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LivePerson Q3 results reveal strategic shift despite revenue decrease

EditorAmbhini Aishwarya
Published 09/11/2023, 05:04 pm
Updated 09/11/2023, 05:04 pm
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LivePerson Inc (NASDAQ:LPSN), a New York-based tech firm and leader in AI conversational technology, reported its Q3 2023 results on November 8th. The company revealed a strategic shift towards high-value enterprise customers, which led to a 21.8% year-over-year decrease in revenue to $101.3 million. Despite the revenue drop, a customer-centric approach resulted in a 13% rise in average revenue per customer over the trailing twelve months. This strategic pivot away from lower-margin businesses allowed the company to meet its top guidance range and secure 50 contracts during this period, including four topping seven figures.

The company's net loss expanded to $53.3 million from $43.2 million in Q3 2022, translating to a per-share loss of $0.68. However, after adjustments for non-recurring and asset impairment costs, earnings stood at 3 cents per share, surpassing the 2 cents per share estimate from four Zacks Investment Research analysts and rebounding from a loss of 68 cents per share before adjustments.

The adjusted operating income saw an improvement, rising to $2.8 million from $2.0 million in Q3 2022. The adjusted EBITDA for Q3 2023 also increased to $10.6 million, up from the previous year's figure of $9.1 million.

LivePerson's Q3 revenue outperformed the $99.3 million forecast by five Zacks analysts, but the firm's cash position took a significant hit, dropping to $212.2 million at the end of September 2023 from a high of $391.8 million at the end of 2022.

Q3 revenue comprised $85.7 million from hosted services and $15.6 million from professional services. Stock-based compensation expenses fell to $11.3 million from $31.9 million YoY. Amortization of purchased intangibles and finance leases totaled $8.4 million for the quarter.

Interim CEO and CFO John Collins highlighted the company's strategic refocus on core strengths, transitioning legacy voice interactions to digital channels, and AI-powered automation. He emphasized readiness for potential growth in conversational AI and customer service markets while remaining steadfast in strategic initiatives leveraging innovative conversational AI solutions to navigate the evolving market landscape.

Looking forward, LivePerson anticipates revenue between $89.7 million and $99.7 million for the quarter ending in December. The company maintains its full-year 2023 revenue guidance midpoint at $394 million and has narrowed its future EBITDA guidance range to between $22 million and $29 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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