Summary
LivePerson reported second quarter 2024 revenue of $79.9 million, down 18.1% from the prior-year quarter. The decline came from customer cancellations and downsells, according to the release. For the first six months, revenue was $165.0 million, down 19.6%. Operating loss was $29.8 million in the quarter, a swing from operating income in the prior-year quarter. Operating margin was negative 37.3%, down 43.1 percentage points. For the first six months, operating loss was $66.2 million and operating margin was negative 40.1%, down 26.9 percentage points. Net income was $41.8 million in the quarter, up 286.2%, but that profit was driven by a debt extinguishment gain, not operations. For the first six months, net income was $6.2 million, a swing to a profit. Diluted EPS was negative $0.33 in the quarter, down from the prior-year quarter, and negative $0.70 for the first six months, with the loss widening.
Operating cash flow was negative $17.9 million in the quarter, up 27.2% from the prior-year quarter. For the first six months, operating cash flow was negative $16.8 million, up 44.9%. Capital expenditures were $5.0 million in the quarter, down 32.8%, and $16.5 million for the first six months, down 3.2%. Free cash flow, a non-GAAP measure, was negative $22.9 million in the quarter compared with negative $32.0 million in the prior-year quarter. Deferred revenue was $79.4 million, down 21.0% from the prior-year quarter. Remaining performance obligations were $283.0 million, down 13.3%. The company completed a debt transaction during the quarter. The MD&A notes that the company plans to refinance the remaining balance of its 2026 Notes and that the 2029 Notes indenture requires a minimum cash balance. Liquidity remains a key risk.
The company signed 37 deals in the quarter, including 28 existing and 9 new customers, and 1 seven-figure deal. New logo deals included a large New Zealand-based telecommunications company and a large U.S. mortgage company. Expansion renewals included a global financial services company and a global audio streaming company. Trailing-twelve-months average revenue per enterprise and mid-market customer increased 9.6% to $630,000, up from approximately $575,000. However, revenue retention was approximately 83% in the second quarter, below the company's target range of 105% to 115% and below the comparable period in 2023. Management pointed to new pricing and packaging, a new Chief Revenue Officer, and omnichannel partnerships as steps to improve execution.
For the third quarter of 2024, management's revenue outlook points to a year-over-year decline, and B2B Core recurring revenue is expected to represent 92% of total revenue. Third quarter adjusted EBITDA guidance is $0 million to $5 million, or a margin of 0.0% to 6.8%. For the full year 2024, the revenue outlook also points to a year-over-year decline, excluding Kasamba revenue generated in the first quarter of 2023. Full year adjusted EBITDA guidance is $15 million to $26 million, or a margin of 5.0% to 8.3%. Adjusted EBITDA was $8.2 million in the second quarter, compared with $10.2 million in the prior-year quarter. Adjusted operating income was $0.5 million, compared with $0.4 million. Risks include customer cancellations and downsells, retention below target, substantial indebtedness, the need to refinance the 2026 Notes, lengthy sales cycles, payment-related risks, competition, and evolving regulation around privacy and AI. The company also faces ongoing litigation and legal matters.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $79.9M | $85.1M | -6.2% | — | — |
| Gross profit | $58.7M | $55.7M | +5.3% | — | — |
| Gross margin | 73.4% | 65.4% | +8.0 pp | — | — |
| Research & development | $24.8M | $30.1M | -17.5% | — | — |
| Sales & marketing | $26.5M | $30.1M | -12.1% | — | — |
| General & administrative | $24.4M | $21.8M | +12.4% | — | — |
| Total operating expenses | $109.7M | $121.5M | -9.7% | — | — |
| Operating income (loss) | -$29.8M | -$36.4M | +18.1% | — | — |
| Operating margin | -37.3% | -42.7% | +5.4 pp | — | — |
| Net income (loss) | $41.8M | -$35.6M | +217.3% | — | — |
| Net margin | 52.3% | -41.9% | +94.2 pp | — | — |
| Diluted EPS | -$0.33 | -$0.40 | +$0.07 | — | — |
Risks
The indenture governing the 2029 Notes requires the Company to maintain a minimum cash balance of $60.0 million at all times and restricts dispositions, mergers or acquisitions, intellectual property encumbrances, debt, liens, dividends, and investments. Failure to comply could result in an event of default and acceleration of debt.
The remaining 2026 Notes must be refinanced on or prior to their December 15, 2026 maturity, and if greater than $60.0 million principal amount remains outstanding 91 days prior to maturity, the 2029 Notes become immediately due and payable. As of June 30, 2024, cash and cash equivalents were approximately $146.0 million, a decrease of approximately $67.0 million from December 31, 2023, and accumulated deficit was approximately $850.8 million.
Nasdaq requires a minimum closing bid price of $1.00, and during 2024 the common stock closing bid price was below $1.00 on multiple occasions, including March 14, 2024, from March 28, 2024 through July 17, 2024, and on July 19, 2024. A delisting would constitute a fundamental change under the indentures governing the 2026 Notes and 2029 Notes.
Revenue retention for enterprise and mid-market customers on the Conversational Cloud was approximately 83% in the second quarter of 2024, below the target range of 105% to 115% and below the comparable period in 2023.
Revenue decreased 18% to $79.9 million for the three months ended June 30, 2024 and 20% to $165.0 million for the six months ended June 30, 2024, driven primarily by decreases in hosted services from customer cancellations and downsells and decreases in professional services.
General and administrative expenses increased 199% to $24.4 million for the three months ended June 30, 2024, partly due to an increase in other expenses of $3.6 million primarily related to bad debt expense. The operating cash flow reconciliation also includes an allowance for credit losses of $8.9 million for the six months ended June 30, 2024.
The Company recorded a non-cash goodwill impairment of approximately $3.6 million during the six months ended June 30, 2024 for the WildHealth reporting unit. Impairment of intangibles and other assets was approximately $8.3 million for the three months ended June 30, 2024 and $10.6 million for the six months ended June 30, 2024, including internal use software projects and WildHealth intangible assets.
Restructuring costs increased 31% to $3.1 million for the three months ended June 30, 2024 and decreased 54% to $6.4 million for the six months ended June 30, 2024. The restructuring initiative was tied to the changing technology landscape related to the evolution of LLMs, which can build a bot in minutes and enabled reduction of headcount previously devoted to bot-building.
SaaS KPIs
All quarters →Adjusted EBITDA
Free Cash Flow
Expansion Renewals
Adjusted Operating Income
Revenue Retention
Total Deals
Summary, forecast, risks and KPIs are extracted from LIVEPERSON INC's SEC filings for Q2 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.