Q3 2024 LivePerson Inc Earnings Call Transcript
Key Points
- LivePerson Inc (LPSN) exceeded revenue expectations for the third quarter, reporting $74.2 million, above the high end of their guidance range.
- The company achieved an adjusted EBITDA of $7.3 million, also surpassing the high end of their guidance range.
- LivePerson Inc (LPSN) unveiled a unified omnichannel solution that integrates digital and voice interactions, enhancing their strategic partnership capabilities.
- The strategic partnership with Avaya has begun translating into bookings and pipeline momentum, including significant new logo wins.
- There is a notable increase in the adoption of their generative AI capabilities, with a 14% sequential increase in clients and a 40% increase in conversations using the AI suite.
- LivePerson Inc (LPSN) continues to face challenges with customer attrition, expecting significant risk of customer churn in the fourth quarter and the first quarter of 2025.
- Revenue from B2B hosted services declined by 27% year-over-year, primarily due to customer cancellations and downsells.
- Net revenue retention dropped to 79% in the third quarter, down from 83% in the second quarter.
- The company anticipates revenue to decline sequentially through the fourth quarter and into 2025.
- Despite improvements, the company acknowledges that it is still early in their turnaround strategy and more progress is needed to return to profitable growth.
Greetings and welcome to LivePerson third quarter, 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Jon Perachio, Senior Director, Investor Relations. Thank you, Mr. Perachio. You may begin.
Thank you. Joining me on today's call is John Sabino, CEO; and John Collins, CFO and COO. Please note that during today's call, we'll make forward-looking statements which are predictions, projections and other statements about future results.
These statements are based on our current expectations and assumptions as of today, November 7, 2024 and are subject to risks and uncertainties. Actual results may differ materially due to various factors including those described in today's earnings press release and in the comments made during this conference call as well as in 10-Ks 10-Qs and other reports we file with the SEC.
We assume no obligation to update any forward-looking statements.
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