Liveperson (LPSN) AI Stock Analysis

• Market Cap: $78.82M
• Dividend Yield: N/A
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -23.04%
• EPS Growth: 11.60%
• Country: US
• Employees: 928
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): -0.03
• Shares Outstanding: 93,849,815
• 10 Day Avg. Volume: 901,866
• 30 Day Avg. Volume: 1,060,622
• PEG Ratio: <0.01
• Price to Book (P/B): -1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.96
• Enterprise Value/Market Cap: 5.37
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 2.06
• Enterprise Value/Ebitda: -1.82
• 1Y Price Target: $0.95
• Price Target Upside: 15.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

The overall score of 43 reflects Liveperson's significant financial challenges, including declining revenue and financial instability. While the earnings call provided some positive insights into strategic partnerships and guidance, the technical indicators and valuation metrics suggest caution. The company's ability to navigate these challenges and achieve stability will be crucial for future performance.

Positive Factors

Business Metrics

Underlying business metrics appear to be improving, suggesting potential future growth.

Deal Size

Deals that have slipped into the next quarter have expanded in size.

Profitability

Q1 results came in in-line to better than expected, particularly on the profitability front.

Negative Factors

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

There is friction in the sales pipeline making the timing of success uncertain.

Liveperson Business Overview & Revenue Model

Company Description

LivePerson, Inc., together with its subsidiaries, provides conversational commerce software and Gainshare solutions. It operates in two segments, Business and Consumer. The Business segment enables brands to leverage LiveEngage's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The Consumer segment facilitates online transactions between experts and users seeking information and knowledge through mobile and online messaging. The company offers the Conversational Cloud, an enterprise-class and cloud-based platform, which enables businesses and consumers to connect through conversational interfaces, such as in-app and mobile messaging. It also provides professional services and value-added business consulting services. The company sells its products through direct and indirect sales channels to Fortune 500 companies, Internet businesses, online merchants, small businesses, automotive dealers, universities, libraries, government agencies, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, and the Asia-Pacific region. The company has strategic partnerships with TTEC that focuses on customer experience; and DMI to redefine customer experience with digital engagement, messaging, and artificial intelligence driven automation. LivePerson, Inc. was incorporated in 1995 and is headquartered in New York, New York.

How the Company Makes Money

LivePerson makes money primarily through a subscription-based revenue model, where businesses pay for access to its suite of AI-powered messaging and customer engagement solutions. The company's key revenue streams include recurring subscription fees from its software-as-a-service (SaaS) offerings and additional charges for premium features and services, such as advanced analytics and custom integrations. LivePerson also generates income from professional services, including consulting and implementation support, which help clients optimize their use of the platform. Significant partnerships and collaborations with major enterprises and technology providers further contribute to LivePerson's earnings, as these alliances expand its market reach and enhance its product offerings.

Liveperson Financial Statement Overview

Summary

Liveperson faces considerable financial challenges, with declining revenues, persistent losses, and a distressed balance sheet. While gross profitability remains strong, the inability to translate this into net profit and positive cash flow, coupled with high leverage, underscores the need for strategic financial restructuring to stabilize operations.

Income Statement

Liveperson's income statement reflects significant challenges with profitability, as evidenced by negative EBIT, EBITDA, and net income margins in the TTM. Revenue has declined notably by 22.3% from the previous year, indicating a concerning trend in revenue growth. Despite a strong gross profit margin of 65.6% in the TTM, the company struggles to convert this into net profitability due to high operating expenses.

Balance Sheet

The balance sheet reveals a precarious financial position, with negative stockholders' equity indicating potential insolvency risks. The debt-to-equity ratio cannot be calculated due to negative equity, and the equity ratio is negative at -11.1%, suggesting the company is over-leveraged. These figures highlight significant financial stability concerns.

Cash Flow

Cash flows are under pressure with negative operating and free cash flows in TTM, though free cash flow has slightly improved from the previous year. The operating cash flow to net income ratio is positive, suggesting some efficiency in converting accounting income into cash, but overall cash flow trends remain weak and pose a risk for liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
312.47M	401.98M	514.80M	469.62M	366.62M
	Gross Profit
219.07M	259.16M	330.10M	312.74M	260.35M
	EBIT
-183.19M	-111.38M	-201.92M	-89.87M	-60.03M
	EBITDA
-70.74M	-31.68M	-147.52M	-53.12M	-64.12M
	Net Income Common Stockholders
-134.27M	-100.44M	-225.75M	-124.97M	-107.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
183.24M	210.78M	391.78M	521.85M	654.15M
	Total Assets
607.78M	835.51M	1.09B	1.19B	1.01B
	Total Debt
527.23M	591.89M	740.26M	580.35M	551.33M
	Net Debt
343.99M	381.11M	348.48M	58.51M	-102.82M
	Total Liabilities
675.09M	787.38M	1.02B	837.22M	754.47M
	Stockholders Equity
-67.32M	48.14M	68.09M	349.44M	252.62M
Cash Flow		Free Cash Flow
-40.27M	-52.43M	-113.27M	-45.07M	-8.04M
	Operating Cash Flow
-15.13M	-19.77M	-62.10M	3.25M	33.60M
	Investing Cash Flow
-28.22M	-18.84M	-56.86M	-140.25M	-43.48M
	Financing Cash Flow
14.97M	-151.14M	1.62M	11.84M	483.84M

Liveperson Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPSN, the sentiment is Negative. The current price of 0.82 is below the 20-day moving average (MA) of 0.83, below the 50-day MA of 0.83, and below the 200-day MA of 1.07, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 24.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LPSN.

Liveperson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSP	72 Outperform	$1.00B	532.56	4.15%	―	30.64%	―
SPT	65 Neutral	$1.41B	―	-36.95%	―	17.79%	16.49%
Sector *	60 Neutral	$11.64B	10.63	-6.94%	2.93%	7.63%	-11.15%
BMBL	54 Neutral	$618.72M	―	-46.57%	―	-2.39%	-2961.26%
ONTF	53 Neutral	$231.49M	―	-24.47%	―	-8.39%	7.79%
EGHT	51 Neutral	$238.37M	―	-40.78%	―	-2.23%	19.48%
LPSN	43 Neutral	$78.82M	―	-137.76%	―	-23.04%	11.60%

Liveperson Corporate Events

LivePerson Board Chair Transition Announced

On January 14, 2025, Bruce Hansen announced his resignation from the Board of Directors of LivePerson, Inc., effective January 31, 2025, due to personal reasons. Following Hansen’s departure, James Miller, a current director, will assume the role of Chair of the Board, maintaining the Board’s size at seven directors.