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Dec 31, 2024
LivePerson Q4 2024 Earnings Report
LivePerson reported a decline in revenue and a widened net loss for Q4 2024.
Key Takeaways
LivePerson reported Q4 2024 revenue of $73.2 million, a 23.3% decline from the prior year due to customer cancellations and downsells. The company posted a net loss of $112.1 million, significantly wider than the $40.5 million loss in Q4 2023. Despite this, adjusted EBITDA improved to $8.1 million, and adjusted operating income turned positive at $1.0 million. The company continues its strategic transformation, focusing on AI-driven solutions and customer retention.
Total revenue for Q4 2024 was $73.2 million, down 23.3% year-over-year.
Net loss widened to $112.1 million, compared to a loss of $40.5 million in Q4 2023.
Adjusted EBITDA improved to $8.1 million from $3.7 million in Q4 2023.
Cash and cash equivalents stood at $183.2 million as of December 31, 2024.
LivePerson
LivePerson
LivePerson Revenue by Segment
Revenue by Segment
Hosted Services Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
LivePerson expects continued revenue pressure in Q1 2025 but aims for operational improvements and efficiency gains.
Positive Outlook
- AI-driven solutions gaining traction among enterprise clients.
- Expanding partnerships with major financial and retail brands.
- Focus on customer retention and expansion showing early signs of success.
- Continued improvement in adjusted EBITDA expected in 2025.
- Sustained cash reserves to support transformation initiatives.
Challenges Ahead
- Revenue expected to decline 26%-24% in Q1 2025.
- Net loss likely to persist due to restructuring and transition costs.
- Ongoing impact from customer downsells and cancellations.
- Profitability challenges in the near term despite cost-cutting measures.
- Competitive pressures in the AI-driven customer engagement market.
Revenue & Expenses
Visualization of income flow from segment revenue to net income