Liveperson ((LPSN)) has held its Q3 earnings call. Read on for the main highlights of the call.
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LivePerson’s recent earnings call revealed a generally positive sentiment, underscored by strong financial performance that exceeded guidance, innovative product developments, and growing customer confidence. However, the call also highlighted some challenges, particularly in the decline of hosted and professional services revenue.
Debt Refinancing Agreement Closed
LivePerson has successfully closed a significant debt refinancing agreement, which has been a major concern for both customers and partners. This move is expected to enhance financial stability and customer trust.
Exceeded Revenue and EBITDA Guidance
The company reported a quarterly revenue of $60.2 million, surpassing the high end of their guidance range. Additionally, the adjusted EBITDA was $4.8 million, also exceeding expectations, showcasing the company’s robust financial health.
Growth in Generative AI Adoption
LivePerson is seeing substantial growth in the adoption of generative AI, with nearly 20% of all conversations on its platform now utilizing this technology. This indicates a significant shift towards more advanced AI-driven interactions.
Recognition in Gartner Reports
The company has been recognized as a niche player in the 2025 Gartner Magic Quadrant for conversational AI platforms and in the Gartner report for digital customer service, highlighting its competitive position in the market.
Launch of Conversation Simulator
LivePerson introduced the Conversation Simulator, a new product designed to enhance the training and validation of AI agents. This innovation is expected to reduce agent ramp time by 30% and AI bot testing time by 60%.
Renewed Customer Confidence
The company successfully renewed several large accounts and secured new upsell contracts with major U.S. telecom and entertainment companies, indicating a boost in customer confidence.
Google Partnership Expansion
LivePerson expanded its partnership with Google, launching its platform on Google Cloud Marketplace and introducing Copilot Translate using Google’s Gemini 2.5, opening new growth avenues.
Raised Full-Year Guidance
LivePerson has raised its full-year revenue guidance to a range of $235 million to $240 million, and adjusted EBITDA guidance to a range of $7.5 million to $12.5 million, reflecting confidence in its strategic direction.
Decline in Hosted and Professional Services Revenue
Despite the positive developments, the company reported a decline in revenue from hosted services, down 18% year over year to $51.2 million, and a 23% decrease in professional services revenue to $9 million.
RPO Decline
The Remaining Performance Obligation (RPO) declined to $182 million, indicating potential challenges in future revenue streams.
In summary, LivePerson’s earnings call painted a picture of a company on a positive trajectory, bolstered by strong financial results, innovative product launches, and strategic partnerships. However, challenges remain in the form of declining hosted and professional services revenue, which the company will need to address moving forward.