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It's been a soft week for LivePerson, Inc. (NASDAQ:LPSN) shares, which are down 10%. But that does not change the realty that the stock's performance has been terrific, over five years. In that time, the share price has soared some 647% higher! Arguably, the recent fall is to be expected after such a strong rise. But the real question is whether the business fundamentals can improve over the long term.
We love happy stories like this one. The company should be really proud of that performance!
LivePerson isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last 5 years LivePerson saw its revenue grow at 11% per year. That's a fairly respectable growth rate. However, the share price gain of 49% during the period is considerably stronger. It might not be cheap but a (long-term) growth stock like this is usually well worth taking a closer look at.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
LivePerson is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. You can see what analysts are predicting for LivePerson in this interactive graph of future profit estimates.
A Different Perspective
We're pleased to report that LivePerson shareholders have received a total shareholder return of 45% over one year. Having said that, the five-year TSR of 49% a year, is even better. It's always interesting to track share price performance over the longer term. But to understand LivePerson better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for LivePerson you should be aware of.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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