Financial Performance & Guidance - Q1 2025 revenue reached $64.7 million, exceeding the guidance midpoint of $63 million to $65 million[9] - Adjusted EBITDA for Q1 2025 was $0.2 million, surpassing the high end of the guidance range of negative $3 million to negative $1 million[9] - Recurring revenue accounted for 93% of total revenue in Q1 2025, amounting to $60.4 million[9] - The company projects Q2 2025 revenue between $57 million and $60 million, representing a year-over-year decline of 29% to 25%[20] - Full year 2025 revenue is projected to be between $240 million and $255 million, a year-over-year decrease of 23% to 18%[20] - Adjusted EBITDA for full year 2025 is guided to be between negative $14 million and $0 million, with an adjusted EBITDA margin of negative 5.8% to 0.0%[20] Business Highlights - There was a 14% sequential increase in customers leveraging LivePerson GenAI capabilities, along with a 25% sequential increase in conversations using these capabilities[9] - The company closed 50 deals in Q1 2025, including 45 expansion and renewal deals and 5 new logo wins[9] - Industries with high regulation, such as healthcare, financial services, and telecommunications, accounted for over 70% of deal values in Q1 2025[9] Operational Metrics - Average Revenue Per Customer (ARPC) for Q1 2025 was $640,000[17] - Net Revenue Retention Rate for recurring revenue was 80% in Q1 2025[17]

[First Quarter 2025 Financial Results and Business Highlights](index=1&type=section&id=LivePerson%20Announces%20First%20Quarter%202025%20Financial%20Results) LivePerson's Q1 2025 results show a revenue decline to $64.7 million, a narrowed net loss, and strategic customer expansions [Q1 2025 Financial Performance](index=1&type=section&id=First%20Quarter%20Highlights) LivePerson's Q1 2025 revenue decreased to $64.7 million, while net loss significantly narrowed to $14.1 million, with cash at $176.3 million Q1 2025 Key Financial Metrics vs. Q1 2024 (in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $64.7M | $85.1M | -24.0% | | Net Loss | $(14.1)M | $(35.6)M | Improved | | Net Loss Per Share | $(0.15) | $(0.40) | Improved | | Adjusted EBITDA | $0.2M | $0.5M | -60.0% | | Adjusted Operating Loss | $(5.4)M | $(7.7)M | Improved | Disaggregated Revenue (Three Months Ended March 31, in thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Hosted services | $55,134 | $71,495 | | Professional services | $9,566 | $13,654 | | **Total revenue** | **$64,700** | **$85,149** | - The company's cash balance was **$176.3 million** at March 31, 2025, compared to **$183.2 million** at December 31, 2024[9](index=9&type=chunk) [Business and Customer Update](index=1&type=section&id=Customer%20Expansion) LivePerson secured 50 deals in Q1, including new logos and expansions, while ARPC grew 2.4% and strategic AI integrations advanced - Signed **50 deals** in Q1, comprising **45** with existing customers and **5** with new customers[4](index=4&type=chunk)[6](index=6&type=chunk) - Trailing-twelve-months average revenue per enterprise and mid-market customer (ARPC) grew **2.4%** to **$640,000** from **$625,000** in the prior-year period[4](index=4&type=chunk) - Key customer deals included expansions with IBM and one of the world's largest banks, and new logos such as one of Canada's largest retailers[6](index=6&type=chunk) - The company is advancing strategic partnerships, with a planned launch of an integration with Amazon Connect in the second quarter, noting growing enterprise demand for AI agents[5](index=5&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Expectations) LivePerson provides Q2 and full-year 2025 guidance, anticipating continued revenue decline but stable adjusted EBITDA [Second Quarter 2025 Guidance](index=2&type=section&id=Second%20Quarter%202025) LivePerson projects Q2 2025 revenue between $57 million and $60 million, with an adjusted EBITDA loss ranging from $(4) million to $(2) million Q2 2025 Guidance (in millions) | Metric | Guidance | | :--- | :--- | | Revenue | $57 - $60 | | Revenue growth (YoY) | (29)% - (25)% | | Adjusted EBITDA | $(4) - $(2) | | Adjusted EBITDA margin (%) | (7.0)% - (3.3)% | - Recurring revenue is expected to constitute **93%** of total revenue for the second quarter[11](index=11&type=chunk) [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025) LivePerson reaffirms full-year 2025 revenue guidance of $240 million to $255 million and adjusted EBITDA between $(14) million and $0 million Full Year 2025 Guidance (in millions) | Metric | Guidance | | :--- | :--- | | Revenue | $240 - $255 | | Revenue growth (YoY) | (23)% - (18)% | | Adjusted EBITDA | $(14) - $0 | | Adjusted EBITDA margin (%) | (5.8)% - 0.0% | - The full-year expectations are unchanged from the previous earnings release, with recurring revenue expected to represent **93%** of total revenue for the full year[12](index=12&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents LivePerson's detailed statements of operations, cash flows, and balance sheets for the reporting period [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 operations show revenue decreased to $64.7 million, total costs significantly reduced, leading to a narrowed net loss of $(14.1) million Statement of Operations Summary (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $64,700 | $85,149 | | Total costs, expenses and other | $81,644 | $121,513 | | Loss from operations | $(16,944) | $(36,364) | | Net loss | $(14,133) | $(35,631) | | Net loss per share, basic | $(0.15) | $(0.40) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 cash flows show net cash used in operating activities of $(3.1) million, reduced investing outflows, and a $7.0 million decrease in cash to $176.3 million Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(3,096) | $1,099 | | Net cash used in investing activities | $(4,145) | $(12,710) | | Net cash used in financing activities | $(26) | $(72,697) | | **Net decrease in cash and cash equivalents** | **$(6,983)** | **$(83,908)** | | **Cash and cash equivalents - end of period** | **$176,254** | **$129,017** | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $596.2 million, total liabilities $671.2 million, resulting in a stockholders' equity deficit of $(74.9) million Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $176,254 | $183,237 | | Total current assets | $221,754 | $231,224 | | **Total assets** | **$596,220** | **$607,778** | | Total current liabilities | $134,202 | $139,940 | | Convertible senior notes | $528,858 | $527,070 | | **Total liabilities** | **$671,164** | **$675,094** | | **Total stockholders' equity** | **$(74,944)** | **$(67,316)** | [Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Information%20to%20GAAP) This section reconciles GAAP financial metrics to non-GAAP measures like Adjusted EBITDA, Adjusted Operating Loss, and Free Cash Flow [Reconciliation of Adjusted EBITDA and Adjusted Operating Loss](index=8&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20and%20Adjusted%20Operating%20Loss) Q1 2025 GAAP net loss of $(14.1) million was reconciled to Adjusted EBITDA of $0.2 million, with key adjustments including litigation costs and warrant fair value changes Reconciliation of GAAP Net Loss to Adjusted EBITDA (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP net loss** | **$(14,133)** | **$(35,631)** | | Add: Interest, taxes, D&A, etc. | $14,300 | $19,214 | | Add: Litigation, restructuring, SBC, etc. | $11,183 | $18,252 | | Less: Change in fair value of warrants | $(8,824) | $0 | | **Adjusted EBITDA** | **$167** | **$477** | - Litigation, consulting, and other employee costs were a significant adjustment at **$5.2 million** in Q1 2025, up from **$3.8 million** in Q1 2024[30](index=30&type=chunk)[32](index=32&type=chunk) [Calculation of Free Cash Flow](index=9&type=section&id=Calculation%20of%20Free%20Cash%20Flow) Q1 2025 free cash flow was an outflow of $(6.9) million, an improvement from the prior year, derived from operating activities and capital expenditures Free Cash Flow Calculation (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(3,096) | $1,099 | | Purchases of property and equipment | $(3,759) | $(11,501) | | **Total Free Cash Flow** | **$(6,855)** | **$(10,402)** | [Reconciliation of Non-GAAP Cost and Expense Items](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Cost%20and%20Expense%20Items) This section details adjustments to non-GAAP cost and expense items, notably reducing GAAP general and administrative expenses by excluding litigation and stock-based compensation Q1 2025 GAAP vs. Non-GAAP Expenses (in thousands) | Expense Category | GAAP | Non-GAAP | | :--- | :--- | :--- | | Cost of revenue | $18,218 | $17,922 | | Sales and marketing | $23,485 | $22,107 | | General and administrative | $16,784 | $9,842 | | Product development | $16,034 | $14,662 |

Financial Performance - Total revenue for the first quarter of 2025 was $64.7 million, a decrease of 24.0% compared to the same period last year, primarily due to customer cancellations and downsells [2][5] - Net loss for the first quarter of 2025 was $14.1 million, or $0.15 per share, compared to a net loss of $35.6 million, or $0.40 per share, for the first quarter of 2024 [5][24] - Adjusted EBITDA for the first quarter of 2025 was $0.2 million, down from $0.5 million in the first quarter of 2024 [6][24] Customer Activity - The company signed a total of 50 deals in the first quarter, including 45 expansions and renewals and 5 new customers [3][5] - The trailing-twelve-months average revenue per enterprise and mid-market customer increased by 2.4% to $640,000 from approximately $625,000 in the prior year [3] Strategic Initiatives - The CEO highlighted the company's "innovation without disruption" approach, which allows customers to adopt AI and digital capabilities seamlessly [4] - The company is advancing strategic partnerships, including a planned integration with Amazon Connect in the second quarter [4] Financial Guidance - For the second quarter of 2025, total revenue is expected to range from $57 million to $60 million, representing a year-over-year decline of 29% to 25% [11] - For the full year 2025, total revenue is projected to be between $240 million and $255 million, reflecting a year-over-year decline of 23% to 18% [12] Cash Position - The company's cash balance was $176.3 million at March 31, 2025, down from $183.2 million at December 31, 2024 [9][32]

Core Viewpoint - LivePerson, Inc. is set to release its first quarter financial results on May 7, 2025, with a conference call scheduled for the same day to discuss the results [1]. Group 1: Financial Results Announcement - The planned release of the first quarter financial results will occur after market close on May 7, 2025 [1]. - CEO John Sabino and CFO & COO John Collins will host a conference call at 5:00 p.m. Eastern Time on the same day [1]. Group 2: Conference Call Details - The conference call will be available via live simulcast on the investor relations section of LivePerson's website [2]. - Participants can join the call by dialing in five to ten minutes before the start time, with specific numbers provided for domestic and international callers [2]. - A replay of the teleconference will be available approximately three hours after the call until May 21, 2025, with access details provided [2]. Group 3: Company Overview - LivePerson is recognized as a leader in enterprise conversational AI and digital transformation, serving major brands like HSBC, Chipotle, and Virgin Media [3]. - The company facilitates nearly a billion conversational interactions monthly, offering data analytics and safety tools to enhance business outcomes [3]. - LivePerson has been named the 1 Most Innovative AI Company in the world by Fast Company [3].

Core Insights - LivePerson has been recognized as a Leader in multiple categories by G2, including AI Agents, Chatbots, Conversational Marketing, Bot Platforms, Live Chat, and Customer Self-Service, based on real customer reviews [1][2][3] Company Overview - LivePerson (NASDAQ: LPSN) is a prominent provider of enterprise conversational AI and digital transformation solutions, serving major brands like HSBC, Chipotle, and Virgin Media [5] - The company facilitates nearly a billion conversational interactions monthly, leveraging rich data analytics and safety tools to enhance business outcomes [5] Recognition and Achievements - The Leader designation from G2 is awarded to vendors that consistently receive high ratings from users and demonstrate significant market presence [2] - LivePerson's CEO, John Sabino, expressed pride in the recognition, highlighting the company's commitment to delivering connected and personalized experiences [3] Product Offerings - LivePerson's solutions include AI Agents, Chatbots, Conversational Marketing, Bot Platforms, Live Chat, and Customer Self-Service, which enable businesses to engage with customers in a human-like manner [7]

Customer Engagement and AI Solutions - LivePerson powers over one billion conversational interactions each month, enhancing customer engagement and driving revenue growth for brands[16]. - The LivePerson Platform enables agents to manage dozens of messaging conversations simultaneously, achieving labor efficiency gains of at least 200% compared to voice agents[21]. - The company’s AI-driven solutions have been shown to increase customer satisfaction scores by double-digit percentage points and improve sales conversion rates by double-digit percentages[29]. - LivePerson's Conversational AI, developed from billions of interactions, allows for real-time intent recognition and classification, enhancing customer service and marketing automation[36]. - The Conversational Flywheel framework helps brands improve customer engagement by analyzing conversational data and automating responses, leading to increased first-contact resolution rates[32]. - The platform supports billions of conversations across various industries, utilizing machine learning models to enhance conversational understanding and generative AI customization[53]. Market Position and Strategy - The company has established itself as a market leader in AI-enhanced customer interaction, focusing on technological innovation and enterprise-class capabilities[52]. - The company targets key markets including telecommunications, financial services, and healthcare, with a focus on expanding its presence in the U.S., Canada, Latin America, Europe, and APAC[39]. - LivePerson's cloud-based SaaS model offers lower up-front costs and faster implementation, providing significant advantages over traditional on-premise software[22]. - The platform integrates with over 40 APIs, facilitating robust integration into back-end systems and enabling custom program development[18]. - No single customer accounted for or exceeded 10% of total revenue for the years 2024, 2023, or 2022, indicating a diversified customer base[40]. Financial Performance and Risks - The company reported an accumulated deficit of $991.3 million as of December 31, 2024, indicating potential future losses[72]. - The company relies heavily on monthly and interaction-based fees for revenue, which may lead to revenue variability based on customer interactions[76]. - Customer retention is critical, as customers typically subscribe for a twelve-month term and can terminate with 30 to 90 days' notice, impacting revenue if significant customers leave[75]. - The company experiences significant fluctuations in quarterly revenue and operating results, influenced by customer demand and sales cycles[107]. - The sales cycle for the company's products can take several months, particularly for enterprise customers, complicating revenue predictions[98]. - The company has historically seen a disproportionate percentage of sales occur in the last month of each quarter, increasing revenue prediction uncertainty[99]. Technology and Infrastructure - The company is migrating its technology infrastructure to the public cloud, enhancing scalability and service quality[56]. - The transition to a public cloud infrastructure is underway, but it poses risks such as service interruptions, data loss, and increased costs, which could negatively impact operations[91]. - The company is investing in infrastructure, research and development, and customer support to scale operations, which will increase the cost base and may affect future profitability[78]. Competition and Market Challenges - The company faces competition from various technology providers, including eGain, Genesys, and Salesforce.com, which could impact market share[58]. - The competitive landscape for mobile and online business messaging is intensifying, with significant pressure from existing competitors and new entrants[123]. - Economic downturns in key industries such as telecommunications and financial services could adversely affect the company's business and financial condition[129]. Regulatory and Compliance Risks - The company is subject to various regulatory risks, including privacy and data protection laws, which could adversely affect its business operations[9]. - The company must comply with evolving U.S. and international privacy laws, which could increase operational complexity and costs, potentially leading to legal proceedings[162]. - The company is subject to the E.U. GDPR, which imposes fines up to €20 million or 4% of global annual revenue for noncompliance[163]. - The company faces potential penalties and operational impacts due to evolving U.S. state privacy laws, with comprehensive laws expected to be enacted between 2024 and 2026[168]. - Regulatory scrutiny of AI is increasing, which may necessitate modifications to AI-driven functionalities in the company's products and services[178]. Cybersecurity and Data Protection - The company is dependent on maintaining the security of its systems and those of third-party providers, with potential risks from cyber-attacks and data breaches[134]. - The transition to a remote workforce post-COVID-19 may increase cybersecurity risks, particularly from countries with higher rates of cybercrime[137]. - The company’s insurance coverage for cybersecurity risks may be insufficient to cover all losses from potential breaches[143]. - Security vulnerabilities and failures in service reliability could lead to significant legal and financial exposure, damaging the company's reputation[138]. Intellectual Property and Innovation - The company has a portfolio of patents and regularly files applications to protect its intellectual property, which is crucial for its business strategy[205]. - The company is investing in AI technologies, which are expected to grow, but faces challenges related to data quality and ethical implications[210]. - The evolving regulatory landscape regarding AI may increase operational costs and compliance risks, potentially affecting the adoption of AI solutions[211]. Legal and Operational Liabilities - Ongoing actions and potential legal liabilities could materially affect the company's financial condition and operational results[9]. - Legal liabilities may arise from the services provided through the company's technology platforms, which could result in negative publicity and significant defense costs[213]. - The company faces risks related to the technological capabilities of its services, including potential system failures and degraded response times due to increased customer interactions[154].

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $73.2 million, and adjusted EBITDA was $8.1 million, both exceeding the high end of guidance ranges [19][20][46] - Full year revenue reached $312.5 million, with adjusted EBITDA of $24.1 million, also above guidance [20][46] - Recurring revenue constituted 94% of total revenue, with a slight increase in average revenue per customer to $625,000, up 2% year-over-year [48] Business Line Data and Key Metrics Changes - Revenue from hosted services was $60.2 million, down 23% year-over-year, while professional services revenue was $13 million, also down 23% year-over-year [46][47] - Net revenue retention improved to 82% in Q4, up from 79% in Q3, driven by favorable timing of deals [49] Market Data and Key Metrics Changes - U.S. revenue was $48.4 million, representing 66% of total revenue, while international revenue was $24.8 million, or 34% [48] - The company signed 39 deals in Q4, including 9 new logos and 30 expansions and renewals, translating to an 18% quarter-over-quarter increase in total deal value [43] Company Strategy and Development Direction - The company is focusing on three core pillars: enhancing go-to-market capabilities, innovating product offerings, and strengthening capital structure [10][13] - The vision for 2025 and beyond includes creating AI-powered workspaces that integrate digital capabilities and shift customer engagement from reactive to proactive [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges from legacy issues but expressed confidence in achieving positive net new ARR in the second half of 2025 [40] - The company anticipates a decline in revenue through most of 2025 before reaching an inflection point for sequential growth by year-end [51] Other Important Information - The company executed a transformative agreement with Lynrock Lake, enhancing its capital structure [13] - The integration of large language models has allowed the company to develop competitive products, driving significant cost savings and improved customer satisfaction [17] Q&A Session Summary Question: Clarification on partner attach target for 2025 - The target is for 35% of total bookings value to be driven by partners, with steady improvement expected from previous years [60] Question: Insights on Avaya integration and partnerships with Cisco and Amazon - The Avaya partnership is progressing well, with a 7-figure deal closed and additional opportunities in the pipeline [65] - Partnerships with Cisco and Amazon are part of a broader strategy to enhance voice capabilities [67] Question: Incremental spend on sales and marketing - There is no incremental investment relative to 2024; the focus is on maintaining spending in sales and marketing while reducing costs in other areas [72] Question: Update on debt situation and strategy - No updates or changes to the debt strategy were provided, but developments are expected throughout the year [75] Question: Sustainability of gross margin increase - The increase in gross margin is influenced by reduced consulting costs, but some pressure is expected in 2025 due to cloud migration costs [79] Question: Customer renewal cycle status - The legacy renewal cycle is expected to end in the first half of 2025, with most customer losses occurring in Q1 [82] Question: System overhaul implications for customers - The company allows customers to retain existing contact center infrastructure while integrating best-in-class digital solutions [86]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $73.2 million, exceeding the high end of guidance, with full-year revenue at $312.5 million, also above guidance [19][20][46] - Adjusted EBITDA for Q4 was $8.1 million, above guidance, with full-year adjusted EBITDA at $24.1 million [19][20][46] - Recurring revenue constituted 94% of total revenue, with average revenue per customer increasing by 2% year-over-year to $625,000 [48][52] Business Line Data and Key Metrics Changes - Revenue from hosted services was $60.2 million, down 23% year-over-year, while professional services revenue was $13 million, also down 23% year-over-year [46][47] - Net revenue retention improved to 82% in Q4, up from 79% in Q3, driven by favorable timing of deals [49] Market Data and Key Metrics Changes - U.S. revenue was $48.4 million, representing 66% of total revenue, while international revenue was $24.8 million, making up 34% [48] - The company signed 39 deals in Q4, including 9 new logos and 30 expansions and renewals, with total deal value increasing by 18% quarter-over-quarter [43][44] Company Strategy and Development Direction - The company is focusing on three core pillars: enhancing go-to-market capabilities, innovating product offerings, and strengthening capital structure [10][13] - LivePerson aims to leverage AI-driven solutions to transform customer engagement from reactive to proactive, integrating AI automation throughout the customer journey [18][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the groundwork laid in 2024, positioning the company for sustainable and profitable growth despite anticipated challenges in the first half of 2025 [19][40] - The company expects to see positive net new ARR in the second half of 2025 as it moves past the legacy renewal cycle [40][50] Other Important Information - The company has made significant advancements in AI capabilities, with a 17% sequential increase in customers using generative AI and a 37% increase in conversations utilizing the AI suite [28][31] - The partnership with Lynrock Lake has significantly enhanced the company's capital structure [13][50] Q&A Session Summary Question: Clarification on partner attach target for 2025 - The target is for 35% of total bookings value to be driven by partners, with steady improvement expected from previous years [60] Question: Insights on Avaya integration and partnerships with Cisco and Amazon - The Avaya partnership is progressing well, with a significant deal closed and more in the pipeline, while partnerships with Cisco and Amazon are aimed at expanding market reach [65][67] Question: Incremental spend on sales and marketing - There is no incremental investment relative to 2024; instead, the focus is on maintaining spending in sales and marketing while reducing costs in other areas [72] Question: Updates on debt situation and strategy - No updates or changes to the debt strategy were provided, but developments are expected as the year progresses [75] Question: Sustainability of gross margin increase - The increase in gross margin is influenced by reduced consulting costs and labor, but some pressure is expected in 2025 due to cloud migration costs [78][79] Question: Customer attrition and renewal cycle - The legacy renewal cycle is expected to end in the first half of 2025, with most customer losses occurring in Q1 [82] Question: System overhaul implications for customers - The company allows customers to retain existing contact center infrastructure while integrating best-in-class digital solutions [86]

Core Viewpoint - LivePerson reported break-even quarterly earnings per share, surprising analysts who expected a loss, indicating a potential turnaround for the company [1][2] Financial Performance - The company achieved revenues of $73.21 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 7.18%, but down from $95.47 million year-over-year [2] - Over the last four quarters, LivePerson has surpassed consensus revenue estimates four times, but only once for EPS estimates [2] Stock Performance - LivePerson shares have declined approximately 30.9% since the beginning of the year, contrasting with the S&P 500's decline of 1.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $66.92 million, and for the current fiscal year, it is -$0.19 on revenues of $258.13 million [7] - The trend of earnings estimate revisions is mixed, which could change following the recent earnings report [6] Industry Context - The Internet - Services industry, to which LivePerson belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable environment for potential growth [8]

Core Insights - LivePerson reported total revenue of $73.2 million for Q4 2024, a decrease of 23.3% year-over-year due to customer cancellations and downsells [2][6] - The company signed 39 deals in total during the fourth quarter, including 30 expansions and renewals, and 9 new customers [3][6] - Adjusted EBITDA for Q4 2024 was $8.1 million, an increase from $3.7 million in Q4 2023 [7] Financial Performance - Net loss for Q4 2024 was $112.1 million, or $1.27 per share, compared to a net loss of $40.5 million, or $0.48 per share, in Q4 2023 [6][26] - Adjusted operating income for Q4 2024 was $1.0 million, compared to an adjusted operating loss of $4.0 million in Q4 2023 [6] - Cash and cash equivalents at the end of Q4 2024 were $183.2 million, down from $210.8 million at the end of Q4 2023 [9] Strategic Developments - The CEO highlighted 2024 as a transformative year for LivePerson, emphasizing progress in go-to-market capabilities and product innovation [4] - The CFO noted increasing demand for AI agents and orchestration, indicating a positive trend for the company in 2025 [5] - The company expects total revenue for Q1 2025 to range from $63 million to $65 million, representing a year-over-year decline of 24% to 26% [11] Revenue Breakdown - For Q4 2024, hosted services revenue was $60.2 million, down from $78.6 million in Q4 2023, while professional services revenue was $12.99 million, down from $16.87 million [13] - For the full year 2024, total revenue was $312.5 million, compared to $402.0 million in 2023 [26] Future Guidance - For the full year 2025, total revenue is expected to range from $240 million to $255 million, reflecting a year-over-year decline of 18% to 23% [12] - Adjusted EBITDA for the full year 2025 is projected to range from $(14) million to $0 million [12]