Good afternoon. My name is Sheka and I will be your conference operator today. At this time I would like to welcome everyone to the LivePerson's Third Quarter Earnings Conference Call. [Operator Instructions]. On today conference call from LivePerson we have Mr. Robert LoCascio, CEO, and Mr. Dan Murphy, CFO. Mr. Dan Murphy, you may begin.

Thanks very much. Before we begin I would like to remind listeners that during this conference comments that we make regarding LivePerson that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. These statements are made pursuant to the Safe Harbor Provisions of the Private Securities and Litigation Reform Act of 1995. The internal projections and beliefs upon which we base our expectations today may change over time and we undertake no obligation to inform you if they do. The results that we report today should not be considered as an indication of future performance. Changes in economics, business, competitive, technological, regulatory and other factors could cause LivePerson's actual results to differ materially from those expressed or implied or the projections or forward-looking statements made today. For more detailed information about these factors and other risk, that may impact our business please review the reports and documents filed from time to time by LivePerson with the Securities and Exchange Commission. Also, please note that on the call today we will discuss some non-GAAP financial measures in talking about the Company's financial performance. We report our GAAP results as well as provide a reconciliation of these non-GAAP measures to GAAP financial measures in our earnings release. You can obtain a copy of our earnings release by visiting the Investor Relations section of our website. With that I will turn the call over to Rob LoCascio .

Thank you for joining LivePerson's third quarter 2015 conference call. We're pleased to report adjusted EBITDA above the high end of our guidance range and our 53rd consecutive periods of year-over-year revenue growth. Third quarter revenue increased 22% in constant currency. The Company made solid progress in the third quarter on advancing LiveEngage into the market and transforming customer care. We signed a record amount of new business in the quarter. We continue to win the majority of enterprise deals for real-time engagement a key reason we maintain our dominant position is because LivePerson shares a common vision with the leading brands about how to deliver a more connected and effective customer experience one that also address the spiraling cost of voice calls. Our vision is for brands to never put customers on hold again. To give consumers the power to message their favorite brands just like they message their friends and family each day. That choice is not available to most consumers today and brands are still forcing customers to use technology that's 50, 100 years old which is voice and the 800 number. There are nearly 270 billion calls made each year to those 800 numbers at an average cost of $6 per call. That is more than 1 trillion spent on a technology that brings dissatisfaction instead of connection. 85% of callers are put on hold, 67 hang up and roughly half of all calls go unresolved. The LiveEngage platform in its uniquely scalable and securable messaging capabilities can help bridge the gap between brands and consumers. We can give brands a connection with consumers that is always on that requires no time wasted on hold and is carried around in the consumer's pocket. By leveraging LiveEngage to execute on our vision of killing the 800 number…

Thanks, Rob. I will begin with a review of our third quarter 2015 operational and financial highlights and finish with an update to our guidance. We have much to celebrate even as we work through our migration to the LiveEngage platform. In the third quarter LivePerson reported record revenue and closed a record amount of new business, generated record international demand, signed its largest ever international customer contract, signed an agreement to upgrade its first existing large enterprise customer to LiveEngage and doubled the brands' usage, accelerated the pace of LiveEngage deployments and began scaling its operating model positioning the Company to deliver stronger margins in 2016. After a slow start to the year we are generating an increased productivity from our sales organization and making solid strides towards delivering our vision of killing the 800 number and transforming customer care. We are also strengthening our profitability by holding expenses in line as the natural scalability of our operating model and recent investments begin to materialize. Turning your attention to our third quarter 2015 operating results total revenue increased 15% year-over-year to $60.8 million leading our guidance range excluding an approximate $3.4 million or roughly 7% drag from foreign currency exchange total revenue would have increased 22%. Foreign currency exchange impacts are double edged sword of successful international growth. Excluding the impact of foreign exchange international revenue increased 32% year-over-year. We had a record quarter in the international markets which included significant customer expansions and gained in new geographies such as Germany, France and Italy. Sales coming from outside the U.S. were approximately 34% of total revenue in the third quarter. However, as our global footprint increases so too does our exposure to foreign currencies. B2B revenue advanced 17% to $57.1 million or 23% year-over-year in constant currency and consumer…

[Operator Instructions]. And your first question comes from the line of Rick Baldry from ROTH Capital.

I am just wondering if you can go through the Contact at Once impact a little more in a little more detail. Presumably they well understood the acquisition process they were undergoing so I am just curious as to why that would have had such a disproportionate impact on a single quarter in Q4? Thanks.

So for Contact at Once on the real estate vertical if you remember on the last quarterly call we had talked about one of the aggregators that they signed in the real estate vertical. Our expectation along with Contact at Once of course was that it would ramp faster than we originally anticipated in the back half of the year, but due to the merger that this [indiscernible] going through plans have slowed down on the real estate vertical for Contact at Once.

And could you talk about, aside from the acquisition impact it seems like the expectation would have been for that to grow very significantly in a very short period of time. So do we think about that now that that's the significant short-term boost as we enter 2016? Sort of how do we think about that vertical as it comes online once that acquisition gets absorbed?

Yes. I mean we had mid-teens growth in 2015. I don't have guidance for 2016 but we would expect Contact at Once to continue to grow as we move into 2016. But obviously we will update you with guidance on the Q4 call.

And your next question comes from the line of Kyle Chen. Mr. Kyle your line is open.

I guess Rob just a quick question for you to kick it off. Recently the Chief Product Officer at Facebook at an industry conference talked about expanding the mobile messaging [indiscernible] as a form of business communications with companies and brands. I guess in your view could this be somewhat competitive to what you're trying to do with LiveEngage or an endorsement for your strategy to the extent that if it's the latter how do you tactically position LivePerson to benefit from the secular trend?

Yes. We’re actually, we did a joint call with them last week actually from their headquarters and we invited -- there was about 80 LivePerson customers on that call because we are going to power the back end for some of that messaging so we are now looking on setting up our first customers that are LivePerson measures so that consumers from Facebook can use messenger and then they come through LiveEngage. So we will be the back end for those interactions. So we are just starting that. We actually showed it at Aspire to everybody and then we did a follow up call with Facebook. So I see them as a partner right now because they don't have the back-end towards communication that the businesses they have got unless you're a small business you want to do one-on-one connection but for an enterprise they need the back ends that we have. So we're excited about it. I don't want to, you know, until we get it going and everything but it's a great first start and they seem like a great partner.

Yes. That's actually really exciting news. Just to dig into that a little bit I guess what would the economics of agreement like that look like? Would it just be -- or I guess would it be more on the mature acquisition and from a funnel perspective?

Yes. I mean we would align it to our economics on the usage so it drives usage and I can't comment on how Facebook wants to price on their side. It's obviously exciting. They have taken the messenger business it's very much an autonomous focused event and they really believe that messenger can power interactions with brands and they need the back ends to do that so we were approached by them a while ago and then we just worked through it. So like I said last week we did a joint conference call and we had a lot of customers there and a lot of excitement for it and once it gets fits to our strategy. We have our own messenger that's coming out with aggregated brands we have an [indiscernible] that allows the brands to put the messenger into their own apps. So I see different flavors but there's got to be a back end for the brand to manage -- if that message comes off of Facebook it's got to get routed, it's got to get reported on, it's got to hit a queue and a skill, it's got to have all of the things of security that a normal messenger doesn’t have and we provide. So that's the stuff that we come with, the enterprise readiness of making messenger a reality.

I guess, Dan, just real quick. You know, can you update us on what percentage of the customer pace is currently on the CPI based pricing and then as LivePerson increases the number of customers on LiveEngage and as interactions increase I guess how should we think about ASP and ARPU uplift going forward?

So I will answer the last part first. From an ARPU perspective we have reported on a regular basis and it's been moving in the right direction a 4% increase quarter-over-quarter sequentially. You know, as far as the CPI model, it's about 60% to 70% of our customer base are on a usage based model and of course as you know, Kyle, that includes them paying a fixed-price for a certain amount of interactions but about 60%, 70% of our customer base.

And your next question comes from the line of Mike Latimore from Northland Capital.

Rob, you mentioned customers have been on LiveEngage 4 to 6 months, interaction is up 10% and then after that 20%. What type of interaction, what type of incremental interactions are you seeing? Is it mostly chat or is it mobile chat or what are you seeing that incremental amount?

We’re seeing obviously, which happen at the mobile side we're seeing obviously an increase in that area and that's the part that we're focused on. So that's what we are seeing a lot of action right now.

And then pay for performance as a percent of revenue today where does that stand?.

Pay for performance in the third quarter was about 11% of total revenue and Mike as you know that's a bit of a usage base revenue stream so it's about 11% in the quarter in the third quarter.

And then you said 34% of customers are on LiveEngage. Do you roughly what percent of revenue is running on a Live Engage platform?

The last part was what percent of what-?

What percent of revenue is on LiveEngage?

Since most of those customers are relatively small but we do have some marketing enterprise it's still a small percentage of our revenue but growing month to month and as Rob talked about our expectation is to have about 40% of the customers over on the LiveEngage platform in 2015 and then focus on getting the rest of the customers over in 2016. The fourth quarter is a tough quarter, we move customers over from a seasonality perspective and closing down their -- putting [indiscernible] in place but the focus in 2016 is to move all our customers over.

[Operator Instructions]. And your next question comes the line of Brian Schwartz with Oppenheimer.

This is [indiscernible] for Brian Schwartz. I just on are wanted to say congrats on that record number that 7 figure deal number and I wanted to dig into that metric a little bit more. Is that 7 figure is that an annual contract value number or is that total contract value number?

That's an annual contract value number.

And then I was wondering what percentage of the enterprise has been market deals the new deals were on the LiveEngage platform and maybe you could talk a little bit about for the customers that didn't choose a LiveEngage platform what were some of the reasons why they did not? Was it a feature set gap or was it something else?

It's pretty much the majority of the deals are on LiveEngage, so we're not really selling the enterprise so it's now the majority of the deals. So maybe one that would come in on that one but last quarter was pretty much everyone is on LiveEngage.

And then I was wondering if you can give us an update on how your try and buy strategy is resonating with the small business segment, are you still running this promotion and I know its still maybe early but if you could maybe give some color on maybe some of the conversion rates that you had to the buy options and how it's been trending over time?

It's a little early because we started I think last quarter was there's a lot of tries so we are seeing a lot of tries and it's thousands and so we're now looking at what the conversion rates -- what will happen. I think you got to wait a little base because they tag, they go live they starts using it so I think by next quarter we can have some more clarity around how we're doing on the conversion rates, but right now it's a little preliminary.

And then just one last one for me and I apologize if you said this during your prepared comments, but I was wondering about you could provide the revenue contribution in the quarter from Contact at Once and given the $2.5 million shortfall expectation I recall that you most recently said that your Contact at Once revenue contribution target for the year was about $31 million. So I was just taking that shortfall into account the total year expectation should be about $20.5 million. Is that the right way of thinking about that?

That's the right way of thinking about it. We don't do contribution of act at once quarter-over-quarter and as we continue to rollout the LiveEngage platform in our strategy in 2016 is in those new verticals for Contact at Once to use the Live Engage platform so it's going to get harder and harder to break this out, but your math at the end 31, down to 28.5 is a reasonable way to look at it.

And your next question comes from the line of Jeff Van Rhee.

This is Ryan sitting in for Jeff. Just one quick one, can you provide any sort of update on bookings in the quarter and how your sales organization is doing following the kickoff that you did earlier in the year I believe it was Q1 and Q2?

Yes. So the Q3 bookings was the highest bookings in the history of the Company and Q4 looks very strong also. So we don't give a number any more but it was the highest so far. And so the stuff that we did in Q1, Q2 which as you remember softer bookings quarters is obviously showing up in Q3 and Q4 now and obviously into next year. So we feel very good about it and they have got the messaging, they got the platform so they have the tools they need to sell the vision.

[Operator Instructions]. And there are no audio questions at this time.

Thank you for joining us on the Q3 2015 call and we'll see you on the next quarter. Thank you.

Thank you for your participation in today's conference call. You may now disconnect.