1. Total revenue decreased 23.3% year-over-year to $73.2 million. 2. Adjusted EBITDA increased significantly to $8.1 million for Q4 2024. 3. Net loss rose to $112.1 million, wider than last year's loss. 4. Positive future outlook predicted amidst three quarters of sequential bookings growth. 5. Cash balance decreased to $183.2 million from $210.8 million last year.
The significant drop in revenue coupled with a widening loss tempers positive EBITDA gains.
The provided financial metrics are critical to assessing LPSN’s current performance and future outlook.
Investor reactions may vary immediately post-report, but long-term outlook depends on execution of strategies.
NEW YORK, March 5, 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 fourth quarter ended December 31, 2024.
Total revenue was $73.2 million for the fourth quarter of 2024, a decrease of 23.3% as compared to the same period last year driven by customer cancellations and downsells.
LivePerson signed 39 deals in total for the fourth quarter, consisting of 30 existing and 9 new customers. Trailing-twelve-months average revenue per enterprise and mid-market customer (ARPC) increased 2.5% for the fourth quarter to $625,000, up from approximately $610,000 for the comparable prior-year period. ARPC is calculated using recurring revenue which is consistent with the revenue base for calculating Net Revenue Retention.
"2024 was a transformative year for LivePerson, marked by strong progress against our strategy. We have reinvigorated our go-to-market capabilities and continued to innovate on our product offerings, resulting in three consecutive quarters of bookings increases, strong adoption of our Generative AI features and the launch of our voice and digital strategy. While our transformation is ongoing, I remain confident that the strong foundation we have built, combined with continued execution, position us for sustainable growth and profitability in the future." said CEO John Sabino.
"We are seeing increasing demand for AI agents and AI orchestration, traction for LivePerson as a leading solution for large enterprises in regulated industries, and growing interest from partners as three key themes influencing our results and validating our strategy. With three consecutive quarters of sequential bookings growth and improvement in other key commercial metrics, we expect to see continued improvement in the business in 2025," said CFO and COO John Collins.
During the fourth quarter, the Company signed 39 total deals for the quarter, including 30 expansion & renewals and 9 new logo deals. Expansions & renewals included:
New logos included:
Net loss for the fourth quarter of 2024 was $112.1 million or $1.27 per share, as compared to a net loss of $40.5 million or $0.48 per share for the fourth quarter of 2023. Adjusted operating income, a non-GAAP financial metric, for the fourth quarter of 2024 was $1.0 million, as compared to a $4.0 million adjusted operating loss for the fourth quarter of 2023. Adjusted operating income (loss) excludes provision for income taxes, other litigation, consulting and other employee costs, restructuring costs, amortization of purchased intangibles, and finance leases, impairment of goodwill, impairment of intangibles and other assets, stock-based compensation expense, leadership transition costs, contingent earn-out adjustments, working capital adjustment related to the Kasamba divestiture, IT transformation costs, acquisition and divestiture costs, gain on debt extinguishment, change in fair value of warrants, interest expense, interest income, loss (gain) on divestiture, and other expense (income), net.
Adjusted EBITDA, a non-GAAP financial measure, for the fourth quarter of 2024 was $8.1 million as compared to an adjusted EBITDA of $3.7 million for the fourth quarter of 2023. Adjusted EBITDA excludes provision for income taxes, other litigation, consulting and other employee costs, restructuring costs, amortization of purchased intangibles and finance leases, impairment of goodwill, impairment of intangibles and other assets, stock-based compensation expense, leadership transition costs, contingent earn-out adjustments, working capital adjustment related to the Kasamba divestiture, IT transformation costs, acquisition and divestiture costs, gain on debt extinguishment, change in fair value of warrants, interest expense, interest income, loss (gain) on divestiture, and other expense (income), net.
The Company's cash balance was $183.2 million at December 31, 2024, as compared to $210.8 million at December 31, 2023.
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. The Company does not present a quantitative reconciliation of the forward-looking non-GAAP financial measures, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP financial measures (or otherwise present such forward-looking GAAP measures) because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized.
Included in the accompanying financial results are revenues disaggregated by revenue source, as follows:
Included in the accompanying financial results are expenses related to stock-based compensation.
LivePerson will post a presentation providing supplemental information for the fourth quarter of 2024 on the investor relations section of the Company's web site at www.ir.liveperson.com.
The Company will discuss its fourth quarter of 2024 financial results during a teleconference today, March 5, 2025, at 5:00 PM ET. To participate via telephone, callers should dial in five to ten minutes prior to the 5:00 p.m. Eastern start time; domestic callers (U.S. and Canada) should dial 1-877-407-0784, while international callers should dial 1-201-689-8560, and both should reference the conference ID "13750778."
LivePerson (NASDAQ: LPSN) is a leader in digital customer conversation. The world's leading brands — including HSBC, Virgin Media and Burberry — use our award-winning LivePerson platform to connect with millions of consumers. We power nearly a billion conversational interactions every month, providing uniquely rich data analytics and safety tools to unlock the power of conversational AI for better business outcomes. Fast Company named LivePerson the #1 Most Innovative AI Company in the world. Learn more at liveperson.com.
Investor Relations contact: ir@liveperson.com