In a recent 8-K filing, LivePerson Inc. (NASDAQ:LPSN), a leader in prepackaged software services, announced the approval of amendments to its stock incentive and employee stock purchase plans. The changes, which were voted on during the company's Annual Meeting held on Monday, include an increase in the number of shares available for issuance under both plans.
Specifically, the Amended and Restated 2019 Stock Incentive Plan will see an additional 4,600,000 shares made available, while the 2019 Employee Stock Purchase Plan will gain an extra 2,500,000 shares. Furthermore, certain purchase limitations under the employee stock purchase plan have been removed. These amendments were previously adopted by LivePerson's Board of Directors, subject to stockholder approval, which has now been granted.
The Annual Meeting, initially convened on November 4 and adjourned due to lack of quorum, also resulted in the election of Class III director nominees Karin-Joyce (K.J.) Tjon and Dan Fletcher to the Board of Directors. They will serve until the 2027 Annual Meeting of Stockholders.
Additionally, stockholders ratified the Audit Committee’s appointment of BDO USA, P.C. as the independent registered accounting firm for the fiscal year ending December 31, 2024. The compensation of LivePerson's named executive officers and the ratification of the Company’s Tax Benefits Preservation Plan were also approved on a non-binding advisory basis.
However, an amendment to the Company’s Fourth Amended and Restated Certificate of Incorporation, which would have provided for the exculpation of certain officers, did not pass as it failed to achieve the required majority of outstanding shares.
In other recent news, LivePerson, Inc. has announced a cooperation agreement with Vector Capital Management, its largest shareholder. As part of this agreement, Dan Fletcher, CFO of Planful, will be nominated for election to the board at the upcoming Annual Meeting of Stockholders. This move aligns with LivePerson's strategic objectives and shareholder value enhancement efforts.
Moreover, LivePerson reported Q2 2024 earnings with a revenue of $79.9 million and an adjusted EBITDA of $8.2 million, surpassing expectations. However, the company also noted a year-over-year decline in B2B hosted services revenue and core recurring revenue by 17% and 18% respectively.
In a strategic move, Robert P. LoCascio, LivePerson's founder and former CEO, nominated two new candidates, Walter Bachtiger and Michal Czwarno, for the company's Board of Directors. Additionally, LivePerson implemented cost reductions, including the divestiture of Wild Health, resulting in savings of $3 to $5 million in expenses.
To strengthen its financial position, the company plans to raise new capital to reduce debt. Despite an expected sequential revenue decline, LivePerson ended the quarter with $146 million in cash and anticipates improvements in new annual recurring revenue.
InvestingPro Insights
LivePerson's recent stock incentive plan amendments come at a challenging time for the company, as revealed by InvestingPro data. The company's market capitalization stands at a modest $82.67 million, reflecting recent financial struggles. InvestingPro Tips indicate that LivePerson is "quickly burning through cash" and "operates with a significant debt burden," which may explain the need to incentivize employees through stock options.
The company's revenue for the last twelve months as of Q3 2023 was $334.74 million, with a concerning revenue growth of -21.97% over the same period. This aligns with another InvestingPro Tip suggesting that "analysts anticipate sales decline in the current year." Despite these challenges, LivePerson maintains a gross profit margin of 65.63%, indicating some strength in its core business model.
Investors should note that LivePerson's stock price has been volatile, with a significant 42.57% return over the last six months, but a -65.52% return over the past year. This volatility is reflected in an InvestingPro Tip stating that "stock price movements are quite volatile."
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for LivePerson, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.