LivePerson Inc Reports Q3 2023 Results: Revenue Meets Guidance Despite Decline, Adjusted EBITDA ...
LivePerson Inc (NASDAQ:LPSN) reports third-quarter revenue of $101.3 million, aligning with the upper end of guidance but marking a 21.8% year-over-year decrease.
Adjusted EBITDA for Q3 2023 reaches $10.6 million, surpassing the previous year's $9.1 million.
Net loss widened to $53.3 million in Q3 2023 from $43.2 million in Q3 2022, with a per-share loss of $0.68.
The company maintains its full-year 2023 revenue guidance midpoint at $394 million and narrows its Adjusted EBITDA guidance range.
On November 8, 2023, LivePerson Inc (NASDAQ:LPSN), a global leader in conversational AI, disclosed its financial results for the third quarter ending September 30, 2023. Despite a strategic pivot away from lower-margin and non-core businesses, which resulted in a 21.8% decline in revenue year-over-year, the company's revenue of $101.3 million met the upper end of its guidance range. The company's focus on high-value enterprise and mid-market customers is evident, with a 13% increase in trailing-twelve-months average revenue per customer.
Financial Performance Overview
LivePerson Inc (NASDAQ:LPSN) signed a total of 50 deals during the quarter, including four with seven-figure values. The company's net loss expanded to $53.3 million, or $0.68 per share, compared to a net loss of $43.2 million, or $0.56 per share, in the same quarter last year. However, adjusted operating income showed improvement, rising to $2.8 million from $2.0 million in Q3 2022.
Adjusted EBITDA and Cash Position
The adjusted EBITDA for Q3 2023 was $10.6 million, an increase from $9.1 million in the prior year's quarter. LivePerson Inc (NASDAQ:LPSN) reported a cash and cash equivalents balance of $212.2 million as of September 30, 2023, a decrease from $391.8 million at the end of 2022.
Future Financial Expectations
Looking ahead, LivePerson Inc (NASDAQ:LPSN) has reiterated its full-year 2023 revenue guidance midpoint at $394 million, with a narrowed range and an expectation for B2B Core recurring revenue to represent 86% of total revenue. The company also narrowed its full-year 2023 Adjusted EBITDA guidance to a range of $22 million to $29 million.
Revenue Breakdown and Stock-Based Compensation
The company's revenue sources for Q3 2023 included $85.7 million from hosted services and $15.6 million from professional services. Stock-based compensation expenses totaled $11.3 million for the quarter, a significant decrease from $31.9 million in the same period last year.
Amortization and Other Financial Metrics
Amortization of purchased intangibles and finance leases amounted to $8.4 million for the quarter. The company also provided a detailed reconciliation of non-GAAP financial measures to their GAAP equivalents, emphasizing the use of these measures for a clearer understanding of operational performance.
Interim CEO and CFO John Collins commented on the company's strategic focus and market position, stating,
Since last quarter, we have refocused the company on our core strengths those that have delivered a meaningful return on investment to our enterprise customers by enabling them to efficiently shift legacy voice interactions to digital channels and AI-powered automation."
He also highlighted the potential growth in the conversational AI and customer service markets and LivePerson's readiness to capitalize on these opportunities.
For more detailed information on LivePerson Inc (NASDAQ:LPSN)'s financial results, including the full earnings release and supplemental materials, investors are encouraged to visit the investor relations section of the company's website at www.ir.liveperson.com.
LivePerson Inc (NASDAQ:LPSN) remains committed to its strategic initiatives and is poised to navigate the evolving market landscape with its innovative conversational AI solutions.
Explore the complete 8-K earnings release (here) from LivePerson Inc for further details.
This article first appeared on GuruFocus.
