Financial Performance - 3Q25 revenue reached $60.2 million, exceeding the high-end of the guidance range of $56 million to $59 million[8] - Adjusted EBITDA for 3Q25 was $4.8 million, also surpassing the high-end of the guidance range of $(4) million to $(2) million[8] - Recurring revenue accounted for 92% of total revenue in 3Q25, amounting to $55.1 million[8] - The company anticipates adjusted EBITDA to exceed Capex in FY25[8] Customer Metrics - The average revenue per customer (ARPC) increased to $665,000 in 3Q25[16] - Net revenue retention rate for recurring revenue was 78% in 3Q25[16] - Remaining performance obligations stood at $197 million in 3Q25[16] Guidance - 4Q25 revenue is projected to be between $50.5 million and $55.5 million, representing a year-over-year decline of (31)% to (24)%[19] - Full year 2025 revenue is guided to be in the range of $235 million to $240 million, a year-over-year decrease of (25)% to (23)%[19] - Adjusted EBITDA for 4Q25 is expected to be between $(0.3) million and $4.7 million, with a margin of (0.6)% to 8.5%[19] - Full year 2025 adjusted EBITDA is projected to be between $7.5 million and $12.5 million, with a margin of 3.2% to 5.2%[19]

Financial Performance - Total revenue for Q3 2025 was $60.2 million, a decrease of 19.0% compared to the same period last year[3] - Revenue for Q3 2025 was $60,154,000, a decrease of 19% compared to $74,244,000 in Q3 2024[28] - For Q4 2025, total revenue is expected to range from $50.5 million to $55.5 million, representing a year-over-year decline of 31% to 24%[12] - For the full year 2025, total revenue is expected to range from $235 million to $240 million, a decline of 25% to 23% year-over-year[14] Profitability - Net income for Q3 2025 was $8.7 million or $0.98 per share, compared to a net loss of $28.3 million or $4.74 per share in Q3 2024[9] - Net loss for Q3 2025 was $8,711,000, compared to a net loss of $28,309,000 in Q3 2024, indicating an improvement of 69%[28] - Basic net income per share for Q3 2025 was $0.98, compared to a loss of $4.74 per share in Q3 2024[28] - GAAP net income for Q3 2025 was $8,711, compared to a loss of $28,309 in Q3 2024[32] Adjusted Metrics - Adjusted EBITDA for Q3 2025 was $4.8 million, down from $7.3 million in Q3 2024[9] - Adjusted EBITDA for Q3 2025 was $4,751, down from $7,257 in Q3 2024, reflecting a decrease of approximately 34.6%[32] - Adjusted EBITDA for the full year 2025 is expected to range from $7.5 million to $12.5 million, with a margin of 3.2% to 5.2%[14] Cash and Liquidity - Cash and cash equivalents were $106.7 million as of September 30, 2025, down from $183.2 million at December 31, 2024[10] - Cash and cash equivalents at the end of Q3 2025 were $106,661,000, down from $142,104,000 at the end of Q3 2024[30] - Cash and cash equivalents decreased to $106,661 as of September 30, 2025, from $183,237 at the end of 2024[38] - Total current assets fell to $143,720 as of September 30, 2025, down from $231,224 at the end of 2024[38] Costs and Expenses - Total costs and expenses for Q3 2025 were $74,741,000, down from $90,282,000 in Q3 2024, reflecting a reduction of 17%[28] - The company incurred restructuring costs of $9,312,000 in Q3 2025, significantly higher than $1,448,000 in Q3 2024[28] - The company incurred restructuring costs of $9,312 in Q3 2025, compared to $1,448 in Q3 2024[32] - The company experienced a decrease in sales and marketing expenses to $18,235,000 in Q3 2025 from $22,093,000 in Q3 2024, a reduction of 17%[28] Other Income and Expenses - Total other income for Q3 2025 was $23,692,000, compared to an expense of $11,762,000 in Q3 2024, marking a significant turnaround[28] - The company reported a gain on troubled debt restructuring of $27,720,000 in Q3 2025[28] - The company reported a significant increase in interest expense, which rose to $8,113 in Q3 2025 from $5,698 in Q3 2024[32] Business Development - The company signed 28 deals in total for the third quarter, including 26 expansions and renewals and 2 new customers[4] - Average revenue per enterprise and mid-market customer (ARPC) increased by 5.6% to $665,000 compared to approximately $630,000 in the prior-year period[4] - The company launched the Conversation Simulator, which is expected to create significant new opportunities[5] Liabilities - Total liabilities decreased to $512,835 as of September 30, 2025, compared to $675,094 at the end of 2024[38]

Core Insights - LivePerson reported total revenue of $60.2 million for Q3 2025, which is a decrease of 19.0% compared to the same period last year, primarily due to customer cancellations and downsells [2][3] - The company achieved adjusted EBITDA of $4.8 million for Q3 2025, down from $7.3 million in Q3 2024 [8][29] - LivePerson signed 28 deals in total during the quarter, including 26 expansions and renewals, and 2 new customers [3][6] Financial Performance - Total revenue for Q3 2025 was $60.2 million, a decrease of 19.0% year-over-year [2] - Net income for Q3 2025 was $8.7 million, or $0.98 per share, compared to a net loss of $28.3 million, or $4.74 per share, in Q3 2024 [7][25] - Adjusted operating loss for Q3 2025 was $0.7 million, compared to adjusted operating income of less than $0.1 million in Q3 2024 [7][29] - Cash and cash equivalents at the end of Q3 2025 were $106.7 million, down from $183.2 million at the end of 2024 [10][32] Customer and Market Developments - The average revenue per enterprise and mid-market customer (ARPC) increased by 5.6% to $665,000 in Q3 2025, up from approximately $630,000 in the prior year [3] - The company emphasized its commitment to strengthening its financial foundation and enhancing customer confidence through product innovation, including a partnership with Google and the launch of Conversation Simulator [4][5] Future Guidance - For Q4 2025, LivePerson expects total revenue to range from $50.5 million to $55.5 million, representing a year-over-year decline of 31% to 24% [13][15] - For the full year 2025, total revenue is expected to range from $235 million to $240 million, a decrease of 25% to 23% year-over-year [14][15]

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Core Insights - LivePerson has launched the Conversation Simulator, a platform designed to test, train, and analyze AI and human agents in a risk-free environment, addressing key barriers to generative AI (GenAI) adoption such as accuracy, compliance, and risk [1][2][3] Group 1: Product Features and Benefits - The Conversation Simulator allows brands to validate AI before customer interactions, making generative AI more predictable and measurable for enterprise use [3][4] - It employs synthetic customers to mimic real behaviors, helping to identify risks, test performance, and ensure compliance with brand standards [3][4] - The platform aims to transform AI deployment from a leap of faith into a repeatable, proven process, addressing challenges that often stall AI programs at the pilot stage [4] Group 2: Market Reception and Use Cases - Early adopters like Telstra, Australia's leading telecom provider, are already utilizing the Conversation Simulator and reporting positive results [3] - The platform is vendor-agnostic, serving as a comprehensive testing and governance tool for a brand's entire conversational ecosystem [3] Group 3: Operational Efficiency - The Conversation Simulator automates training for human agents, significantly reducing onboarding time from weeks to hours by using real-world scenarios [8] - It continuously monitors AI and agent performance to ensure compliance with evolving regulations, such as the EU AI Act [8]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for LivePerson (LPSN) due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Company Summary - LivePerson is expected to report a quarterly loss of $2.70 per share, reflecting a year-over-year change of -157.1% [3]. - Revenue is projected to be $56.84 million, down 23.4% from the same quarter last year [3]. - The consensus EPS estimate has been revised 2.17% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Prediction Insights - The Zacks Earnings ESP model shows that the Most Accurate Estimate for LivePerson matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12]. - The stock currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [12]. - LivePerson has beaten consensus EPS estimates three times in the last four quarters, with a notable surprise of +45.00% in the last reported quarter [13][14]. Industry Context - In comparison, DoorDash, Inc. (DASH) is expected to post earnings of $0.68 per share for the same quarter, indicating a year-over-year change of +79% [18]. - DoorDash's revenue is anticipated to be $3.37 billion, up 24.4% from the previous year, with a consensus EPS estimate revised 4.6% higher recently [19]. - Despite a lower Most Accurate Estimate leading to an Earnings ESP of -5.06%, DoorDash has surpassed consensus EPS estimates three times in the last four quarters [20].

NEW YORK, Oct. 28, 2025 /PRNewswire/ -- LivePerson, Inc. (Nasdaq: LPSN), a leading provider of trusted enterprise conversational AI and outcome-driven digital transformation, today announced the planned release of its second quarter financial results after the market close on Monday, November 10, 2025. CEO John Sabino and CFO & COO John Collins will host a conference call later that day, at 5:00 p.m. Eastern Time. The conference call will be simulcast live and can be accessed by logging onto the investor re ...

Financial Data and Key Metrics Changes - The company reported a significant disconnect between its asset value and public market valuation, prompting the Board to explore strategic alternatives to maximize shareholder value [11] - The decision to seek authorization for a reverse stock split was made to ensure compliance with NASDAQ requirements, which may have negatively impacted the share price [12] Business Line Data and Key Metrics Changes - No specific data on individual business lines was provided during the meeting Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting Company Strategy and Development Direction - The company is pursuing all options to maximize shareholder value, including potential strategic alternatives [11] - The reverse stock split proposal was approved, indicating a strategic move to enhance market perception and compliance [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the disconnect between asset value and market valuation, indicating a proactive approach to address these issues [11] - The management emphasized the importance of the reverse stock split in the context of NASDAQ compliance and long-term shareholder value [12] Other Important Information - The meeting was conducted virtually, and shareholders were encouraged to submit questions throughout the session [3][4] - The proposals discussed included a reverse stock split and an increase in authorized common stock, both of which were approved [21] Q&A Session Summary Question: Has the Board engaged advisors to explore strategic alternatives to maximize value for shareholders? - The Board and management are pursuing all options to maximize shareholder value [11] Question: Can the Board explain the strategic rationale behind the reverse stock split decision and its timing? - The decision was made to ensure compliance with NASDAQ requirements within the grace period [12] Additional Information - Any further questions not addressed during the meeting will be responded to via the investor relations inbox [13]

Financial Data and Key Metrics Changes - The company reported a quorum present for the meeting, indicating at least 33% of shares were represented [7] - The proposals discussed included a reverse stock split and an increase in authorized common stock, both of which were approved by shareholders [21] Business Line Data and Key Metrics Changes - No specific data on individual business lines was provided during the meeting [9] Market Data and Key Metrics Changes - The decision to seek authorization for a reverse stock split was noted as having sent a negative signal to the market, impacting share price recovery [12] Company Strategy and Development Direction - The Board and management are exploring all strategic alternatives to maximize shareholder value, including the potential sale of the company [11] - The reverse stock split was strategically timed to ensure compliance with NASDAQ requirements [12] Management Comments on Operating Environment and Future Outlook - Management emphasized that forward-looking statements made during the meeting are subject to risks and uncertainties that could lead to actual results differing from projections [10] Other Important Information - The meeting was conducted virtually, and shareholders were encouraged to submit questions via an online platform [3][4] - The company plans to address any unanswered questions through their investor relations email [13] Q&A Session Summary Question: Has the Board engaged advisors to explore strategic alternatives due to the disconnect between asset value and market valuation? - The Board and management are pursuing all options to maximize shareholder value [11] Question: Can the Board explain the strategic rationale behind the reverse stock split decision and its timing? - The decision was based on ensuring compliance with NASDAQ's grace period for a reverse stock split [12] Question: Were there any further questions from shareholders? - No additional questions were posed during the meeting [19]

Financial Data and Key Metrics Changes - The meeting discussed the approval of a reverse stock split proposal and an increase in authorized common stock, indicating a strategic move to enhance shareholder value [12][22]. Business Line Data and Key Metrics Changes - Specific financial performance metrics for different business lines were not disclosed during the meeting, as management indicated they could not answer questions related to third-quarter performance [10]. Market Data and Key Metrics Changes - The company acknowledged a significant disconnect between its asset value and public market valuation, prompting discussions about exploring strategic alternatives [12]. Company Strategy and Development Direction - The Board and management are actively pursuing all options to maximize shareholder value, including the potential sale of the company [12]. - The decision to seek a reverse stock split was strategically aligned with ensuring compliance with NASDAQ requirements, reflecting a focus on long-term shareholder value [13]. Management Comments on Operating Environment and Future Outlook - Management emphasized that forward-looking statements made during the meeting are based on current expectations and are subject to risks and uncertainties that could lead to actual results differing materially from projections [11]. Other Important Information - The meeting was conducted virtually, and shareholders were encouraged to submit questions via an online platform, with a commitment to address as many as possible within the allotted time [3][10]. Q&A Session Summary Question: Has the Board engaged advisors to explore strategic alternatives to maximize value for shareholders? - The Board and management are pursuing all options to maximize shareholder value [12]. Question: Can the Board explain the strategic rationale behind the reverse stock split decision and its timing? - The decision was based on ensuring compliance with NASDAQ processes and timelines, allowing for the option of a reverse stock split within the grace period [13].