LivePerson Reports Q1 Loss, Exceeds Revenue Estimates

LivePerson reported first-quarter 2025 revenue of $64.7 million, slightly exceeding expectations and the midpoint of its guidance range, despite a 24% year-over-year decline. The company achieved a positive adjusted EBITDA of $0.2 million, surpassing its forecast, and saw its stock price respond positively after the announcement. Management highlighted ongoing strategic progress in AI and digital integration, noting increased adoption of its Generative AI suite and growing demand from enterprise clients for AI-driven solutions, particularly in regulated sectors like healthcare and financial services. Recurring revenue remained strong at 93% of total revenue, and the company secured 50 deals, primarily expansions and renewals. Looking forward, LivePerson plans to expand its platform through an upcoming integration with Amazon Connect and continues to focus on robust AI safety and compliance measures. However, the company’s financial health remains challenged, with recent quarters marked by revenue contraction, negative EPS revisions, and persistent stock underperformance.