The following is a summary of the LivePerson, Inc. (LPSN) Q3 2024 Earnings Call Transcript:
Financial Performance:
Q3 2024 revenue reached $74.2 million, surpassing guidance; Adjusted EBITDA was $7.3 million.
Full-year revenue guidance adjusted to $305-$310 million, with EBITDA guidance at $18-$23 million.
Business Progress:
Launched unified omnichannel solution, enhancing partnerships like with Avaya.
Introduced AI features, achieving a 14% increase in clients using generative AI.
Opportunity:
Expanding voice partnerships and generative AI applications across industries.
New tiered pricing strategy aimed at securing larger deals, quicker sales.
Risk:
Ongoing customer attrition expected to impact revenue into the first half of 2025.
Challenges in the current renewal cycle could negatively affect customer retention.
Financial Performance:
In Q3 2024, LivePerson reported revenue of $74.2 million, surpassing the high end of their guidance range.
Adjusted EBITDA for Q3 was $7.3 million, also exceeding the high end of the guidance range.
B2B hosted services revenue was $62.7 million, showing a year-over-year decline of 27%.
The company maintains its full-year revenue guidance midpoint but narrows the range to $305 million to $310 million.
Full-year Adjusted EBITDA guidance midpoint is maintained, with the range narrowed to $18 million to $23 million.
Anticipated sequential revenue decline through Q4 2024 into 2025, with expected stabilization and growth by the end of 2025.
Business Progress:
LivePerson unveiled a unified omnichannel solution integrating digital and voice interactions, enhancing strategic partnership outcomes with companies like Avaya.
Continued to innovate with AI, introducing features like real-time call transcription and AI-powered analytics.
Implementation of a self-service portal for AI model customization and enhanced reporting capabilities.
Recorded a 14% sequential increase in clients using generative AI capabilities and a 40% increase in AI-driven conversations.
Achieved significant client wins and contract expansions including deals with Fortune 200 insurers and a major bank through its partnership with Avaya.
Opportunities:
Expansion of voice partnerships and the growth of generative AI applications across different industries, aiming to broaden the spectrum of digital conversation solutions.
Implementation of a new bronze, silver, and gold pricing strategy leading to larger deals and shorter sales cycles.
Risks:
Expected ongoing customer attrition affecting revenue in the first half of 2025, due to legacy issues and customer renewal decisions made prior to new operational strategies.
Anticipated challenges in completing the current renewal cycle without impacting customer retention negatively.
More details: LivePerson IR
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