year. Contract revenue was $23.1 million, just above the high end of our Q3 guidance range, and up 26% year over year.

I’m also pleased to share that that we’re on track to have our strongest bookings year ever. In fact, Q3 was our best bookings quarter in company history, and more than 60% of those bookings were from new Logos. We also booked our largest new logo deal ever this quarter, with ARR of $3.3 million.

The tailwinds that are fueling this growth of the CCaaS market and its expansion towards a TAM of $80 billion are as powerful as ever. Strong interest in our next generation CCaaS platform is being driven by technology refresh mandates from both legacy on-premise solutions, as well as first-generation cloud platforms.

This opportunity is largely driven by disruption in the marketplace that was triggered by the pandemic. While e-commerce growth was already driving increased demand for contact center services, the pandemic served as a significant accelerator, creating a “new-new” that is likely here to stay.

However, just as the need for services is increasing, contact centers are facing labor shortages and hybrid workforce demands – all while trying to meet increased consumers’ expectations for strong service.

The solve for this new reality is to lean in on technology.

As a result, the industry bar has been raised. Contact center solutions in demand today require sophisticated, modern technologies that seamlessly works together - including blended omnichannel communications, digital and AI to help facilitate self-service and automated workflows, modern workforce engagement tools to help support the new reality of a hybrid onsite and remote workforce, and unified customer data that is optimized for omnichannel engagement.

These demands drive the need for a comprehensive integrated solution, versus a hodgepodge of vendors that can strain IT resources, drive up costs, increase time to market, and create further complexities for contact center leaders.

Clearly, a converged CCaaS platform is the future of the contact center for clients who want to work with fewer vendors on a natively integrated platform, with advanced features and functionality that are easy to implement, and easy to optimize.

Through our public cloud development strategy, LiveVox is in a strong position to provide enterprise contact centers a roadmap for success, now and in the future.

I’m encouraged to share that the enterprise sales are driving more and more of our bookings. For clarity, we’re defining enterprise sales as organizations that are taking ten or more of our products – including voice, digital channels, AI, our contact center CRM, workforce engagement products, and more.

Our two largest deals in Q3 were full enterprise, blended omnichannel sales with ARR of $3.3 million and $1.9 million, respectively.

There are three key points of differentiation in our offering that are driving this:

•First, our blended inbound and outbound voice and digital capabilities are proving to be a real strength.  Blended capabilities are core to approximately 70% of large enterprise contact centers, and our expertise in this area is proving to be invaluable.

•Second, is our contact center CRM.  As we’ve noted before, having the ability to unify communication channels and data seamlessly throughout the customer journey is a game changer for both the agent and customer experience.

•And third, is our ability to provide all the essential capabilities that an enterprise contact center needs – out of the box, easy to deploy, and easy to optimize.

It’s also interesting and important to note that while we’ve historically talked about winning against on-premise providers, in Q3 we had multiple instances of displacing incumbent cloud providers. We view

this as further proof that an out-of-the-box, competitively priced, all-encompassing solution such as LiveVox is highly desired in the marketplace.

Given the market opportunity in front of us, we continue to invest in our go-to-market efforts. Our sales and marketing headcount continues to grow with seasoned industry professionals, and we remain on track to meet our hiring targets – which will be important drivers of revenue in 2022 and 2023.

We’ve also continued to make significant progress in the channel. As a reminder, our go to market strategy was primarily direct until earlier this year. Our relationship with Master Agents is meeting expectations. We recently signed a third channel partner which we’ll announce soon, and now have a strong leadership and marketing team in place to support our channel partners’ future growth.

Q3 was also another milestone quarter for product innovation. Our latest product release, U17, significantly increases our ability to deliver a full enterprise platform for both new and existing customers, which of course also drives our ability to increase revenue per customer.

Some of the new features in this release include advanced ticketing, more robust business intelligence, back office and branch location support, and increased workforce engagement tools - all integrated into our purpose-built contact center CRM.

Of note, the adoption of agent desktop tools and our contact center CRM was across more than 70% of new logos in the quarter.

Delivering an exceptional customer experience in today’s environment requires properly enabling all customer facing employees – including back office and branch locations. Driven by AI, automation, and customer data, U17 provides all the necessary applications needed for all stakeholders involved to provide an exceptional, seamless customer experience.

And through our recently announced SmartStart master portal, new customers now have the ability to be up and running in days, not months, through better integration and customer training tools – which are available on day one. This of course significantly increases speed to value for our customers.

Ultimately, these innovations and advancements continue to enable our Enterprise customers the ability to deploy a complete customer service platform - to solve customer problems, create brand awareness, and drive revenue – while providing a superior customer experience.

Now I’d like to share some of our key Q3 customer wins that I think demonstrate the enterprise success that we’re having.

The first is a large U.S. automotive tire retailer. They have a vision to completely transform their contact center strategy. The patchwork solution provided by their existing three cloud vendors cannot accomplish their objectives.

Their vision required a blended inbound-outbound solution to ultimately provide complete communication capabilities across their customers’ lifecycle. They purchased a suite of 18 products – including our contact center CRM, business intelligence, and WFM – enabling the performance of their hybrid workforce and facilitating future new product offerings.

The second is a large, national financial services company. They partnered with us on a multichannel solution in 550 physical retail stores, as well as their hybrid contact center. They purchased 10 products, anchored in blended omnichannel voice and digital, as well as AI and analytics functionality. This enterprise-wide solution displaced 13 technologies supplied by 10 vendors, including two key cloud competitors.

And finally, an existing customer - a global digital payments provider serving over 200 markets - was using LiveVox and another vendor for blended communications. They signed a large deal this quarter to consolidate all their inbound and outbound communication on LiveVox - and added speech analytics and business intelligence capabilities – for a total of 13 LiveVox products.

Again, we’re very pleased with the quarter, and we remain excited at our prospects of a strong finish in Q4.

Thank you – I’ll now turn it over to our CFO Gregg Clevenger to review financials.

<Speaker: Gregg Clevenger, CFO>

Thanks Louis, and good afternoon everyone.

I’ll start with our third quarter revenue results and a reminder that all non-GAAP financial figures that I discuss are reconciled in the Investor Relations section on our website.

Our Total Revenue for the third quarter was $30.5 million, 20% higher than the third quarter of last year and 6% higher than last quarter, underpinned by continued strength in our Contract Revenue, which was $23.1 million for the third quarter, 26% higher than the third quarter of last year and 3% higher than last quarter. Contract Revenue remains strong and predictable, underpinned by strong new sales bookings and our continued healthy net revenue retention which improved to 107% for the quarter versus 105% last quarter.

Our new sales bookings – which are new added annual revenue commitments under contract and are driving our strong Contract Revenue growth and our confident outlook in that regard – continue to be very strong on the back of record bookings in this quarter. We continue to see strong momentum in our pipeline which we believe will continue to drive sustainable growth in our Contract Revenue going forward.

The average number of products signed up for by new logos in the quarter was 5.8 on average, higher than last quarter’s average of 5.4, and overall, our new logos so far this year have signed up for more than 25% more products on their first land deal than the same period last year. Even more exciting, the average annual Contract Revenue for new logos so far this year is $330k/year versus $180k/year over the same period last year, demonstrating that our new customers are getting larger and they’re finding value in more of our products.

Excess Usage Revenue totaled $7.5 million for the third quarter, 4% higher year-over-year and 14% higher than last quarter.

The Usage Multiplier for the third quarter – remember, that’s Total Revenue divided by Contract Revenue – was 1.32x. While that’s lower than the 1.39x in the third quarter of last year and, of course, lower than the 1.55x pre-pandemic norm, it was a little higher than the 1.29x measured last quarter. This measure has

fluctuated from month to month and we still remain cautious about when and how quickly we’ll see it improve from here.

Our Adjusted Gross Margin for the third quarter was 59.5%, that’s a decline of 220 basis points versus last quarter, driven primarily by some lower margin implementation revenue as well as higher AWS costs as we continue to build capacity to migrate the last of our customers from our owned data centers to our public cloud platform on AWS.

Our Adjusted EBITDA for the quarter was a negative $6.3 million versus a positive $2.7 million in the third quarter of last year and a negative $2.6 million last quarter, continuing to reflect the aggressive investments we’re making across the business to drive new sales bookings and Contract Revenue growth.

Our Earnings Per Share for the quarter were at negative 12 cents on both a basic and diluted basis versus break-even in the third quarter of last year, again, reflecting our aggressive spending to drive top-line growth.

Our CAPEX for the quarter totaled $600,000, now totaling $1.2 million year-to date.

And lastly, we ended the quarter with $55 million of debt – same as last quarter – and $105 million of cash. Remember, while we ended last quarter with $161 million of cash on the balance sheet, I pointed out on the call last quarter that we were still holding about $36 million of cash at June 30th related to the SPAC deal that still had to be paid out, and I bridged you down to $125 million of pro forma cash as of the end of last quarter. For this quarter, in addition to cash consumed from operations, working capital and servicing our debt, we paid about $7 million as final consideration for the BusinessPhone acquisition that we closed earlier in the year.

Finally, our forward-looking guidance. Overall, we are maintaining both our implicit 4th quarter revenue guidance and our 2022 preliminary revenue guidance that we provided to you last quarter.

More specifically, we expect our Contract Revenue to land between $23.9 and $24.4 million for the fourth quarter, 19-22% higher than the fourth quarter of last year, which was higher than a typical fourth quarter as a result of political dialing associated with the 2020 Presidential election cycle. This would result in Contract Revenue for the full year between $90.1 and $90.6 million, or 25-26% higher than the full year 2020.

We expect our Excess Usage Revenue to be between $7.3 and $7.8 million for the fourth quarter – again consistent with our implicit fourth quarter guidance from last quarter – which would result in Excess Usage Revenue for the full year of $28.5 to $29 million, 6-7% lower than 2020 as a result of the continued impact of the pandemic on that component of our revenue.

So, that all gets to Total Revenue of $31.2 to $32.2 million for the fourth quarter and $118.6 to $119.6 million for the full year, 16-17% higher than the full year 2020, and higher than the full year guidance we provided last quarter of between $117 and $119 million.

For the full year 2022, while we are still not providing formal guidance, we do reaffirm a minimum year-over-year growth rate in Contract Revenue of 25% based on our recent bookings momentum, and we continue to take a wait-and-see approach to the Excess Usage Revenue.

With that, operator can you please open the line for Q and A?

Operator:

Thank you. We will now begin the question and answer session. To ask a question you may press star then one on your touch tone phone. Your first question comes from Mike Latimore of Northland Capital Markets. Please go ahead.

Mike Latimore:

Great. Yeah. Thanks. Thanks very much. And congrats on the nice bookings momentum and the big deals in the quarter here.

Louis Summe:

Thank you.

Mike Latimore:

In terms of you gave a little more description about those two large deals and there were other cloud providers present. I guess, relative to those cloud providers, what was the main reason you think you won these two big deals?

Louis Summe:

Well, I think that our blended omnichannel capability is really starting to be more known in the market as a clear differentiator for LiveVox. And when I say blended, what I'm referring to is both inbound and outbound workflows, as well as both voice and digital channels. Putting all that together really frankly, plays to LiveVox's strength. We've got a lot of experience doing that. And I think people are more starting to recognize our skill and our expertise there.

Mike Latimore:

Great. And it sounds like you're on track for sales, headcount hires. How's the productivity of sales people evolving this year?

Gregg Clevenger:

Hey Mike, by the way. We're right on track with the overall hiring plan and ramping up sales people. We're getting great contribution from people that we've hired over the course of the year and are bringing them up to speed. We feel really good about it. It's really translating into bookings. And as we said, we had the biggest quarter we've ever had in terms of bookings in the third quarter.

Mike Latimore:

Great. And just last one. What percent of revenue was professional services?

Gregg Clevenger:

I believe it was about 2%.

Mike Latimore:

2%. Okay.

Gregg Clevenger:

Yeah.

Mike Latimore:

Great.

Gregg Clevenger:

Yeah. Implementation services, broadly speaking, whatever revenue, we get out of implementation services. Mostly professional services.

Mike Latimore:

Yeah. Yeah. Great. Thanks a lot.

Gregg Clevenger:

Yep. Thank you.

Operator:

Thank you. Your next question comes from James Fish with Piper Sandler. Please go ahead.

James Fish:

Hey, guys. Nice quarter. You guys keep getting record bookings and it was another record bookings quarter here. Can you just remind us all, how long it takes until you typically get deployment post-signing and at what point do customers actually fully deploy to their books contract?

Gregg Clevenger:

Yeah, typically, it is all over the map depending of on size and complexity of the customer and the booking, how many products they take, etcetera. But in general, we assume a 90 day implementation from booking until revenue. And usually, with limited exceptions, we are billing on that 90th day, let's say, when the contract period starts at the minimum. So there's not really a ramp period. And like I said, some are a lot faster and some are a little longer than that. But on average, that's how we're converting bookings to revenue.

James Fish:

That's very helpful, Greg. And on that, those two record deals, whatever. At least the 3.3 million one, was I assume, one of the deals that Louis talked about was that 3.3 million deal. Is that right? And any way you can point to which one, just so we understand where you're seeing the strength with the larger deals? And can we also understand how many seats, who you guys actually baked off against, or replaced? And at a higher level, just as a lead indicator for all of us, what did actually ARR grow this quarter in full?

Speaker 2:

Talk about the deal?

Louis:

Yeah, so yeah the largest deal, the largest deal, Jim was a financial services company. And again, I think the primary reason they came to us was again, for those blended omnichannel capabilities, the inbound, outbound, the voice of the digital capabilities, all synchronized.As we mentioned in the call, we did defeat a cloud competitor in that scenario. And in that particular one, it was in contact. I know that answered part of your question.

Gregg Clevenger:

You ask about ARR also, we actually, have not disclosed what ARR is as an ongoing metric.

James Fish:

Okay, great. Last one for me is just, can you guys talk about linearity in the quarter?

Gregg Clevenger:

Can you elaborate?

James Fish:

Just how is the quarter in terms of winning those newer customers? Was it more in the front end of the quarter [crosstalk 00:23:26] July, August, or was it more back end in September?

Louis Summe:

Yeah, look, as you would expect, like most software companies, the bookings in general come in towards the end of the quarter. With that said, we do have bookings that are starting to flow in by the middle of the quarter. But I would say that, as we look forward, we simply see a constantly expanding pipeline. Our pipeline is growing bigger every quarter and that's really, what's driving the bookings up. But in general, they're coming in the back half of the quarter as you would expect.

James Fish:

That's helpful. Thanks, guys. Great quarter.

Gregg Clevenger:

Thank you.

Operator:

Thank you. Again, if you have a question, please press star then one. Your next question comes from Tom Roderick with Stifel, please go ahead.

Tom Roderick:

Hi, everybody. Thank you for taking my questions. Great results. Appreciate it. Louis, I guess, I'll go to you on the first one. I mean, we're talking about pretty substantial sized deals now. You're over 3 million on one ARR type of deal. But also, the average number of products here, I think Greg, you might have mentioned ticked up from 5.4 to 5.8.

Tom Roderick:

What we're seeing here is pretty clear traction that the solution sale is working. I guess my question to you is, does that change the nature of how you sell with the types of salespeople that you want on your platform? Does it elongate the sales cycle? Would just to hear the approach that you want to see, the go-to-market take as you're landing larger and larger your deals.

Louis Summe:

Yeah. Look, I think that's a great point. It does actually encourage us to hire salespeople that have a little bit more experience and are a little bit more familiar with these bigger types of deals. As far as the sales

cycle goes, though, we don't necessarily see a huge difference in the sales cycle, depending on size, interestingly enough. We haven't really seen the sales cycle elongate, as the deals have grown bigger.

Tom Roderick:

Excellent. Excellent. That's helpful. And then Greg, for you, just looking at this usage multiplier, I think stability seems to be the name of the game here after some downward trends. Behind that, just on the collection side, what are your customers seeing? What are they talking about?

Tom Roderick:

And then, you had some pretty good Fed data that you've looked at that gives you a pretty, I think, decent leading indicator into what that multiplier looks like. You feel like stability is in fact the right word for what we're seeing there? And maybe marginally ticking up as we continue to move forward in a new economy here?

Gregg Clevenger:

Stability. Yes, we are seeing that we're hovering around a similar range here for the past couple quarters. We do see the leading indicators, as you mentioned, the federal reserve data around new credit originations and things like that, that we fully expect are going to translate, like they always do, into increased servicing activity that will make its way into collections activity, which as you know, is 30 plus percent of our revenue stream that has particularly been impacted by COVID. That spillover into collections is not materializing, as we would not expect it to, because you look at the growth and origination and what that means for first-party servicing. It's about a 180 day lag from first-party servicing until it goes to collections. We're still within that period, that 180 day period, that we've been seeing upward movement that would indicate to us that that activity is going to pick up. We're still hopeful. We believe the path to where we were pre-COVID is where this is ultimately going to go. Like we said, we're not going to predict when and how fast it's going to get there, but I think your initial observations were good, that we feel like we're at a stable range right now, and we're hopeful that it's going to move up from here.

Tom Roderick:

Excellent. Last quick follow-up, just on that point. I think last quarter you talked about collections business driving about 30% of revenues last year, or 37% last year. How would you encourage us to think of a trend line? It seems pretty obvious that is multichannel and the broader platform takes off that number's going to come down. Will it come down quickly? How often will you update that? Just would love any directional thoughts on the collections piece.

Gregg Clevenger:

Yeah, that's something that we will update on an annual basis, look back on on an annual basis. That 37% that we had last year, going back five years before that, 2015, that was 63%, I think. It moves, but it really depends on the mix of bookings between collections and non-collections and our deals that we're doing. Our pipeline is very heavy enterprise right now, as we'd expected, so we do believe that that percentage of our revenue is going to continue on a path that it's been on in terms of its overall contribution to revenue.

Tom Roderick:

Fantastic. Really helpful. I'll jump back in the queue. Thank you.

Gregg Clevenger:

All right. Thank you.

Operator:

Thank you. Your next question comes from Koji Ikeda with Bank of America. Please go ahead.

Koji Ikeda:

Hey guys, thanks for taking my questions, and congrats on that big win in the quarter. I just have just one question here. With such a big win, and it sounds like the booking momentum is really heading in the right direction here, little bit surprised that the '22 outlook remains 25% growth on the contract side. Is there anything we should be aware of embedded in that outlook? Or maybe I'm just reading into that 25% a little bit too much here. Thank you.

Gregg Clevenger:

No, it's a... We've been very consistent in our view that contract revenue is on a 25% growth path, and we've been investing for growth on the booking side, and that's materializing. It's a... The playbook is playing the way that we had expected it to, and at this point, we still feel very good about the 25% and don't feel the need to change that at this point either way.

Koji Ikeda:

Got it. Got it. Thanks for that. Just one last question for me. From a big picture perspective, what are you most excited for heading into 2022? Thanks for taking my question, guys.

Gregg Clevenger:

Well, look, I think the blended Omnichannel is really a very exciting area for LiveVox, and that'll certainly be an important part of what we're talking to our customers about, because what's happened, of course, is as people start to look on the other side of the pandemic, they're seeing that the market's still asking for a lot of contact center services, and the labor shortage is challenging and acute, and so that drives up demand for digital. It drives up demand for self-service. It drives up demand for AI, and keeping all those new technologies synchronized and in a coherent workflow that really delivers a strong level of customer engagement just requires a well-structured, well-blended platform. That's where we are, and that's what we're excited to talk to the market about, really help them adjust to this "new new" that they're facing.

Operator:

Thank you. Again, if you have a question, please press star then one. We will now pause a moment to allow any final questioning to register. This concludes our question-and-answer session. I would like to turn the conference back over to Louie for any closing remarks.

Louis Summe:

Thank you. Thanks everybody for joining, really appreciate it, and a special thanks to our employees that really put a lot of hard work and effort into driving the results that we delivered this past quarter. I'm certainly grateful for their contributions and definitely looking forward to doing more of the same as we move forward. Thank you all very much.

Operator:

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

XML

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