Financial Performance - Total revenue for Q4 2024 was $73.2 million, a decrease of 23.3% compared to the same period last year[3]. - Revenue for Q4 2024 was $73,206,000, a decrease of 23.3% compared to $95,468,000 in Q4 2023[31]. - Total revenue for the year ended December 31, 2024, was $312,474,000, down 22.2% from $401,983,000 in 2023[31]. - For Q1 2025, total revenue is expected to range from $63 million to $65 million, representing a year-over-year decline of 24% to 26%[12]. - For the full year 2025, total revenue is expected to range from $240 million to $255 million, a decline of 18% to 23% year-over-year[13]. Net Loss and Earnings - 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[8]. - Net loss for Q4 2024 was $112,128,000, compared to a net loss of $40,525,000 in Q4 2023, representing an increase in loss of 176.5%[31]. - GAAP net loss for Q4 2024 was $112.1 million, compared to a loss of $40.5 million in Q4 2023, representing an increase of 176%[36]. Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $8.1 million, up from $3.7 million in Q4 2023[9]. - Adjusted EBITDA for Q4 2024 was $8.1 million, up from $3.7 million in Q4 2023, indicating a growth of 118%[36]. - The company anticipates adjusted EBITDA for the full year 2025 to range from $(14) million to $0 million[15]. Cash and Liquidity - Cash balance at December 31, 2024, was $183.2 million, down from $210.8 million at the end of 2023[10]. - Cash, cash equivalents, and restricted cash at the end of 2024 were $183,237,000, down from $212,925,000 at the end of 2023, reflecting a decrease of 13.9%[34]. - Cash and cash equivalents decreased to $183.2 million in Q4 2024 from $210.8 million in Q4 2023, a decline of 13%[44]. - Total Free Cash Flow for the year ended December 31, 2024, was $(40.3) million, an improvement from $(48.4) million in 2023[41]. Costs and Expenses - The total costs, expenses, and other for Q4 2024 were $174,200,000, an increase of 28% from $136,137,000 in Q4 2023[31]. - Interest expense for the year ended December 31, 2024, was $14,486,000, significantly higher than $4,882,000 in 2023[31]. - Interest expense increased to $6.3 million in Q4 2024 from $0.8 million in Q4 2023[42]. - The company incurred restructuring costs of $3,263,000 in Q4 2024, down from $6,665,000 in Q4 2023[31]. - The company incurred restructuring costs of $3.3 million in Q4 2024, down from $6.7 million in Q4 2023[36]. Impairment and Goodwill - The company reported an impairment of goodwill amounting to $56,924,000 in Q4 2024, compared to no impairment in Q4 2023[31]. - The company reported impairment of goodwill amounting to $56.9 million for Q4 2024, compared to no impairment in Q4 2023[36]. Business Development - The company signed 39 deals in total for Q4 2024, including 30 expansions and renewals, and 9 new customers[4]. - Average revenue per enterprise and mid-market customer (ARPC) increased by 2.5% to $625,000 for Q4 2024[4]. - The company has seen increasing demand for AI agents and AI orchestration, indicating a positive trend for future growth[6]. Assets and Liabilities - Total assets decreased to $607.8 million in Q4 2024 from $835.5 million in Q4 2023, a reduction of 27%[44]. - Total liabilities decreased to $675.1 million in Q4 2024 from $787.4 million in Q4 2023, a decline of 14%[44]. Financing Activities - The company issued $100,000,000 in 2029 convertible senior notes during the year, contributing to financing activities[34]. - Operating cash flow for the year ended December 31, 2024, was a net cash used of $15,130,000, an improvement from $19,765,000 used in 2023[34]. - The company plans to focus on IT transformation costs, which amounted to $0.1 million in Q4 2024, as part of its strategy to enhance operational efficiency[36].

Core Insights - LivePerson, Inc. is set to release its fourth quarter financial results on March 5, 2025, after market close [1] - The conference call will be hosted by CEO John Sabino and CFO & COO John Collins at 5:00 p.m. Eastern Time on the same day [1] Company Overview - LivePerson is a leader in enterprise conversational AI and digital transformation, serving major brands like HSBC, Chipotle, and Virgin Media [3] - The company facilitates nearly one billion conversational interactions monthly, providing data analytics and safety tools to enhance business outcomes [3] - LivePerson has been recognized as the 1 Most Innovative AI Company in the world by Fast Company [3]

Momentum Investing Strategy - Momentum investing focuses on buying high and selling higher, rather than buying low and selling high, aiming to make more money in less time [7] - Fast-moving trending stocks can be risky as they may lose momentum when valuations exceed future growth potential, leading to limited upside or downside [1] - The Zacks Momentum Style Score is useful for identifying stocks with strong price or earnings trends [4] LivePerson (LPSN) Analysis - LPSN has gained 14.4% over the past 12 weeks, demonstrating strong momentum [2] - The stock has a beta of 1.59, indicating it moves 59% higher than the market in either direction [2] - LPSN has a Momentum Score of A, suggesting it is a good time to enter the stock to capitalize on its momentum [5] - The stock has a four-week price change of 62.2%, reflecting growing investor interest [8] - LPSN has a Zacks Rank 2 (Buy) due to upward earnings estimate revisions, which often attract more investors and drive price increases [9] - The stock is trading at a reasonable valuation with a Price-to-Sales ratio of 0.36, meaning investors pay 36 cents for each dollar of sales [9] Other Momentum Stocks and Tools - Several other stocks pass the 'Fast-Paced Momentum at a Bargain' screen, offering potential investment opportunities [3] - Zacks Premium Screens, including over 45 options, can help investors find winning stocks based on their personal investing style [6] - The Zacks Research Wizard allows investors to backtest strategies and access successful stock-picking strategies [10]

Company Announcement - LivePerson announced the appointment of Christopher Mina as Chief Technology & Product Officer, responsible for setting the company's product vision and overseeing engineering and product operations to enhance customer experience and accelerate innovation [1] - Christopher Mina previously held leadership roles at Vonage, LivePerson, and RingCentral, with expertise in UCaaS, CCaaS, Conversational AI, and enterprise software [2] - The CEO highlighted Mina's strategic vision for leveraging AI across communication channels and his experience in guiding global enterprise brands through digital transformations [3] Industry and Technology - LivePerson is a leader in enterprise conversational AI and digital transformation, serving major brands like HSBC, Chipotle, and Virgin Media [4] - The company's Conversational Cloud platform powers nearly a billion conversational interactions monthly, providing rich data analytics and safety tools [4] - LivePerson was named the 1 Most Innovative AI Company by Fast Company, emphasizing its cutting-edge AI technology and digital expertise [4] Strategic Vision - Christopher Mina expressed excitement about rejoining LivePerson to guide product strategy and unlock value for customers through meaningful and connected consumer engagement across voice and digital touchpoints [3] - The company aims to transform customer experiences by combining its extensive digital experience with best-of-breed systems and AI technologies [3]

Core Insights - LivePerson, Inc. has appointed two new board members, Dan Fletcher and Karin-Joyce (K.J.) Tjon, to enhance its board's expertise in business turnarounds and financial execution [1][2][3] Group 1: Board Appointments - Dan Fletcher has over 17 years of experience in financial, strategic, and operational transformations within the SaaS industry, currently serving as CFO of Planful and as an Operating Principal at Vector Capital Management, L.P., LivePerson's largest investor [2] - Karin-Joyce (K.J.) Tjon brings over 25 years of executive and board leadership experience in technology and SaaS industries, with a strong background in business transformation and financial restructuring [3] - Following these appointments, LivePerson's Board now consists of eight directors, with seven being independent and six having joined in the past two years, reflecting a significant refresh of the board [4] Group 2: Company Overview - LivePerson is a leader in enterprise conversational AI and digital transformation, serving major brands like HSBC, Chipotle, and Virgin Media, and facilitating nearly a billion conversational interactions monthly [5] - The company has been recognized as the 1 Most Innovative AI Company in the world by Fast Company, highlighting its impact and leadership in the conversational AI space [5]

Core Insights - Project Management Institute (PMI) has partnered with LivePerson to enhance its customer support model through AI and automation, resulting in improved efficiency and customer interaction [1][4] - PMI aims to expand support options across preferred customer channels and leverage AI for better outcomes and workforce upskilling [2][3] Group 1: Partnership and Objectives - PMI selected LivePerson to expand support options and achieve meaningful outcomes from AI and automation [2] - The collaboration focuses on enhancing customer interactions through digital messaging and channel expansion, including web messaging, WhatsApp, and SMS [2] Group 2: AI Implementation and Results - PMI has implemented an AI virtual assistant using LivePerson's capabilities, which includes AI-guided routing based on intent recognition and interaction history [3] - The partnership has led to over 1.5 million customer interactions with the virtual assistant and a 51% year-over-year improvement in containment rates [4] - 28.5% of support volume is now fully handled by AI, showcasing significant efficiency gains [4] Group 3: Future Plans and Innovations - PMI plans to expand its virtual assistant to multiple languages to cater to a global audience and utilize additional generative AI tools from LivePerson [4] - The partnership has enabled the creation of new roles such as Bot Monitors, fostering further innovation within PMI's team [4] Group 4: Industry Impact - LivePerson's CEO highlighted the success of PMI's customer support transformation as a model for businesses prioritizing customer conversations [5] - LivePerson's Conversational Cloud platform is utilized by leading brands to enhance customer interactions and drive contact center transformation [6]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $74.2 million, exceeding the high end of guidance, driven by successful retention efforts [12][38] - Adjusted EBITDA was $7.3 million, also above guidance, attributed to cost structure adjustments [13][38] - B2B hosted services revenue was $62.7 million, down 27% year-over-year, while B2B core recurring revenue was $68.8 million, down 21% year-over-year [39] - Average revenue per customer increased by 6% year-over-year to $630,000 [40] - RPO declined to $256 million, with net revenue retention at 79%, down from 83% in the previous quarter [41] Business Line Data and Key Metrics Changes - Professional services revenue was $11.6 million, down 26% year-over-year [40] - The company signed 44 deals in Q3, including nine new logos and 35 expansions and renewals, marking a 19% increase in total deals from Q2 [35] Market Data and Key Metrics Changes - US revenue was $49.4 million, while international revenue was $24.9 million, representing 67% and 33% of total revenue, respectively [40] Company Strategy and Development Direction - The company is focusing on enhancing its omnichannel solutions and integrating voice interactions with digital capabilities [7][8] - Strategic partnerships, particularly with Avaya, are expected to drive bookings and pipeline momentum [9][27] - Future innovations will focus on expanding voice partnerships, increasing generative AI use cases, and enhancing digital channel capabilities [23] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued sequential improvement in bookings and greater visibility into churn risks [31] - There is an expectation of attrition continuing into the first half of 2025, offsetting revenue gains from sequential bookings improvement [33] - The company expects to see positive net new ARR in the second half of 2025 [34][46] Other Important Information - The company is maintaining its revenue guidance for the full year 2024 at $305 million to $310 million [43] - Cash on the balance sheet at the end of Q3 was $142 million [42] Q&A Session Summary Question: Discussion on ARR bottoming and renewal engagement challenges - Management noted that while initial expectations were optimistic, recent insights into customer health and adoption have revealed challenges in influencing renewal decisions due to past instability [54] Question: Progress on new sales motion and expectations - Management indicated that the new sales motion is ramping faster than expected, with pricing and packaging changes leading to shorter deal cycles and larger deal sizes [55] Question: Main use cases for new logo wins - New logo wins are primarily focused on integrating voice and providing unified analytics, with significant use of generative AI across customer interactions [57][58] Question: Competitors for seven-figure deals and value propositions - The competitive landscape remains stable, with consistent competitors such as Genesys and Salesforce, and the company's value proposition includes the ability to innovate without requiring full CCaaS migration [60][61]

Financial Performance - Revenue for the three months ended September 30, 2024, was $74.244 million, a decrease of 26.8% compared to $101.332 million for the same period in 2023[9]. - Net loss for the three months ended September 30, 2024, was $28.309 million, compared to a net loss of $53.312 million for the same period in 2023, representing a 47% improvement[11]. - Total costs and expenses for the three months ended September 30, 2024, were $90.282 million, down from $145.007 million in the same period of 2023, a reduction of 37.8%[9]. - The company reported a loss from operations of $16.038 million for the three months ended September 30, 2024, compared to a loss of $43.675 million for the same period in 2023[9]. - Basic net loss per share for the three months ended September 30, 2024, was $(0.32), an improvement from $(0.68) in the same period of 2023[9]. - The company had a comprehensive loss of $25.774 million for the three months ended September 30, 2024, compared to a comprehensive loss of $55.470 million for the same period in 2023[11]. - The net loss for the nine months ended September 30, 2024, was $22,145,000, compared to a net loss of $59,910,000 for the same period in 2023[17]. Cash and Equity - Cash and cash equivalents as of September 30, 2024, were $45.906 million, reflecting a decrease from previous quarters[13]. - Total stockholders' equity as of September 30, 2024, was $45.906 million, down from $66.606 million as of June 30, 2024[13]. - As of September 30, 2023, LivePerson reported a total stockholders' equity of $45,081,000, a decrease from $90,145,000 as of June 30, 2023[15]. - Cash, cash equivalents, and restricted cash at the end of the period were $142,104,000, down from $214,332,000 at the end of the same period in 2023[19]. Revenue Breakdown - Hosted services revenue for the three months ended September 30, 2024, was $62.7 million, down from $85.7 million in the prior year, representing a decline of 26.9%[39]. - Professional services revenue for the three months ended September 30, 2024, was $11.6 million, compared to $15.6 million for the same period in 2023, a decrease of 25.5%[39]. - Revenue from the Americas for the three months ended September 30, 2024, was $50.9 million, down from $73.7 million in the same period of 2023, a decline of 30.9%[41]. - EMEA revenue for the three months ended September 30, 2024, was $14.3 million, compared to $16.2 million in the prior year, a decrease of 11.5%[41]. - APAC revenue for the three months ended September 30, 2024, was $9.0 million, down from $11.4 million in the same period of 2023, a decline of 21.0%[41]. Operational Efficiency - The company plans to continue focusing on cost reduction strategies and improving operational efficiency in the upcoming quarters[9]. - LivePerson's net cash used in operating activities for the nine months ended September 30, 2024, was $12,015,000, an improvement from $24,302,000 in 2023[17]. - The company reported a net cash used in investing activities of $23,505,000 for the nine months ended September 30, 2024, compared to $11,863,000 in 2023[17]. Asset Management - Goodwill decreased from $285.6 million as of December 31, 2023, to $282.3 million as of September 30, 2024, reflecting a goodwill impairment charge of $3.6 million[56]. - Total long-lived assets decreased from $513.8 million as of December 31, 2023, to $478.8 million as of September 30, 2024, a decrease of 6.8%[54]. - Property and equipment, net as of September 30, 2024, was $105.1 million, a decrease from $119.3 million as of December 31, 2023[67]. Debt and Financing - The Company repurchased $157.5 million of its 2024 Convertible Senior Notes for $149.7 million, resulting in a gain of $7.2 million recognized in Q1 2023[75][76]. - As of September 30, 2024, the outstanding principal amount of the 2024 Notes was reduced to $72.5 million, with no remaining principal amount after repayment[76]. - The 2026 Convertible Senior Notes had an outstanding principal amount of $361.2 million as of September 30, 2024, with a maturity date of December 15, 2026[77][78]. - The Company exchanged $146.0 million principal amount of 2026 Notes for $100.0 million principal amount of new 2029 Notes, recognizing a $68.1 million gain on debt extinguishment during Q2 2024[83]. - Interest on the 2029 Notes will accrue at a rate of 10.83% from June 3, 2024, increasing to 11.375% after the issuance of Delayed Draw Notes, and further to 13% after December 15, 2026[89]. Legal and Regulatory Matters - The company faced multiple legal actions, including a putative stockholder class action and derivative actions related to alleged misrepresentations in its public disclosures[137][138]. - The company discontinued all products and services related to COVID-19 and is cooperating with governmental inquiries regarding its previous offerings[142]. Restructuring and Costs - The Company recognized restructuring costs of $1.4 million and $7.9 million for the three and nine months ended September 30, 2024, respectively[134]. - The total restructuring costs for the nine months ended September 30, 2024, were $7.876 million, compared to $15.999 million for the same period in 2023[136]. - The balance of the restructuring liability at the end of the period was $2.005 million as of September 30, 2024, down from $2.076 million at the beginning of the year[135]. Stock-Based Compensation - Total stock-based compensation costs for the three months ended September 30, 2024, amounted to $5,375,000, compared to $11,296,000 for the nine months ended September 30, 2024[133]. - The Company had approximately $1.7 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements as of September 30, 2024[131].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential [1] - Identifying the right entry point for momentum stocks is challenging, and investors may end up with expensive shares that have limited upside [1] Group 2: Bargain Momentum Stocks - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: LivePerson (LPSN) Stock Analysis - LivePerson (LPSN) has shown a price increase of 6.2% over the past four weeks, indicating growing investor interest [3] - LPSN has gained 63.2% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.79, indicating it moves 79% higher than the market in either direction, reflecting fast-paced momentum [4] Group 4: Valuation and Earnings Estimates - LPSN has a Momentum Score of B, suggesting it is a favorable time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investor interest [6] - LPSN is trading at a Price-to-Sales ratio of 0.30, indicating it is reasonably valued at 30 cents for each dollar of sales [6] Group 5: Additional Investment Opportunities - Besides LPSN, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can help identify winning stock picks [8]

The LivePerson Community empowers customers to achieve better business results through self-service, collaboration, and co-innovation NEW YORK, Oct. 1, 2024 /PRNewswire/ -- LivePerson (Nasdaq: LPSN), the enterprise leader in digital-first customer conversations, today announced the launch of the LivePerson Community, a new customer-driven destination that facilitates connection and growth across its global customer base. The community helps brands gain the maximum value from LivePerson's industry-leading cu ...