LivePerson (NSD:LPSN) shares dropped around 50% in pre-market trading on Thursday after the software company missed Q4 earnings and revenue expectations, resulting in analysts downgrading the stock. The firm reported a GAAP EPS of -$0.55, missing by $0.22, and revenue of $122.4m (-1.1% YoY), missing by $4.53m. LivePerson blamed its Medicare demonstration program-related reimbursements and its decision to pay employee bonuses in cash, instead of stock, as the main reasons behind the disappointing quarterly results.
The company expects a drop in revenue for Q1’23, ranging from $106m to $109m, representing a YoY decline of 18.5% to 16.1%. Additionally, an adjusted loss ranging from -$8m to -$5.5m is expected during this period. For FY23, LivePerson forecasts a revenue decline of 18.9% to 2%, with revenue expected to range from $395m to $410m.Analysts at Roth, Craig-Hallum, Barclays and Loop Capital downgraded the stock, citing weak sales and stressed liquidity, with some lowering their price targets on the stock.
LivePerson Inc Stock Analysis
According to ten analysts, the projected average target price for LivePerson Inc over the next year is USD 10.25, with an average analyst rating of Under-perform. Stock Target Advisor’s own analysis of the company is Bearish, based on one positive signal and six negative signals. The latest closing saw the company’s stock price at USD 9.77. Over the past week, LivePerson Inc’s stock price has fallen by 6.95%, over the past month it has declined by 35.04%, and over the past year, it has fallen by 52.82%.
Company Overview
LivePerson is a software company based in New York that offers conversational commerce software and Gainshare solutions. The company operates in two segments, Business and Consumer, providing LiveEngage and the Conversational Cloud. A cloud-based platform that allows businesses and consumers to connect through messaging. LivePerson serves various organizations globally, including Fortune 500 companies, small businesses, and government agencies, and has strategic partnerships with TTEC and DMI to enhance customer experience through digital engagement and automation.
