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LivePerson Inc. (NASDAQ:LPSN) Earnings Report Analysis

  • LivePerson Inc. (NASDAQ:LPSN) reported a significant quarterly loss of $4.55 per share, missing the Zacks Consensus Estimate.
  • The company's revenue was $60.15 million, surpassing expectations but marking a 19% decline year-over-year.
  • Despite financial challenges, LivePerson's adjusted EBITDA exceeded guidance, and the company secured 28 new deals.

In its latest earnings disclosure, LivePerson reported a quarterly loss of $4.55 per share, significantly underperforming the Zacks Consensus Estimate of a $2.7 loss per share, resulting in a negative surprise of 68.52%. However, the company's revenue for the quarter stood at $60.15 million, exceeding the Zacks Consensus Estimate by 5.83%.

This revenue figure represents a 19% decrease from the $74.24 million reported in the corresponding period last year, primarily attributed to customer cancellations and downsells. Despite the downturn in revenue, LivePerson's adjusted EBITDA outperformed the upper limit of their guidance, showcasing robust operational efficiency.

LivePerson's financial indicators highlight several challenges, with a negative price-to-earnings (P/E) ratio of -0.29 and a price-to-sales ratio of 0.15. The enterprise value to sales ratio stands at 1.22, indicating the company's total valuation slightly exceeds its sales. The enterprise value to operating cash flow ratio is significantly negative at -13.16, underscoring potential cash flow issues.

The current ratio of 1.18 suggests that LivePerson maintains an adequate level of liquidity to meet its short-term obligations. Despite these financial obstacles, the company managed to secure 28 deals during the quarter, reflecting its continuous efforts to bolster recurring revenue streams.