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Sep 30, 2020
LivePerson Q3 2020 Earnings Report
LivePerson's Q3 2020 financial results were announced, demonstrating revenue growth driven by the consumer shift to Conversational AI.
Key Takeaways
LivePerson reported a 26% increase in revenue to $94.8 million for Q3 2020, driven by a consumer-led shift to Conversational AI. The company signed 8 seven-figure deals and achieved a multi-year high adjusted EBITDA margin of 16%. They are raising revenue and adjusted EBITDA guidance for 2020.
Total revenue increased by 26% year-over-year to $94.8 million.
Business operations revenue increased 27% year-over-year to $86.9 million.
Signed 8 seven-figure deals and 133 deals in total.
Adjusted EBITDA margin reached a multi-year high of 16%.
LivePerson
LivePerson
Forward Guidance
LivePerson is raising revenue guidance for the full year 2020 to a range of $362.5 million to $364.5 million and adjusted EBITDA to a range of $29.0 million to $31.0 million.
Positive Outlook
- Revenue target between $98.0 million and $100.0 million for Q4 2020.
- Full year revenue growth target of 24% to 25%.
- Targeting full year 2020 adjusted EBITDA between $29.0 million and $31.0 million.
- Platform conversation volumes continue to build month over month.
- Contract signings have set a new record.
Challenges Ahead
- GAAP net loss per share between $(0.36) and $(0.33) for Q4 2020.
- Adjusted operating income between $2.6 million and $4.6 million for Q4 2020.
- Approximately $38.0 million of non-recurring charges for the full year 2020.
- Non-cash interest expense of approximately $11.3 million for the full year 2020.
- Capital expenditures of approximately $45.0 million for the full year 2020.