LivePerson Q4 revenue falls driven by customer cancellations and downsells
Overview
Conversational AI provider's Q4 revenue fell 19% yr/yr due to customer cancellations and downsells
Adjusted EBITDA rose to $10.8 mln from $8.1 mln a year ago
Company posted a net loss of $46.1 mln
Outlook
LivePerson sees Q1 2026 revenue between $53 mln and $55 mln, down 15%-18% year-over-year
Company expects Q1 2026 adjusted EBITDA of $2 mln to $5 mln, margin 3.8%-9.1%
LivePerson sees full-year 2026 revenue between $195 mln and $207 mln, down 15%-20% year-over-year
Result Drivers
CUSTOMER CANCELLATIONS AND DOWNSIZING - Co said revenue decline was driven by customer cancellations and downsells
CUSTOMER EXPANSION - Co signed 36 expansion deals and 4 new customers in the quarter
HIGHER REVENUE PER CUSTOMER - Trailing-twelve-months average revenue per enterprise and mid-market customer increased 8.8% yr/yr
Company press release: ID:nPn6PXlPMa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $59.29 mln | $52.46 mln (2 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "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 $11.50, about 315.2% above its March 11 closing price of $2.77
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