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Liveperson Inc (LPSN -4.22%)
Q2Â 2020 Earnings Call
Aug 4, 2020, 5:00 p.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to LivePerson's Second Quarter 2020 Results Conference Call. My name is Rachel and I will be your conference operator today. At this time, all participants are in a listen-only mode. After the prepared remarks, the management from LivePerson will conduct a Q&A session and conference participants will be given instructions at that time. As a reminder, this conference is being recorded.
I would now like to turn the conference call over to Mr. Matthew Kempler, the company's Senior Vice President of Finance and Investor Relations. Please go ahead, sir.
Matthew Kempler -- Vice President of Investor Relations
Thanks very much. Joining me on the call today is Rob LoCascio, LivePerson's Founder and CEO; and John Collins, our Chief Financial Officer. Please note that during today's call, we will make forward-looking statements, which are predictions, projections and other statements about future results. These statements are based on our current expectations and assumptions as of today and are subject to risks and uncertainties. Actual results may differ materially due to various factors, including those described in today's earnings press release and the comments made during this conference call, and in 10-Ks, 10-Qs and other reports we file from time to time with the SEC. We assume no obligation to update any forward-looking statements.
Also, during this call, we will discuss certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is included in today's earnings press release. Both this release and supplemental slides, which include highlights for the quarter, are available in the Investor Relations section of LivePerson's website.
With that, I'll turn the call over to Rob.
Robert LoCascio -- Founder and Chief Executive Officer
Thanks, Matt. Thank you for joining LivePerson's Q2 2020 earnings call. Q2 is one of the strongest and best executed quarters in our history. Revenue was $92 million and widely outpaced our guidance on a sharp acceleration to 29% year-over-year growth. Revenue upside flowed directly to the bottom line as we generated adjusted EBITDA of $9 million and a 10% margin. This marks not only a return to profitability, but also our first double-digit margin in three years.
Now, Q2 2020 is the outcome of a strategy that was put in place over three years ago around a vision of a world shifting to conversational commerce. What we experienced this quarter is not an anomaly. It is a clear beginning of a dynamic dramatic shift that is happening to the retail and care worlds that will be powered by digital AI-based conversations. With live voice agents still in work-from-home mode and overall capacity around 60% to 70% of what was available pre-COVID, there's a rush to the door to automate conversations at scale. At scale, we will end up automating, I think, around 80% of end-to-end conversations on our platform. And today, we already have customers that are on this path.
If you take a step back and ask the question, what is the advantage of speaking to a live agent over an automated agent? There's really one answer. If a brand has legacy back-end systems that for some reason, cannot be accessed by a machine through APIs, then a human is needed to manually access those systems. COVID has accelerated our brand's need to open those back-end systems because automation is filling in for the reduced capacity that happened when agents were sent home and cannot take voice calls in their homes for technical or security reasons.
Strategically, the market is coming to us at an accelerated rate and over the next 24 months, we will see a more pronounced shift from voice to messaging and automation. Already nearly 70% of messaging conversations on our platform rely on some form of automation. Our capacity to power this type of AI automation at scale starts with the most competitive advantage we have in the market, which is the accumulation of data -- our data set with more than 1 billion conversations across verticals, geographies and use cases. We are now rapidly expanding that data set.
In the second quarter alone, we invested [Phonetic] over 100 million individual messages a month into our intent analytics engine, up from just a couple of million a month at the year-end 2019. We used that data to develop services and algorithms that automate conversations at scale. In fact, between December 2019 and June 2020, our customers had doubled the number of monthly conversations on our platform that were powered by bots and automation. Equally important, nearly 50% of the conversations that were powered by LivePerson Bots were fully autonomous, meaning they required no human intervention and that is up from 25% at the start of 2019.
While these automations are covering simple or complex use cases, the fact of the matter is that they are providing an enormous benefit to our customers by eliminating wait times for their consumers and removing human capital costs from the contact center. We believe that AI is going to win the day in the conversational commerce space and we have built a powerful set of tools to lead this market.
Today, we are announcing the general availability of our newest platform called the Conversational Cloud. This platform combines all of our AI tools and will solidify our platform strategy in the AI space. The conversation cloud has four core foundational components; intent manager; conversation builder; Functions; and intent analytics.
Let me do a deeper dive into a few of the key parts of the platform. The key to AI is being able to identify what we call intense or the phrases from which the consumer expresses their goal. We recently developed a powerful tool called intent manager, which enables the machine to recognize intents in real-time at every step in the conversation, so that they can be classified and prepped for automation. We augment this with new capabilities in our live agent workspace that enables agents to tag intents during live conversations. And once intents are identified, they're moved to conversation builder where bots are then created. Conversation Builder changed the paradigm for bot development by creating a low-code scripting environment that empowers technologists as well as non-technical people, like contact center agents to easily build, deploy and manage automated conversations at scale. The Conversation Cloud was in beta over the past several months. And during COVID, we saw a dramatic increase in the use of intent manager and conversation builder by our enterprise customers.
The other component tool is called Functions. Functions enables developers to connect third-party systems and data sources and also enables custom development or real-time actions between systems. Functions is at the core of scaling high-quality automation because it enables complex back-end transactions to tie into the conversations. The Conversational Cloud platform was organically built from the ground up and all the components are seamlessly integrated and work with LiveEngage, which, as you all know, is our leading messaging platform.
Our recent sales activity validates the undeniable march toward automation adoption and a need for the Conversational Cloud. Q2 was among our strongest quarters ever for signed contract value, highlighted by the signing of seven seven-figure deals and several instances where opportunities closed in weeks instead of months. We also continued to see adoption curves compress as customers first sought to triage the COVID-19 crisis and then began shifting to a more strategic view of how they want to operate in the new normal. A prime example is the seven-figure upsell we signed with one of the 25 largest banks in the world. Like many customers, this leading brand was overwhelmed when the crisis hit, and agent capacity plunged and wait times on their 800 number skyrocketed. They turned to us for guidance, and we quickly went into action, helping them more than triple the number of agents on messaging and move toward a ten-fold increase in platform volumes. But the crisis mitigated, we are now in strategic discussions that we expect will result in another seven-figure upsell as company adopts a plan to become a true conversational bank by expanding automations and going wider on messaging.
Another great example is a win with the leading Italian broadband provider that nearly tripled volumes on our platform during the crisis, as we moved from voice to messaging in AI in order to better serve consumers. This customer launched automations across both care and sales, citing that the combination of AI over messaging creates a new paradigm for customer relationship management. As their use cases expanded, they noted a reduction in phone call volumes, quicker response times for clients and the highest NPS scores they've seen in the last six months. NPS represents how well the customer feels about the brand.
In the second quarter, we also opened up the government vertical, working with one of our partners to sign a first state -- US State contract. Faced with unprecedented call volumes as unemployment spike, the state quickly moved to help its constituents by deploying web messaging and voice to messaging deflection. Within just the first weeks, more than 30% of the volumes have shifted from their 800 number to messaging. And messaging agents were managed conversations at a 2 times to 3 times productivity of voice agents. Now the state is building out automations, deploying proactive messagings for direct outreach to impact its citizens.
Finally, I'd like to hide our groundbreaking work with food services like [Phonetic] Chipotle, one of the largest quick-service restaurant chains of the world, launched Pepper, a conversational AI to take customer orders directly through Facebook messenger. We're seeing a lot of action from traditional or other traditional brick-and-mortar stores where they want to provide contactless commerce, curbside pickup and virtual store agents. It's actually an area that retail wasn't a core area for us, but we've seen a tremendous amount of demand now in that area as consumers can't walk-in stores. We're creating now the flows to create that experience, at least, they can come and get stuff delivered to their cars and curbside pickup.
In addition to successfully or closing-out opportunities in our pipeline in Q2, we also created and progressed our sales pipeline at a rapid pace. Leveraging the powerful combination of a mature direct sales force, a new partner channel, and effective digital marketing engine. We're still testing and learning. I can confidently state that our go-to-market teams have adapted well to this new virtual selling world. For example, in place of our in-person customer marketing summits, in Q2, we launched a series of more targeted virtual events, each hosted by a flagship brand, demonstrating thought leadership and conversational commerce where we had initially planned for one of these summits per brand, the guest lists were over-subscribed, requiring us to host multiple on-core events.
With record Q2 results in the background, elevated platform volumes and a very healthy pipeline of opportunities to pursue, we are entering the second half of 2020 in a strong position and are raising guidance accordingly. We are now targeting 2020 revenue in a range of $357 million to $361 million, which is 22% to 24% year-over-year growth. Likewise, our success in capturing operating efficiencies through internal automation and tightened controls is creating a more scalable financial model where we can continue to invest in key growth drivers while still enabling revenue upside to flow to the bottom line. As a result, we are increasing our adjusted EBITDA guidance to a range of $16 million to $19 million, which is a marked improvement from break-even guidance at the start of the year.
To highlight the quarter's key accomplishments, the second quarter once again proved the adaptability and strength of our business model. In an uncertain macro environment, LivePerson is in a desirable position of raising revenue guidance and once again increasing our profit target. This improving outlook isn't simply fortuitous. It is the result of LivePerson setting a long-term strategy and vision around conversational commerce and AI and then investing in and executing on its strategy to put our company in the right place at the right time with the right platforms.
I also firmly believe that the inflection we are seeing and the shifts that are now happening in the contact center are going to be permanent. Once brands capture the lower cost, improve customer experience and increase scalability of automation, they are unlikely to backtrack to expensive, inefficient physical labor and voice calls.
With that, I'll turn the call over to John to provide an operational update and more color on our guidance. John?
John Collins -- Chief Financial Officer
Thanks, Rob. I too couldn't be more pleased with how well LivePerson adapted to the new environment and capitalized on the demand inflection for our Conversational Cloud. LivePerson sharply accelerated revenue growth and delivered better than planned profitability and cash generation as the company executed on all key facets of its business.
We built even stronger relationships with our customers by expertly guiding them through the crisis and helping them to maintain business continuity through a combination of AI and messaging. This strategy drove the revenue retention rate above our target range of 105% to 115%. We increased and progressed the sales pipeline by successfully adapting our go-to-market strategy to virtual selling and enhancing our partner channels.
As Rob stated, contract value signed in the quarter were among our highest ever. We enhanced operational leverage through increased efficiencies from automation and healthy rigor around expense controls and we dropped the majority of incremental revenue straight to the bottom line. This resulted in a $15 million year-over-year increase in adjusted EBITDA in the second quarter. We seamlessly transitioned to a work-from-home organization, maintaining strong productivity and alignment across regions and teams. The adaptability of our people and business model helped us capitalizing the opportunities that drove record results in the second quarter.
As for those results, accelerated adoption trends for messaging and conversational AI increased revenue to a record $91.6 million, which was nearly $8 million above the midpoint of our prior guidance range. Approximately 60% of the upside was fueled by our gain share models, which, as a reminder, are typically the first contract types to monetize increased usage of our platform. The remaining 40% came from higher overages, favorable timing of contract signings, the consumer business and various other revenue streams.
In terms of growth, revenue accelerated 29% year-over-year, nearly double the rate of the second quarter of last year and up 17% sequentially. B2B revenue grew 30% year-over-year and consumer grew 24%. Within B2B, hosted software grew 35% while services grew 4%. The US grew 44% year-over-year and accounted for 65% of revenue. International grew 8% year-over-year and accounted for 35% of revenue.
From an industry perspective, consumer and retail followed by technology, financial services and telcos, made the strongest contribution to year-over-year growth. However, we saw increased demand across the board. All of our verticals reported higher monthly volumes in June than pre-pandemic. We signed seven seven-figure deals in the second quarter and 134 deals in total. Consistent with the strategy discussed in the prior call, in the second quarter, LivePerson continued to prioritize helping existing customers successfully navigate the pandemic. The focus on securing our base yielded a high-return on several key dimensions.
Conversation volumes in LiveEngage increased more than 40% since the pandemic began in March, with bot-based conversations up greater than 50%. Revenue retention for enterprise and mid-market customers exceeded our target range of 105% to 115%. Trailing 12-month ARPU increased greater than 25% year-over-year to a record $395,000. Existing customer deal counts increased nearly 30% year-over-year, driven by a doubling in the number of enterprise deals signed.
As for new logos, a 35% year-over-year decline in closed deals was in line with our expectations. Although we brought in a number of high-profile new logos, including a multi-billion-dollar beauty retailer, a Fortune 500 consumer packaged goods company and a top 10 automotive OEM, our focus in the second quarter was on helping existing customers navigate the crisis.
Looking ahead to the third quarter, with our customer base confident and secure and considering the strong pipeline generated in the second quarter, we anticipate a rebound in new customer activity.
Moving on to the bottom line. As with revenue, adjusted EBITDA of $9.3 million exceeded the midpoint of our guidance range by nearly $8 million, reflecting the adaptability and scalability of LivePerson's operating model. The profit upside was fueled by the combination of strong revenue outperformance, along with rigorous expense discipline and efficiencies driven by internal automation. The strong execution also carried through to cash generation and we ended the quarter with a cash balance of $173 million, up $2 million from the prior quarter.
As I engage more closely with my colleagues across the business, it reinforces my confidence that there's meaningful room to build on this performance over the intermediate to long term. As previously discussed, Rob brought me in two quarters ago to modernize the CFO role by applying the lens of a data scientist to our operations. My key focus areas are automating repetitive low-value work and leveraging AI to enhance decision-making under uncertainty. We are steadily progressing with initiatives that will remove entire arcs of production effort from internal teams and field support, accounting and FD&A. For example, we recently delivered systems for financial planning, commission calculations and product pricing and sales proposals that not only enable us to scale more efficiently, but also give people their time back to focus on creative and strategic work. And in the case of our sales team, more selling.
Our valuable byproducts of these new connected systems is clean, standardized and rarely accessible operational data. This data feeds more sophisticated algorithms that enhance the quality and timeliness of actionable information, which supports decision-making and increases the predictability of our business. For example, we have built predictive algorithms that can forecast quarterly contract signing and per rep quota attainment more accurately than our financing field works. Tools such as these give us an ability to plan and react far more nimbly than we have been able to in the past.
With this positive backdrop, let's turn to the outlook for the remainder of the year. For the third quarter, we anticipate revenue in the range of $92 million to $93 million, representing 22% to 24% year-over-year growth. For the full year 2020, we are raising guidance to a range of $357 million to $361 million or 22% to 24% growth, up from previous guidance of $340 million to $355 million or 17% to 22% growth. The upward revision to revenue guidance reflects the combination of strong year-to-date contract signings, better-than-expected conversational volumes on our platform and a robust pipeline entering the second half of 2020. We continue to balance our enthusiasm for what we see as a demand inflection for our platform with a healthy respect for evolving macro uncertainties.
As for profitability, while most companies view investing in growth and driving higher margins as mutually exclusive, I think we're in a position to do both. We've made rapid and meaningful progress on the automation front and raised the bar for budgetary vigilance without reducing investments in core growth drivers, including AI, product innovation, go-to-market capacity and platform infrastructure. As a result, we are guiding for third quarter adjusted EBITDA in the range of $5 million to $6 million. For the full year 2020, we anticipate adjusted EBITDA in the range of $16 million to $19 million, up from prior guidance of $3.5 million to $10.5 million. We also continue to target cutting cash burn in half in 2020, and ending the year with a minimum of $135 million of cash on hand.
I'll close by summarizing a few key points about the business. LivePerson is benefiting from a demand inflection as leading brands leverage our platform and expertise to power remote agents and automations. Our growth trajectory has improved. We outperformed second quarter expectations and raised revenue guidance for 2020, due to the combination of a surge in platform volumes, compressed adoption curves for our technology and strong go-to-market execution. We've also accelerated our path to profitability and sustainable cash generation. The early but impactful progress we've made on automating G&A and sales support functions has helped us scale efficiently, raise profit guidance consecutively and plot a long-term course to reduce G&A expenses to single-digit percentage of revenue.
With that, I'll hand the call back over to the operator to take your questions.
Questions and Answers:
Operator
Okay. [Operator Instructions] We do have a question from Siti Panigrahi. You are now live.
Leonard Anthony DeProspo -- Mizuho Securities USA LLC -- Analyst
Hi, this is Leonard DeProspo in for Siti. I just wanted to ask about sales reps from last year, sort of almost doubled the number of sales reps. I wanted to talk about the capacity you ran so far with your expectations of the sales reps productivity as in the second half? Thank you.
Robert LoCascio -- Founder and Chief Executive Officer
Sure. So in terms of quota carriers, we are flat relative to last quarter in enterprise and expect to approximately remain around that number throughout the remainder of the year. In terms of their ramped ability, as we previously called out, we have about 80% of our -- the capacity we added in 2019 ramped as of the end of the second quarter.
Leonard Anthony DeProspo -- Mizuho Securities USA LLC -- Analyst
Thank you.
Operator
Next one on the line is Arjun Bhatia from William Blair. You are now live.
Arjun Rohit Bhatia -- William Blair & Company L.L.C. -- Analyst
Hey guys, thanks for taking my question and congrats on the great quarter. John, maybe this one's for you. The full year guidance calls for additional upside in the second half of the year relative to what you had previously thought and the range is also meaningfully narrowed. Can you maybe just give us a sense for where you're seeing the most increased visibility that gives you confidence in that guide relative to what you knew 90 days ago? And how much of that is -- are you counting on the momentum of gaining share continuing versus some of the overages and upsells and contract values that are going to take place in the second half?
John Collins -- Chief Financial Officer
Sure. So with regard to gain share, it's definitely a key component. About 60% of the upside is due to our gain share models. And as discussed last quarter, the gain share models enable us to recognize revenue almost immediately as volume increases. So we kind of expected some of that as volumes continue to increase during the second quarter. Over-time, of course, though, we expect elevated volumes to translate into upsells for other contract types. With regard to the remaining balance, the 40% of upside is really tied to a variety of different dimensions, including overages and other contract types, the timing of bookings in the quarter, the consumer business and other revenue streams.
Arjun Rohit Bhatia -- William Blair & Company L.L.C. -- Analyst
Got it. Thanks. And then, Rob, maybe this one is for you, but the launch of the Conversational Cloud. Can you just maybe give us kind of the objectives of that? Is it to democratize AI, so the customer service agents can use it and introduce more automation into messaging volumes than there is today. Just give us a sense for what's different and what the main objective is of launching this new solution?
Robert LoCascio -- Founder and Chief Executive Officer
Yeah. So when we look at LiveEngage, LiveEngage is really about messaging and the messaging endpoints, like Facebook Messenger and Apple Business Chat and Voice to Messaging, so we have that. But what we're seeing is there's a lot of focus on how do we automate conversations. So we built a set of services and put them together in the Conversational Cloud, which include intent manager, which is a new service to ingest transcript data and then basically automate looking for intents and goals of consumers and then once again, you can talk about democratizing bot building with conversation builders and then there's the Functions' capability to integrate into the back-end systems. And that pretty much gives you what you need to really scale automations, whether you're a technology group or you're an agent group and so we put it together in one single platform with one single unified experience. So you can create an intent and then an intent flows straight into conversation builder and then it's launched. And then you can analyze that in that conversation and the automation of it. So the idea was to really take a harder position on AI and automation and then separate out the live agent tool-set, which is really a lot about LiveEngage.
Arjun Rohit Bhatia -- William Blair & Company L.L.C. -- Analyst
Perfect. Thank you. And congrats again.
Robert LoCascio -- Founder and Chief Executive Officer
Thank you.
Operator
Next one on the line is Peter Levine from Evercore. You are now live.
Peter Levine -- Evercore ISI -- Analyst
Great. Thank you for taking my questions and congrats on a great quarter. So just two from me. So the seven-figure deals upgrades you had in the quarter, how do those deals come about? How long are they -- I mean, how long was the sales cycle, meaning, how long -- I mean, when did these deals really enter the pipeline? And was it more upgrades toward higher usage or was this kind of these companies deploying messaging across other business units?
John Collins -- Chief Financial Officer
Sure. So it's kind of a mix of all of the above. Certainly, our strategy is to land and expand these big accounts. And so for the seven-figure deals within the existing base, that's precisely what's happening. In some cases, we're renewing at higher baselines of volume. In other cases, we're adding additional products from the Conversational Cloud. And as you said, expanding into new departments and verticals within the enterprise.
Peter Levine -- Evercore ISI -- Analyst
Great. And then maybe just to piggyback off the last question. Can you maybe just talk about how you're going to monetize covers cloud, is it a per rep seat charge? Just curious to know how that differs from customers on LiveEngage. Thank you and congrats on the quarter.
John Collins -- Chief Financial Officer
So currently, we have certainly room to move with our pricing structure. But at the moment, it's not a per-seat sort of structure. It's more of a cost per interaction structure. So it's driven by increased usage, right? And we have, obviously, there's great demand among the customers to tap into various databases via API to use our Functions as a Service, product feature and these have a charge associated with those as well. So it's really a usage-based model, not a seat-based model.
Peter Levine -- Evercore ISI -- Analyst
Thank you.
Operator
Next one on the line is Richard Baldry from ROTH Capital. Please [Indecipherable] only one question and one follow-up. You are now live.
Richard Kenneth Baldry -- ROTH Capital Partners, LLC -- Analyst
Thanks. I wanted to note that it took you 7.5 years from your IPO to increase revenues the same amount you did in the last 90 days. So against that backdrop, I'm sort of curious, what are the challenges to rapid scaling in a remote working environment? So there's not as much face to face? Is there challenges to hiring, educating? Can you maybe talk about what you see in that given what looks like a pretty strong acceleration to your growth?
Robert LoCascio -- Founder and Chief Executive Officer
So if I unfold that a little bit. First is, we are not going to return to offices. So we have decided, as a company, to change how we're working and obviously, it's working quite well for us. So when we look at sales activity and marketing activity, on the last quarter's call, I said I wasn't sure how things would play out. While our marketing events, the face-to-face events mean a lot and then they drive a lot of deals closed. What we're seeing is that the demand for our products and our platforms is just outweighing the need to be face-to-face and we have such good and referenceable customers in our base as you know, that they're doing webinars for us and stuff like that.
So we feel very good about where we are. And this concept of -- I don't want to say distributed work, forces because we've been distributed. We've been globalized since 2000, when Israel was our tech hub at one point. But we're just thinking of working in a different way. We can go after a different set of employees. We can go after a different set of customers. I don't know, things are just moving quite well for us. So we figured let's continue operating in this mode. And I think you're going to see a lot more innovation on the marketing side also moving forward, because we don't have the face-to-face, we're learning a lot about how we can really engage our prospects. And as you remember, at the end of last year, we went into a partner-focused strategy and that's played very well because our partners have their customer bases, and we're able to access them. So I think strategically, we just kind of nailed it on go-to-market with partners and the right product mix, the launch of the Conversational Cloud, it's all kind of playing out.
Richard Kenneth Baldry -- ROTH Capital Partners, LLC -- Analyst
A follow-up on sort of that change in how things have to be done. When you look into the pipeline, have you seen any noticeable names that might have been people you wanted to get into, but were maybe resistant prior, but recognizing that things are changing are willing to open their doors like have you seen some early indications of that success? Thanks.
Robert LoCascio -- Founder and Chief Executive Officer
Yeah. The thing that's just been very exciting is retail. And retail was never really a place for us to play because it's usually low-margin products. And they don't want to put labor in it. So now that we come to the table with automation and people don't go to stores, they can't enter stores as much, there's like a whole transformation of the retail world. We've been piloting with one of our big-box home-improvement companies, one of our customers, of virtualization of their stores. So there's a store in New York now you can walk into every product, there's a QR code. You hit the QR code with your phone and you start messaging an automation or a remote agent who's offshore, who's actually in the Dominican Republic. And they're servicing a store in New York. So we've been running it for a couple of months, and it's been doing very well. Consumers love it. They don't have to go face-to-face when somebody who works in the store. We're doing pick up at the curbside with this technology, too. So I think the retail for us is something that is really exciting. Obviously, Chipolte, we announced what we're doing with them. So there's a lot of action in there right now, more than we've had in the past because of the dislocation of that business and they're looking for something to change the game.
Richard Kenneth Baldry -- ROTH Capital Partners, LLC -- Analyst
Thanks. Congrats Rob.
John Collins -- Chief Financial Officer
Thanks a lot.
Robert LoCascio -- Founder and Chief Executive Officer
Thanks.
Operator
[Operator Instructions] Next one on the line is Steve Enders from KeyBanc. You are now live.
Steven Lester Enders -- KeyBanc Capital Markets Inc. -- Analyst
Hi. Great. I just wanted to get a better understanding of what you're seeing on the gain share side of the business and how you're incentivizing reps to push more and more of these agreements. So it seems like they're accelerating revenue for you?
Robert LoCascio -- Founder and Chief Executive Officer
Yeah. So maybe I can break out gain share a little bit. It used to be something different in the past than what it is present, and I think it is good to unfold that. The gain share business is really a way for us to go into a customer and say, look, we have agent capacity. So we bring a partner who has live agents and we'll handle messages right off the bat, so we can get up very quickly, and we use our platform the best, but actually, what's very interesting is we're not competing as like a BPO or trying to get labor business, our goal is to take that labor and this is very specialized labor that we've trained and they work on automations.
So if you look at all the gain share programs we have, the goal when we walk in the doors, like, look, we're going to automate 80% of these flows, but it starts with human agents, taking the messages and learning about the intent and then using the tool-set to automate. So we have a huge competitive advantage. We start out, let's say, at an equal rate of a BPO on a cost per message, but we'll drive the cost down over 24 months to half that price. And then over 36 months, a quarter of the price because we'll automate it and then we're getting more volume. And so that's what's exciting about it because it fits to our strategy. We're not looking for live agents here. They're only being used to create automated conversations.
Steven Lester Enders -- KeyBanc Capital Markets Inc. -- Analyst
Okay. Great. That's helpful. And then just want to get a better sense of -- it does sound like you guys are seeing quite an uptick in usage. Just trying to get a better sense of what you're seeing from customers coming back to the table and beginning to renegotiate some of those contracts and better handle some of that uptick in usage that you've seen when we start seeing that flow through to more revenue?
John Collins -- Chief Financial Officer
So we highlighted a couple of, I think, key wins in the prior quarter and that general trend has continued and that is -- we've historically had enterprise license agreements that are essentially all you can eat contracts from a usage standpoint and we've been rolling those over into cost per interaction contracts in -- over the course of upselling those customers. And so given the increased baseline in volumes, we've had a lot of success in that particular strategy. On top of that, of course, we have many in the base on CPI contracts today, and they're renewing at higher baselines of volume, as you might expect, considering the volume increases that we've telegraphed.
Steven Lester Enders -- KeyBanc Capital Markets Inc. -- Analyst
Okay, great. Thanks. That is really helpful.
Operator
Next one on the line is Jeff Van Rhee from Craig-Hallum. You are now live.
Jeffrey Lee Van Rhee -- Craig-Hallum Capital Group LLC -- Analyst
Great. Thanks. I'll add my congrats. A couple from me guys. To the new deal flow, I think you had messaged -- you kind of hit your head down on dealing with existing customers and migrating existing customers. Can you dive into that just a little more precisely kind of how it progressed month-by-month from sort of pre-COVID right on through to where we are now in terms of just exactly what was going on in those new deals? Were the deals moving at normal pace? Was it just a function of you looking elsewhere and now refocusing back on those deals? Just trying to better understand the underpinnings of your expectations for those deal counts to come back.
John Collins -- Chief Financial Officer
Hey, Jeff. So the story is really what we described in the prior call and that is that we had an intentional strategy to focus on the base. As I described in my prepared remarks, we needed -- there was a need for us to help guide them through the crisis to maintain business continuity and high levels of customer service. And I think it's important to note that, that strategy really drove a 30% -- sort of a 25% increase in ARPU and higher revenue retention than our target range of 105% to 115%. So I'd also add that existing customer deals were up 30% year-over-year as a result of that strategy. So there was really, I would say, a strong quarter on a lot of dimensions related to deal counts.
With regard to new logos, we had some strength in various verticals. And retail, I would say, is clearly one of those for the reasons that Rob has described in the prepared remarks and in answer to a prior question. I think considering the sort of secure base we have now and the amount of ground we've covered already in addition to the pipeline we generated in the second quarter and the amount of movement there's been in that pipeline that we would expect new logo activity to pick-up meaningfully in the third quarter.
As to your question on whether things were slow, I would say, certainly, there's -- they were slow, but not canceled. And some new logo deals were certainly pushed into the third quarter, which is another reason why we have increased confidence that new logo activity will pick up at that time.
Jeffrey Lee Van Rhee -- Craig-Hallum Capital Group LLC -- Analyst
Okay. And one just brief follow-up. The gain share, where is it now as a percent of revenues? And just to have a sense of magnitude, roughly how many customers are on those kinds of programs, gain share programs?
John Collins -- Chief Financial Officer
It's about 15% of revenue at the moment. And I would say, generally, dozens of customers.
Jeffrey Lee Van Rhee -- Craig-Hallum Capital Group LLC -- Analyst
Dozens. Got it. Okay. Thanks for taking my questions.
Operator
Next one on the queue is Mike Latimore from Northland Capital. You are now live.
Michael James Latimore -- Northland Capital Markets -- Analyst
Thanks. Awesome quarter. I guess just two things. One is, can you quantify maybe how much the pipeline has grown since the start of the year? And then two, you've mentioned partners a few times. Maybe give a little more color on how partners are contributing to the bookings and pipeline now?
John Collins -- Chief Financial Officer
Yeah. So pipeline growth entering the second quarter was, as we previously described, close to a record and we've continued to develop a really strong pipe throughout the quarter in addition to progressing that pipe as previously described. So we're really happy with the health of the pipeline at the moment.
Michael James Latimore -- Northland Capital Markets -- Analyst
Great. And then on partners, can you talk a little bit -- how are they contributing to bookings in the quarter in the pipeline?
John Collins -- Chief Financial Officer
Yeah. They're really contributing on two different dimensions. So one would be, we have obviously a lot more boots on the ground through the partner network, and that's allowing us to tap into those partners, the existing base of customers. They're also helping us importantly on professional services work today. So that's part of the strategy that we have to get leverage on the model through partners. Both additional reps in the field and support for the low-margin professional services work that we've historically had to do ourselves.
Michael James Latimore -- Northland Capital Markets -- Analyst
Did they drive any of the big deals in the quarter?
John Collins -- Chief Financial Officer
They're definitely driving deals. This quarter not -- they're not responsible for the seven seven-figure deals that we discussed.
Michael James Latimore -- Northland Capital Markets -- Analyst
Yeah. Thanks.
Operator
Next one on the queue is Sterling Auty from JPMorgan. You are now live.
Matthew Melotto Parron -- JPMorgan Chase & Co -- Analyst
Hi guys, this is Matt on for Sterling. Thanks for taking the questions. So in terms of the cost savings and the EBITDA margin, how much of the cost savings from lower expenses do you think you're going to reinvest in the business? And really asking in context of the previous 7% to 10% EBITDA margin guide, how do you think about the next couple of years out in terms of the EBITDA from where it finished this quarter?
John Collins -- Chief Financial Officer
Well, we won't be commenting on a couple of years out or 2021 during this call. But I think it's implied in our guidance that there's some reinvestment back into the business that we're contemplating in the third quarter, given the step down in adjusted EBITDA relative to the second quarter. And as I had previously suggested, some of that is going to support our infrastructure. After all, we have record volumes on the platform and those continue to be strong. And so there's a need to reinvest to ensure stability and that we have a high level of service for our customers. We're also investing in kind of the core growth drivers of the business, which include engineering, science and go-to-market capacity. But again, I would say that the magnitude of that investment is reflected in the guidance.
Matthew Melotto Parron -- JPMorgan Chase & Co -- Analyst
Got it. And then one follow-up from me. In terms of the 50% of conversations that are now fully automated, how much of the ARPU increase is coming from customers adopting more automation?
John Collins -- Chief Financial Officer
So in terms of ARPU, it's obviously driven by the base. And as we've said, the base is adopting automation at really unprecedented levels relative to our history. So clearly, that is driving increased ARPU.
Matthew Melotto Parron -- JPMorgan Chase & Co -- Analyst
Got it.Thanks guys.
Operator
Next one on the line is Koji Ikeda from Oppenheimer. You are now live.
Koji Ikeda -- Oppenheimer & Co. Inc. -- Analyst
Hey guys, congratulations on a really, really great quarter. I just wanted to ask a little bit on the back-office automation strategies. It sounds like they're really beginning to take hold out there, especially in the finance department, automation and with the sales department automation, too. I was wondering if you could provide any high-level commentary on how we should be thinking about the ability to productize those back-office automation technologies and when we could start seeing those being introduced to the market?
Robert LoCascio -- Founder and Chief Executive Officer
Hey, Koji. So I would love to give you an answer on that, and it's certainly on our radar, but it's not something we're prepared to put a timeline on at the moment.
Koji Ikeda -- Oppenheimer & Co. Inc. -- Analyst
Okay. Got it. And then just one follow-up from me. During the quarter, you did talk about some contract renegotiations. I was wondering if you can put a magnitude on the upside of the contract renegotiations in the quarter due to customers that were maybe coming up or bumping up against the overage threshold this quarter versus maybe years past. Thank you for taking my questions.
John Collins -- Chief Financial Officer
Yeah. The short answer to that question is that there's a distribution, right? And some are falling throughout the distribution this quarter and that would include in the seven-figure range.
Operator
Next question is from Jonathan Kees from Summit Insights Group. You are now live.
Jonathan Allan Kees -- Summit Insights Group, L.L.C -- Analyst
Hello. Can you hear me?
Robert LoCascio -- Founder and Chief Executive Officer
Yeah.
Jonathan Allan Kees -- Summit Insights Group, L.L.C -- Analyst
Okay. Super. I'll add my kudos to the results to the great quarter. I wanted to ask, first, kind of, I guess, a follow-up. Last quarter, you talked about your SMB business about 15% of your revenues there were afflicted by the COVID. I guess with this quarter, you're seeing strength across all verticals, all industries here. I wonder if you can give some more color in terms of that, especially for the afflicted industries. Are they back to normal? Have they normalized in terms of their spending patterns? I assume that they've rebounded and that the bottom has been reached and that it's been improving every month. But just, yeah, some more color in terms of the impacted industries from COVID?
Robert LoCascio -- Founder and Chief Executive Officer
Yes. So I think the one thing that we have recognized is, like we didn't have to talk about customers not paying us or customers defaulting or are they going out of business? And I mean, this may be a bold statement, but if they're on our platform, it means they're in the future of trying to transform their business anyway. So I think even the airlines that we have on our platform, they're doing a lot of work on the platform how to automate and change the game. So unlike other platforms where I think they're kind of the past of how you engage a consumer the ones that are on our platform, they're paying us. And even if they're SMB, they want to have this relationship and create these conversations at some scale and have a deeper relationship and we're investing in some more platform capabilities in the SMB area because we see this group really want to get close to their customers, especially if they have stores and stuff and people are not walking into the local store. They want to have a conversation with them and stay connected beyond a website and a physical store. So I just think we're seeing good stuff up right now across the board and people on our platform are just they're transitioning their businesses, they're transforming them, so.
Jonathan Allan Kees -- Summit Insights Group, L.L.C -- Analyst
Okay. All right. And I think you -- that was helpful when you said they're not asking for payment deferrals like in the previous quarters. So that's great. My follow-up question, I guess is also related to last quarter. You brought in a new one EMEA Head from salesforce. And you talked about for this quarter, international grew 8% year-over-year. I'm just wondering like when you expect international to start picking up as kind of decreased last quarter in terms of year-over-year growth. When do you see the impact in terms of the new EMEA Head and the efforts there?
Robert LoCascio -- Founder and Chief Executive Officer
I mean, they did a very good job -- sorry, John. Go ahead.
John Collins -- Chief Financial Officer
No, go ahead, Rob.
Robert LoCascio -- Founder and Chief Executive Officer
No, John, you go first.
John Collins -- Chief Financial Officer
Yeah. So the bookings were actually ahead of schedule in EMEA while there was a slight step down in revenue, we expect that given the changes that the new leader is making, some additional capacity we've on-boarded there that we're going to see the results of that investment play-out over the next couple of quarters.
Jonathan Allan Kees -- Summit Insights Group, L.L.C -- Analyst
Okay, great. That was helpful. All right. Thanks gentlemen.
Robert LoCascio -- Founder and Chief Executive Officer
Thank you.
John Collins -- Chief Financial Officer
Thank you.
Operator
Next one on the queue is Zach Cummins from B. Riley FBR. You are now live.
Zachary Cummins -- B. Riley FBR, Inc. -- Analyst
Yeah. Hi. Good afternoon. Congrats on a strong quarter and thanks for taking my questions. Focusing on the uptick you've seen in conversational volume of 40% since the onset of pandemic, can you give us some insight into expectations for conversational volume as we go into the second half of the year? And Rob, can you talk about maybe investments needed to be made in hosting capacity for this uptick in volume?
Robert LoCascio -- Founder and Chief Executive Officer
Yeah. So we continue to see growth. So growth continues up week over week, month-over-month. So we had that massive 40%, and then we're continuing to grow, not at that rate but still going up quite nicely. We are looking to add public cloud capacity. As you know, we run our own clouds around the world because of security of data and all that, but we need to supplement our clouds with public clouds and we'll be choosing one of the big public cloud providers shortly and then we'll get more capacity there because we -- to ramp at the level that we're seeing, ordering a hardware and putting it into cages and everything, it's just not efficient. And we want more flexibility to handle the spikes we're seeing.
And what's very interesting in the spikes we're seeing though are very different than the past. And this goes back to automation. Basically, a customer in the past would sign up and say, I'm going to put 1,000 agents on your platform. We know 1,000 agents can generate X volume. But today, they get on platform, I mean, I saw this there was a customer down in South America who's a logistics company. I don't know who they are. We just -- they are not a known name to us, but they're a mid-sized level logistics company in South America and their volume is in the top 10 or so of our volume because they're running a tremendous amount of automations around shipping and so they don't have a live agent pool. They just have a bot agent pool and it's driving so much volume on our platform.
So what's happening now is whether it's a large Telco or a mid-market, it doesn't matter. They drive these huge spikes in traffic, and we don't have a lot of ways to control it and we don't want to obviously put a cap on it. So we're focused on being able to spike capacity with that. So in the next quarter or so, we'll be talking about what we want to do with public cloud capacity and adding it in and then we'll add it in. And then I don't -- we're not going to do a massive migration, putting everyone on that, but we'll add it in and then start migrating customers onto that or pieces of their business onto that as we move forward.
Zachary Cummins -- B. Riley FBR, Inc. -- Analyst
Understood. That's helpful. And then just another question from me is, can you talk about some of the opportunities into these newer verticals? I mean, specifically on the government side with you breaking into there with a new statewide contract?
Robert LoCascio -- Founder and Chief Executive Officer
Yeah. I mean, they are obviously, between unemployment insurance and there's a lot going on with COVID still testing government and they had to fire up these contact centers, and they tried to do with human labor, and they just can't -- they can't hire people quick enough. So with one of our big partners, we fired up with one of the states on the Northeast, their whole response to unemployment benefits. And so I think we're going to be -- we'll be doing a lot more with this partner in that area, and we're seeing more demand around used cases like that. So that's quite exciting. Like I said, the retail vertical is going quite well right now, Telco verticals. The Telcos are really doing quite amazing work on transitioning a lot of the volume into automation. So we're seeing that with our large Telco customers, but sort of across the board, there's a lot of interesting use cases that we're doing right now around different verticals.
Zachary Cummins -- B. Riley FBR, Inc. -- Analyst
Great. Well, thanks again and congrats on a strong quarter.
Robert LoCascio -- Founder and Chief Executive Officer
Thanks a lot.
Operator
Next one on the queue is Mark Schappel from Benchmark. You are now live.
Mark William Schappel -- The Benchmark Company, LLC -- Analyst
Hi, good afternoon. Nice job on the quarter.
Robert LoCascio -- Founder and Chief Executive Officer
Thank you, Mark.
Mark William Schappel -- The Benchmark Company, LLC -- Analyst
Rob, question for you, following up on the prior question on your international business, is the slower growth you're seeing overseas due to just internal operational issues you're having or is Europe just behind the curve on messaging and automations?
Robert LoCascio -- Founder and Chief Executive Officer
We just felt it was a leadership issue and things got a little slow over there. But it's not -- the demand in that market over in Europe, Asia, now we also have feet on the ground in South America. But the new head over there, they exceeded their bookings numbers for Q2. So it came in, and I think he's going to have -- he is an impact player. But no, Europe is not behind. In some cases, Europe is way ahead of us because there's a lot more competition in markets, like Telcos in Europe, there's a lot more Telcos competing versus we've got now three in the US. So there's a lot of like -- they always want to beat each other out. In the last five years, I've seen a huge shift. So we should start seeing in the upcoming quarters, a return to growth there. And obviously, the US market is growing above 40%, and they're doing very, very well. But we should see the same sort of growth, I'd like to see seen growth over in Europe and beyond.
Mark William Schappel -- The Benchmark Company, LLC -- Analyst
Okay. Great. And then shifting gears a little bit. With respect to the Conversational Cloud platform that was announced, it sounds like there's some meaningful customer benefits in the solution, but what are the benefits to LivePerson per se?
Robert LoCascio -- Founder and Chief Executive Officer
The benefits are the win in conversational commerce, which is our strategy, which is we believe that commerce will transition from e-commerce to c-commerce or conversation commerce, that will be driven by automation and the scale of automation, it will not be driven by human agents, messaging and chatting. And so for us, it allows us to tap the volume that's out there. I can talk about retail, like we're tapping volumes of conversations in retail that we weren't really after before, but that will move from e-commerce to conversation commerce. So that's what it's going to do. It's going to -- this is what we saw in the quarter. It drove really the results we saw in this quarter and it's going to drive the future of our strategy. So it's basically, what I'd say is the foundation for getting this to be a multi-billion-dollar business in revenues.
Mark William Schappel -- The Benchmark Company, LLC -- Analyst
Great. Thank you. Appreciate it.
Robert LoCascio -- Founder and Chief Executive Officer
Thank you.
Operator
For the next question we do have Ryan McDonald from Needham & Company. You are now live.
Alex Narum -- Needham & Company, LLC -- Analyst
Hi, this is Alex on for Ryan. A few weeks ago, the company discussed moving away from office-centric workplace. And you mentioned that it costs approximately $10,000 per employee per year to be in a traditional office. So what percent of the workforce do you expect to remain working from home? And then how should we think about those cost savings going forward?
Robert LoCascio -- Founder and Chief Executive Officer
Yeah. So just to put some color around it. Out of our 1,200 or so employees, half are already working in their home before pre-COVID. These are field facing people. And so there's about 600 that are working in offices. And we spend about $10 million a year on -- $10 million to $12 million a year on office space. We are now working through with -- as a group internally of employees that are working to create the frameworks for operating in this environment without physical office space. Now we'll probably -- we're going to push down a certain amount of that money into employees' hands and then let them to decide what they want to do. Like they may, as a group, maybe six of them want to get together into the next six months, they're going to have an office that WeWork or something like this or maybe one person says, I want to work three days a week, in some sort of physical location and then I want to be in my home. And that's where I think it's going to be. It's much more of a flexible environment for people to work, but we're working on that right now. So I don't think 100% of the cost savings will come back.
Right now, we want to take that budget and put it in the hands of our employees to just operate the best that they can be. And it's challenging still. Especially people who have families and the kids are at home, single people who are in small apartments, but we're seeing a migration right now. Because we made a commitment, this is what I think is important. We made a commitment not to go back to the office. And I'll tell you why we did that. I don't like false hope. And telling our employees to hang on for -- until September than January, but we're not allowing them to make the choice that's best for their life. And we found there are people living in cities who would move out of the city and go live somewhere else in the world, if they weren't thinking we were going to open the office again and we're not. There's no way to get back unless we have a vaccine. And we're not kidding ourselves about social distancing.
So it's opened up a whole world a thought about also recruiting. You can find the best people from different places in the world. And so I'm pretty excited about it. And it's not really a cost savings measure right now. It's more of -- we'll probably put a fair amount of that money back into the employees to make this work. And so that's how as shareholders we should look at it today.
Alex Narum -- Needham & Company, LLC -- Analyst
Okay. That makes sense. And then, will that result in any onetime charges for early lease termination?
Robert LoCascio -- Founder and Chief Executive Officer
Potentially, we're negotiating with our landlords. The good thing is, we don't have -- first of all, just to put out that our landlords cannot make our offices safe. And that's the problem that they have built these offices that are not allowing us to come back to work and be safe. And they're not willing to put money into offices to make them safe and they will figure it out one day. But today, they just want us to pay and go back and potentially harm our employees, which we're not going to do. So we're negotiating with them. But one of the things is, I got -- personally, we got -- back in 2001, we were long on real estate and it almost hurt the -- almost bankrupted the company, and we never went long on real estate since 2001. So we don't have some big tower. We don't have a lot of exposure with something we built this giant. I think we don't have that. So we're negotiating out of our leases as we speak. But like I said, our landlords cannot provide us a safe space and we're forced to go and now take alternative measures.
Alex Narum -- Needham & Company, LLC -- Analyst
Okay. Thank you.
Robert LoCascio -- Founder and Chief Executive Officer
Thank you.
Operator
Next one on the queue is Brett Knoblauch from Berenberg. You are now live.
Brett Anthony Knoblauch -- Joh. Berenberg, Gossler & Co. -- Analyst
Hi guys, thanks for taking my call. Hope you guys are all well. Maybe one for John. Can you talk a bit about the mix of news? It looks like B2B cloud hosting really accelerated in the quarter relative to services. Is that dynamic something you would expect to continue for the remainder of the year?
John Collins -- Chief Financial Officer
Hey. Yeah, it is because of the strategy we have to get more leverage in the model through partners. We expect that they will handle increasing size of our professional services work going forward.
Brett Anthony Knoblauch -- Joh. Berenberg, Gossler & Co. -- Analyst
Okay. Perfect. Then maybe one just on the payment related investments you guys highlighted in February. I guess, maybe an update there, how is it progressing? And maybe what percentage of those investments have been completed in the first half thus far?
John Collins -- Chief Financial Officer
Yeah. So we have begun some testing with live customers with the payments products and we'll be able to release more information as we previously discussed after the third quarter.
Brett Anthony Knoblauch -- Joh. Berenberg, Gossler & Co. -- Analyst
Okay, perfect. Thanks so much.
Operator
Next one on the queue is Samad Samana from Jefferies. You are now live.
Samad Saleem Samana -- Jefferies LLC -- Analyst
Good afternoon. Thanks for taking my questions. I'll echo the strong quarter comments. Most of my questions have been asked, but maybe just a housekeeping one. I was curious if you guys could give us the breakout of hosted services business revenue growth, I'm not sure I saw that in the materials or heard it on the call.
And then also, just a question, kind of similar on the GEO side, but slightly different. For the geographies that have started to experience reopening and where people have maybe gone back to work outside of the US in other countries, are you seeing any change in customer behavior or moving in and out of the pipeline? Thanks again for taking my questions.
John Collins -- Chief Financial Officer
With regard to the latter question, I think in general, the answer is no. As we've said previously, there's been some friction with new logos that I think we're overcoming now. And as discussed, the pipe that we built in the second quarter and the progress we've seen gives us confidence that 3Q will overcome those frictions we saw earlier.
Robert LoCascio -- Founder and Chief Executive Officer
And in regards to hosted versus professional services, the hosted services were up 35% year-over-year. Professional services were up 4% year-over-year in the second quarter.
Samad Saleem Samana -- Jefferies LLC -- Analyst
Great. Thank you.
Operator
Since there are no further questions on the queue, you may continue.
Robert LoCascio -- Founder and Chief Executive Officer
Thank you, operator. So I'll end the call by reemphasizing a few key points. Our model is inflecting as leader brands in the world, turn to LivePerson to navigate the massive changes have happened and our revenue growth is expanding with that change. Obviously, I think the coronavirus has really exposed the inaccuracies of legacy voice contact centers and I've talked about this before. They are like factories where people sit to feed from each other and get a widget of a call in their ear every five minutes and they're expected to work under those conditions. And now they can't, and they've been sent home. So I think, obviously, our stuff has now been must-have and the AI capabilities to automate that is also a part of that must-have.
We believe that conversational AI is really what's going to win in the market. And obviously, we put out our platform now, the Conversational Cloud to take all of our AI components. And it's interesting because ultimately, that platform will not just be about our data set as in stuff that's generated off of LiveEngage, our customers will be able to use the Conversational Cloud as tool sets to power AIs in many different conversations. They may be even using one day, a different messaging platform. And they are going to ingest that into our Conversational Cloud, and then they can build the AIs around that. So we -- it's a much more open system, and we have a bigger vision about how AI is going to play in the enterprise.
I'm very excited about the impact that John has had in a very short period of time. Many of you know, it was sort of a risk putting a someone who didn't have a CFO background to that role, but I think he's just done a phenomenal job. And if you want to end recent Horowitz on the website, wrote an article about the CFO role and the changes that are happening in and it's called the CFO and Crisis, and that's the title. And they talk a lot about what that role will be and how it will be data science-driven and analytics-driven. And I think John has done a great job so far in being an impact player with his team on the automation of many business processes.
And then finally, we've chartered through -- we definitely have chartered through a very difficult macro environment. And I want to thank all the employees for working hard and staying focused even in work from home there is massive shift, but staying very focused on delivering our vision. And delivering on our lofty goal of one day owning the conversational commerce space, which, as I've said, is I think one of the greatest shifts from e-commerce to c-commerce or conversational commerce, which we are definitely just doing an extraordinary job on. I'm proud of everyone who just executed this quarter.
So with that, thank you for your time and we will see each of you and hopefully, into Q3. Thank you.
Operator
[Operator Closing Remarks]
Duration: 0 minutes
Call participants:
Matthew Kempler -- Vice President of Investor Relations
Robert LoCascio -- Founder and Chief Executive Officer
John Collins -- Chief Financial Officer
Leonard Anthony DeProspo -- Mizuho Securities USA LLC -- Analyst
Arjun Rohit Bhatia -- William Blair & Company L.L.C. -- Analyst
Peter Levine -- Evercore ISI -- Analyst
Richard Kenneth Baldry -- ROTH Capital Partners, LLC -- Analyst
Steven Lester Enders -- KeyBanc Capital Markets Inc. -- Analyst
Jeffrey Lee Van Rhee -- Craig-Hallum Capital Group LLC -- Analyst
Michael James Latimore -- Northland Capital Markets -- Analyst
Matthew Melotto Parron -- JPMorgan Chase & Co -- Analyst
Koji Ikeda -- Oppenheimer & Co. Inc. -- Analyst
Jonathan Allan Kees -- Summit Insights Group, L.L.C -- Analyst
Zachary Cummins -- B. Riley FBR, Inc. -- Analyst
Mark William Schappel -- The Benchmark Company, LLC -- Analyst
Alex Narum -- Needham & Company, LLC -- Analyst
Brett Anthony Knoblauch -- Joh. Berenberg, Gossler & Co. -- Analyst
Samad Saleem Samana -- Jefferies LLC -- Analyst
