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LivePerson's Q4 2024 Financial Results: A Transformative Year

On March 5, 2025, LivePerson, Inc. (NASDAQ: LPSN) disclosed its fourth quarter financial performance for 2024, showcasing notable developments within the company as it navigates a changed market landscape. LivePerson, recognized as a premier provider in the realm of conversational AI, reported total revenue of $73.2 million. Although this figure represents a 23.3% decrease compared to the same period last year, the company underscored that it outperformed its own projections, particularly in adjusted EBITDA.

Key Financial Highlights

LivePerson's report indicated a total of 39 new deals signed during the quarter, comprised of 30 renewals from existing clients and 9 from new clients. Impressively, the average revenue per enterprise and mid-market client saw an uptick of 2.5%, rising to $625,000, reflecting a promising sign of resilience amidst financial challenges stemming from customer cancellations and descents.

CEO John Sabino emphasized the significance of 2024 as a time of transformation. He noted, “We have reinvigorated our go-to-market capabilities and continued to innovate on our product offerings, resulting in three consecutive quarters of increases in bookings.” This strategic innovation has notably centered around the adoption of generative AI and comprehensive voice and digital strategies.

Expansion and Innovations

The company secured valuable expansions from several high-profile clients, including:

• - A renowned U.S.-based financial services organization
• - A prominent British retail banking institution
• - A leading UK broadcasting and communications firm

New client acquisitions comprised a multinational consulting firm engaging generative AI for enterprise needs, an African insurance giant through a partnership, and a luxury fashion brand collaboration.

Despite the overall revenue decline, LivePerson registered an adjusted operating income of $1.0 million during Q4 2024, compared to an adjusted operating loss of $4.0 million in Q4 2023, showcasing a significant improvement in financial handling and operational efficiency.

Challenges and Future Outlook

However, LivePerson faced substantial losses, reporting a net loss of $112.1 million ($1.27 per share), contrasting sharply with a net loss of $40.5 million ($0.48 per share) the previous year. This dramatic figure was largely attributed to ongoing restructuring and impairment costs linked to goodwill and intangible assets.

Despite these figures, CFO John Collins pointed towards encouraging trends. With three straight quarters showing growth in bookings and heightened demand for AI solutions among regulated entities, the firm anticipates continued improvements well into 2025.

Looking ahead, LivePerson forecasts total revenue between $240 million to $255 million for the full year of 2025, signaling a commitment to recovery and expansion in a competitive market. The firm expects recurring revenue to constitute 93% of total revenue, with projected adjusted EBITDA ranging from $(14) million to $0 million.

Conclusion

LivePerson remains a beacon in the world of conversational AI, adjusting its strategies to foster growth in challenging circumstances. With a focus on AI innovations and operational efficiencies, the company aims to thrive in future landscapes while successfully navigating the hurdles of today. As they move forward, their strategic goals reflect a dedication to sustainable growth and increased profitability for their stakeholders.