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Liveperson (LPSN)
NASDAQ:LPSN
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Liveperson
(NASDAQ:LPSN)
Rating:40Underperform
Price Target:
$0.50
▼(-26.47%Downside)
Positive Factors
Deal Expansion
Deals that have slipped into the next quarter have expanded in size.
Potential Growth
Underlying business metrics appear to be improving, suggesting potential future growth.
Profitability
Q1 results came in in-line to better than expected, particularly on the profitability front.
Negative Factors
Balance Sheet Risk
Balance sheet risk is increasing due to a large amount of convertible notes maturing soon, which could lead to dilutive financing.
Revenue Decline
Revenue continues to decline, reflecting LPSN's legacy cost structure.
Sales Pipeline Friction
There is friction in the sales pipeline making the timing of success uncertain.
Liveperson (LPSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$66.54M
Dividend YieldN/A
Average Volume (3M)903.78K
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth-23.04%
EPS Growth11.60%
CountryUS
Employees928
SectorTechnology
Sector Strength78
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.03
Shares Outstanding93,849,815
10 Day Avg. Volume848,262
30 Day Avg. Volume903,785
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)15.59
Price to Sales (P/S)0.00
P/FCF Ratio-21.70
Enterprise Value/Market Cap35.14
Enterprise Value/Revenue1.80
Enterprise Value/Gross Profit11.14
Enterprise Value/Ebitda-9.35
Forecast
1Y Price Target
$0.93Price Target Upside36.76% Upside
Rating ConsensusHold
Number of Analyst Covering3
Liveperson Business Overview & Revenue Model
Company DescriptionLivePerson, Inc. is a leading technology company specializing in conversational artificial intelligence (AI) and messaging solutions. The company operates within the technology sector, focusing on providing businesses with the tools to engage and communicate with their customers through AI-powered chatbots and messaging platforms. LivePerson's core products and services facilitate customer interactions across various digital channels, enhancing customer experiences and increasing operational efficiency.
How the Company Makes MoneyLivePerson generates revenue primarily through the sale of its subscription-based conversational AI and messaging platform. The company offers its solutions to businesses of varying sizes across multiple industries, including retail, financial services, telecommunications, and travel. Clients pay for access to LivePerson's platform, which often includes features such as AI-driven chatbots, analytics, and integration capabilities. Additionally, LivePerson may generate revenue from professional services, such as consulting and implementation support, as well as through strategic partnerships with other technology providers that help enhance its platform's functionality and market reach.
Liveperson Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -12.82%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While the company exceeded revenue and EBITDA guidance and saw significant growth in AI tool adoption and strategic partnerships, it also faced challenges with revenue decline, net revenue retention, and elongated sales cycles. The sentiment is balanced with both notable achievements and challenges.Q1-2025 Updates
Positive Updates
Revenue and EBITDA Exceed Guidance
Revenue for Q1 2025 was $64.7 million, above the midpoint of the guidance range, and adjusted EBITDA was $0.2 million, exceeding the high end of the guidance range.
Growth in AI Tool Adoption
In Q1, there was a 14% increase in the number of customers using generative AI tools and a 25% sequential increase in conversations powered by generative AI.
Significant Customer Wins
The company signed a total of 50 deals in Q1, including five new logos and 45 expansions and renewals, marking a 25% increase quarter-over-quarter.
Successful Partnerships and Integrations
The company is launching integration with Amazon Connect and has seen early customer interest; also achieved successful renewal and expanded partnership with IBM.
Negative Updates
Revenue Decline
Hosted services revenue was $55.1 million, down 23% year-over-year, and recurring revenue was down 22% year-over-year.
Net Revenue Retention Decline
Net revenue retention was 80% in Q1, down from 82% in the previous quarter, with expectations for continued decline until revenue growth resumes.
Extended Buying Cycles
Several large deals expected to close in Q1 shifted to Q2 due to extended enterprise buying cycles and new approval gates for risk and compliance.
Company Guidance
During LivePerson's first-quarter 2025 earnings call, the company provided guidance indicating a revenue of $64.7 million, which surpassed the midpoint of their guidance range, and an adjusted EBITDA of $0.2 million, exceeding the high end of their expectations. For the full year, they reaffirmed their revenue guidance of $240 million to $255 million, with approximately 93% expected to be recurring. Despite a sequential decline in revenue anticipated through the year, they expect net new ARR to turn positive in the second half. The company also highlighted a strong pipeline and improving renewal rates, aiming for positive net new ARR growth later in the year. In terms of partnerships, LivePerson is on track to achieve a 35% partner attach rate and has announced an integration with Amazon Connect to enhance their AI capabilities. The company remains focused on driving commercial performance, controlling costs, and accelerating product innovation.Liveperson Financial Statement Overview
Summary
Liveperson is facing significant financial challenges, with declining revenues and profitability, heavy leverage, and negative equity. Despite cash inflows from financing, the reliance on debt and operational inefficiencies present substantial risks. The company needs to address these challenges to improve its financial health.Income Statement
Liveperson has been experiencing a decline in revenue and profitability. The TTM figures show a significant decrease in total revenue and negative net income, indicating challenges in maintaining profitability. Gross profit margin has decreased, and the company is struggling with negative net and EBIT margins, reflecting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reveals a concerning financial position with negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio cannot be calculated due to negative equity, but high total debt suggests leverage risk. The equity ratio is negative, highlighting the company's heavy reliance on debt financing.30
Negative
Cash Flow
Cash flow analysis shows negative operating and free cash flows, indicating issues in generating sufficient cash from operations. The free cash flow to net income ratio is not meaningful due to negative figures. Although financing activities have provided cash inflow, the sustainability of such reliance is questionable.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 292.02M | 312.47M | 401.98M | 514.80M | 469.62M | 366.62M | Gross Profit |
| 209.87M | 219.07M | 259.16M | 330.10M | 312.74M | 260.35M | EBIT |
| -163.78M | -183.19M | -111.38M | -221.88M | -89.87M | -60.03M | EBITDA |
| -56.03M | -70.74M | -31.68M | -147.52M | -53.12M | -64.12M | Net Income Common Stockholders |
| -112.78M | -134.27M | -100.44M | -225.75M | -124.97M | -107.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 176.25M | 183.24M | 210.78M | 391.78M | 521.85M | 654.15M | Total Assets |
| 596.22M | 607.78M | 835.51M | 1.09B | 1.19B | 1.01B | Total Debt |
| 528.86M | 527.23M | 591.89M | 740.26M | 580.35M | 551.33M | Net Debt |
| 352.60M | 343.99M | 381.11M | 348.48M | 58.51M | -102.82M | Total Liabilities |
| 671.16M | 675.09M | 787.38M | 1.02B | 837.22M | 754.47M | Stockholders Equity |
| -74.94M | -67.32M | 48.14M | 68.09M | 349.44M | 252.62M |
| Cash Flow | Free Cash Flow | ||||
| -35.90M | -40.27M | -52.43M | -113.27M | -45.07M | -8.04M | Operating Cash Flow |
| -19.32M | -15.13M | -19.77M | -62.10M | 3.25M | 33.60M | Investing Cash Flow |
| -19.65M | -28.22M | -18.84M | -56.86M | -140.25M | -43.48M | Financing Cash Flow |
| 87.64M | 14.97M | -151.14M | 1.62M | 11.84M | 483.84M |
Liveperson Technical Analysis
Negative
0.68
Price Trends
0.78
Negative
0.95
Negative
1.02
Negative
Market Momentum
-0.02
Positive
35.99
Neutral
15.45
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPSN, the sentiment is Negative. The current price of 0.68 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.78, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.99 is Neutral, neither overbought nor oversold. The STOCH value of 15.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LPSN.
Liveperson Risk Analysis
Liveperson disclosed 62 risk factors in its most recent earnings report. Liveperson reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Liveperson Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $1.18B | ― | -36.95% | ― | 17.79% | 16.49% | |
65 Neutral | $790.22M | 419.60 | 4.15% | ― | 30.64% | ― | |
62 Neutral | $11.80B | 10.08 | -7.46% | 2.99% | 7.37% | -8.21% | |
56 Neutral | $511.29M | ― | -46.57% | ― | -2.39% | -2961.26% | |
51 Neutral | $233.99M | ― | -24.28% | ― | -2.23% | 19.48% | |
50 Neutral | $234.46M | ― | -24.47% | ― | -8.39% | 7.79% | |
40 Underperform | $66.54M | ― | -137.76% | ― | -23.04% | 11.60% |
* Technology Sector Average
Performance Comparison
LPSN
Liveperson
0.68
0.11
19.30%
EGHT
8X8
1.74
-0.27
-13.43%
SPT
Sprout Social
20.30
-13.31
-39.60%
ONTF
ON24
5.29
-0.22
-3.99%
DSP
Viant Technology
12.63
3.21
34.08%
BMBL
Bumble
4.95
-5.67
-53.39%
Liveperson Corporate Events
Executive/Board Changes
LivePerson Board Chair Transition Announced
Neutral
Jan 21, 2025
On January 14, 2025, Bruce Hansen announced his resignation from the Board of Directors of LivePerson, Inc., effective January 31, 2025, due to personal reasons. Following Hansen’s departure, James Miller, a current director, will assume the role of Chair of the Board, maintaining the Board’s size at seven directors.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.