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Dec 31, 2020

LivePerson Q4 2020 Earnings Report

Achieved first $100 million revenue quarter with 29% revenue growth.

Key Takeaways

LivePerson announced strong Q4 2020 results, achieving its first $100 million revenue quarter with 29% growth and signing 10 seven-figure deals. The company exceeded guidance and is positioned for revenue acceleration in 2021.

Total revenue was $102.1 million, up 29% year-over-year.

B2B revenue increased 29% year-over-year to $94.1 million.

Signed 10 seven-figure deals in the fourth quarter.

Trailing-twelve-month average revenue per enterprise and mid-market customer increased by 35% to approximately $465,000.

Total Revenue
$102M
Previous year: $79.1M
+29.2%
EPS
-$0.2
Previous year: -$0.4
-50.0%
Adjusted EBITDA
$18.2M
Previous year: $1.2M
+1416.7%
Gross Profit
$74.1M
Previous year: $57M
+29.9%
Cash and Equivalents
$654M
Previous year: $177M
+270.6%
Free Cash Flow
-$12.8M
Previous year: -$32.7M
-60.9%
Total Assets
$1.01B
Previous year: $513M
+96.3%

LivePerson

LivePerson

Forward Guidance

LivePerson is targeting a revenue range of $458 million to $466 million, or 25% to 27% revenue growth in 2021. The Company is guiding for first quarter revenue growth of 32% to 33% to a range of $103 million to $104 million.

Positive Outlook

  • Targeting revenue growth of 25% to 27% in 2021.
  • Guiding for first quarter revenue growth of 32% to 33%.
  • Expecting to accelerate investments in go-to-market capacity.
  • Expecting to accelerate investments in product development.
  • Continuing to realize efficiency gains from internal automation.

Challenges Ahead

  • Expecting to accelerate investments in go-to-market capacity in the first half of 2021.
  • Expecting to accelerate investments in product development in the first half of 2021.
  • Guiding for 2021 adjusted EBITDA range of $33.5 million to $41.5 million or 7% to 9% margin.
  • First quarter adjusted EBITDA is estimated to be in a range of $5.0 million to $7.0 million or 5% to 7% margin.
  • Estimated IP litigation and consulting expenses of approximately $3.5 million ($0.05 per share) and severance and restructuring of $6.0 million ($0.08 per share)