Good afternoon, welcome to the LivePerson first quarter 2016 earnings call. My name is Liliana, I'll be facilitating the audio portioning of today's interactive broadcast. All lines have been placed on mute to prevent any background noise. For those of you on the stream, please take note of the options available in your event console. At this time, I would like to turn the show over to our LivePerson's founder and CEO, Robert LoCascio, and CFO, Daniel Murphy.
Thank you very much. Before we begin, please note that we will make forward-looking statements during today's call, which are predictions, projections, or 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, in the comments made during this conference call, and in 10-Ks and 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, which is now available in the investor relations section of our website. I will turn the call over to Robert LoCascio.
Thanks, Dan, thank you for joining LivePerson's first quarter 2016 conference call. We're pleased to report that first quarter revenue and profit were within and above LivePerson's previous issued guidance ranges. Our vision and strategy are starting to intersect with the demands of the market, as there's been a lot of public discussion around mobile messaging, bots, et cetera, all in the context of customer care. Companies like Facebook are reinforcing our vision regarding the inevitability of messaging between brands and consumer. Working closely with Facebook Messenger, LivePerson revealed new integrations with Messenger and chatbots at Facebook's F8 conference last month. We now provide consumers the ability to message a brand directly when bots fail to deliver a successful self-service outcome. A long-standing customer, 1-800-Flowers.com, was highlighted as a first adopter of these new capabilities in Mark Zuckerberg's keynote speech.
1-800-Flowers.com is leveraging the scalability, security, and intelligence of LiveEngage and our integration with Messenger to offer hundreds of millions of consumers the option to message the contact center. Zuckerberg echoed our company's vision on the F8 stage, stating that consumers should be able to message a business just as they do with their friends and not have to call them. The aggressive promotion of messaging by Facebook and others as a primary means of connection between consumer and business should only help to accelerate our own efforts to fuel mobile adoption across brands. The consumer's already there. According to a recent study by IDC, U.S. smartphone owners spend 84% of their communication time on digital channels such as text and social apps, versus only 16% of communication through phone calls. Brands are responding to these industry forces.
They're expressing strong interest in aligning with how consumers prefer to connect, which is through digital channels on mobile devices. In fact, in the second quarter, we're set to deploy our first enterprise mobile customer. Millions of consumers of this brand will soon have an alternative to voice that gives them back their time and delivers a more connected experience. The large telecom in EMEA that launched our SMS mobile capabilities in the first quarter is already delivering these benefits to its customers. Impressed by the initial outcomes, the brand is promoting SMS in its IVR, on the web, on Facebook, and in-app. This leading brand is now looking to expand our mobile offerings into new lines of business. We plan to launch several new pilots in the coming weeks across mobile channels.
One of the greatest advantages of LiveEngage is the ability to provide a single interface that measures and analyzes all mobile and online customer conversations across digital channels. Those learnings continuously improve the success of our customers' engagement programs. Brands across the globe are increasingly recognizing LivePerson for the strategic impact these capabilities deliver to their business goals and customer relationships. Liberty Global, the largest international cable company with 27 million consumers across 14 countries, signed a seven-figure, three-year contract to deploy LiveEngage worldwide. The selection was part of Liberty's new transformative initiative, which is tasked with standardizing best practices and best-in-class technologies across all their brands. Orange, a global leader in telecommunication services, replaced a competitive solution with LiveEngage in France last month. The telco immediately saw a meaningful decrease in handle time, increased agent satisfaction, and materially simplified administration of campaigns and engagement.
LiveEngage scalability was key, as the platform was initially deployed across multiple geographies and hundreds of agents, and is targeted to power millions of digital conversations each year. In addition, Orange is clearly aligned with our vision for using mobile messaging to transform customer care. Industry peers are also recognizing the strength of LivePerson's position. After winning the CODiE for Best Customer Success Management Solution in 2015, LiveEngage has been selected as a CODiE finalist in three categories this year. We're up for Best Sales and Marketing Mobile Application, Best Customer Service Solution, and Best Sales and Marketing Intelligence Solution. Across the board, we are making significant progress on the three objectives that will turn our vision into reality and position LivePerson for stronger performance, fueling mobile adoption, upgrade customers to LiveEngage, and improving our operational leverage.
The company saw strong momentum across mobile in the first quarter, with mobile chat interactions on LiveEngage increasing 60% sequentially. Nearly one-quarter of all digital conversations on LiveEngage were mobile in the first quarter, up from 21% in the fourth quarter of 2015 and 18% in the third quarter of 2015. Our momentum also continued on the upgrade front. LivePerson ended the first quarter with 57% of customers on the platform, up from 45% at year-end and 20% a year ago to the quarter. We will beat deeper into our mid-market enterprise customer base and begin upgrading the first lines of business for many of our largest brands. The data we have seen from these first set of mid-market enterprise customers is that there's a 10%-plus increase in usage by the third month.
These solid usage trends are similar to those that we reported in 2015 when the LiveEngage base was primarily small business. The validation of the value added from customers moving up to LiveEngage is remarkable, and a few examples are, hospitality customers saw a greater than 20% increase in average order value and a 5% increase in conversion rates just in the first month of its upgrade. A telecom customer realized a greater than 50% increase in engagements per hour and a nearly 20% increase in conversions. Fairhaven Health, an online fertility and wellness company, tripled engagements after upgrading by increasing chat usage and adding content to mobile campaigns. Another customer, a global pharma, has been so impressed with LiveEngage that they are now proactively demoing the platform to other internal lines of business. Interactions on LiveEngage platform increased more than tenfold. The scalability is proven.
Our largest LiveEngage customer is on track to power 7 million interactions. We remain focused on the upgrading process, and we see line of sight to the end of the customers. With large investment in LiveEngage, we're halfway through it. Operating expenses were 7% lower in the first quarter. We continue to expect year-over-year margin expansion to our historic 20%-plus EBITDA. We're pleased with the significant progress made on our company objectives in 2016, and remain focused on upgrading our customers, strengthening retention rates, and moving our customers to our vision. As a company, we're excited about the industry transformation that now appears imminent. We expect to lead this shift in customer care, empowering brands to meet consumers in the channel of their choice with communication experience that forges meaningful connections.
With that, I'll turn the call over to Dan, who will give us our first quarter results and outlook in more detail. Dan?
Thanks, Rob. The key takeaway from this call is that we're on track with our primary objectives in 2016. We are focused on upgrading our remaining customers to LiveEngage and now have more than half the base on our platform. We are advancing our mobile strategy as evidenced by a 60% quarter-over-quarter increase in LiveEngage mobile chat interactions. We're also on schedule to deploy in the coming weeks our first enterprise using a purely mobile offering for connecting with consumers. We have kept our costs in check, which is prepping the business for increased profitability with the growth in revenue. With that, I will turn your attention to our first quarter 2016 operating results.
Revenue of $55.5 million at the midpoint of our guidance expectations, with 7% year-over-year decline primarily reflects the loss of a previously disclosed customer relationship that ended in the second quarter of 2015 and the effect of foreign currency. The company's customer renewal rate stabilized sequentially in the first quarter, and our trailing 12-month customer renewal rate of 83% met our internal expectations. We continue to anticipate returning to a 90%-plus customer renewal rate as we convert more customers to LiveEngage. Our trailing 12-month average revenue per enterprise and mid-market customer reached $200,000 in the first quarter of 2016, up from $170,000 in the first quarter of 2015. The trailing 12-month revenue figures are pro forma to exclude contributions from the previously disclosed customer contract that ended in the second quarter of 2015.
We signed 84 deals in the first quarter, 20 of those were with new enterprise or mid-market brands. The trend we discussed in prior quarters continues, with the total deal count narrowing due to sales pipeline that was more heavily weighted to larger, more strategic deals and our near-term focus on upgrading rather than upselling existing customers. B2B revenue declined 8% to $51.7 million, and consumer revenue increased 2% to $3.8 million. The B2B revenue breakdown by industry was retail at 23%, financial services 21%, telecommunications 17%, technology 10%, and other 30%. Revenue from our international operations was roughly flat in constant currency in the first quarter and accounted for approximately 32% of total revenue. First quarter GAAP net loss per share of $0.05 was better than previously issued guidance.
Adjusted EBITDA per share of $0.08 and break-even adjusted net income were both within our previously issued guidance ranges. First quarter gross margin was 71.4%. The company's cash balance, including restricted cash, decreased to $48.5 million at the end of the first quarter from $54.2 million at year-end of 2015. Cash from operations increased by $2.2 million in the first quarter of 2016 compared to the decline of $7.6 million in the first quarter of 2015. The shift is primarily due to our ability to move more customers to cash payments in advance on annual billings. As a result, deferred revenue more than doubled year-over-year to $21.9 million in the first quarter from $10.2 million a year ago. The company repurchased approximately 637,000 shares of stock for $3.2 million in the first quarter. An additional $16.9 million remains available under the share repurchase authorization.
Capital expenditures totaled $4.5 million, which includes the cost to consolidate offices in Atlanta and data center upgrades. Turning your attention to LivePerson's 2016 outlook, our year-to-date progress has been in line with our guidance, our financial expectations are unchanged. Our detailed financial expectations are as follows. For the second quarter of 2016, we expect revenue of $56 million to $57 million, adjusted EBITDA of $4.5 million to $5.4 million, or $0.08 to $0.10 per share, adjusted net loss of $0.03 to $0.01 per share, GAAP net loss per share of $0.09 to $0.07. For the full year 2016, our expectations remain unchanged. Revenue of $230 million to $235 million. Revenue guidance includes a negative foreign currency impact of approximately $1.5 million. Adjusted EBITDA of $23 million to $26 million, $0.40 to $0.45 per share.
Adjusted net income per share of $0.05 to $0.10, and a GAAP net loss per share of $0.17 to $0.12. We expect to pay cash taxes of between $1 million and $3 million in 2016. Recall, however, that in 2016, we began applying the standardized 35% tax rate to all non-GAAP add-backs when calculating adjusted net income. For comparison, the tax rate on non-GAAP add-backs was effectively 0% in 2015. This change has no effect on cash taxes but accounts for a $0.12 per share increase in our estimated 2016 adjusted taxes as compared to our 2015 actuals. Furthermore, as a percent of revenue for the year, we anticipate gross profit to be approximately 70%, sales and marketing 40%, G&A 15%, and R&D 16%. Please refer to LivePerson's earnings release issued earlier today for details on our full-year 2016 assumptions.
We have also published a supplemental presentation on the investor relations page of our website that reviews key points from the earnings call. In the first quarter, we captured efficiencies from past investments and scalability of LiveEngage, reducing expenses even as we advanced our priorities of upgrading our customer base and fueling mobile adoption. We continue to expect to exit 2016 with a low-to-mid-teens adjusted EBITDA margin, putting the company on track to return in subsequent years to our previous peak of 20-plus% adjusted EBITDA margins. Our objectives for the remainder of 2016 are clear. We want to move a majority of our customers base to LiveEngage, which we believe, in turn, will strengthen our renewal rate, fuel mobile adoption, drive usage, and deliver cost efficiencies. Our focus for the rest of the year is on the successful execution of these priorities.
With that, I'll open the call to questions. Operator?
At this time, if you would like to ask a question, press star one on your telephone keypad. That is star one to ask a question. Your first question comes from Richard Baldry from Roth Capital. Your analyst line is open.
Thanks. Sorry. Curious in your customer migration effort, if there's any consistent trend in the customers that are actually choosing to drop off and not move over to the LiveEngage platform, whether it's geographic, vertical, sort of their strategic, high-margin, low-margin, anything to think about so we kind of understand where that lives. Thanks.
We haven't had anyone that didn't want to convert yet. Who's ever converting, they've got dates, and they're going across. We haven't had someone say, "I don't want to convert," or, "I'm leaving because of LiveEngage.
Okay, thanks.
Yeah.
Your next question comes from Jeff Van Rhee from Craig-Hallum.
Great. Couple of questions. Maybe first, just on the pace of signings, and we can see the customer counts. You talked about the deals getting a little larger, and obviously you're focused on migrations as well. Just to take, I guess two questions along those lines, bookings versus expectations, and then retention of, say, your upper 50% in terms of performing salespeople thus far. Any changes in churn in the sales heads?
Bookings versus expectation. We did what we expected from a bookings perspective. When we were going into this, we were focused on migrating customers. Jeff, as you know, a good portion of our bookings come from existing customers, and a smaller portion from new customers. They're where we expected. As far as churn in the sales organization, the people that are part of the group and have been consistently part of the group, there's no significant churn that I'm aware of related to the group, and we've actually brought back a couple of people that have left us in the past and rejoined.
I guess, with the percent of the base that is migrated over to LiveEngage, and particularly those that are a bit more mature, you've talked about the increased interactions and a lot of other metrics that are reflecting increased usage of the platform. Can you translate that at all into some sense of revenue uplift for people that have been around 6 months, 12 months? Obviously, I think if I recall the pricing, you'll reflect the increased usage on a trailing basis. Maybe you can just give me some sense of how the usage translates into potentially increased revenue from customers that are on LiveEngage on some sort of annualized basis.
Jeff, the way that our contracts will work, they're usually annual-related contracts, and we're not trying to move people over on the renewal dates. We're actually moving them over mid-contract. We are seeing an increase in usage, and many of our mid-market or enterprise customers are on annual versus monthly usage caps. As they move over
We're absolutely seeing an increase in usage on these customers, the adoption of mobile is strong as well. You won't see that start to hit the revenue until future periods when they either come up for renewal or they need to actually make an adjustment or an upsell on their contract.
I guess at this point, even if they aren't up for renewals, you got somebody that's been on six, nine months, maybe approaching 12 months, you don't have enough of a sample just to say, "It looks like on an annualized basis, we'd see this kind of uplift?
We do, and that's something that we look at on a regular basis. Again, just recall in the migration, it was mostly small business customers that we started with. I would see increased usage from those small business customers. Then on the mid-markets and enterprise, we started to move over those mid-market customers and some of them that have been on LiveEngage platform longer than others, you can see the increase in usage over time. Our expectation over time that we would expect to see a correlation to revenue.
Okay, thanks.
Your next question comes from Michael Latimore from Northland Capital Markets.
I think, Dan said one of your goals for the year was to get the majority of customers over LiveEngage. In your slide, it looks like you're kind of already there, I believe. Are we talking closer to, I don't know, 75% by year-end?
The key is to move as many customers as we possibly can over to the LiveEngage platform. One of the things Rob talked about in his script is, we've got enterprise customers that may have multiple lines of business. When we migrate those customers, we're migrating the first line of business, and we don't count that as a customer migration until we move all of their business over onto the LiveEngage platform. We went after the small business customers, a good number of customers, maybe not a lot of revenue. We're really focused on the mid-market and enterprise guys and bringing those over. We're at 57% so far through the first quarter, and our goal is to get more over as we continue throughout the year. Our expectation is that we'll be above that 75% range.
We'll finish those small businesses finishing in the next two months or so. We're done with small business. We're focused, mid-market's been moving for a while, and then enterprise is going. We're now focused on those two. I would say above 75% is obviously where we're trying to go. The other thing is there's a cost structure of supporting the old platform, and we know it's a different cost structure than we have for the new one. We want to move 100% of the customers over, obviously, so that we can get the benefits of that and the benefits of the scale and the technology in LiveEngage. LiveEngage is obviously focused on our vision of mobile and being mobile first. It's sort of like a get them moved, get them into the vision. We want everyone across.
The customers love the product. The ones that are on it, whether they're greenfields or they're the existing customers, when they go on it's a great product. It took three years to develop, but it's working quite well, and they automatically move to getting more usage, especially around mobile. They can go from 0 to 16%-20% when they move. It gives them a lot of abilities to focus on where their consumers are today.
Yeah. Okay. Are there any key features you want to add to LiveEngage to maybe make it more amenable to some very big customers or certain verticals? Do you feel like the features are kind of as needed?
It's pretty rich right now. It's got a lot in it. There's not too much. There's a lot to build. We have a roadmap for the next 18 months that's very locked down. There's a lot going on in the mobile side. There's a lot going on with the bot side now, with the stuff we're doing with Facebook and integration of bots and stuff like that. Now co-browsing, all that basic stuff is in the platform across. Everybody has access to it. There are some unique things that we'll deliver around the mobile side. We won't talk about them today, but as we get them out into the market, we'll talk more and more about the mobile features, I think.
Got it. Just last one, CAO, Contact At Once how is that trending relative to your expectations?
They did well. They have really bounced back. The automotive vertical is doing really well. There's some exciting deals in there. They're starting to pick up on the housing side, even outside of that. We started with one large aggregator. Now they're moving into one or two others. They're really doing good as a team. The consumer team did good. Even small business had its best months on net adds. Usage in the small business segment was up because of the LiveEngage platform. There's extra billing there. Those parts are going quite well. Obviously, the enterprise now is where we're focused on moving that across and getting that to the next level. The other pieces in the company are doing quite well. Even consumer did really well.
All right. Thanks.
Your next question comes from Mark Schappel from Benchmark.
Hi, good evening. Robert, in your prepared remarks, you provided some metrics around your mobile chat. I think, for example, mobile interactions were up 60% in LiveEngage. Nonetheless, I didn't catch all those. I was wondering if you could just go through those metrics one more time.
Let me get those here. I'll just read it. The company saw strong momentum across the first quarter. Interactions on LiveEngage were up 60% sequentially. Nearly one-quarter of all digital conversations on LiveEngage were mobile in the first quarter, up from 21% in the fourth quarter and 18% in the third quarter.
Okay, great then. Great. As you start to move the bulk of all your customers, well, it looks like the bulk of all your customers are on LiveEngage now. Could you just review one more time how you're going to be increasing your wallet share from your customer base? A lot of that, I know, has to do with your usage-based payment model.
Yeah. The mobile obviously is one of our biggest strategies because it's really attacking the 800 number and the call center and voice. Where chat, at its best, we're doing about 10% of interactions come through chat. We think with mobile, we can take a larger share of the 90% that's left over in the voice category. We're very focused on the mobile side and attacking that. Obviously, there's other things like content and content targeting, which is being used, but mobile is the focus of the platform, and really where we're putting a lot of the efforts.
Great. Thank you.
Your next question comes from Glenn Mattson from Ladenburg Thalmann.
Yeah. Hi, just curious. On the migration, last quarter, you mentioned that everyone at this point has had firm dates set up for when they're going to convert over if they haven't already. As you get closer to those dates, as they're coming along, are you seeing any pushback or any people getting cold feet at the last minute and just kind of kicking the can down the road at all? Any color on that?
No. You're going to have a little bit of pushback sometimes and maybe a four weeks off or eight weeks. So far, the customers that we have down with time frames are excited to go, and they've had to allocate resources. We're pretty much on their timeframe and ours, but so far it looks very good.
Right. The 83% customer retention rate, can you remind us what that was last quarter and any forecast for when that number would bottom and start turning back up?
Last quarter was 84%, Glenn. We stabilized and we actually had a slight downtick in Q1 over Q4. Our stated goal is when you get over 90%, and this is a trailing 12-month metric, so when you take out one quarter and add another quarter and you have a little bit of movement. We think we're trending in the right direction, and we're encouraged by Q1. It's met our internal expectations, and we're focused now on Q2 and executing Q2.
Okay. Great. Thanks. Good luck, guys.
Thanks.
Again, that is star one to ask a question. Your next question comes from Brian Schwartz from Oppenheimer.
Hi, this is Koji Ikeda for Brian Schwartz. Thank you for taking my questions. First question on the consumer revenue segment. Looked like this is the first time it's grown in, I think, a couple of quarters here. Just maybe a bit of color on what contributed to that consumer segment returning to growth. Is that return to growth in the consumer segment something that's sustainable for the remainder of the year?
Yeah. I hate to be a broken record, they created a mobile app and launched their own mobile app and you can get experts on the mobile device, that's what's actually been fueling their growth. It looks pretty good right now, we have to see how it plays out. Their mobile app they put out there is getting good use and there's good excitement about it. I think I'd like to see another quarter, I feel good about what we're seeing right now.
Got it. Thanks. Last quarter, you talked about a couple of good bookings customers that happened in the third quarter, fourth quarter of last year, looking to make a meaningful impact in the second quarter. Were those on track to go live in the second quarter? Maybe an update on those customers.
Yeah. The mobile-only customer is on track and, I'm trying to think of the other one. Yeah, they're both on track. I got nods from around the room. Yeah, they're both on track.
Great. Thank you. Maybe a question for Dan or Rob. Just trying to think about the international opportunity here with your disrupting the 800 number. Internationally, is that opportunity the same? Is the consumer interaction with brands out there, is it pretty similar to what you see in North America? Maybe it's a little bit different where maybe even the LiveEngage platform offers an even better engagement channel for those types of consumers.
Yeah. If we start over in Asia, you've got a mobile-first world. They're already mentally there about how mobile should work and mobile engagement. Europe's pretty similar to the U.S. There's an even bucket of pipeline building in each of the big regions that we have our offices in and our sales operations and partners. I feel pretty good. Right now, we're very focused on the telco space, and I'd like to see that we bring up some large telcos in each region around the vision within the next quarter or two. That's where our focus is. Europe's actually, I think, quite different even now in the last two years. There's a lot more aggressive, competitive behavior and companies there are being very innovative, even against their U.S. counterparts. I feel very good about what I see globally right now.
Great. Thank you for taking my questions.
Again, that is star one to ask a question. Your next question comes from Craig Matts from First Analysis.
Thanks. Good afternoon. Most of my questions have been asked, actually. I wasn't clear, you made a variety of comments about the migration
In Q1, did you actually say that the quantity that you wanted to migrate in Q1, did that play out versus your plan? I'm not sure if you really said that or not, and I'm curious about that.
Yes. It actually did play out. We're at 57% of number of customers as of the end of the first quarter. Yes, that did play out to our expectations, and we stated we want to get the majority over, and I think there was an earlier question. Our target is to be better than 75% of our customer base over, and we're working diligently in Q1 and to Q2 and Q3 on the mid-market and enterprise.
Is there any particular lumpiness amongst the quarters coming ahead for migrations? That may not be a good question, but I'm curious, is there a crucial period for you that you want to get past that will make you feel like you're going to achieve your goal for the year, or is that sort of not necessarily the case?
No, our goal right now is we're trying to space them out to the best of our ability, the best way we possibly can. The only thing that would come up a little bit is Q4, when you get to that late October, early November timeframe, where customers want to lock things down. Our goal is to make as much progress as we can, Qs one, two, and three, knowing that potential lockdown or phone freeze from our customers will happen in that late October, early November timeframe.
Right.
I think we're trying to bring as many as we can. Obviously, it's focus, right? We know once we move everyone to LiveEngage, then we have a new company in many ways. We're very focused on accelerating that, but obviously, we're balancing bookings and stuff like that. The focus and number one goal is to get everyone on it, because once they're on it, we know we got a very stable base, a committed customer, and they can grow into the vision.
Right.
If we can accelerate it, we'll put more into it. It's just we're moving as quick as we can.
Okay. Just thinking about Q4, as you were mentioning, I don't remember if there is particular seasonality to your enterprise renewals. Obviously, for some enterprises, it can be Q4. Is that a dynamic that you also would have to balance there at the end of the year versus getting the migrations, or is that not necessarily a factor?
Our renewals are pretty well spaced out throughout the year, but Q4 is a little bit heavier than Q3 and Q2. It is a little bit of a balancing act, but as we talked about a little bit earlier, one of the comments earlier is our goal is to migrate these or upgrade these customers, sorry, mid-contract, not to do it on a renewal date. That is our goal, and that's what we're focused on.
Yeah. Thank you for this.
Thanks, Craig.
Thanks, Craig.
You have a follow-up from Jeff Van Rhee from Craig-Hallum.
Oh, great. Yeah, just one. The target of 75% migrated end of year, are you able to hazard a guess or give us even an outline of how you think about the dollar migration? I mean, at what point would it be reasonable to think you'd have 80%-ish of the dollars migrated? Obviously, the revenues are top-heavy. You get into the meat of your enterprise guys. Just sort of trying to logically map out how you're thinking about when you cross that threshold with respect to dollars as opposed to just customer count.
Yeah, Jeff, that's a very good question, and one we look at internally quite a bit, and to measure the growth we use internally. As we move throughout the year, and we've stated that we're going after the larger customers in Q1, 2, and 3, starting with mid-market and going to the enterprises. I'm not ready to give a timeframe or an actual percentage, sorry, on revenue. Obviously, if we get north of that 75%, a good number of our customers, our larger customers, will be in that bucket. The second piece, and this is an important one, is if I have a financial services company, it's known as one company, maybe at a parent level, but we might be in 10 lines of business. Our goal is to move over those lines of business onto the LiveEngage platform.
That may not count as a customer count, but may have an impact on revenue. It's an important distinction to make as we're doing our analysis and counting internally and obviously reporting to you guys externally. The key here in 2016 is to get as much revenue onto the LiveEngage platform as possible. We spent 2015 moving the small business customers over, getting some learnings, understanding the product, informing the product roadmap. As we move into 2016, we have to focus on mid-market and enterprise customers, and those customers generate obviously a decent chunk of our revenue.
Okay. Got it. Thanks.
Again, that is star one to ask a question. There are no questions at this time.
Thank you for joining our Q1 call, and we'll see you on the next quarter.
Thank you.
Thanks, all guys.
This does conclude today's conference call. You may now disconnect.