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LPSN (LivePerson) Operating Margin % : -19.65% (As of Sep. 2024)


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What is LivePerson Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. LivePerson's Operating Income for the three months ended in Sep. 2024 was $-14.6 Mil. LivePerson's Revenue for the three months ended in Sep. 2024 was $74.2 Mil. Therefore, LivePerson's Operating Margin % for the quarter that ended in Sep. 2024 was -19.65%.

Warning Sign:

LivePerson Inc operating margin has been in a 5-year decline. The average rate of decline per year is -19.3%.

The historical rank and industry rank for LivePerson's Operating Margin % or its related term are showing as below:

LPSN' s Operating Margin % Range Over the Past 10 Years
Min: -39.22   Med: -12.04   Max: -2.46
Current: -26.46


LPSN's Operating Margin % is ranked worse than
80.55% of 2756 companies
in the Software industry
Industry Median: 3.665 vs LPSN: -26.46

LivePerson's 5-Year Average Operating Margin % Growth Rate was -19.30% per year.

LivePerson's Operating Income for the three months ended in Sep. 2024 was $-14.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $-88.6 Mil.


LivePerson Operating Margin % Historical Data

The historical data trend for LivePerson's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

LivePerson Operating Margin % Chart

LivePerson Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -29.14 -16.37 -19.14 -39.22 -21.50

LivePerson Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -26.37 -30.37 -31.95 -22.25 -19.65

Competitive Comparison of LivePerson's Operating Margin %

For the Software - Application subindustry, LivePerson's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


LivePerson's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, LivePerson's Operating Margin % distribution charts can be found below:

* The bar in red indicates where LivePerson's Operating Margin % falls into.



LivePerson Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

LivePerson's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=-86.433 / 401.983
=-21.50 %

LivePerson's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=-14.59 / 74.244
=-19.65 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


LivePerson  (NAS:LPSN) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


LivePerson Operating Margin % Related Terms

Thank you for viewing the detailed overview of LivePerson's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


LivePerson Business Description

Traded in Other Exchanges
Address
530 7th Avenue, Floor M1, New York, NY, USA, 10018
LivePerson Inc is the enterprise leader in digital customer conversation.. 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.
Executives
John Deneen Collins officer: Chief Financial Officer LIVEPERSON, INC., 475 TENTH AVENUE, 5TH FLOOR, NEW YORK NY 10018
Jeffrey Ford officer: Chief Accounting Officer 530 7TH AVE., FLOOR M1, NEW YORK NY 10018
Monica L. Greenberg officer: EVP, General Counsel LIVEPERSON, INC., 462 SEVENTH AVENUE 3RD FLOOR, NEW YORK NY 10018
Alex Kroman officer: EVP, Product and Technology 530 7TH AVE., FLOOR M1, NEW YORK NY 10018
Vanessa Pegueros director C/O CARBON BLACK, INC., 1100 WINTER STREET, WALTHAM MA 02451
William Wesemann director 130 MONTALVO ROAD, REDWOOD CITY CA 94062
Norman M. Osumi officer: Chief Accounting Officer C/O LIVEPERSON, INC., 475 TENTH AVENUE, 5TH FLOOR, NEW YORK NY 10018
Robert P Locascio director, 10 percent owner, officer: Chief Executive Officer C/O LIVEPERSON INC, 462 SEVENTH AVENUE, NEW YORK NY 10018
James R. Miller director 4050 EAST COTTON CENTER BLVD. 6-68, PHOENIX AZ 85040
Bruce Edward Hansen director 17732 VINEYARD LANE, POWAY CA 92064
Yael Zheng director 345 ENCINAL STREET, SANTA CRUZ CA 95060
Alexander Spinelli officer: EVP, Chief Technology Officer LIVEPERSON, INC., 475 TENTH AVENUE, 5TH FLOOR, NEW YORK NY 10018
Kevin Lavan director 44 HILLCREST ROAD, MARTINSVILLE NJ 08836
Ernest T. Cu director LIVEPERSON, INC., 475 TENTH AVENUE, 5TH FLOOR, NEW YORK NY 10018
Daryl Carlough officer: SVP, Global & Corp Controller BEDMINSTER ONE, 135 US HIGHWAY 202/206, SUITE 11, BEDMINSTER NJ 07921