LivePerson (LPSN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $74.2 million, exceeding guidance but down 26.7%–27% year-over-year due to customer cancellations, downsells, and divestitures.

• Adjusted EBITDA reached $7.3 million, above guidance, while net loss narrowed to $28.3 million from $53.3 million in Q3 2023.

• Signed 44 deals in Q3, including 9 new logos and 2 seven-figure deals, with ARPC rising to $630,000.

• Launched unified omnichannel solution, expanded Avaya partnership, and saw increased adoption of generative AI.

• Cost reduction and restructuring efforts continued, focusing on core products and positive free cash flow.

Financial highlights

• B2B Core Recurring Revenue was $68.8 million, representing 93% of total revenue in Q3 2024.

• Net loss per share was $(0.32) for Q3 2024, improved from $(0.68) in Q3 2023.

• Gross margin for Q3 2024 was approximately 67%.

• Cash and cash equivalents stood at $142.1 million as of September 30, 2024.

• Free cash flow for the nine months ended September 30, 2024, was negative $33.5 million.

Outlook and guidance

• Q4 2024 revenue expected between $65.7 million–$70.7 million; adjusted EBITDA guidance $2.1 million–$7.1 million.

• Full-year 2024 revenue expected at $305 million–$310 million, down 21%–23% year-over-year; adjusted EBITDA $18 million–$23 million.

• B2B Core Recurring Revenue expected to comprise 92%–93% of total revenue.

• Revenue retention for enterprise and mid-market customers was 79% in Q3 2024, below target.

• Revenue and bookings expected to stabilize and return to growth by late 2025.