Liveperson Inc Down 8.47% To $2.81 After Earnings Miss

LivePerson Inc (LPSN) reported less than expected earnings this afternoon for Q3 2023.

Wall Street earnings per share (EPS) projections for Liveperson Inc were at a loss of $0.19 per share. The company missed those estimates with an EPS loss of $0.68 per share. The loss of $0.68 per share (which represents a -258% EPS surprise) led to the company's profits falling 856% compared to last year when the firm reported an EPS of $0.09. The decline in Liveperson Inc's annual growth rate represents how the business isn't performing well amid current economic conditions.

Analyst projections for Liveperson Inc revenue came in at a consensus of $98.8 million. Third-Quarter revenues surpassed estimates for $101.3 million by $2.5 million (3%). The company achieved negative 22% growth year-over-year compared to the firm's revenue of $129.6 million from the year-ago quarter. The lower earnings growth relative to revenue signals Liveperson Inc has not been able to improve its profit margin.

The stock is down 8.47% to $2.81 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Hold on the stock prior to the report.

Trading in the five days leading up to the report earned Liveperson Inc a Bullish Sentiment Rank from InvestorsObserver.

Liveperson Inc has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 19, putting Liveperson Inc in the bottom 25% of stocks. The firm was recently trading at a 52-week low of $2.33 on October 26, 2023 and set a 52-week high on February 3, 2023 at $18.17.

LivePerson Inc offers cloud-based platform solutions. It enables businesses and consumers to connect through conversational interfaces, such as in-app and mobile messaging, while leveraging bots and Artificial Intelligence (AI) to increase efficiency. The company has two reportable segments namely Business and Consumer. It generates maximum revenue from the Business segment. The company has a presence in the United Kingdom, Asia-Pacific, Latin America, and Western Europe.