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Mar 31, 2023

LivePerson Q1 2023 Earnings Report

LivePerson's Q1 2023 revenue aligned with expectations, while adjusted EBITDA surpassed guidance. The company divested Kasamba and repurchased a significant portion of convertible notes.

Key Takeaways

LivePerson's Q1 2023 saw a total revenue of $107.7 million, a 17% decrease compared to the same period last year. The company signed 70 deals, including 20 new and 50 existing customer contracts. Adjusted EBITDA was $(1.3) million, and the company reaffirmed its full-year revenue and adjusted EBITDA guidance.

Total revenue for Q1 2023 was $107.7 million, a 17% decrease year-over-year.

The company signed 70 deals in Q1, including 20 new and 50 existing customer contracts.

Adjusted EBITDA for Q1 2023 was $(1.3) million, compared to $(17.6) million for Q1 2022.

LivePerson reaffirmed its full-year 2023 revenue guidance of $394M to $408M and adjusted EBITDA guidance of $15M to $32M.

Total Revenue
$108M
Previous year: $130M
-17.3%
EPS
-$0.23
Previous year: -$0.86
-73.3%
Adjusted EBITDA
-$1.3M
Previous year: -$17.6M
-92.6%
Gross Profit
$64.6M
Previous year: $80.6M
-19.9%
Cash and Equivalents
$240M
Previous year: $481M
-50.1%
Free Cash Flow
-$15.5M
Previous year: -$36M
-56.8%
Total Assets
$958M
Previous year: $1.2B
-20.5%

LivePerson

LivePerson

LivePerson Revenue by Segment

Forward Guidance

LivePerson is reaffirming its full-year revenue and adjusted EBITDA guidance. For the second quarter, the company expects revenue between $95M and $99M and adjusted EBITDA between $3M and $7M.

Positive Outlook

  • Full year revenue guidance range is $394M to $408M.
  • Full-year adjusted EBITDA guidance range of $15M to $32M.
  • Recurring revenue component of total revenue in the second quarter is expected to be approximately 87%, which implies 2% growth sequentially.
  • Sequential improvement in profitability expected for the remainder of the year.
  • Wild Health’s growth in the first quarter was consistent with the expectations set last quarter for its core revenue to double for the full year.

Challenges Ahead

  • Second quarter revenue is expected to be $95M to $99M, a decline of -23% to -20% YoY.
  • Sequential decline in total revenue from the first quarter is due primarily to professional services revenue from the JV that is not expected to continue.
  • Part of the overperformance in the first quarter was due to the timing of certain expenses that we expect to recognize later in the year.
  • Inclusive of Kasamba revenue, guidance range for full year revenue is a decline of -23% to -21% YoY.
  • Normalizing for Kasamba in both periods, our revenue guidance range is a decline of -19% to -16% YoY.

Revenue & Expenses

Visualization of income flow from segment revenue to net income