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Liveperson (LPSN)
NASDAQ:LPSN

Liveperson (LPSN) AI Stock Analysis

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Liveperson

(NASDAQ:LPSN)

Rating:45Neutral
Price Target:
$1.00
▼(-4.76%Downside)
LivePerson's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative profitability, and high leverage. While the earnings call provided some positive guidance and strategic advancements, the technical indicators suggest caution due to overbought conditions. The valuation remains unattractive with a negative P/E ratio.
Positive Factors
Business Metrics
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.
Financial Guidance
The FY25 guidance called for adjusted EBITDA losses at the midpoint, contrary to expectations of a positive outcome.
Revenue Decline
Revenue continues to decline, reflecting LPSN's legacy cost structure.
Sales Pipeline
Sales cycle elongation is pushing deals that were expected to close into the next quarter.

Liveperson (LPSN) vs. SPDR S&P 500 ETF (SPY)

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: 34.62%|
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
45
Neutral
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.
Balance Sheet
30
Negative
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.
Cash Flow
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue292.02M312.47M401.98M514.80M469.62M366.62M
Gross Profit209.87M219.07M259.16M330.10M312.74M260.35M
EBITDA-56.03M-70.74M-31.68M-147.52M-53.12M-64.12M
Net Income-112.78M-134.27M-100.44M-225.75M-124.97M-107.59M
Balance Sheet
Total Assets596.22M607.78M835.51M1.09B1.19B1.01B
Cash, Cash Equivalents and Short-Term Investments176.25M183.24M210.78M391.78M521.85M654.15M
Total Debt528.86M527.23M591.89M740.26M580.35M551.33M
Total Liabilities671.16M675.09M787.38M1.02B837.22M754.47M
Stockholders Equity-74.94M-67.32M48.14M68.09M349.44M252.62M
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-62.10M3.25M33.60M
Investing Cash Flow-19.65M-28.22M-18.84M-56.86M-140.25M-43.48M
Financing Cash Flow87.64M14.97M-151.14M1.62M11.84M483.84M

Liveperson Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.05
Price Trends
50DMA
0.84
Positive
100DMA
0.87
Positive
200DMA
1.00
Negative
Market Momentum
MACD
0.07
Negative
RSI
56.08
Neutral
STOCH
56.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPSN, the sentiment is Neutral. The current price of 1.05 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.84, and above the 200-day MA of 1.00, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 56.08 is Neutral, neither overbought nor oversold. The STOCH value of 56.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$291.80M-24.28%-1.87%61.90%
SPSPT
66
Neutral
$1.23B-36.95%17.79%16.49%
DSDSP
65
Neutral
$864.04M471.434.15%30.64%
63
Neutral
$33.87B5.80-11.87%1.82%5.31%-18.50%
58
Neutral
$680.69M-46.57%-2.39%-2961.26%
52
Neutral
$232.34M-24.47%-8.39%7.79%
45
Neutral
$102.30M-137.76%-23.04%11.60%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LPSN
Liveperson
0.97
0.10
11.49%
EGHT
8X8
2.14
-0.13
-5.73%
SPT
Sprout Social
20.56
-13.97
-40.46%
ONTF
ON24
5.36
-0.77
-12.56%
DSP
Viant Technology
14.19
3.90
37.90%
BMBL
Bumble
6.68
-2.53
-27.47%

Liveperson Corporate Events

Executive/Board ChangesShareholder Meetings
LivePerson Stockholders Approve Key Decisions at Annual Meeting
Neutral
Jul 1, 2025

LivePerson held its Annual Meeting of Stockholders virtually on June 25, 2025, where key decisions were made. Stockholders elected Vanessa Pegueros and William G. Wesemann as Class I directors until 2028, ratified BDO USA, P.C. as the independent accounting firm for 2025, approved executive compensation on a non-binding basis, and amended the 2019 Stock Incentive Plan to increase available shares.

The most recent analyst rating on (LPSN) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Liveperson stock, see the LPSN Stock Forecast page.

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.Date of analysis: Jul 03, 2025