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Sep 30, 2021

LivePerson Q3 2021 Earnings Report

LivePerson reported a strong third quarter with revenue growth and strategic acquisitions.

Key Takeaways

LivePerson announced its Q3 2021 financial results, generating revenue of $118.3 million, a 25% increase year-over-year. The company raised its 2021 revenue guidance and closed two major strategic acquisitions, VoiceBase and Tenfold. They also signed seven 7-figure deals and the largest 8-figure contract in LivePerson's history.

Total revenue was $118.3 million, a 25% increase year-over-year.

Business operations revenue increased 26% year over year to $109.2 million.

Signed seven seven-figure deals and 102 deals in total.

Trailing-twelve-months average revenue per enterprise and mid-market customer increased 34% to $570,000.

Total Revenue
$118M
Previous year: $94.8M
+24.8%
EPS
-$0.47
Previous year: -$0.12
+291.7%
Adjusted EBITDA
$6.9M
Previous year: $15.1M
-54.3%
Gross Profit
$79.5M
Previous year: $67.1M
+18.5%
Cash and Equivalents
$633M
Previous year: $199M
+218.6%
Free Cash Flow
-$5.62M
Previous year: $16.1M
-135.0%
Total Assets
$1.07B
Previous year: $528M
+102.3%

LivePerson

LivePerson

LivePerson Revenue by Segment

Forward Guidance

LivePerson is raising its 2021 revenue guidance range to $468.0 million to $471.0 million and updating its 2021 adjusted EBITDA guidance to a range of $11.9 million to $16.3 million.

Positive Outlook

  • Revenue guidance range for the fourth quarter is $122.2 million to $125.2 million, or 19.6% to 22.6% YoY.
  • Full Year 2021 Revenue guidance is $468.0 million to $471.0 million.
  • Gross profit to be in a range of 66.0% to 67.0%.
  • Sales and marketing 36.1% of revenue.
  • Product development 35.9% of revenue.

Challenges Ahead

  • The Company is guiding for fourth quarter adjusted EBITDA in a range of $(21.7) million to $(17.3) million or a (17.8)% to (13.8)% margin.
  • Full year 2021 adjusted EBITDA guidance to a range of $11.9 million to $16.3 million, or a 2.6% to 3.5% margin.
  • Full Year 2021 GAAP net loss per share $(2.06) - $(1.98).
  • Full Year 2021 Adjusted operating (loss) (in millions) $(17.9) - $(13.4).
  • General and administrative 15.4% of revenue.