LivePerson Inc’s (NASDAQ:LPSN): LivePerson, Inc. provides mobile and online business messaging solutions that power digital communication between brands and consumers. With the latest financial year loss of -US$18.19m and a trailing-twelve month of -US$15.72m, the US$1.31b market-cap alleviates its loss by moving closer towards its target of breakeven. The most pressing concern for investors is LPSN’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for LPSN’s growth and when analysts expect the company to become profitable.
LPSN is bordering on breakeven, according to Internet analysts. They anticipate the company to incur a final loss in -1, before generating positive profits of US$0 in . Therefore, LPSN is expected to breakeven roughly a few months from now. How fast will LPSN have to grow each year in order to reach the breakeven point by ? Working backwards from analyst estimates, it turns out that they expect the company to grow 36.82% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, LPSN may become profitable much later than analysts predict.
Underlying developments driving LPSN’s growth isn’t the focus of this broad overview, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before I wrap up, there’s one aspect worth mentioning. LPSN currently has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which typically has high debt relative to its equity. LPSN currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are too many aspects of LPSN to cover in one brief article, but the key fundamentals for the company can all be found in one place – LPSN’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should further research:
- Historical Track Record: What has LPSN’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on LivePerson’s board and the CEO’s back ground.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.