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  Title	LivePerson Announces Third Quarter 2024 Financial Results
  ID	4413282
  External ID	7283771732
  Author	Unknown
  Published Date	Nov. 7, 2024, 3:52 p.m.
  Summary	-- Total Revenue of $74.2M, above the high-end of our guidance range -- -- Adjusted EBITDA above the high-end of our guidance range -- NEW YORK, /PRNewswire/ -- LivePerson, Inc. (NASDAQ: LPSN) ("LiveP
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  URL	http://techsocialnet.com/pages/technews?rkey=20241107ny51191
  Sentiment	Negative: 0.02230    Neutral: 0.02292    Positive: 0.95478
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• Content Details

  Content ID	2630757
  Key	c53b73d0-8365-4bc0-854d-f9d4d1c1bbc0
  Content	-- Total Revenue of $74.2M, above the high-end of our guidance range -- -- Adjusted EBITDA above the high-end of our guidance range -- NEW YORK, /PRNewswire/ -- LivePerson, Inc. (NASDAQ: LPSN) ("LivePerson", the "Company", "we" or "us"), the enterprise leader in digital customer conversations, today announced financial results for the third quarter ended September 30, 2024. Third Quarter Highlights Total revenue was $74.2 million for the third quarter of 2024, a decrease of 26.7% as compared to the same period last year driven by customer cancellations and downsells. LivePerson signed 44 deals in total for the third quarter, consisting of 35 existing and 9 new customers, including 2 seven-figure deals. Trailing-twelve-months average revenue per enterprise and mid-market customer (ARPC) increased 5.9% for the third quarter to $630,000, up from approximately $595,000 for the comparable prior-year period. ARPC is calculated using only B2B Core recurring revenue, which is consistent with the revenue base for calculating Net Revenue Retention. "Today's results highlight our third consecutive quarter of strong execution against our guidance, our second consecutive quarter of sequential improvement in bookings, and continued progress across all areas of our business. In the third quarter, we launched our unified omnichannel solution that has already translated into bookings within our Avaya partnership and generated a strong pipeline with Fortune 500 companies. We are also seeing meaningful returns from Generative AI adoption and solid momentum in our new pricing and packaging model with larger deals and shorter sales cycles," said CEO John Sabino. "The strategic changes we have made to better serve customers combined with our enhanced product capabilities have elevated LivePerson from a trusted digital partner to a strategic partner across all channels. We are still in the early stages of our turnaround, but I am confident that our customer-centric approach and ongoing commitment to innovation uniquely position LivePerson to be the preferred partner for enterprise digital transformation." "We have restructured our business to focus on its core product and customers, and we continue to rationalize costs to generate positive free cash flow, despite expected near-term revenue decline," said CFO and COO John Collins. "At the same time, sequential growth in bookings each quarter this year, including tracking to double-digits this quarter and next, implies both continued demand for our product and that we now have a sales motion to consistently address that demand." Customer Expansion During the third quarter, the Company signed 44 total deals for the quarter, including 2 seven-figure deals, 35 expansion & renewals and 9 new logo deals. Expansions & renewals included: Two of the largest health insurance providers in the world; and A large Australian financial services company. New logos included: A leading fast casual restaurant company; and A large U.S.-based insurance company. Net Loss and Adjusted Operating Income (Loss) Net loss for the third quarter of 2024 was $28.3 million or $0.32 per share, as compared to a net loss of $53.3 million or $0.68 per share for the third quarter of 2023. Adjusted operating income (loss), a non-GAAP financial measure, for the third quarter of 2024 was income of less than $0.1 million, as compared to income of $2.8 million for the third quarter of 2023. Adjusted operating income (loss) excludes other litigation, consulting and other employee costs, amortization of purchased intangibles and finance leases, restructuring costs, impairment of goodwill, impairment of intangibles and other assets, change in fair value of warrants, leadership transition costs, working capital adjustment related to the Kasamba divestiture, contingent earn-out adjustments, acquisition and divestiture costs, stock-based compensation expense, IT transformation costs, interest expense (income), net, loss (gain) on divestiture, gain on debt extinguishment, and other (income) expense, net. A reconciliation of non-GAAP financial measures to GAAP measures has been provided in the financial tables included in this press release. An explanation of the non-GAAP financial measures and how they are calculated is included below under the heading "Non-GAAP Financial Measures." Adjusted EBITDA Adjusted EBITDA, a non-GAAP financial measure, for the third quarter of 2024 was $7.3 million as compared to adjusted EBITDA of $10.6 million for the third quarter of 2023. Adjusted EBITDA excludes other litigation, consulting and other employee costs, depreciation, amortization of purchased intangibles and finance leases, restructuring costs, impairment of goodwill, impairment of intangibles and other assets, change in fair value of warrants, leadership transition costs, working capital adjustment related to the Kasamba divestiture, contingent earn-out adjustments, acquisition and divestiture costs, stock-based compensation expense, provision for income taxes, IT transformation costs, interest expense (income), net, loss (gain) on divestiture, gain on debt extinguishment, and other (income) expense, net. A reconciliation of non-GAAP financial measures to GAAP measures has been provided in the financial tables included in this press release. An explanation of the non-GAAP financial measures and how they are calculated is included below under the heading "Non-GAAP Financial Measures." Cash and Cash Equivalents The Company's cash balance was $142.1 million at September 30, 2024, as compared to $210.8 million as of December 31, 2023. Financial Expectations The following forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, and actual results may vary materially from these forward-looking measures. The Company does not present a quantitative reconciliation of the forward-looking non-GAAP financial measures, adjusted EBITDA and adjusted EBITDA margin to the most directly comparable GAAP financial measures (or otherwise present such forward-looking GAAP measures) because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized. In particular, these non-GAAP financial measures exclude certain items, including other litigation, consulting and other employee costs, depreciation, amortization of purchased intangibles and finance leases, restructuring costs, impairment of goodwill, impairment of intangibles and other assets, change in fair value of warrants, leadership transition costs, working capital adjustment related to the Kasamba divestiture, contingent earn-out adjustments, acquisition and divestiture costs, stock-based compensation expense, provision for income taxes, IT transformation costs, interest expense (income), net, loss (gain) on divestiture, gain on debt extinguishment, and other (income) expense, net, which depend on future events that the Company is unable to predict. Depending on the size of these items, they could have a significant impact on the Company's GAAP financial results. For the fourth quarter of 2024, we expect total revenue to range from $65.7M - $70.7M or (31)% to (26)% year over year. We expect B2B Core recurring revenue to represent 93% of total revenue. For the fourth quarter of 2024, we expect adjusted EBITDA to range from $2.1M to $7.1M, or a margin of 3.2% to 10.0%. For the full year 2024, we now expect total revenue to range from $305M - $310M or (23)% to (21)% year over year (excluding $7.2M of Kasamba revenue generated in Q1 2023). In addition, we expect B2B Core recurring revenue to represent 92% of total revenue. For the full year 2024, we expect adjusted EBITDA to range from $18M to $23M, or a margin of 5.9% to 7.4%. For the tables below, year-over-year growth rates are on a like-for-like basis (excluding Kasamba contribution from 2023).
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