LivePerson Inc is the enterprise leader in digital customer conversations. The Conversational Cloud, the Company's enterprise-class digital customer conversation platform, is trusted by the world's top brands to accelerate their contact center transformation, orchestrate conversations across all channels, departments and systems, increase agent productivity, and deliver more personalized, AI-empowered customer experiences. The company has a presence in the United Kingdom, Asia-Pacific, Latin America, and Europe.
Q2 2024 Financial Highlights
LivePerson Inc (LPSN, Financial) reported total revenue of $79.9 million for the second quarter of 2024, surpassing the analyst estimate of $77.36 million. This represents a decrease of 18.1% compared to the same period last year, primarily driven by customer cancellations and downsells. The company also reported a net income of $41.8 million or $0.47 per share, significantly higher than the estimated earnings per share of -$0.19.
Performance and Challenges
Despite the decline in revenue, LivePerson Inc (LPSN, Financial) managed to sign 37 deals in total for the second quarter, including 28 existing and 9 new customers, with one seven-figure deal. The trailing-twelve-months average revenue per enterprise and mid-market customer (ARPC) increased by 9.6% to $630,000, up from approximately $575,000 for the comparable prior-year period.
“In the second quarter we continued to deliver on our guidance and advance across all key focus areas. We meaningfully improved our capital structure with our debt transaction and bolstered our go-to-market motion by adding an accomplished Chief Revenue Officer while instituting new pricing and packaging,” said CEO John Sabino.
Financial Achievements
Adjusted operating income for the second quarter of 2024 was $0.5 million, compared to $0.4 million in the same period last year. Adjusted EBITDA was $8.2 million, down from $10.2 million in Q2 2023. The company's cash balance stood at $146.0 million as of June 30, 2024, compared to $210.8 million as of December 31, 2023.
Income Statement and Key Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $79.9 million | $97.5 million |
| Net Income | $41.8 million | $10.8 million |
| Adjusted EBITDA | $8.2 million | $10.2 million |
| Cash Balance | $146.0 million | $210.8 million |
Analysis and Future Outlook
LivePerson Inc (LPSN, Financial) has demonstrated resilience despite a challenging market environment. The increase in ARPC and the signing of significant deals indicate strong customer engagement and potential for future growth. However, the decline in revenue and cash balance highlights the need for strategic adjustments to sustain long-term profitability.
“We have the right strategy and leadership team to execute it,” said CFO and COO John Collins. “We delivered sequential improvement in deal values and other key operating metrics in the second quarter and we expect continued execution of our strategy to unlock further progress in the third quarter.”
For the third quarter of 2024, LivePerson Inc (LPSN, Financial) expects total revenue to range from $69 million to $73 million, with adjusted EBITDA ranging from $0 million to $5 million. For the full year 2024, the company anticipates total revenue between $300 million and $315 million, with adjusted EBITDA between $15 million and $26 million.
Investors and analysts will be closely monitoring LivePerson Inc (LPSN, Financial)'s ability to navigate its challenges and capitalize on its strengths in the coming quarters.
Explore the complete 8-K earnings release (here) from LivePerson Inc for further details.
