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Dec 31, 2019
LivePerson Q4 2019 Earnings Report
Achieved Q4 goal of 20% revenue growth and accelerated deployment of Conversational AI.
Key Takeaways
LivePerson announced strong Q4 2019 results, achieving 20% revenue growth and signing 149 deals. The company is focused on internal automation and AI to drive profitability and is guiding for at least 20% revenue growth in 2020.
Total revenue increased by 20% compared to the same period last year, reaching $79.1 million.
B2B revenue increased 20% year over year to $72.8 million.
Consumer operations revenue increased 24% to $6.2 million.
The company signed 149 deals, a 20% increase year over year.
LivePerson
LivePerson
Forward Guidance
LivePerson is guiding for first quarter revenue growth of 17% to 18% and anticipates steady growth acceleration in the second half of the year. The company estimates that adjusted EBITDA for its B2B and Consumer segments will improve by a combined $26.0 million to $32.0 million, from $(13.0) million in 2019 to a range of $13.0 million to $19.0 million in 2020.
Positive Outlook
- Strong market demand
- Twice as many quota carriers compared to the previous year
- Key product drivers fueling adoption
- Focus on internal automation and AI to yield material operating efficiencies
- Goal to meet 2020 growth objectives while maintaining an essentially flat headcount
Challenges Ahead
- First quarter revenue growth is guided at 17% to 18%, which is lower than the full-year goal of at least 20%
- Approximately $16.0 million of efficiency gains will be allocated to a messaging-based payments platform and other Conversational business innovations, potentially impacting short-term profitability
- Consolidated 2020 adjusted EBITDA guidance is a range of $(3.0) million to $3.0 million
- Estimated IP litigation expense of approximately $3.0 million
- Severance and restructuring costs of $3.5 million to $4.0 million