1. LPSN reported $64.7M revenue, 24% decrease year-over-year. 2. Net loss improved to $14.1M from $35.6M last year. 3. Company added 50 deals, with 45 being expansions. 4. Adjusted EBITDA slightly decreased to $0.2M from $0.5M. 5. Revenue guidance for Q2 2025 predicts 25% to 29% decline.
The 24% revenue decline indicates ongoing customer retention issues, which typically leads to negative investor sentiment. In previous revenue downturns, LPSN's stock value dropped significantly, affecting overall trust in operational stability.
The revenue and performance metrics suggest immediate market concern. LPSN's long-term viability relies on its ability to stem revenue losses and retain clients, making this information critical.
Q2 guidance shows continued revenue decline, which could prompt immediate investor reaction. Trends in quarterly results often yield quicker market responses than longer-term outlooks.
NEW YORK, May 7, 2025 /PRNewswire/ -- LivePerson, Inc. (NASDAQ: LPSN) ("LivePerson" the "Company", "we" or "us"), a leading provider of trusted enterprise conversational AI and outcome-driven digital transformation, today announced financial results for the first quarter ended March 31, 2025.
Total revenue was $64.7 million for the first quarter of 2025, a decrease of 24.0% as compared to the same period last year, driven primarily by customer cancellations and downsells.
LivePerson signed 50 deals in total for the first quarter, consisting of 45 existing and 5 new customers. Trailing-twelve-months average revenue per enterprise and mid-market customer (ARPC) increased 2.4% for the first quarter to $640,000, up from approximately $625,000 for the comparable prior-year period. ARPC is calculated using only recurring revenue, which is consistent with the revenue base for calculating Net Revenue Retention.
"In the first quarter of 2025, we delivered on our financial guidance and made strong progress against our strategy," said John Sabino, LivePerson's CEO. "Our innovation without disruption approach continues to resonate, enabling customers to seamlessly adopt AI and digital capabilities within a single platform without a costly rip-and-replace..."
During the first quarter, the Company signed 50 total deals for the quarter, including 45 expansion and renewals and 5 new logo deals. Expansions and renewals included:
New logos included:
Net loss for the first quarter of 2025 was $14.1 million or $0.15 per share, as compared to a net loss of $35.6 million or $0.40 per share for the first quarter of 2024. Adjusted operating loss, a non-GAAP financial metric, for the first quarter of 2025 was $5.4 million, as compared to a $7.7 million adjusted operating loss for the first quarter of 2024.
Adjusted EBITDA, a non-GAAP financial measure, for the first quarter of 2025 was $0.2 million as compared to adjusted EBITDA of $0.5 million for the first quarter of 2024.
A reconciliation of non-GAAP financial measures to GAAP measures has been provided in the financial tables included in this press release. An explanation of the non-GAAP financial measures and how they are calculated is included below under the heading "Non-GAAP Financial Measures."
The Company's cash balance was $176.3 million at March 31, 2025, as compared to $183.2 million at December 31, 2024.
The following forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, and actual results may vary materially from these forward-looking measures...
Included in the accompanying financial results are revenues disaggregated by revenue source, as follows:
LivePerson will post a presentation providing supplemental information for the first quarter of 2025 on the investor relations section of the Company's web site at www.ir.liveperson.com.
The Company will discuss its first quarter of 2025 financial results during a teleconference today, May 7, 2025, at 5:00 PM ET...
LivePerson (NASDAQ: LPSN) is a leader in trusted enterprise conversational AI and digital transformation...
Investors are cautioned that the following financial measures used in this press release and on our earnings call are "non-GAAP financial measures"...
Statements in this press release and on our earnings call regarding LivePerson that are not historical facts are forward-looking statements...