Thu, May 8, 9:34 PM (9 days ago)
**LivePerson, Inc. (LPSN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $64.7 million, a 24% decrease from $85.1 million in Q1 2024, driven by a decrease in hosted services and professional services. - **Net Loss:** $14.1 million, an improvement from $35.6 million in Q1 2024. - **Operating Loss:** $16.9 million, compared to $36.4 million in Q1 2024. - **Cash and Cash Equivalents:** $176.3 million, a decrease of $7.0 million from December 31, 2024. **Profit Margins:** - **Gross Margin:** Approximately 72% (calculated as (64.7 - 18.2) / 64.7). - **Operating Margin:** Approximately -26% (calculated as -16.9 / 64.7). **Cash Flow:** - **Operating Cash Flow:** Negative $3.1 million, compared to positive $1.1 million in Q1 2024. - **Investing Cash Flow:** Negative $4.1 million, primarily due to purchases of property and equipment. - **Financing Cash Flow:** Negative $26,000, compared to negative $72.7 million in Q1 2024. **Earnings Changes:** - **Earnings per Share (EPS):** Basic loss of $0.15, diluted loss of $0.24, compared to a basic and diluted loss of $0.40 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Decline:** Due to customer cancellations and downsells, particularly in hosted services. - **Expense Reduction:** Significant decreases in sales and marketing, general and administrative, and product development expenses. - **Cost of Revenue:** Decreased by 26% due to reductions in business services, salary expenses, and software hosting costs. - **Depreciation and Amortization:** Decreased by 53% due to lower intangible asset balances and internal-use software development. **Trends and Uncertainties:** - **Revenue Retention:** Approximately 80% in Q1 2025, below the target range of 105% to 115%. - **Customer Success Motion:** Transitioning to a new customer success strategy, which may impact short-term attrition. - **Liquidity:** Current cash and cash equivalents are expected to be sufficient for at least the next 12 months, but additional funding may be required for expansion or acquisitions. **Future Operations Impact:** - **Refinancing:** Plans to refinance the remaining balance of the 2026 Notes on or prior to their maturity. - **Fundamental Change:** The 2026 Notes and 2029 Notes are subject to repurchase if the company undergoes a "Fundamental Change," which includes a change of control or failure to list on Nasdaq. - **Market Risks:** Monitoring foreign currency exchange risks and collection risks, with an allowance for credit losses decreasing by $0.9 million in Q1 2025. **Legal and Regulatory:** - **Stockholder Litigation:** Ongoing legal proceedings, including a stockholder class action and derivative actions, which may impact the company's financial condition and operating results. - **Nasdaq Listing:** Received a notification from Nasdaq regarding the closing bid price of the common stock being less than $1.00 for 30 consecutive trading days, requiring compliance within 180 days.