LivePerson Reports Q4 Earnings, Stock Dips 30%

LivePerson (LPSN) reported a break-even earnings per share (EPS) for the last quarter, significantly exceeding the Zacks Consensus Estimate of a loss of $0.04. The company's revenues were $73.21 million, surpassing expectations by 7.18%, although this reflects a decline from $95.47 million a year ago. CEO John Sabino highlighted transformative progress and increased demand for AI solutions as key drivers of growth, while CFO John Collins expressed confidence in sustained improvement moving into 2025. Despite this, the stock has dropped about 30.9% this year, raising concerns among investors about future performance and revenue projections, which analysts predict will continue to decline. LivePerson's price-to-sales ratio of 0.3x suggests it might be undervalued compared to industry standards, yet this low valuation may indicate investor skepticism regarding its revenue recovery. The company's management commentary in upcoming earnings calls will be critical for investor sentiment going forward.