LivePerson Q2 2022 Earnings Report
Key Takeaways
LivePerson's Q2 2022 results revealed an 11% year-over-year revenue increase to $132.6 million. The company signed 45 new logo deals and achieved adjusted EBITDA at the high end of its guidance. While near-term growth is expected to be impacted by expense reductions and the elimination of low-quality revenue, LivePerson is maintaining its 2022 adjusted EBITDA guidance.
Total revenue increased by 11% year-over-year to $132.6 million.
Business operations revenue increased 12% year-over-year to $123.4 million.
Signed 45 new logo deals, a 55% increase year-over-year and a 73% increase sequentially.
Adjusted EBITDA was at the top end of the guidance range.
LivePerson
LivePerson
LivePerson Revenue by Segment
Forward Guidance
LivePerson anticipates revenue between $120.5 million and $123.6 million for Q3 2022, representing 1.8% to 4.5% growth year-over-year. The company is maintaining its full year 2022 adjusted EBITDA guidance to a range of $1.0 million to $10.0 million.
Positive Outlook
- Reaffirming full year guidance for adjusted EBITDA, implying operating expenses of approximately $507 million at the midpoint, a reduction of $57 million in-year.
- Guiding for third quarter adjusted EBITDA in a range of $0 million - $4.3 million or a 0% - 3.5% adjusted EBITDA margin.
- Raising guidance of non-GAAP gross margin from 70% - 72% to 72% - 74% for the full year 2022 and the third quarter of 2022.
- Maintaining expectation of positive cash flow in the fourth quarter
- Cost reduction results in the second quarter demonstrating early signs of building leverage in the business
Challenges Ahead
- Revising down 2022 revenue guidance from $544.8 million - $563.3 million to $507.1 million - $518.3 million, or 8% to 10% growth year-over-year.
- Revenue guidance range for the third quarter is $120.5 million to $123.6 million, or 1.8% to 4.5% growth year-over-year.
- Short term impact due to the P&L optimizations
- Short term impact due to reduction in costs
- Short term impact due to intentional elimination of low margin revenue