LivePerson Q2 revenue falls but beats estimates

Overview

• LivePerson Q2 revenue falls 25.4% yr/yr but beats analyst expectations, per LSEG data

• Net loss for Q2 was $15.7 mln, impacted by previous debt extinguishment gain

• Company secured refinancing to deleverage balance sheet, extending runway to 2029

Outlook

• LivePerson expects Q3 revenue between $56 mln and $59 mln

• Company anticipates full-year revenue to range from $230 mln to $240 mln

• LivePerson sees Q3 adjusted EBITDA between $(4) mln and $(2) mln

• Company expects recurring revenue to represent 93% of total revenue

Result Drivers

• CUSTOMER CANCELLATIONS - Revenue decline attributed to customer cancellations and downsells

• AI CONVERSATIONS - 45% sequential increase in AI-powered conversations, per CEO John Sabino

• REFINANCING AGREEMENT - Secured refinancing to deleverage balance sheet and extend runway through 2029, per CFO John Collins

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy."

• Wall Street's median 12-month price target for LivePerson Inc is $0.93, about 30.8% below its August 8 closing price of $1.21

Press Release: ID:nPnb37FTza