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Dec 31, 2022
LivePerson Q4 2022 Earnings Report
LivePerson's Q4 2022 financial results were announced, with a focus on AI and automation capabilities and cost reduction efforts.
Key Takeaways
LivePerson reported Q4 2022 revenue of $122.5 million, a 1% decrease compared to the same period last year. The company signed 90 deals, including 44 new and 46 existing customer contracts. LivePerson is focusing on AI-led growth and cost initiatives to achieve profitability.
Total revenue for Q4 2022 was $122.5 million, a 1% decrease year-over-year.
Signed 90 deals in Q4, including 44 new and 46 existing customer contracts.
Trailing-twelve-months average revenue per enterprise and mid-market customer increased 11% to $680,000.
Adjusted EBITDA for Q4 2022 was $(5.2) million, compared to $(4.4) million for the same period last year.
LivePerson
LivePerson
LivePerson Revenue by Segment
Revenue by Segment
Hosted Services Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
For the first quarter of 2023, LivePerson expects total revenue to range from $106 million to $109 million, representing a (18.5%) to (16.1%) year-over-year decrease. They also anticipate an Adjusted EBITDA loss ranging from $(8) million to $(5.5) million, with a margin of (7.4)% to (5.1)%.
Positive Outlook
- B2B Core recurring revenue expected to range from $80 million to $83 million or (6.9)% to (3.4)% year over year for Q1 2023.
Challenges Ahead
- Year over year decrease in revenue and the sequential decrease in adjusted EBITDA are both driven primarily by decreases in non-Core revenue expected beginning in the first quarter including decreasing Gainshare labor and variable revenue and decreasing professional services revenue from healthcare.
- Observed smaller-than-expected deal sizes in the fourth quarter relative to the third quarter of 2022, indicating friction in our sales cycle from the macroenvironment.
- Lower deal sizes in the fourth quarter also negatively impacted our expectations for the first quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income