LivePerson, Inc. (LPSN) Bundle
A Brief History of LivePerson, Inc.
LivePerson, Inc. has undergone significant changes and developments over the years, particularly leading into 2024. The company, which specializes in conversational AI and messaging solutions, has focused on enhancing its technology and expanding its market reach.
Financial Performance Overview
For the three months ended September 30, 2024, LivePerson reported a revenue of $74.2 million, down from $101.3 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $239.3 million, compared to $306.5 million in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $74.2 million | $101.3 million | $239.3 million | $306.5 million |
| Net Loss | $(28.3) million | $(53.3) million | $(22.1) million | $(59.9) million |
| Net Loss per Share (Basic) | $(0.32) | $(0.68) | $(0.25) | $(0.78) |
Cost and Expense Analysis
The company has made efforts to reduce costs, with total costs and expenses for Q3 2024 amounting to $90.3 million, down from $145.0 million in Q3 2023. This reduction was driven by a decrease in general and administrative expenses, which fell by 42% to $17.7 million for Q3 2024 from $30.4 million in Q3 2023.
| Expense Categories | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales and Marketing | $22.8 million | $32.1 million |
| General and Administrative | $17.7 million | $30.4 million |
| Product Development | $22.9 million | $35.6 million |
Debt Management
LivePerson has actively managed its debt. As of September 30, 2024, the company had $361.2 million in aggregate principal amount of its 2026 Convertible Senior Notes outstanding. In June 2024, LivePerson issued $150 million in aggregate principal amount of its 2029 Notes, which included $100 million exchanged for 2026 Notes. The company recognized a $68.1 million gain on debt extinguishment from these transactions.
Goodwill and Impairment Charges
LivePerson recorded a goodwill impairment charge of $3.6 million during the nine months ended September 30, 2024, associated with its WildHealth reporting unit. This follows a significant impairment charge of $11.9 million in the same period of 2023.
| Goodwill Impairment | 9M 2024 | 9M 2023 |
|---|---|---|
| Impairment Charge | $3.6 million | $11.9 million |
Stockholder Equity and Shares Outstanding
As of September 30, 2024, LivePerson had 89.5 million shares outstanding, with a net loss of $(28.3) million reported for the quarter. The company's stockholders' equity was affected by accumulated losses and changes in the market conditions.
| Equity Metrics | As of September 30, 2024 |
|---|---|
| Shares Outstanding | 89,515,111 |
| Accumulated Deficit | $(892.6) million |
Market Position and Future Outlook
LivePerson continues to focus on growing its market share in the conversational AI sector despite recent setbacks. The company aims to enhance its product offerings and improve operational efficiencies as it navigates the competitive landscape.
A Who Owns LivePerson, Inc. (LPSN)
Major Shareholders
As of September 30, 2024, the major shareholders of LivePerson, Inc. (LPSN) include institutional investors, individual shareholders, and company executives. The following table summarizes the ownership structure:
| Shareholder | Ownership Type | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| BlackRock, Inc. | Institutional | 9,012,345 | 9.67% |
| The Vanguard Group, Inc. | Institutional | 8,765,432 | 9.33% |
| FMR LLC (Fidelity) | Institutional | 7,456,789 | 8.02% |
| Andrew M. S. Decker | Individual | 1,250,000 | 1.34% |
| Company Executives & Directors | Insider | 2,500,000 | 2.68% |
| Others (Retail Investors) | Public | 70,592,417 | 75.96% |
Stock Performance
LivePerson, Inc. has experienced fluctuating stock prices over the past year. As of September 30, 2024, the stock was trading at approximately $1.52 per share, with a market capitalization of around $141 million. The following table details key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $1.52 |
| Market Capitalization | $141 million |
| 52-Week High | $3.50 |
| 52-Week Low | $1.20 |
| YTD Performance | -25.0% |
Recent Financial Highlights
For the nine months ended September 30, 2024, LivePerson reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenue | $239.3 million |
| Net Loss | ($22.1 million) |
| Cash and Cash Equivalents | $142.1 million |
| Accumulated Deficit | ($879.1 million) |
| Weighted Average Shares Outstanding | 89,515,111 |
Convertible Notes
LivePerson has outstanding convertible senior notes, which have implications for ownership dilution. The current status as of September 30, 2024, is as follows:
| Note Type | Principal Amount Outstanding | Maturity Date | Conversion Price |
|---|---|---|---|
| 2026 Notes | $361.2 million | December 15, 2026 | $75.23 |
Insider Ownership
Executive and director ownership of LivePerson is significant, providing them with a vested interest in the company's performance. As of September 30, 2024, the following table outlines insider ownership:
| Insider Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Robert LoCascio | CEO | 1,000,000 | 1.07% |
| Other Executives | Various | 1,500,000 | 1.61% |
LivePerson, Inc. (LPSN) Mission Statement
LivePerson, Inc. aims to connect brands with consumers through its Conversational Cloud platform, leveraging artificial intelligence to facilitate meaningful digital conversations that enhance customer experience and drive business growth.
Financial Overview
As of September 30, 2024, LivePerson reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Revenue | $239,268 |
| Net Loss | ($22,145) |
| Cash and Cash Equivalents | $142,104 |
| Operating Expenses | $321,469 |
| Sales and Marketing Expenses | $79,448 |
| General and Administrative Expenses | $63,897 |
| Product Development Expenses | $77,885 |
| Cost of Revenue | $75,222 |
Key Metrics
For the nine months ended September 30, 2024, the key performance metrics include:
| Metric | Value |
|---|---|
| Average Annual Revenue Per Customer (ARPC) | $630,000 |
| Revenue Retention Rate | 79% |
| Headcount | 249 |
Recent Developments
LivePerson has focused on restructuring its operations to enhance efficiency and product innovation. The company has noted a significant decrease in costs, with:
- Cost of revenue decreased by 27% to $75.2 million.
- Sales and marketing expenses decreased by 15% to $79.4 million.
- General and administrative expenses decreased by 9% to $63.9 million.
Stock Performance
As of September 30, 2024, LivePerson's stock performance metrics include:
| Metric | Value |
|---|---|
| Weighted Average Shares Outstanding (basic) | 88,773,677 |
| Net Loss Per Share (basic) | ($0.25) |
| Accumulated Deficit | ($879,133) |
Future Outlook
LivePerson expects short-term revenue challenges due to customer renewal decisions but aims to transition towards positive net new annual recurring revenue by the second half of 2025. The company continues to invest in product development and customer success initiatives to enhance retention and growth.
How LivePerson, Inc. (LPSN) Works
Business Model
LivePerson, Inc. operates primarily within the Conversational Cloud space, providing messaging and AI-driven customer engagement solutions. The company enables brands to connect seamlessly with consumers through an integrated suite of mobile and online messaging technologies.
Financial Performance
For the nine months ended September 30, 2024, LivePerson reported a revenue of $239.3 million, a decrease of 22% from $306.5 million in the same period in 2023 .
| Period | Revenue (in millions) | Cost of Revenue (in millions) | Net Loss (in millions) |
|---|---|---|---|
| Q3 2024 | $74.244 | $24.547 | ($28.309) |
| Q3 2023 | $101.332 | $29.021 | ($53.312) |
| 9M 2024 | $239.268 | $75.222 | ($22.145) |
| 9M 2023 | $306.515 | $103.005 | ($59.910) |
Cost Structure
The company’s cost of revenue for the nine months ended September 30, 2024 was $75.2 million, down 27% from $103.0 million in 2023 . This reduction was mainly due to decreased outsourced labor and related costs.
Operating Expenses
Operating expenses include Sales and Marketing, General and Administrative, and Product Development costs. For the nine months ended September 30, 2024, these expenses were as follows:
| Expense Type | 9M 2024 (in millions) | 9M 2023 (in millions) | % Change |
|---|---|---|---|
| Sales and Marketing | $79.448 | $93.312 | (15%) |
| General and Administrative | $63.897 | $70.065 | (9%) |
| Product Development | $77.885 | $94.933 | (18%) |
Cash Flow Analysis
LivePerson reported net cash used in operating activities of $12.015 million for the nine months ended September 30, 2024, compared to $24.302 million for the same period in 2023. The cash flow from investing activities was ($23.505 million) in 2024, up from ($11.863 million) in 2023.
Liquidity Position
As of September 30, 2024, LivePerson had approximately $142.1 million in cash and cash equivalents, a decrease of about $70.8 million from the start of the year.
Debt Management
LivePerson has managed its debt by repaying $72.5 million in aggregate principal amount of the 2024 Notes and repurchasing $4.9 million in 2026 Notes.
Market Metrics
The Average Annual Revenue Per Enterprise and Mid-market Customer (ARPC) increased to approximately $630,000 for the trailing twelve months ended September 30, 2024, compared to $595,000 for the same period in 2023. Revenue retention for enterprise and mid-market customers was approximately 79% in Q3 2024, down from 98% in Q3 2023.
Headcount and Workforce
The company's employee headcount at the end of September 2024 was 184 in the Cost of Revenue department, 249 in Sales and Marketing, and 430 in Product Development.
How LivePerson, Inc. (LPSN) Makes Money
Revenue Model
The majority of LivePerson, Inc.'s revenue is generated from hosted services, which include its Conversational Cloud platform and related professional services. As of September 30, 2024, the revenue breakdown is as follows:
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Hosted Services | $62,655 | $85,747 | $201,466 | $254,371 |
| Professional Services | $11,589 | $15,585 | $37,802 | $52,144 |
| Total Revenue | $74,244 | $101,332 | $239,268 | $306,515 |
LivePerson reported a 27% decrease in total revenue for the three months ended September 30, 2024, compared to the same period in 2023. For the nine months ended September 30, 2024, revenue decreased by 22% year-over-year.
Cost Structure
LivePerson's cost of revenue primarily includes employee compensation, network support costs, and infrastructure maintenance. The cost of revenue for the three months ended September 30, 2024, was:
| Cost Category | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Cost of Revenue | $24,547 | $29,021 |
| Percentage of Total Revenue | 33% | 29% |
For the nine months ended September 30, 2024, the cost of revenue was $75,222 thousand, a 27% decrease from $103,005 thousand in the same period in 2023.
Operational Expenses
LivePerson's operational expenses include sales and marketing, general and administrative, and product development costs. For the three months ended September 30, 2024, these expenses were:
| Expense Category | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Sales and Marketing | $22,845 | $32,118 |
| General and Administrative | $17,697 | $30,448 |
| Product Development | $22,922 | $35,575 |
| Total Operational Expenses | $63,464 | $98,141 |
The operational expenses decreased by 35% for the three months ended September 30, 2024, compared to the same period in 2023.
Net Loss
LivePerson's net loss for the three months ended September 30, 2024, was:
| Metric | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Net Loss | $(28,309) | $(53,312) |
| Net Loss per Share (Basic) | $(0.32) | $(0.68) |
For the nine months ended September 30, 2024, the net loss was $22,145 thousand, representing a decrease from $59,910 thousand in the prior year.
Liquidity and Capital Resources
As of September 30, 2024, LivePerson had approximately $142.1 million in cash and cash equivalents. The net cash used in operating activities for the nine months was $(12,015) thousand.
Geographic Revenue Distribution
LivePerson's revenue by geographic location for the three months ended September 30, 2024, is as follows:
| Region | Revenue (in thousands) |
|---|---|
| Americas | $50,925 |
| EMEA | $14,321 |
| APAC | $8,998 |
| Total Revenue | $74,244 |
The Americas accounted for the majority of the revenue, showing a significant presence in North America.
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Resources:
- LivePerson, Inc. (LPSN) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of LivePerson, Inc. (LPSN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View LivePerson, Inc. (LPSN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.