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LivePerson (LPSN) Upgraded to Buy: Here's Why
ZACKS· 2025-08-25 17:01
Investors might want to bet on LivePerson (LPSN) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of a changi ...
LivePerson Announces AWS Integration to Unify Voice and Digital Customer Experiences
Prnewswire· 2025-08-25 13:00
CX leaders looking to improve agent retention while increasing self-service with lower cost-to-serve will benefit from the newly integrated CCaaS platform NEW YORK, Aug. 25, 2025 /PRNewswire/ -- LivePerson (Nasdaq: LPSN), a leading provider of trusted enterprise conversational AI and outcome-driven digital transformation, announced today that it is working with Amazon Web Services (AWS) to integrate Amazon Connect, a unified, AI-native customer experience solution from AWS, with LivePerson's digital contact ...
LivePerson Recognized as a Niche Player in the 2025 Gartner® Magic Quadrant™ for Conversational AI Platforms
Prnewswire· 2025-08-18 16:16
Forward-Looking Statements LivePerson's Connected Experience Platform empowers enterprises to forge lasting customer relationships with seamless conversation orchestration NEW YORK, Aug. 18, 2025 /PRNewswire/ -- LivePerson (Nasdaq: LPSN), a leading provider of trusted enterprise conversational AI and outcome-driven digital transformation, today announced it has been recognized as a Niche Player in the 2025 Gartner® Magic Quadrant™ for Conversational AI Platforms. This marks the first time LivePerson has bee ...
LivePerson(LPSN) - 2025 Q2 - Quarterly Report
2025-08-13 21:12
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________. Commission File Number: 000-30141 LIVEPERSON, INC. (Exact name of registrant as specified in its charter) Delaware 13-3861628 (State ...
LivePerson (LPSN) Reports Q2 Loss, Beats Revenue Estimates
ZACKS· 2025-08-12 00:01
Company Performance - LivePerson reported a quarterly loss of $0.11 per share, better than the Zacks Consensus Estimate of a loss of $0.20, and a significant improvement from a loss of $0.69 per share a year ago, resulting in an earnings surprise of +45.00% [1] - The company posted revenues of $59.6 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.19%, although this represents a decline from year-ago revenues of $79.88 million [2] - Over the last four quarters, LivePerson has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - LivePerson shares have declined approximately 20.4% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.18 on revenues of $57.56 million, and for the current fiscal year, it is -$0.63 on revenues of $240.99 million [7] Industry Outlook - The Internet - Services industry, to which LivePerson belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact LivePerson's stock performance [5]
LivePerson(LPSN) - 2025 Q2 - Earnings Call Transcript
2025-08-11 22:00
Financial Data and Key Metrics Changes - The company reported revenue of $59.6 million, which was above the midpoint of their guidance range [6][23] - Adjusted EBITDA was $2.9 million, exceeding the high end of the guidance range [6][23] - Full year revenue guidance was revised down to $235 million at the midpoint, a decrease of approximately 5% [17][27] - Cash on the balance sheet at the end of the second quarter was $162 million [27] Business Line Data and Key Metrics Changes - Revenue from hosted services was $50.3 million, down 25% year over year [24] - Professional services revenue was $9.3 million, down 26% year over year [24] - Recurring revenue accounted for 92% of total revenue, amounting to $55 million [24] - Average revenue per customer increased by 4% year over year to $655,000 [25] Market Data and Key Metrics Changes - U.S. revenue was $36.7 million, while international revenue was $22.9 million, representing 62% of total revenue [24] - Net revenue retention declined to 78%, down from 80% in the first quarter [25][26] Company Strategy and Development Direction - The company is focusing on strengthening its capital structure through a refinancing agreement, which extends debt maturities to 2029 [5][6] - Strategic partnerships with Google Cloud and Databricks are being deepened to enhance product offerings and market presence [12][14] - The vision is to embed AI into every interaction, transforming customer interactions into real business outcomes [8][12] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic uncertainty is extending enterprise buying cycles, particularly for high-value AI solutions [15][16] - The refinancing agreement is expected to alleviate concerns regarding financial stability and improve customer confidence [16][21] - The company anticipates that the strategic partnerships will amplify market presence and deliver integrated solutions to a wider range of enterprises [15][14] Other Important Information - The company signed a total of 38 deals in the second quarter, including three new logos and 35 expansions and renewals [21][22] - The refinancing agreement is expected to shift a greater proportion of enterprise value to equity holders by significantly reducing total indebtedness [5][21] Q&A Session Summary Question: How are win rates trending for new logo capture? - Management indicated that win rates remain consistent, but decision-making processes are being delayed due to RFPs being pushed out [32] Question: What is the impact of new AI-based competitors on decision-making cycles? - Management acknowledged that new competitors are increasing headwinds, contributing to longer decision-making cycles [34] Question: Are large customers primarily responsible for renewal pressures? - Yes, management confirmed that large customers are hesitant due to financial concerns, impacting renewal discussions [35] Question: What is the impact of macroeconomic uncertainty versus balance sheet issues? - Both factors are interrelated, with financial instability exposing the company to increased competition [42] Question: When will the migration to Google Cloud be fully completed? - Some customers will see benefits around October this year, with most migrations expected to be completed early next year [44]
LivePerson(LPSN) - 2025 Q2 - Earnings Call Presentation
2025-08-11 21:00
Second Quarter 2025 Earnings Call Supplemental Slides John Sabino, Chief Executive Officer John Collins, Chief Financial Officer and Chief Operating Officer August 11, 2025 Disclaimer This presentation as well as the associated earnings release and earnings call contain and will contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. You can generally identify forward-looking statements ...
LivePerson(LPSN) - 2025 Q2 - Quarterly Results
2025-08-11 20:34
[Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%20Highlights) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) LivePerson reported Q2 2025 total revenue of **$59.6 million**, a **25.4% year-over-year decrease**, with Adjusted EBITDA exceeding guidance Q2 2025 Key Financial Highlights | Metric | Q2 2025 Value | | :------------------------------------ | :------------ | | Total Revenue | $59.6 million | | Total Revenue Growth (YoY) | (25.4)% | | Adjusted EBITDA | Above high-end of guidance | | Trailing-twelve-months ARPC (YoY) | +4.0% | | Trailing-twelve-months ARPC (Value) | $655,000 | [Strategic and Operational Commentary](index=1&type=section&id=Strategic%20and%20Operational%20Commentary) The company secured a refinancing agreement, deleveraging its balance sheet by **$226 million** and extending its runway through 2029, alongside a **45% sequential increase** in Generative AI conversations - Secured a refinancing agreement that significantly deleverages the balance sheet and provides a clear runway to execute strategy through 2029[5](index=5&type=chunk)[6](index=6&type=chunk) - Achieved a **45% sequential increase** in conversations powered by the Generative AI suite[5](index=5&type=chunk) - Deepened strategic partnership with Google Cloud[5](index=5&type=chunk) Debt Deleveraging Impact | Metric | Value | | :-------------------- | :------------ | | Debt Discount Captured | $181 million | | Balance Sheet Deleveraging | $226 million | [Customer Expansion](index=1&type=section&id=Customer%20Expansion) LivePerson signed **38 deals** in Q2, including **35 expansions** and renewals with existing customers, and **3 new logo deals** with major global clients - Signed **38 total deals** in Q2 2025[4](index=4&type=chunk)[7](index=7&type=chunk) - **35 deals** were with existing customers (expansions and renewals)[7](index=7&type=chunk) - **3 deals** were with new customers, including a global financial services company, a major European retailer, one of Australia's largest retail groups, and a leading U.S. health plan provider[7](index=7&type=chunk)[8](index=8&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, LivePerson reported a net loss of **$15.7 million**, a significant decline from Q2 2024's net income, primarily due to a prior year gain on debt extinguishment Condensed Consolidated Statements of Operations (Selected Metrics, in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $59,600 | $79,875 | $124,300 | $165,024 | | Cost of revenue | $18,038 | $16,432 | $36,256 | $40,887 | | Sales and marketing | $19,888 | $25,733 | $43,373 | $54,963 | | General and administrative | $7,945 | $24,415 | $24,729 | $46,009 | | Product development | $13,843 | $19,674 | $29,877 | $44,309 | | Loss from operations | $(6,433) | $(29,799) | $(23,377) | $(66,163) | | Gain on debt extinguishment | — | $73,083 | — | $73,083 | | Net (loss) income | $(15,710) | $41,795 | $(29,843) | $6,164 | | Basic Net (loss) income per share | $(0.17) | $0.47 | $(0.32) | $0.07 | | Diluted Net (loss) income per share | $(0.17) | $(0.33) | $(0.37) | $(0.70) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to **$(14.8) million** for the six months ended June 30, 2025, with financing activities shifting to net cash provided Condensed Consolidated Statements of Cash Flows (Selected Metrics, in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net (loss) income | $(29,843) | $6,164 | | Stock-based compensation expense | $8,969 | $13,458 | | Gain on debt extinguishment | — | $(73,083) | | Net cash used in operating activities | $(14,772) | $(16,832) | | Net cash used in investing activities | $(7,947) | $(17,716) | | Net cash provided by (used in) financing activities | $444 | $(31,797) | | Net decrease in cash and cash equivalents | $(21,274) | $(66,968) | | Cash and cash equivalents - end of period | $161,963 | $145,957 | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$605.0 million** as of June 30, 2025, while total liabilities increased and stockholders' equity remained negative Condensed Consolidated Balance Sheets (Selected Metrics, in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Cash and cash equivalents | $161,963 | $183,237 | | Accounts receivable, net | $23,505 | $28,737 | | Prepaid expenses and other current assets | $46,158 | $19,250 | | Total current assets | $231,626 | $231,224 | | Total assets | $605,041 | $607,778 | | Total current liabilities | $141,438 | $139,940 | | Convertible senior notes | $537,866 | $527,070 | | Total liabilities | $687,453 | $675,094 | | Total stockholders' equity | $(82,412) | $(67,316) | [Disaggregated Revenue](index=3&type=section&id=Disaggregated%20Revenue) [Disaggregated Revenue by Source](index=3&type=section&id=Disaggregated%20Revenue%20by%20Source) Hosted services revenue decreased by **25.3%** to **$50.3 million** in Q2 2025, while professional services revenue also declined by **26.1%** Disaggregated Revenue by Source (in thousands) | Revenue Source | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Hosted services | $50,321 | $67,316 | $105,455 | $138,811 | | Professional services | $9,279 | $12,559 | $18,845 | $26,213 | | Total revenue | $59,600 | $79,875 | $124,300 | $165,024 | [Non-GAAP Financial Measures and Reconciliations](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Adjusted EBITDA and Adjusted Operating (Loss) Income Reconciliation](index=2&type=section&id=Net%20(Loss)%20Income%2C%20Adjusted%20Operating%20(Loss)%20Income%20and%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 was **$2.9 million**, down from **$8.2 million** in Q2 2024, with adjusted operating loss at **$2.7 million** Adjusted EBITDA and Adjusted Operating (Loss) Income (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP net (loss) income | $(15,710) | $41,795 | $(29,843) | $6,164 | | Adjusted EBITDA | $2,919 | $8,208 | $3,086 | $8,685 | | Adjusted operating (loss) income | $(2,659) | $494 | $(8,079) | $(7,254) | [Free Cash Flow and Non-GAAP Expense Reconciliations](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Information%20to%20GAAP%20-%20Free%20Cash%20Flow%20and%20Non-GAAP%20Expenses) Free Cash Flow for Q2 2025 improved to **$(14.8) million**, and non-GAAP expenses exclude items like stock-based compensation Free Cash Flow (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(11,676) | $(17,931) | $(14,772) | $(16,832) | | Purchases of property and equipment, including capitalized software | $(3,136) | $(4,956) | $(6,895) | $(16,457) | | Total Free Cash Flow | $(14,812) | $(22,887) | $(21,667) | $(33,289) | Non-GAAP Expenses (Three Months Ended June 30, 2025, in thousands) | Expense Category | GAAP Amount | Non-GAAP Amount | | :------------------------------------ | :---------- | :-------------- | | Cost of revenue | $18,038 | $17,725 | | Sales and marketing expenses | $19,888 | $18,829 | | General and administrative expenses | $7,945 | $7,736 | | Product development expenses | $13,843 | $12,391 | [Financial Expectations](index=2&type=section&id=Financial%20Expectations) [Third Quarter 2025 Guidance](index=2&type=section&id=Third%20Quarter%202025%20Guidance) Q3 2025 revenue is projected between **$56 million** and **$59 million**, with Adjusted EBITDA expected to be a loss between **$(4) million** and **$(2) million** Third Quarter 2025 Guidance | Metric | Guidance | | :-------------------- | :----------------- | | Revenue (in millions) | $56 - $59 | | Revenue growth (YoY) | (25)% - (21)% | | Adjusted EBITDA (in millions) | $(4) - $(2) | | Adjusted EBITDA margin (%) | (7.1)% - (3.4)% | | Recurring revenue | 93% of total revenue | [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) Full year 2025 revenue is anticipated between **$230 million** and **$240 million**, with Adjusted EBITDA ranging from **$(3) million** to **$7 million** Full Year 2025 Guidance | Metric | Guidance | | :-------------------- | :------------------------ | | Revenue (in millions) | $230 - $240 | | Revenue growth (YoY) | (26)% - (23)% | | Adjusted EBITDA (in millions) | $(3) - $7 | | Adjusted EBITDA margin (%) | (1.3)% - 2.9% | | Recurring revenue | 93% of total revenue | [Additional Information](index=3&type=section&id=Additional%20Information) [About LivePerson, Inc.](index=4&type=section&id=About%20LivePerson%2C%20Inc.) LivePerson leads enterprise conversational AI and digital transformation, powering nearly a billion monthly interactions and recognized as a top innovative AI company - LivePerson is a leader in trusted enterprise conversational AI and digital transformation[2](index=2&type=chunk)[23](index=23&type=chunk) - Powers nearly a **billion conversational interactions** every month for leading brands like HSBC and Virgin Media[23](index=23&type=chunk) - Named the **1 Most Innovative AI Company** in the world by Fast Company[23](index=23&type=chunk) [Non-GAAP Financial Measures Definition](index=4&type=section&id=Non-GAAP%20Financial%20Measures) This section defines non-GAAP measures like Adjusted EBITDA and Free Cash Flow, cautioning they are not alternatives to GAAP for performance indication - Defines non-GAAP financial measures such as **Adjusted EBITDA**, **Adjusted EBITDA margin**, **Adjusted Operating (Loss) Income**, **Free Cash Flow**, and non-GAAP expenses for various operational categories[24](index=24&type=chunk) - These measures exclude items like interest, taxes, depreciation, amortization, stock-based compensation, litigation costs, restructuring costs, and gain/loss on debt extinguishment[24](index=24&type=chunk) - Non-GAAP information should not be construed as an alternative to GAAP measures or as an indicator of operating performance, liquidity, or cash flows[25](index=25&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements, subject to risks and uncertainties that could cause actual results to differ materially from projections - Statements regarding LivePerson's future, including financial guidance and capital structure changes, are forward-looking[26](index=26&type=chunk) - These statements are subject to risks and uncertainties that could cause actual results to differ materially[26](index=26&type=chunk)[27](index=27&type=chunk) - Key risk factors include customer retention, personnel management, debt refinancing, lengthy sales cycles, payment-related risks, market competition, general economic conditions, security breaches, regulatory changes, and intellectual property protection[27](index=27&type=chunk) [Earnings Teleconference and Supplemental Presentation](index=3&type=section&id=Earnings%20Teleconference%20Information) LivePerson discussed Q2 2025 results via teleconference on **August 11, 2025**, with a replay and supplemental information available online - A teleconference to discuss Q2 2025 financial results was held on **August 11, 2025**, at 5:00 PM ET[20](index=20&type=chunk) - A replay of the teleconference is available until **August 25, 2025**[21](index=21&type=chunk) - Supplemental information for Q2 2025 is posted on the investor relations section of the Company's website at www.ir.liveperson.com[19](index=19&type=chunk)[22](index=22&type=chunk)
LivePerson Announces Second Quarter 2025 Financial Results
Prnewswire· 2025-08-11 20:30
-- Total Revenue of $59.6 million, at the high-end of our guidance range ---- Adjusted EBITDA above the high-end of our guidance range  --NEW YORK, Aug. 11, 2025 /PRNewswire/ -- LivePerson, Inc. (NASDAQ: LPSN) ("LivePerson" the "Company", "we" or "us"), a leading provider of trusted enterprise conversational AI and outcome-driven digital transformation, today announced financial results for the second quarter ended June 30, 2025.Second Quarter HighlightsTotal revenue was $59.6 million for the second quarter ...
LivePerson Announces Deleveraging Transaction
Prnewswire· 2025-08-11 20:16
Core Viewpoint - LivePerson has entered into an agreement to exchange $341.1 million of its outstanding 2026 Convertible Senior Notes for a combination of cash, new secured notes, and equity, aiming to deleverage its balance sheet and enhance shareholder value [1][2]. Group 1: Exchange Details - The exchange involves $45.0 million in cash, $115.0 million of 10.0% Senior Subordinated Secured Notes due 2029, and shares of Series B Preferred Stock and Common Equity Shares, which will represent 39.0% of the Company's fully diluted common stock post-exchange [1][2]. - The New Secured Notes will be guaranteed by certain subsidiaries and secured by a second-priority lien on substantially all assets, maturing on December 15, 2029, with an interest rate of 10.0% per annum [3]. Group 2: Financial Impact - The transaction is expected to capture a $181 million debt discount for shareholders and reduce the balance sheet debt by $226 million, extending the company's financial runway through 2029 [2]. - Regular dividends on the Series B Preferred Stock will accrue at a rate of 15.0%, increasing to 20.0% if any shares remain outstanding after one year from the closing date [4]. Group 3: Corporate Strategy - The exchange is part of a multi-year strategy to deleverage the balance sheet, shifting a greater proportion of enterprise value to shareholders and providing time for the company to execute its long-term strategy [2]. - The company's executive officers support the transaction and plan to vote in favor of a proposed charter amendment to increase authorized share capital [4].