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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.
Revenue by Segment
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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