Q1 2024 LivePerson Inc Earnings Call Transcript
Key Points
- LivePerson Inc (LPSN) reported Q1 revenue of $85.1 million, surpassing the high end of its guidance range, driven by successful efforts to retain at-risk customers.
- Adjusted EBITDA for Q1 was $0.5 million, above the midpoint of the guidance range, reflecting effective cost reduction measures.
- The company successfully repaid the full outstanding $72.5 million principal amount of the 2024 notes, improving its capital structure.
- LivePerson Inc (LPSN) is set to announce a strategic partnership with a major global CCaaS player, aiming to enhance its go-to-market capabilities and product offerings.
- The company has introduced new pricing and packaging strategies to simplify customer transactions and is seeing positive early results from pilot testing.
- Despite the revenue beat, Q1 revenue was down 21% year-over-year, primarily due to customer churn and the exit of non-core business lines.
- Net revenue retention decreased to 89% in Q1 from 95% in the previous quarter, indicating challenges in maintaining existing customer revenue.
- Professional services revenue declined by 33% year-over-year, largely due to the completion of a major engagement in Q1 2023.
- The company experienced a significant decrease in deal counts and values in Q1, with deals down 43% year-over-year and 35% sequentially.
- LivePerson Inc (LPSN) is facing ongoing challenges with its debt structure, particularly concerning the 2026 notes, which may affect customer and market confidence.
Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to LivePerson's First Quarter 2024 Earnings Conference Call. My name is Judith [indiscernible}, and I will be your conference operator (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference call over to Jon Perachio, Senior Director, Investor Relations. Please go ahead.
Thank you, Judith. Joining me on today's call is John Sabino, CEO; and John Collins, CFO and COO. Please note that during today's call, we will make forward-looking statements, which are predictions, projections and other statements about future results. These statements are based on our current expectations and assumptions as of today, May 8, 2024, and are subject to risks and uncertainties. Actual results may differ materially due to various factors, including those described in today's earnings press release and in the comments made during this conference call as well as in 10-Ks, 10-Qs and other reports we file with the SEC. We assume no
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