+Added: Consumers have made mobile devices the center of their digital lives, and they have made digital conversational experiences the center of communication with friends, family and peers.
LivePerson, Inc.
−Removed: (“LivePerson”, the “Company”, “we” or “our”) is a leading Conversational AI company creating digital experiences that are Curiously Human.
−Removed: Conversational AI allows humans and machines to interact using natural language, including speech or text.
−Removed: During the past decade, consumers have made mobile devices the center of their digital lives, and they have made mobile messaging the center of communication with friends, family and peers.
−Removed: This trend has been significantly accelerated by the COVID-19 pandemic and we believe can now be viewed as a permanent, structural shift in consumer behavior.
−Removed: Our technology enables consumers to connect with businesses through these same preferred conversational interfaces, including Facebook Messenger, SMS, WhatsApp, Apple Business Chat, Google Rich Business Messenger and Alexa.
−Removed: These messaging conversations harness human agents, bots and AI to power convenient, personalized and content-rich journeys across the entire consumer lifecycle, from discovery and research, to sales, service and support, and increasingly marketing, social, and brick and mortar engagements.
−Removed: For example, consumers can look up product info like ratings, images and pricing, search for stores, see product inventory, schedule appointments, apply for credit, approve repairs, and make purchases or payments - all without ever leaving the messaging channel.
−Removed: These AI and human-assisted conversational experiences constitute the Conversational Space, within which LivePerson has strategically developed one of the industry’s largest ecosystems of messaging endpoints and use cases.
−Removed: The Conversational Cloud, our enterprise-class cloud-based platform, enables businesses to become conversational by securely deploying AI-powered messaging at scale for brands with tens of millions of customers and many thousands of agents.
−Removed: The Conversational Cloud powers conversations across each of a brand’s primary digital channels, including mobile apps, mobile and desktop web browsers, SMS, social media, and third-party consumer messaging platforms.
+Added: (“LivePerson”, the “Company”, “we” or “our”) is a global leader in AI-powered customer conversations.
+Added: Since 1998, LivePerson has enabled billions of meaningful connections between consumers and our customers.
+Added: These speech or text conversations harness human agents, bots and AI to power convenient, personalized and content-rich journeys across the entire consumer lifecycle, and across consumer platforms.
+Added: AI has accelerated our capability to leverage those prior conversations to enhance the consumer experience and to improve results for our customers.
+Added: The Conversational Cloud, our enterprise-class cloud-based platform, enables businesses to have conversations with millions of consumers as personally as they would with a single consumer.
+Added: The Conversational Cloud powers convers ations across each of a brand’s primary digital channels, including mobile apps, mobile and desktop web browsers, SMS, social media, and third-party consumer messaging platforms.
Brands can also use the Conversational Cloud to message consumers when they dial a 1-800 number instead of forcing them to navigate IVRs and wait on hold.
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An extensible API stack facilitates a lower cost of ownership by facilitating robust integration into back-end systems, as well as enabling developers to build their own programs and services on top of the platform.
−Removed: More than 40 APIs and software development kits are available on the Conversational Cloud.
−Removed: For your reference:
−Removed: • Conversational AI:
−Removed: Conversational AI allows humans and machines to interact using natural language, including speech or text.
−Removed: • Conversational Space:
−Removed: In the Conversational Space, consumers message with brands on their own schedule, using natural language, to resolve their intents - all on their preferred messaging service.
−Removed: The core capabilities of the Conversational Space are voice and text-based interfaces, powered by AI and humans working together.
−Removed: Conversational Space is the simplest, most intuitive interface of all.
−Removed: • Conversational Cloud:
−Removed: LivePerson’s enterprise-class, AI-powered Conversational Cloud platform empowers consumers to message their favorite brands, just as they do with friends and family.
−Removed: LivePerson’s Conversational AI offerings put the power of bot development, training, management and analysis into the hands of the contact center and its agents, the teams most familiar with how to structure sales and service conversations to drive successful outcomes.
−Removed: The platform enables what we call “the tango” of humans, AI and bots, whereby human agents act as bot managers, overseeing AI-powered conversations and seamlessly stepping into the flow when a personal touch is needed.
+Added: LivePerson’s Conversational AI platform enables what we call “the tango” of humans, AI and bots, whereby human agents act as bot managers, overseeing AI-powered conversations and seamlessly stepping into the flow when a personal touch is needed.
Agents become ultra-efficient, leveraging the AI engine to serve up relevant content, define next-best actions and take over repetitive transactional work so that the agent can focus on relationship building.
−Removed: By seamlessly integrating messaging with our
−Removed: proprietary Conversational AI, as well as third-party bots, the Conversational Cloud offers brands a comprehensive approach to scaling automations across their millions of customer conversations.
+Added: By seamlessly integrating messaging with our proprietary Conversational AI, as well as third-party bots, the Conversational Cloud offers brands a comprehensive approach to scaling automations across their millions of customer conversations.
Complementing our proprietary messaging and Conversational AI offerings are teams of technical, solutions and consulting professionals that have developed deep domain expertise in the implementation and optimization of conversational services across industries and messaging endpoints.
−Removed: We are a leading authority in the Conversational Space.
−Removed: LivePerson’s products, coupled with our domain knowledge, industry expertise and professional services, have been proven to maximize the effectiveness of the Conversational Space and deliver measurable return on investment for our customers.
+Added: LivePerson’s products, coupled with our domain knowledge, industry expertise and professional services, have been proven to maximize the impact of Conversational AI and deliver measurable return on investment for our customers.
Certain of our customers have achieved the following advantages from our offerings:
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• leveraged spending that drives visitor traffic by increasing visitor conversions.
−Removed: • refining and improving performance by understanding which initiatives deliver the highest rate of return;
−Removed: • increased lead generation by providing a single platform that engages consumers through advertisements and listings on branded and third-party websites.
As a “cloud computing” or SaaS provider, LivePerson provides solutions on a hosted basis.
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Organizations that adopt a fully-hosted, multi-tenant architecture that is maintained by LivePerson eliminate the majority of the time, server infrastructure costs, and IT resources required to implement, maintain, and support traditional on-premise software.
−Removed: To further enhance our platform, in September 2020 we signed a partnership with a digital services and consulting company.
−Removed: We are working with this company to transform our technology infrastructure on the public cloud, to build integrated solutions and a global practice around our Conversational Cloud to sell into their channels and global enterprise customer base, and to redefine how the world’s top brands communicate.
−Removed: More than 18,000 businesses, including HSBC, Orange, and GM Financial use our conversational solutions to orchestrate humans and AI, at scale, and create a convenient, deeply personal relationship with their customers.
+Added: Hundreds of the world’s biggest brands, including HSBC, Virgin Media, and Burberry use our conversational solutions to orchestrate humans and AI, at scale, and create a convenient and personalized relationship with their customers.
LivePerson’s consumer services offering is an online marketplace that connects Experts who provide information and knowledge for a fee via mobile and online messaging with Users.
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LivePerson is headquartered in New York City.
−Removed: In light of the COVID-19 pandemic and the company’s strong performance working remotely, LivePerson has adopted an “employee-centric” workforce model that does not rely on traditional offices.
−Removed: During the second quarter of 2021, the Company decided to reoccupy some of its leased space to provide its employees with the option of working in an office space environment if they choose to do so.
Market Opportunity
−Removed: LivePerson’s proprietary messaging and Conversational AI enable consumers and businesses to use natural language over conversational interfaces such as SMS, Messenger, Apple Business Chat, Google’s Rich Business Messenger, and in-home personal assistants like Alexa, in order to get answers to questions, make purchases and resolve customer care inquiries.
−Removed: These conversational messaging capabilities target lower costs and increased customer satisfaction, retention and revenue by utilizing human agents, AI and bots to provide convenient, personalized and content-rich communication as alternatives to calling a 1-800 number, navigating a website or downloading an app.
+Added: LivePerson’s proprietary messaging and Conversational AI enable consumers and businesses to use natural language over conversational interfaces such as voice, messaging apps, a brand’s own website and apps, and social platforms, in order to get answers to questions, make purchases and resolve customer care inquiries.
Our view is that once a consumer has established their favorite brands as contacts in their preferred messaging app, they will be less likely to contact that brand by other means.
Instead, they will simply select the contact, open up the thread with their entire history with the brand, and then renew the conversation.
−Removed: As a result, we anticipate that the billions of dollars previously invested by brands across these legacy channels will be increasingly allocated to experiences powered by our platform.
+Added: As a result, we anticipate that the billions of dollars previously invested by brands across these legacy channels will be increasingly allocated to experiences powered by AI platforms.
Historically, brands have predominantly promoted calling their 1-800 number or using email as the primary means of contact with consumers.
−Removed: According to a 2018 IBM report, approximately 270 billion customer service calls are made to contact centers each year.
−Removed: With a median cost per call of approximately $5.60, according to US Contact Center Decision-Makers’ Guide, we estimate that businesses spend approximately $1.5 trillion annually to support their 1-800 number call centers.
We believe that moving these calls to messaging represents the largest portion of what we estimate is a $60 billion go-to-market opportunity.
We estimate that nearly half of this market opportunity is tied to service, and the other half tied to sales, marketing, social and brick and mortar use cases.
−Removed: LivePerson is already capitalizing on this Conversational Space transformation.
−Removed: We cite the following considerations:
−Removed: • Consumer preference has already shifted away from calling to messaging in our personal lives.
−Removed: WhatsApp and Facebook users combined send more than 65 billion messages a day, and, according to Portio Research, people worldwide were estimated to send an estimated 23 billion text messages a day in 2015.
−Removed: The International Smartphone Mobility Report by mobile data tracking firm Infomate found that Americans spend about 26 minutes a day texting, as compared to six minutes a day on voice calls.
−Removed: A survey by transportation booking app, Hailo, found that making phone calls has dropped to the sixth most popular use of a mobile device, behind sending messages, receiving messages, checking email, surfing the Web, and using the alarm clock.
−Removed: The adoption of messaging has not been constrained to younger generations.
−Removed: According to Experian Marketing Services, adults 55 and older send and receive an average of nearly 500 text messages a month.
−Removed: • Calling a 1-800 number typically leads to a poor customer experience.
−Removed: Roughly 50% of calls to 1-800 numbers go unresolved, according to IBM, and a 2014 Harris Interactive survey found that “81% of all consumers agree that it is frustrating to be tied to a phone or computer to wait for customer service help.” Research by enterprise analytics firm Mattersight, reinforces this view, with 74% of consumers feeling that call centers are getting worse or at best staying the same.
−Removed: The risk of poor customer service is material, according to Harris Interactive, which found that 89% of consumers will leave and go to a competitor due to bad customer experiences.
−Removed: • LivePerson holds the perspective that AI and automation are the foundation for transforming the conversational experience, disrupting how agents operate and how brands engage with consumers.
+Added: LivePerson believes that AI and automation are the foundation for transforming the conversational experience, disrupting how agents operate and how brands engage with consumers.
With AI at the center of the solution and by harnessing data from all primary channels, including voice, messaging, chat, and human agents, LivePerson is in a unique position to provide the best conversational experiences for consumers.
Deep voice integrations with CRM, service, and IT systems allows us to deliver a unified agent experience through a single pane of glass.
−Removed: • We believe the combination of strong alignment to consumer communication preferences, high returns on investment and a growing list of proven referenceable customers have positioned the Conversational Space at an inflection point.
−Removed: Nearly 75% of messaging conversations on our platform had automation attached at the end of 2021, up from nearly 70% at the end of 2020, nearly 60% at the end of 2019, and approximately 25% at the end of 2017.
−Removed: In the first year of its launch, our Conversation Bot Builder was deployed by nearly 300 brands.
−Removed: We also believe that consumer traffic and digital spending will increasingly shift away from websites and mobile apps to conversational engagements.
−Removed: We think that websites and e-commerce have not lived up to the expectations of businesses and that consumers are likewise frustrated with the navigational experience and the challenges of getting questions answered on
−Removed: In fact, after more than 20 years and a global pandemic, e-commerce still only accounts for approximately 18% of total retail sales and, in the U.S., Amazon.com accounts for approximately 40% of this share.
−Removed: The low penetration rates of online and mobile e-commerce reflect disappointing website conversion rates, which average less than 5%.
−Removed: Low conversion rates are likely a factor of the trend for websites to be designed for content, as opposed to commerce, so that they can be indexed to show up in web searches.
−Removed: According to a 2015 Forrester consumer survey, 53% of customers are likely to abandon their online purchases if they cannot find quick answers to their questions.
−Removed: This conflict between content and commerce not only impacts revenue, but also drives higher costs, as we estimate that 60%-80% of all calls to 1-800 numbers originate from consumers first visiting a website and then getting confused or not obtaining the answers they seek.
−Removed: We believe that LivePerson’s proprietary messaging and Conversational AI offerings provide a superior alternative.
−Removed: Certain LivePerson customers have demonstrated increases in website sales of up to 20%, while lowering the cost of engagement relative to voice or email.
−Removed: No longer are consumers navigating through clicks and searches to find answers across multiple static web pages.
−Removed: Instead they use natural language to engage conversationally with a brand.
−Removed: These conversations can be personalized to each brand’s unique identity and to each consumer’s unique history and preferences.
−Removed: The engagements are content rich, featuring images, reviews, ratings, and videos, and they are convenient, letting the consumer drive the conversation when it meets their needs, and offering the ability to integrate to credit cards, pay wallets and calendars.
−Removed: We also believe that the Conversational Space will steadily eliminate the need for investment in branded apps.
−Removed: We conclude that consumers will increasingly opt to connect with brands through their preferred messaging channels, such as Apple Business Chat, WhatsApp, SMS, Messenger, or Twitter, rather than clutter their mobile devices, waste storage, and potentially impact performance by downloading a multitude of individual apps.
−Removed: Another emerging market opportunity for LivePerson is the leveraging of brick and mortar operations as an extension of the contact center.
−Removed: Retailers, telecommunications companies, and financial services companies, among others, all operate brick and mortar storefronts, where thousands of employees often sit idle during off peak hours.
−Removed: The Conversational Cloud enables our customers to set up campaigns where these employees can connect through messaging to customers in their community, with check-ins, follow ups, and special offers, reinforcing relationships at the local level.
−Removed: For example, a telecommunications company targeted consumers that were local to its storefronts with a trade-in offer.
−Removed: Additionally, our platform can arm employees in the field with the ability to rapidly obtain answers to questions as they engage with customers in the stores.
−Removed: For example, a consumer may have a specific question about a new appliance in a home improvement store, and the employee can engage through our platform with a specialist bot or human agent to obtain detailed information on that appliance.
−Removed: The COVID-19 pandemic has only accelerated adoption of these experiences.
−Removed: In 2021 we hit a new milestone of 1.5 billion total conversations on our platform, demonstrating the breadth and depth of our data assets and further strengthening our data moat for delivering high quality Conversational AI.
+Added: We believe that consumer traffic and digital spending will increasingly shift away from websites and mobile apps to conversational engagements.
+Added: We think that websites and e-commerce have not lived up to the expectations of businesses and that consumers are likewise frustrated with the navigational experience and the challenges of getting questions answered on websites.
+Added: In fact, decades after the invention of the internet, e-commerce still only accounts for approximately 15% of total retail sales and, in the U.S., Amazon.com accounts for approximately 40% of this share.
+Added: We believe that LivePerson’s proprietary messaging and Conversational AI offerings provide a superior alternative to websites, 800 numbers and branded apps.
+Added: We conclude that consumers will increasingly opt to connect with brands through their preferred messaging channels, such as Apple Business Chat, WhatsApp, SMS, Messenger, or Twitter, rather than clutter their mobile devices, waste storage, and potentially impact cell phone performance by downloading a multitude of individual apps.
+Added: Our strategy is to continue to enhance the Conversational AI engine and related products, by leveraging our global R&D footprint and substantial library of mobile and online conversational data, with the aim of increasing agent efficiency, decreasing customer care costs, improving the customer experience and increasing customer lifetime value.
The key elements of LivePerson’s business solutions strategy include:
−Removed: Build awareness and drive adoption of the Conversational Space.
−Removed: LivePerson brought our first customer live on messaging in June 2016.
−Removed: Since that time, we have been focused on building awareness for conversational experiences and driving adoption.
−Removed: We have educated businesses on the financial and operational transformation that occurs when a contact center shifts to an asynchronous messaging environment, where the consumer controls the pace of the conversation, which can last minutes, hours or days, from a synchronous call or chat center, where conversations occur in real-time and have a distinct start and end.
−Removed: A key component of our industry awareness marketing strategy has been to hold multiple global customer summits each year (events in 2020 and 2021 were held virtually in light of the COVID-19 pandemic) that target executives from enterprise customers and prospects, and feature a key theme within the Conversational Space, such as Apple Business Chat, Google Rich Business Messenger, IVR deflection, or AI.
−Removed: LivePerson customers are the center point of these summits, presenting why they chose LivePerson for conversational experiences, how they achieved success, and what type of ROI they have realized.
−Removed: Each attendee then receives a blueprint for how they can pursue similar outcomes.
−Removed: We have found this strategy to drive strong results for LivePerson, as we have seen a greater than 40% conversion rate on opportunities that were created or advanced as part of
−Removed: the customer summits.
−Removed: By year-end 2021, nearly 75% of messaging conversations had automation attached.
−Removed: We will continue to focus on building awareness for the Conversational Space and driving adoption of messaging and AI across our customer base.
Increase messaging volumes by developing a broad ecosystem, expanding customer use cases, and focusing on AI and automation.
Our strategy is to drive higher messaging volumes by going both wide across messaging endpoints, deep across consumer use cases, and focusing on AI and automation as the means to deliver powerful scale.
−Removed: LivePerson offers a platform usage pricing model, where customers are offered access to our entire suite of messaging technologies across their entire agent pool for a pre-negotiated cost per interaction.
−Removed: We believe that over time this model will drive higher revenue for LivePerson by reducing barriers to adoption of new messaging endpoints and use cases.
In order to drive broad messaging adoption, it is imperative that the Conversational Cloud integrates to all of the messaging apps that consumers prefer to use for communication and addresses all key use cases.
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We also added social monitoring and conversational tools for Twitter and Facebook, and introduced proactive messaging, allowing brands to transform traditional one-way notifications such as flight cancellations or phone plan overage alerts into two-way conversations.
−Removed: Further, we connected to Facebook and WhatsApp digital advertisements, enabling consumers to initiate messaging conversations for marketing and customer care directly within the advertisement.
+Added: Finally, we connected to Facebook and WhatsApp digital advertisements, enabling consumers to initiate messaging conversations for marketing and customer care directly within the advertisement.
In 2020, we added Instagram and Google’s Business Messages, allowing brands to bring customer-initiated conversations into the Conversational Cloud directly from Instagram, Google Search, and Google Maps.
−Removed: Each channel and use case added opens the door to new consumers, providing brands a greater opportunity to shift share away from their legacy contact center channels into messaging.
−Removed: For example, in 2019, leading airlines launched on WhatsApp and Apple Business Chat with the ability to make secure payments;
−Removed: a baseball stadium launched an automated conversational concierge providing answers to a wide range of questions from restroom locations to player stats;
−Removed: and a multinational telecommunications company used proactive two-way messaging for outbound campaigns.
−Removed: In 2020, one of the largest Telcos in Australia fully virtualized their contact centers, a leading U.S.
−Removed: quick-serve restaurant launched on Facebook Messenger to help customers order meals, one of the biggest banks in the world launched an Apple Business Chat channel to provide a secure way to perform day-to-day banking, and one of the world’s largest jewelry retailers used the Conversational Cloud and QR codes to sell millions of dollars of product.
+Added: In 2021, we acquired Callinize, Inc.
+Added: (dba Tenfold) (“Tenfold”), which allows our brands to bring the LivePerson Conversational Cloud into other applications, starting with Salesforce and expanding into other leading CRM and Helpdesk platforms.
+Added: The ability to power conversational experiences beyond our own workspace opens up further messaging volumes and workflows for LivePerson to participate in.
+Added: We made good progress on these integrations in 2022.
LivePerson makes the management of all these disparate channels seamless to the brand.
AI-based intelligent routing, queuing and prioritization software orchestrates these conversations at scale, regardless of which messaging endpoint they originated from, so that human and bot agents can engage with all customers through just one console.
−Removed: We believe LivePerson is leading the structural shift to Conversational AI.
−Removed: In the wake of the COVID-19 pandemic, leading brands are turning to LivePerson’s AI-powered messaging to overcome a capacity gap created by voice call agent work-from-home measures and increased demand for digital engagement as consumers practice social distancing.
−Removed: LivePerson is powering Conversational AI, automation and messaging strategies across a growing number of use cases from care and sales, to marketing, social, conversational advertising and brick and mortar.
Our Conversational AI leadership and the increase in adoption have influenced LivePerson’s enterprise and mid-market revenue retention rate, (the trailing-twelve-month change in total revenue from existing customers after upsells, downsells and attrition) which was within our target range of 105% to 115% for 2022.
The benefit can also be seen in LivePerson’s ARPU for our enterprise and mid-market customers, which increased approximately 11% in 2022 to $680,000 from approximately $610,000 in 2021.
+Added: We believe these ARPU show that LivePerson’s strategy to drive messaging adoption has successfully influenced our revenue growth by taking share from legacy communication channels.
Attract the industry’s best AI, machine learning and conversational talent.
−Removed: We believe that AI and machine learning are critical to successfully scaling in the Conversational Space, and that in order to develop the industry’s leading technology, we need to attract the industry’s best talent.
−Removed: Since 2018, LivePerson hired more than 437 of the industry’s brightest data scientists, machine learning engineers and automation engineers, many from firms such as Nike, Amazon.com, Microsoft and Target, who are working exclusively on applying AI to the Conversational Space.
+Added: We believe that AI and machine learning are critical to successfully scaling and exploiting our data advantage.
LivePerson also expanded its development talent base in Germany, and added key development talent through the acquisitions of BotCentral in Mountain View, California;
−Removed: Inc., dba Tenfold (“Tenfold”) in Austin, Texas;
−Removed: e-bot7 in Munich, Germany;
−Removed: and VoiceBase, Inc.
+Added: Tenfold in Austin, Texas;
+Added: e-bot7 GmbH (“e-bot7”) in Munich, Germany;
+Added: VoiceBase, Inc.
(“VoiceBase”) in San Francisco, California;
−Removed: Bring to market best-in-class AI and machine learning technologies designed for the Conversational Space.
−Removed: We believe that in the last decade many vendors introduced AI and bot offerings that created frustrating experiences for consumers and businesses alike, which in turn has eroded trust in automation.
−Removed: Many of these solutions have proven difficult to build and scale, and have been limited by stand-alone implementations that lacked the measurement, reporting and human oversight of conversational platforms such as the Conversational Cloud.
−Removed: In December 2018, LivePerson announced its patent-pending AI engine that is designed to overcome these shortcomings and help brands rapidly bring to market conversational AI that can scale to millions of interactions, while increasing customer satisfaction and conversion rates.
−Removed: Unlike alternative solutions designed solely for IT departments, LivePerson’s Conversational AI was built to be used by developers and contact center agents.
−Removed: By putting the power of conversational design and bot management in the hands of contact center agents, LivePerson’s Conversational AI gives brands the ability to leverage the employees closest to the customer, those who are most versed in the voice of the brand, and with the most expertise in how to craft successful outcomes for customer service and sales journeys.
−Removed: Some of the key innovations behind LivePerson’s Conversational AI include:
−Removed: • a holistic approach to scaling AI by combining consumer facing bots, agent facing bots, intelligent routing and real-time intent understanding, with an analytics dashboard that helps users focus on the intents that are impacting their business and prioritize which intents to automate next;
−Removed: • bot building software that is based on dialogue instead of workflow or code, so non-technical employees like contact center agents can design automations;
−Removed: • leveraging a data moat from hundreds of millions of conversations to feed the machine learning that rapidly and accurately detects consumer sentiment and intents in real-time.
−Removed: Customers of LivePerson can use intent understanding for advanced routing, next-best actions, and to fully contain conversations with automation;
−Removed: • the establishing of contact center agents as bot managers, ensuring that every conversation is safeguarded by a human and that agents are continuously training the AI to be smarter and drive more successful outcomes;
−Removed: • powerful Assist technology that multiplies the efficiency of agents by analyzing intents in real time and then suggesting next best actions, predefined content, and bots that can take over transactional work;
−Removed: • pre-built templates for target verticals that provide out of the box support for the top intents and back-end integrations;
−Removed: • the ability to bootstrap conversations with existing transcripts, reducing design effort and speeding time to market;
−Removed: • third-party AI NLU integration, so customers are not boxed into one vendor;
−Removed: • AI analytics and reporting tailored to the Conversational Space, providing brands with immediate, actionable insights about their businesses and contact center operations.
−Removed: Our strategy is to continue to enhance the Conversational AI engine and related products, by leveraging our global R&D footprint and substantial library of mobile and online conversational data, with the aim of increasing agent efficiency, decreasing customer care costs, improving the customer experience and increasing customer lifetime value.
−Removed: Sustain our leadership position by aligning brands to a vision that transforms how they communicate with consumers and delivers a superior return on brands’ investment.
−Removed: Over the past four years we have made good progress in developing our conversational AI platform and within the next 12 months, we expect to have a solution in place for our automations to self-heal, which is the ultimate goal of any AI platform.
−Removed: Our acquisitions of VoiceBase and Tenfold provide us with a mechanism for data capture in the voice channel.
−Removed: This additional data and the associated analytics and system integration give us an even greater ability to scale the usage of our platforms, by building on our strength in messaging.
−Removed: Brands must adapt their contact centers to an asynchronous messaging environment and leverage a combination of human agents, bots, and AI to achieve scale and efficiencies.
−Removed: When done correctly, the entire consumer lifecycle with a brand will be maintained within the Conversational Space, and traffic will steadily shift away from lower returning traditional voice calls, websites, emails, and apps to higher returning messaging endpoints.
−Removed: We believe that LivePerson is uniquely positioned to deliver this transformation due to our technology and expertise:
−Removed: • The Conversational Cloud, LivePerson’s enterprise-class, automation-first, cloud-based platform, was designed for AI-assisted and human-powered messaging in mobile and online channels.
−Removed: The platform offers best-in-class security and scalability, offers the broadest ecosystem of messaging endpoints, is designed for ease of use, and features an AI engine custom built for the Conversational Space, intent recognition, robust real-time reporting, role-based real-time analytics, predictive intelligence, and innovations in customer satisfaction and connection measurement.
−Removed: Additionally, the Conversational Cloud is an open platform with pre-built, enterprise-grade integrations into back-end systems as well as the ability to work across NLU providers.
−Removed: • The Company believes it has a data moat built on hundreds of millions of conversations across industries, geographies and use cases that is feeding the machine learning engines that power intent understanding.
−Removed: • The platform has expanded to power conversations across a broad spectrum of channels and use cases, from traditional sales and customer service, to marketing, social, email, advertising, and brick and mortar.
−Removed: • LivePerson has deep domain expertise across verticals and messaging endpoints, a global footprint, referenceable enterprise brands and a team of technical, solutions and consulting professionals to assist customers along their transformational journeys.
−Removed: We are positioned as an authority in the Conversational Space.
−Removed: We have developed a Transformation Model that is introduced to existing and prospective customers to help guide them on their journeys from legacy and oftentimes inefficient legacy voice, email, and chat solutions to modern conversational ones powered by messaging and AI.
−Removed: We believe that LivePerson’s differentiated approach to the Conversational Space, combined with our unique technology and expertise has established us as a market leader, with an ability to deliver superior returns on investment.
−Removed: LivePerson customers manage as many as 40 messaging conversations at a time, as compared to one at a time for a voice agent and two to four at a time for a good chat agent.
−Removed: Adding AI and bots provides even greater scale to the number of conversations managed.
−Removed: Our customers often see labor efficiency gains of at least two times that of voice agents, effectively cutting labor costs by at least 50%.
−Removed: Furthermore, our ability to deliver more convenient, personalized and content-rich conversations often drives increases in customer satisfaction of up to 20 percentage points and increases in sales conversions of up to 20%, while enhancing average order value, customer retention and loyalty.
+Added: and WildHealth, Inc.
+Added: (“WildHealth”) in Lexington, Kentucky.
Strengthen our position in both existing and new industries.
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consumer/retail, telecommunications, financial services, travel/hospitality, technology and automotive within both our enterprise and mid-market sectors, as well as the SMB sector.
−Removed: In 2019, we made strong inroads into new verticals with key wins in the airline, food service and healthcare industries.
−Removed: In 2020, we strengthened our presence in key markets including travel/hospitality and retail, and opened new verticals like healthcare and government.
−Removed: In 2021, we continued to grow in verticals such as healthcare and financial services, and expanded into new industries including cryptocurrency.
−Removed: We are experimenting with new conversational businesses, including some that are in regulated industries, like online banking and healthcare.
−Removed: We are increasingly structuring our field organization to emphasize our domain expertise and strengthen customer relationships across target industries.
−Removed: Continue to build our international presence.
−Removed: We are focused on building our international presence and expanding our international revenue contribution, which accounted for 35% and 38% of total revenue in 2021 and 2020, respectively.
−Removed: We are generating positive results from our recent investments in the Asia Pacific, Europe, and Latin America regions.
−Removed: Expanding go-to-market capacity in international theaters is one of our key strategic focuses and also part of our motivation for our recent acquisition of e-bot7.
−Removed: Leverage our open architecture to support partners and developers.
+Added: Leverage our open architecture to integrate with other systems and support partners and developers.
In addition to developing our own applications, we continue to cultivate a partner eco-system capable of offering additional applications and services to our customers.
We integrate into third-party messaging endpoints including SMS, Facebook Messenger, Apple Business Chat, Google Rich Business Messenger, Line, WhatsApp, Alexa, Google Home, WeChat, Google Ad Lingo, Google Search, Google Maps, Instagram and Twitter, multiple IVR vendors, and dozens of branded apps.
−Removed: The Conversational Cloud integrates our proprietary messaging and Conversational AI with third-party bot offerings, empowering our customers to manage a mix of different bots, human agents and technologies from one control panel, thereby optimizing contact center efficiency.
−Removed: LivePerson’s proprietary and third-party AI/bots enable brands to partially or fully automate communications with their customers.
−Removed: In addition, we have opened up access to our platform and our products with more than 40 APIs and software development kits that allow customers and third parties to develop on top of our platform.
+Added: We have opened up access to our platform and our products with APIs and software development kits that enable customers and third parties to develop on top of our platform.
Customers and partners can utilize these APIs to build our capabilities into their own applications and to enhance our applications with their services.
In 2019, we launched LivePerson Functions, a serverless FaaS integration which enables brands to develop custom behaviors within LivePerson’s conversational platform to easily and rapidly tailor conversation flows to their specific needs.
+Added: In 2022, we launched our partnership with Celonis to embed VoiceBase analytics and Celonis conversation mining into an application capable of analyzing omni-channel conversational data to enable operational improvements and automate the customer journey.
Expand sales partnerships to broaden our presence and accelerate sales cycles.
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We formalized a relationship with IBM Global Business Services in 2017 and Accenture in 2018.
−Removed: In 2019, we announced strategic partnerships with TTEC, a leading BPO focused on customer experience, and DMI, a digital transformation company, to redefine the customer experience with digital engagement, messaging, and AI-driven automation.
+Added: In 2019, we announced strategic partnerships with TTEC, a leading BPO (Business Process Outsourcing) company focused on customer experience, and DMI, a digital transformation company, to redefine the customer experience with digital engagement, messaging, and AI-driven automation.
In 2020, a digital services and consulting company joined LivePerson’s network with a first-of-its-kind 360 degree partnership focusing not only on capturing the global rising demand for conversational commerce and building a personalized experience for customers, but also driving the transformation for internal corporate messaging and the employee experience through Conversational AI.
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Our network also expanded with the Tech Mahindra partnership to help brands deliver personalized conversational experiences to consumers at scale.
−Removed: Maintain market leadership in technology and security expertise.
−Removed: As described above, we are devoting significant resources to creating new products and enabling technologies designed to accelerate innovation.
−Removed: We evaluate emerging technologies and industry standards and continually update our technology in order to retain our leadership position in each market we serve.
−Removed: We monitor legal and technological developments in the area of information security and confidentiality to ensure our policies and procedures meet or exceed the demands of the world’s largest and most demanding corporations.
−Removed: We believe that these efforts will allow us to effectively anticipate changing customer and consumer requirements in our rapidly evolving industry.
+Added: In 2022, we partnered with Afiniti and Celonis to help brands improve customer engagement and analytics, deepened our partnership with Cisco to strengthen our CRM capabilities, and began a strategic co-selling partnership with CBA to drive sales in the Asia-Pacific region.
Evaluate strategic alliances and acquisitions when appropriate.
−Removed: In July 2021, we acquired German conversational AI company e-bot7, which we expect to propel our self-service capabilities and continued growth in Europe.
+Added: In July 2021, we acquired German conversational AI company e-bot7, which propels our self-service capabilities and continued growth across Europe.
In October 2021, we acquired VoiceBase, a leader in real-time speech recognition and conversational analytics;
and Tenfold, an advanced customer engagement platform for integrating communication systems with leading CRM and support services.
−Removed: Once fully integrated, we expect these acquisitions to allow LivePerson to deliver our AI and automation capabilities, insights, and integration as a single integrated product offering across all channels including voice and messaging.
+Added: In February 2022, we acquired WildHealth, which leverages advanced machine learning to combine DNA analysis, biometrics, microbiome testing and phenotypic data to provide people with a blueprint for truly optimized health and a maximized health span.
+Added: Once fully integrated, we expect these acquisitions to allow LivePerson to deliver our AI and automation capabilities, insights, and integration as a single integrated product offering across channels including voice and messaging.
Products and Services
Business solutions offerings
−Removed: LivePerson’s hosted platforms harness human, AI and bot-powered messaging on mobile apps, mobile and desktop web browsers, SMS, social media and third-party consumer messaging platforms.
−Removed: Our business-to-business services are all managed from a single user interface.
−Removed: By supplying a complete, unified consumer view, our solutions enable businesses to deliver a relevant, timely, personalized, and seamless consumer experience for heads of digital and customer care, as well as e-commerce, marketing, and contact center executives.
−Removed: In addition to product offerings, LivePerson provides professional services and value-added business consulting to support complete deployment and optimization of our enterprise solutions.
−Removed: Revenue attributable to our monthly hosted Business services accounted for 78% of total revenue for the year ended December 31, 2021, 79% of total revenue for the year ended December 31, 2020, and 77% of total revenue for the year ended December 31, 2019.
−Removed: Our strategy is to increase the percentage of our total revenue attributable to Business services by leveraging the partner network for a portion of professional services work and the adoption of our self-service tools.
The Conversational Cloud.
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Rich, contextually aware targeting, actionable insights and personalized experiences, empower businesses to get the most out of their existing online, mobile and social platforms.
−Removed: Potential benefits of
−Removed: the Conversational Cloud include increased agent efficiency, decreased customer care costs, improved customer experiences, higher conversion rates and increased customer lifetime value.
−Removed: The Conversational Cloud was designed for conversational experiences, enabling businesses to securely deploy messaging, coupled with bots and AI, at scale for brands with tens of millions of customers and many thousands of customer care agents.
−Removed: The platform powers conversations across each of a brand’s primary digital channels, including mobile apps, mobile and desktop web browsers, SMS, social media, and third-party consumer messaging platforms.
−Removed: Brands can also use the Conversational Cloud to message consumers when they dial a 1-800 number instead of forcing them to navigate IVRs and wait on hold.
−Removed: Similarly, the Conversational Cloud can ingest traditional emails and convert them into messaging conversations, or embed messaging conversations directly into web advertisements, rather than redirect consumers to static website landing pages.
−Removed: The platform seamlessly integrates LivePerson’s Conversational AI engine as well as third-party bots, enabling brands to manage both AI-based agents and human agents from a single console.
−Removed: Our robust, cloud-based suite of rich messaging, real-time chat, AI and automation offerings features consumer and agent facing bots, intelligent routing and capacity mapping, real-time intent detection and analysis, queue prioritization, customer sentiment, analytics and reporting, content delivery, PCI compliance, co-browsing, and a sophisticated proactive targeting engine.
−Removed: With the Conversational Cloud, agents can manage all conversations with consumers through a single console interface, regardless of which disparate messaging endpoints consumers originate from;
−Removed: i.e., WhatsApp, Line, Apple Business Chat, IVR, social, email, Amazon Alexa, or WeChat.
−Removed: An extensible API stack facilitates a lower cost of ownership by facilitating robust integration into back-end systems, as well as enabling developers to build their own programs and services on top of the platform.
−Removed: More than 40 APIs and software development kits are available on the Conversational Cloud.
+Added: Potential benefits of the Conversational Cloud include increased agent efficiency, decreased customer care costs, improved customer experiences, higher conversion rates and increased customer lifetime value.
The Conversational Cloud enables the combination of real time on-site data and off-site behavioral data, with a broad set of historical and operational data.
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The platform also reduces costs in the contact center relative to voice, by identifying consumers who may be struggling with their self-serve experience, and proactively connecting them to a live consumer care specialist via messaging, who can manage several conversations at once.
−Removed: This comprehensive solution blends a proven value-based methodology with an active rules-based engagement engine and deep domain expertise to increase first contact resolution, improve consumer satisfaction, and reduce attrition rates.
+Added: This comprehensive solution blends a proven value-based
+Added: methodology with an active rules-based engagement engine and deep domain expertise to increase first contact resolution, improve consumer satisfaction, and reduce attrition rates.
LivePerson’s Conversational AI.
LivePerson’s Conversational AI, announced in December 2018, operates as the brains behind new LivePerson AI-based products, and was developed using our conversational data set of millions of brand-to-consumer interactions.
−Removed: LivePerson’s Conversational AI was custom designed for the Conversational Space, putting the power of bot development, training and management into the hands of the contact center and its agents, the teams most familiar with how to structure sales and service conversations to drive successful outcomes.
−Removed: The platform enables what we call “the tango” of humans, AI and bots, whereby human agents act as bot managers, overseeing AI-powered conversations and seamlessly stepping into the flow when a personal touch is needed.
+Added: LivePerson’s Conversational AI was custom designed for the Conversational Space, enabling what we call “the tango” of humans, AI and bots, whereby human agents act as bot managers, overseeing AI-powered conversations and seamlessly stepping into the flow when a personal touch is needed.
Through the Conversational Cloud, agents become ultra-efficient, leveraging the AI engine to serve up relevant content, define next-best actions and take over repetitive transactional work so that the agent can focus on relationship building.
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• Intent Manager, a real-time intent recognition and classification engine that analyzes consumer intentions at every turn of the conversation.
−Removed: Intent Manager is powered by LivePerson’s proprietary natural language understanding capabilities and machine learning algorithms, which are grounded in 20+ years of conversational data and more than one billion messaging transcripts across a variety of industries.
+Added: Intent Manager is powered by LivePerson’s proprietary natural language understanding capabilities and machine learning algorithms, which are grounded in over 20+ years of conversational data and more than one billion messaging transcripts across a variety of industries.
Intent Manager is currently being used by top brands to gain real-time insights and take action to improve customer service, marketing, and sales automation.
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The team’s value-added methodology and approach to guiding customers towards messaging channels and human/bot agent optimization is an important component of the LivePerson offering, and gives our customers a competitive advantage in the digital world.
−Removed: Revenue attributable to Professional Services accounted for 14%, 13%, and 14% of total revenue for the years ended December 31, 2021, 2020, and 2019, respectively.
+Added: In the first quarter of 2022, we acquired WildHealth, which leverages advanced machine learning to combine DNA analysis, biometrics, microbiome testing and phenotypic data to provide people with a blueprint for truly optimized health and a maximized health span.
+Added: The acquisition is part of the Company’s strategy to pursue the adoption of its technology-driven offerings in the healthcare space by combining a rich healthcare data platform with Conversational AI to enable B2B healthcare brands to scale and personalize patient engagement.
In the third quarter of 2021, we acquired German conversational AI company e-bot7.
−Removed: We expect the acquisition to propel LivePerson’s self-service capabilities — empowering brands of all sizes to quickly launch AI-powered messaging experiences — as well as its continued growth in Europe.
+Added: We expect the acquisition to empower brands of all sizes to quickly launch AI-powered messaging experiences — as well as its continued growth in Europe.
We believe that combining e-bot7’s simple, easy-to-use technology with LivePerson’s world-class NLU, global organization, and vast customer base will accelerate the speed at which brands can deploy and train AI-powered conversations.
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In the fourth quarter of 2021, we acquired VoiceBase, a voice analytics platform for the enterprise, built on advanced speech recognition technology, that transforms voice and messaging conversations into easily interpreted data and actionable insights.
−Removed: It works with leading brands such as GrubHub, Twilio, Delta Dental, UserTesting, and Slice, and has out-of-the-box
−Removed: integrations with leading telephony and contact-center systems including RingCentral, Genesys, NICE CXone, Avaya, Twilio, and now LivePerson.
+Added: It works with leading brands such as GrubHub, Twilio, Delta Dental, UserTesting, and Slice, and has out-of-the-box integrations with leading telephony and contact-center systems including RingCentral, Genesys, NICE CXone, Avaya, Twilio, and now LivePerson.
We intend to maintain VoiceBase’s business operations while integrating and leveraging VoiceBase’s technology with our proprietary messaging and Conversational AI offerings.
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Users seek assistance and advice in various categories including personal counseling and coaching, computers and programming, education and tutoring, spirituality and religion, and other topics.
−Removed: Revenue from our Consumer segment accounted for approximately 8% of total revenue for each of the years ended December 31, 2021, 2020, and 2019, respectively.
+Added: The business comprising our consumer services offering has been classified as assets held for sale as of December 31, 2022.
+Added: See Note 20 – Assets Held for Sale in the Notes to the Consolidated Financial Statements under Item 8 of this Annual Report on Form 10-K for additional information.
More than 18,000 customers have deployed our business solutions, including Fortune 500 companies, dedicated internet businesses, a broad range of online merchants, as well as numerous SMBs, automotive dealers, universities, libraries, government agencies and not-for-profit organizations.
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and Canada, Latin America, Europe, and the Asia-Pacific region.
−Removed: No single customer accounted for or exceeded 10% of our total revenue in 2021, 2020, or 2019.
+Added: No single customer accounted for or exceeded 10% of our total revenue for 2022, 2021, or 2020.
Sales and Marketing
−Removed: We sell our business products and services by leveraging a common methodology through both direct and indirect sales channels.
−Removed: Our sales process focuses on the perspective that the Conversational Space requires an operational transformation that changes how brands engage with consumers across service, sales, marketing, social and brick and mortar.
−Removed: Brands must adapt their contact centers to an asynchronous messaging environment and leverage a combination of human agents, bots and AI to achieve scale and efficiencies.
−Removed: When done correctly, the entire consumer lifecycle with a brand will be maintained within the Conversational Space, and traffic will steadily shift away from lower returning voice calls, websites, emails and apps to higher returning messaging endpoints.
Our mobile and online messaging solutions are targeted at business executives whose primary responsibility is optimization of customer care, sales and marketing, or optimizing a consumer’s journey across the brand’s digital properties.
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We focus on the value that our solutions deliver in the form of increased agent efficiency, reduced contact center costs, increased customer satisfaction, improved customer lifetime value, maximized digital consumer acquisition, and optimized website and mobile business outcomes.
−Removed: LivePerson supports any organization with a company-wide strategic initiative to improve the overall mobile and online consumer experience.
Within the business solutions segment we have aligned our field organization to address the different sales strategies of our target markets:
Enterprise and large mid-market.
−Removed: We target large mid-market and enterprise businesses with a combination of direct sales and customer success teams, and partners.
−Removed: Across the globe, we are targeting a select group of brands, many of them already customers, that hold the power to transform customer care.
−Removed: These enterprises have thousands of agents in their contact centers and collectively connect with billions of consumers each year.
−Removed: We leverage thought leadership and related events to showcase our strength in messaging and AI, and highlight existing reference customers who share their successes on our platform and
−Removed: how they achieved positive ROIs.
+Added: We target enterprises which have thousands of agents in their contact centers and collectively connect with billions of consumers each year.
+Added: We leverage thought leadership and related events to showcase our strength in messaging and AI, and highlight existing reference customers who share their successes on our platform and how they achieved positive ROIs.
Increasingly, we are working with large third-party system integrators, technology providers and business process outsourcers to supplement our direct sales effort.
−Removed: For our large and more complex customers, our sales methodology often begins with research and discovery meetings that enable us to develop a deep understanding of the value drivers and key performance metrics of a prospective customer.
−Removed: We then present an analytical review detailing how our solutions and industry expertise can affect these value drivers and metrics.
−Removed: Once we validate solution capabilities and prove financial return on investment, we transition to a program management model wherein we work hand-in-hand with the customer, providing detailed analysis, measurements and recommendations that help optimize their performance and ensure ongoing program success.
−Removed: In 2018, we introduced a pilot accelerator program, where we offer customers the option to test our entire platform, across all messaging endpoints and customer use cases, at an entry level price point for a period of three to nine months.
−Removed: This pilot program is intended to accelerate sales cycles and enable customers to rapidly assess the potential ROI and differentiation of our solutions before committing to a more substantial and extended deployment.
Small business and small mid-market.
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By maximizing market coverage via partners who provide lead referrals and complementary products and services, we believe this channel supports revenue opportunities without incurring the costs associated with traditional direct sales.
+Added: Our acquisition of Tenfold has accelerated our ability to integrate with legacy customer systems as well as competing or complementary customer service solutions.
Customer Support.
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All LivePerson customers have access to 24/7 help desk services through messaging, chat, and technical support ticketing.
−Removed: Our marketing efforts in support of our business operations are organized around the needs, trends and characteristics of our existing and prospective customer base.
−Removed: Our deep relationship with existing customers fosters continuous feedback and critical data analysis, thereby allowing us to develop and refine marketing programs that drive adoption across multiple customer segments.
We have a global team, spread across key geographies that is focused on marketing our brand, products and services to executives responsible for the digital channel, the consumer experience, marketing, sales, IT, and consumer service operations of their organization.
Our main focus is on the consumer/retail, telecommunications, financial services, travel/hospitality, technology, healthcare, and automotive industries.
−Removed: Our integrated marketing strategy is focused on driving demand, building customer and consumer advocacy, driving adoption of our platform, and supporting key areas of business, especially large enterprise, but also including mid-sized and small business partners and international entities.
−Removed: We aim to achieve this by delivering high-touch, small group events for senior executives, to educate them on messaging and the transformational ways that digital communication can help their business.
−Removed: We also market our software via high-level thought leadership campaigns, industry event participation, personalized lead generation campaigns to reach potential and existing customers using mediums such as paid and organic search, direct email and mail, industry- and category-specific trade shows and events, and telemarketing.
−Removed: Our marketing strategy also encompasses a strategic communications approach that integrates public relations, social media, and analyst/influencer relations.
−Removed: We are focused on using those channels to communicate our brand value, to those key stakeholders, to increase overall brand and technology awareness.
+Added: Our marketing strategy encompasses a strategic communications approach that integrates public relations, social media, and analyst/influencer relations.
Communications seek to highlight key customer success stories, and promote executive thought leadership via contributed content, speaking opportunities and press interviews, to raise LivePerson’s profile and reinforce our position as an industry leader.
−Removed: The markets for mobile and online business messaging, and digital engagement technology are intensely competitive, rapidly changing and characterized by aggressive marketing, pricing pressure, evolving industry standards, rapid technology developments, and frequent new product introductions.
−Removed: We believe that competition will continue to increase as our current competitors increase the sophistication of their offerings and as new participants enter the market, which may cause additional
−Removed: pricing pressure.
−Removed: If we are unable to accurately anticipate technology developments and continue to innovate in the markets in which we compete, or our competitors are more successful than us at developing compelling new products and services or at attracting and retaining customers, we may lose revenue and market share and our operating results could be adversely affected.
−Removed: We believe that most contact center technology vendors incorrectly view messaging as a feature.
+Added: The markets for AI-enhanced customer interaction, mobile and online business messaging, and digital engagement technology are intensely competitive, rapidly changing and characterized by aggressive marketing, pricing pressure, evolving industry standards, rapid technology developments, and frequent new product introductions.
+Added: We believe that most contact center technology vendors incorrectly view messaging as simply a feature or channel.
They are content with building integrations to a messaging endpoint and offering messaging as just another product in their suite.
−Removed: LivePerson holds the perspective that messaging and AI are the foundation for conversational experiences, which transform how agents operate and how brands engage with consumers across service, sales, marketing, and brick and mortar.
+Added: LivePerson believes that messaging and AI are the foundation for conversational experiences, which transform how agents operate and how brands engage with consumers across service, sales, marketing, and brick and mortar.
Brands must adapt their contact centers to an asynchronous messaging environment and leverage a combination of human agents, bots and AI to achieve scale and efficiencies.
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• The platform has expanded to power conversations across a broad spectrum of channels and use cases, from traditional sales and customer service, to marketing, social, email, advertising and brick and mortar.
−Removed: • The Company believes it has a data moat built on hundreds of millions of conversations across industries, geographies and use cases that is feeding the machine learning engines that power intent understanding.
+Added: • The Company believes it has a significant advantage in the form of a data moat built on hundreds of millions of conversations across industries, geographies and use cases that is feeding the machine learning engines that power intent understanding.
• LivePerson has deep domain expertise across verticals and messaging endpoints, a global footprint, referenceable enterprise brands and a team of technical, solutions and consulting professionals to assist customers along their transformational journeys.
We are positioned as an authority in the Conversational Space.
−Removed: We have developed a Transformation Model that is introduced to existing and prospective customers to help guide them on their journeys from legacy and oftentimes inefficient legacy voice, email and chat solutions to modern conversational ones powered by messaging and AI.
We believe this focus on technological innovation, expertise and enterprise-class capabilities is positioning LivePerson as a leader in the Conversational Space.
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• customers that develop and manage their messaging solutions in-house;
−Removed: In addition, many of our current and potential competitors have substantial competitive advantages, such as greater brand recognition, significantly larger financial, marketing, and resource and development budgets, access to larger customer and/or consumer bases, larger and more established marketing and distribution relationships, and/or more diverse product and service offerings.
−Removed: As a result, these competitors may be able to respond more quickly and effectively than we can to any change in the general market acceptance of messaging services or any new or changing opportunities, technologies, standards, pricing
−Removed: strategies or customer requirements.
−Removed: Also, because of these advantages, potential customers may select a competitor’s products and services, even if our services are more effective.
−Removed: For all of these reasons, we may not be able to compete successfully against our current and future competitors.
+Added: • large players in the AI space, such as Google, Amazon, Microsoft and OpenAI
Four key technological features distinguish the LivePerson services:
+Added: • LivePerson’s powerful Conversational AI is enhanced by over 20 years of proprietary, verbatim conversation data that the company has accumulated helping thousands of clients, including the world’s largest brands, message with consumers at scale.
+Added: Unlike other AIs, which are applied to wide-ranging and unrelated use cases, LivePerson’s AI has been built specifically to power conversations between brands and consumers, giving it the edge in understanding consumer intents and the resolutions that best satisfy them.
• We support our customers through a secure, scalable server infrastructure.
−Removed: In September 2020, we signed a partnership with a digital services and consulting company to transform our technology infrastructure on the public cloud and to build integrated solutions.
Currently, in North America, our primary servers are hosted in a fully-secured, top-tier, third-party server center located in the Mid-Atlantic United States, and are supported by a top-tier backup server facility located in the Western United States.
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Utilizing advanced network infrastructure and protocols, our network, hardware and software are designed to accommodate our customers’ demand for secure, high-quality 24/7 service, including during peak times such as the holiday shopping season.
+Added: Beginning in 2020, we began projects to migrate some or all of our infrastructure to the public cloud.
• As a hosted service, we are able to add additional capacity and new features quickly and efficiently.
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We dedicate significant resources to designing our software and network architecture based on the fundamental principles of security, reliability and scalability.
−Removed: • LivePerson’s powerful Conversational AI is powered by over 20 years of proprietary, verbatim conversation data that the company has accumulated helping thousands of clients, including the world’s largest brands, message with consumers at scale.
−Removed: The strength of the company’s Conversational AI can also be attributed to the company’s laser focus on brand-consumer conversations.
−Removed: Unlike other AIs, which are applied to wide-ranging and unrelated use cases, LivePerson’s AI has been built specifically to power conversations between brands and consumers, giving it the edge in understanding consumer intents and the resolutions that best satisfy them.
−Removed: Software Design.
−Removed: Our software design is based on client-server architecture.
−Removed: Since we are a SaaS provider, Conversational Cloud customers and visitors to our customers’ websites require only a standard Web browser and do not need to download software from LivePerson in order to interact with our customers’ operators or to use the LivePerson services.
−Removed: We also provide APIs that enable our customers and third-parties to integrate the Conversational Cloud with custom designed applications.
−Removed: Network Architecture.
−Removed: The software underlying our services is integrated with scalable and reliable network architecture.
+Added: Network Architecture and Security.
Our network is scalable;
we do not need to add new hardware or network capacity for each new LivePerson customer.
−Removed: This network architecture is hosted in co-location facilities with redundant network connections, servers and other infrastructure, enabling superior availability.
Our backup server infrastructure housed at separate locations provides our primary hosting facilities with effective disaster recovery capability.
−Removed: We comply with security standards such as SOC2 and PCI.
+Added: We comply with security standards such as SOC2 (System and Organization Controls) and PCI.
For increased security, through a multi-layered approach, we use advanced firewall architecture and industry-leading encryption standards and employ third-party experts to further validate our systems’ security.
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Government Regulation
−Removed: We and our customers are subject to a number of laws and regulations in the United States and abroad, including laws related to conducting business on the Internet and on mobile devices, such as laws regarding data privacy, data protection, information security, cybersecurity, restrictions, or technological requirements regarding the collection, use, storage, protection, disposal transfer, or other processing of consumer data, content, consumer protection, internet (or net) neutrality, advertising,
−Removed: electronic contracts, taxation, provision of online payment services (including credit card processing), and intellectual property rights, which are continuously evolving and developing.
−Removed: and international privacy laws and regulations are evolving and changing, are subject to differing interpretations, may be costly to comply with, and may be inconsistent among countries and jurisdictions or conflict with other rules.
−Removed: As we expand our operations in these countries, our liability exposure and the complexity and cost of compliance with data and privacy requirements will likely increase.
−Removed: Any failure by us to comply with our posted privacy policies, applicable federal, state or international laws and regulations relating to data privacy and data protection, or the privacy commitments contained in our contracts, could result in proceedings against us by governmental entities, customers, consumers, watchdog groups or others, which could have a material adverse effect on our business, financial condition and results of operations.
−Removed: In addition, the increased attention focused upon liability as a result of lawsuits, investigations, and legislative proposals and enactments could harm our reputation or otherwise impact the growth of our business.
+Added: We and our customers are subject to a number of laws and regulations in the United States and abroad, including laws related to conducting business on the internet and on mobile devices, such as laws regarding data privacy, data protection, information security, cybersecurity, restrictions, or technological requirements regarding the collection, use, storage, protection, disposal transfer, or other processing of consumer data, content, consumer protection, internet (or net) neutrality, advertising, electronic contracts, taxation, provision of online payment services (including credit card processing), and intellectual property rights, which are continuously evolving and developing.
Intellectual Property and Proprietary Rights
+Added: We own a portfolio of patents and patent applications in the United States and internationally and regularly file patent applications to protect intellectual property that we believe is important to our business.
+Added: As of December 31, 2022, we have 207 patents issued in the U.S.
+Added: and abroad, and 241 patents pending.
+Added: We had 36 patents awarded in the U.S.
+Added: during 2022, and added 25 global patents.
+Added: Our patents cover Conversational AI and insights, messaging across various consumer platforms, behavioral analytics and personalization, and agent effectiveness and call center operations.
We rely on a combination of patent, copyright, trade secret, trademark and other common law protections in the United States and other jurisdictions, as well as confidentiality requirements and contractual provisions, to protect our proprietary technology, processes and other intellectual property.
−Removed: We own a portfolio of patents and patent applications in the United States and internationally and regularly file patent applications to protect intellectual property that we believe is important to our business, including intellectual property related to digital engagement technology and web and mobile based consumer-facing services.
−Removed: We believe the duration of our patents is adequate relative to the expected lives of our products and services.
−Removed: We pursue the registration of our domain names, trademarks and trade names in the United States and in certain locations outside the United States.
−Removed: We also own copyrights, including in our software, publications and other documents authored by us.
−Removed: These intellectual property rights are important to our business and marketing efforts.
−Removed: We seek to protect our intellectual property rights by relying on federal, state, and common law rights, including registration, or otherwise in the United States and certain foreign jurisdictions, as well as contractual restrictions.
−Removed: However, we believe that factors such as the technological and creative skills of our personnel, new service developments, frequent enhancements and reliable maintenance are more essential to establishing and maintaining a competitive advantage.
−Removed: Others may develop technologies that are similar or superior to our technology.
−Removed: We enter into confidentiality and other written agreements (including invention assignment agreements) with our employees, consultants, customers, potential customers, strategic partners, and other third parties, and through these and other written agreements, we attempt to control access to and distribution of our software, documentation and other proprietary information.
−Removed: Despite our efforts to protect our proprietary rights, third parties may, in an unauthorized manner, attempt to use, copy or otherwise obtain and market or distribute our intellectual property rights or technology or otherwise develop a service with the same functionality as our services.
−Removed: Policing unauthorized use of our services and intellectual property rights is difficult, and we cannot be certain that the steps we have taken will prevent misappropriation of our technology or intellectual property rights, particularly in foreign countries where we do business, where our services are sold or used, where the laws may not protect proprietary rights as fully as do the laws of the United States or where enforcement of laws protecting proprietary rights is not common or effective.
−Removed: Substantial litigation regarding intellectual property rights exists in the software industry.
−Removed: In the ordinary course of our business, our services and/or our customers’ use of our services have been and may be increasingly subject to third-party infringement claims as claims by non-practicing entities become more prevalent and as the number of competitors in our industry segment grows and the functionality of services in different industry segments overlaps.
−Removed: Some of our competitors in the market for digital engagement technology and/or web and mobile based consumer-facing services or other third parties may have filed or may intend to file patent applications covering aspects of their technology and have asserted or may assert claims against us.
−Removed: Any claims alleging infringement of third-party intellectual property rights could require us to spend significant amounts in litigation (even if the claim is invalid), distract management from other tasks of operating our business, pay substantial damage awards, prevent us from selling our products, delay delivery of our services, develop non-infringing software, technology, business processes, systems or other intellectual property (none of which might be successful), or limit our ability to use the intellectual property that is the subject of any of these claims, unless we enter into license agreements with the third parties (which may be costly, unavailable on commercially reasonable terms, or not available at all).
−Removed: Therefore, any such claims could have a material adverse effect on our business, results of operations, cash flows and financial condition.
−Removed: The duration of the protection afforded to our intellectual property depends on the type of property in question, the laws and regulations of the relevant jurisdiction and the terms of its license agreements with others.
−Removed: With respect to our trademarks and trade names, trademark laws and rights are generally territorial in scope and limited to those countries where a mark has been registered or protected.
−Removed: While trademark registrations may generally be maintained in effect for as long as the mark is in
−Removed: use in the respective jurisdictions, there may be occasions where a mark or title is not registrable or protectable or cannot be used in a particular country.
−Removed: In addition, a trademark registration may be canceled or invalidated if challenged by others based on certain use requirements or other limited grounds.
−Removed: The duration of property rights in trademarks, service marks and trade names in the United States, whether registered or not, is predicated on our continued use.
Human Capital Management
As a leading provider of conversational solutions, we are at the forefront of a consumer-led shift to Conversational AI, and our Conversational Cloud is setting the industry standard for this future.
−Removed: As a result of these efforts, LivePerson was named to Fast Company ’s annual list of the World’s Ten Most Innovative Artificial Intelligence Companies of 2020.
−Removed: Our employees understand that they are critical to our mission of making life easier for people and brands everywhere through trusted Conversational AI.
−Removed: We intend to continue to invest in the diversity, inclusiveness, health and happiness of our employees in order to foster creativity, productivity and growth.
−Removed: As of December 31, 2021, we had 1,540 fu ll-time employees worl dwide, located in more than 12 countries.
+Added: As of December 31, 2022, we had 1,301 full-time employees worldwide, located in more than 13 countries.
Of these, 731 were located in the Americas, 454 in EMEA, and 116 in APAC.
7 unchanged sentences
Our recruiting processes are designed to ensure that we bring on employees who are aligned to our values and culture, and we follow a comprehensive process in order to solicit multiple perspectives and eliminate bias.
−Removed: In 2020, we scaled and expanded an internal program to train employees to become objective “hiring experts” and to reduce unconscious bias in the hiring process.
−Removed: We also launched a new virtual onboarding and orientation program for new hires globally, which includes a multi-day immersion into our principles and team building exercises.
−Removed: In 2020, we also launched a four week seminar style cohort program to ensure LivePerson employees understand the foundation of AI and how AI is transforming industries and society.
−Removed: The program also features monthly external AI speakers and a monthly podcast series showcasing internal product leaders and AI specialists.
−Removed: Approximately 25% of employees earned certificates of completion during 2020, and we expanded the program during 2021 due to continuing employee demand.
+Added: In 2020, we launched a four-week seminar-style cohort program to ensure LivePerson employees understand the foundation of AI and how AI is transforming industries and society.
Diversity, Equity and Inclusion.
10 unchanged sentences
As part of that commitment, we run a pay equity analysis when we conduct our annual compensation assessments and when we grant equity.
−Removed: During 2020, we launched an employee-led diversity council empowered to drive global programs focused on DEI as well as to support independent employee resource groups and help ensure the diversity of teams and projects within our company.
−Removed: We have launched several employee-led DEI programs under this umbrella in 2020, including a Women in Technology, Live in Color program and in 2021, we added a LGBTQ+ employee resource group.
−Removed: Employee Wellness and COVID-19 Response.
−Removed: We remain focused on programs that promote the total wellness of our employees, including resources and services to support physical, mental and financial wellness.
−Removed: We offer industry-leading benefits packages based on the diverse needs of our employees and their families, including comprehensive healthcare, accident insurance, a 401(k) plan, an employee stock purchase program, and time off programs.
−Removed: We work hard to ensure that our
−Removed: employees are aware of and take advantage of these opportunities, and we review our programs annually to ensure they remain competitive.
−Removed: This was particularly important during the COVID-19 pandemic, where we proactively prioritized the safety and health of our employees.
−Removed: Before local health experts suggested shelter in place initiatives, we began to limit business travel and encourage all employees to work remotely.
−Removed: We went on to adopt a company policy for all employees to work from home and closed virtually all of our offices (including our corporate headquarters).
−Removed: Since transitioning to a remote work environment, we established multiple employee-led committees to design future of work programs and launched two surveys to gather employee feedback.
−Removed: Based on survey results from over 75% of our global workforce, we identified key themes and opportunities for enhancement, and we have already implemented several employee recommendations.
−Removed: We also provided opportunities for virtual peer connection, virtual learning, and enhanced emotional well-being benefits and programs, along with flexible work arrangements to ensure our employees have the resources they need to care for themselves and their families.
−Removed: We plan to continue to offer time away, wellness and caregiving leave and financial support and reimbursement for work from home equipment to foster a healthy and happy workforce and community with support for productive remote workspaces.
Website Access to Reports
We make available, free of charge, on our website ( www.liveperson.com ), our annual reports on Form 10-K, our quarterly reports on Form 10-Q, and our current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Sections 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after we have electronically filed such material with, or furnished it to, the SEC.
−Removed: The Company’s web site address provided above is not intended to function as a hyperlink, and the information on the Company’s web site is not and should not be considered part of this Annual Report on Form 10-K and is not incorporated by reference herein.
+Added: The Company’s website address provided above is not intended to function as a hyperlink, and the information on the Company’s website is not and should not be considered part of this Annual Report on Form 10-K and is not incorporated by reference herein.
The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at www.sec.gov.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.