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]

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]