Why LivePerson Shares Are Surging Today

LivePerson Inc LPSN shares are trading higher by around 13% after the company reported a Q2 FY23 earnings beat.

Revenue of $97.52 million beat the consensus of $96.85 million.

Revenue declined 26.4% Y/Y due to the planned exit of lower-margin and non-core lines of business.

In Q2, LivePerson inked 69 deals, comprising 33 new and 36 existing customer contracts, which includes three seven-figure deals.

Adjusted operating income stood at $3.1 million vs. an adjusted operating loss of $(12.6) million a year ago, reflecting a settlement deal with former Wild Health shareholders that eradicated a multi-year contingent earn-out payment of up to $120.0 million and reversed accrued stock-based compensation.

EPS of $0.12 surpassed the consensus of $(0.38).

As of June 30, 2023, the cash balance stood at $213.8 million. 

Outlook: For Q3, the company projects revenue of $97 million - $101 million (vs. $97.31 million estimate) and adjusted EBITDA of $5.9 million - $12.9 million.

LivePerson narrowed 2023 guidance for revenue (including Kasamba contribution in Q1) to $395 million - $407 million (from the prior range of $394 million - $408 million) vs. $401.76 million consensus. 

On the other hand, adjusted EBITDA outlook was raised to $19 million - $32 million from $15 million- $32 million earlier.

Apart from this, the company also announced John Collins, the current CFO, will assume the additional role of interim CEO, effective August 7, 2023.

He will replace Robert LoCascio, who stepped down as CEO and a Board member. 

Price Action: LPSN shares are trading up by 13.28% at $4.52 premarket on the last check Wednesday.