LivePerson(LPSN) - 2024 Q4 - Annual Results

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].