NASDAQ$LPSN

LivePerson Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

LivePerson's Q3 2020 financial results were announced, demonstrating revenue growth driven by the consumer shift to Conversational AI.

LivePerson reported a 26% increase in revenue to $94.8 million for Q3 2020, driven by a consumer-led shift to Conversational AI. The company signed 8 seven-figure deals and achieved a multi-year high adjusted EBITDA margin of 16%. They are raising revenue and adjusted EBITDA guidance for 2020.

  • Total revenue increased by 26% year-over-year to $94.8 million.
  • Business operations revenue increased 27% year-over-year to $86.9 million.
  • Signed 8 seven-figure deals and 133 deals in total.
  • Adjusted EBITDA margin reached a multi-year high of 16%.

Headline financials

Total Revenue

$94.8M

Previous: $75.2M+26.1%
EPS (adj)

-$0.12

Previous: -$0.36+66.7%
Adjusted EBITDA

$15.1M

No prior period
Capital Expenditures

-$32.9M

Previous: -$10.8M-204.5%
Free Cash Flow

-$71.6M

Previous: -$25.9M-176.8%
Net Income

-$38.7M

Previous: -$25.9M-49.6%
Operating Income

-$35.1M

Previous: -$23.1M-52.0%
Gross Profit

$67.1M

Previous: $55.1M+21.9%
Cash & Equivalents

$199M

Previous: $205M-3.1%
Total Assets

$528M

Previous: $492M+7.4%
Stock-Based Comp

$15.5M

Previous: $9.07M+71.3%

Revenue & EPS history

LivePerson · Revenue · Quarterly

$94.8M

Q3 2020+26.1%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

LivePerson · $101M total across 2 segments · Q3 2023

  • Hosted services
    $85.7M
  • Professional services
    $15.6M

Forward guidance

LivePerson is raising revenue guidance for the full year 2020 to a range of $362.5 million to $364.5 million and adjusted EBITDA to a range of $29.0 million to $31.0 million.

Tailwinds

  • Revenue target between $98.0 million and $100.0 million for Q4 2020.
  • Full year revenue growth target of 24% to 25%.
  • Targeting full year 2020 adjusted EBITDA between $29.0 million and $31.0 million.
  • Platform conversation volumes continue to build month over month.
  • Contract signings have set a new record.

Headwinds

  • GAAP net loss per share between $(0.36) and $(0.33) for Q4 2020.
  • Adjusted operating income between $2.6 million and $4.6 million for Q4 2020.
  • Approximately $38.0 million of non-recurring charges for the full year 2020.
  • Non-cash interest expense of approximately $11.3 million for the full year 2020.
  • Capital expenditures of approximately $45.0 million for the full year 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-1.7%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-3.8%

Avg return

30 days after

35%

22 / 62 earnings

Positive

+43.3%

Q1 2020

Best reaction

-56.4%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.9%-19.5%-21.1%
Q4 2025-1.1%-1.5%+1.9%
Q3 2025+12.4%-2.9%+1.3%
Q1 2025+8.1%+12.8%+0.0%
Q4 2024-16.0%-22.7%-38.2%
Q3 2024-25.7%-27.4%-23.1%
Q2 2024-11.6%-10.9%-4.7%
Q1 2024-2.0%+11.9%+10.2%
Q4 2023-50.6%-51.0%-61.1%
Q3 2023-9.0%-7.7%+15.0%
Q2 2023+18.2%+26.4%-1.2%
Q1 2023+27.9%+0.7%-17.4%
Q4 2022-56.4%-60.1%-44.1%
Q3 2022+20.4%+34.7%+12.0%
Q2 2022-17.8%-11.1%-26.5%
Q1 2022-5.4%-6.3%-14.1%
Q4 2021-20.7%+3.0%+4.7%
Q3 2021-5.3%-6.7%-32.3%
Q2 2021-2.5%-3.3%+3.7%
Q1 2021-3.1%-3.5%+1.2%
Q4 2020+9.1%+7.6%-13.5%
Q3 2020-5.5%-3.8%+2.4%
Q2 2020+24.0%+27.1%+17.6%
Q1 2020+43.3%+44.5%+47.6%
Q4 2019-23.3%-26.3%-53.3%
Q3 2019-16.3%-16.1%-9.8%
Q2 2019+3.6%-1.7%+21.9%
Q1 2019-0.8%-0.7%-3.2%
Q4 2018+4.3%+8.9%+7.4%
Q3 2018-7.5%-11.0%-16.7%
Q2 2018+3.9%+3.9%+15.9%
Q1 2018+8.4%+9.3%+17.5%
Q4 2017+15.3%+14.5%+21.3%
Q3 2017-17.9%-16.4%-21.4%
Q2 2017+17.9%+18.3%+11.8%
Q1 2017+22.6%+27.7%+41.5%
Q4 2016-0.7%+4.3%-4.3%
Q3 2016-3.0%+1.2%+0.0%
Q2 2016-15.0%-11.3%+4.4%
Q1 2016-3.5%
Q4 2015-18.8%
Q3 2015-7.9%
Q2 2015+12.3%
Q1 2015-10.3%
Q4 2014-1.1%
Q3 2014+0.7%
Q2 2014+21.8%
Q1 2014-3.0%
Q4 2013-8.0%
Q3 2013+20.8%
Q2 2013+0.7%
Q4 2012-6.1%
Q3 2012-12.5%
Q1 2011+7.7%
Q1 2012+2.1%
Q4 2009-0.4%
Q4 2011-0.4%
Q3 2010-4.2%
Q3 2011-4.2%
Q2 2010-3.5%
Q2 2011-3.5%
Q4 2010-3.5%

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