NASDAQ$LPSN

LivePerson Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

LivePerson's financial performance in Q3 2023 showed revenue at the top end of guidance and adjusted EBITDA above the midpoint of guidance.

LivePerson's Q3 2023 total revenue reached $101.3 million, hitting the top end of their guidance. The company signed 50 deals, including 19 new and 31 existing customer contracts. Adjusted EBITDA was above the midpoint of the guidance range. The company is maintaining its 2023 revenue and adjusted EBITDA guidance midpoints.

  • Total revenue was $101.3 million, at the top end of prior guidance.
  • Signed 50 deals in total, including 19 new and 31 existing customer contracts.
  • Trailing-twelve-months average revenue per enterprise and mid-market customer increased 13% to $595,000.
  • Adjusted EBITDA was $10.6 million, as compared to adjusted EBITDA of $9.1 million for the third quarter of 2022.

Headline financials

Total Revenue

$101M

Previous: $130M-21.8%
EPS (adj)

-$0.68

Previous: $0.09-855.6%
Adjusted EBITDA

$10.6M

Previous: $9.1M+16.5%
Capital Expenditures

-$22.4M

Previous: -$35.2M+36.3%
Free Cash Flow

-$75.7M

Previous: -$78.5M+3.5%
Net Income

-$53.3M

Previous: -$43.2M-23.3%
Operating Income

-$43.7M

Previous: -$48.5M+10.0%
Gross Profit

$69.4M

Previous: $85.9M-19.2%
Cash & Equivalents

$212M

Previous: $393M-46.1%
Total Assets

$873M

Previous: $1.1B-20.4%
R&D Expense

$35.6M

No prior period
Stock-Based Comp

$11.3M

Previous: $31.9M-64.6%

Revenue & EPS history

LivePerson · Revenue · Quarterly

$101M

Q3 2023-21.8%vs Q3 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

For Q4 2023, LivePerson expects total revenue to range from $89.7M - $99.7M and adjusted EBITDA to range from $0M - $7M. For full year 2023, revenue is projected to be $389M - $399M and adjusted EBITDA to be $22M - $29M.

Tailwinds

  • B2B Core recurring revenue is expected to represent 89% of total revenue in Q4 2023.
  • The midpoint of the full year 2023 revenue guidance is reiterated at $394M.
  • The midpoint of the full year 2023 Adjusted EBITDA guidance is reiterated at $25.5M.
  • B2B Core recurring revenue to represent 86% of total revenue for full year 2023.
  • Maintaining 2023 Revenue and Adjusted EBITDA guidance midpoints

Headwinds

  • Revenue growth (year-over-year) for Q4 2023 is expected to be between (21)% - (12)%.
  • Revenue (in millions) for Q4 2023 is expected to be $89.7 - $99.7
  • Revenue growth (year-over-year) for full year 2023 is expected to be between (19)% - (16)%.
  • Revenue (in millions) for full year 2023 is expected to be $389 - $399
  • Adjusted EBITDA (in millions) for Q4 2023 is expected to be $0 - $7

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 2023

Historical avgQ3 2023

-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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