LivePerson Hits 52-Week High: Chatting With More Upside?

Shares of LivePerson (Nasdaq: LPSN  ) hit a 52-week high recently. Let's look at how it got here and whether clear skies are ahead.

How it got here
LivePerson is addressing the ever-increasing need for companies to engage with prospective customers over the Internet, as consumers migrate away from phone interactions to Web-based ones. The company's online chat products continue to gain traction, and LivePerson scored over two-dozen new clients last quarter.

The online chat specialist added 28 new enterprise and midmarket clients last quarter, and expanded its relationship with numerous existing ones. Revenue grew to $36.8 million, and next quarter's sales are expected to come in between $38.5 million and $39 million, with earnings per share in the range of $0.03 to $0.05.

Looking at the full year, fiscal 2012 revenue should be in the ballpark of $160 million to $165 million, the midpoint of which represents growth of 22% when compared to the $133.1 million in sales last year.

How it stacks up
Let's see how LivePerson stacks up against its larger peers in the software and business services space.

LPSN Chart

LPSN data by YCharts

We'll add in some fundamental metrics for more insight.

Company

P/S (TTM)

Sales Growth (MRQ)

Net Margin (TTM)

ROE (TTM)

LivePerson 7 21% 8.6% 9.2
Microsoft (Nasdaq: MSFT  ) 3.4 6% 32% 38.2%
Oracle (Nasdaq: ORCL  ) 3.7 3.1% 26.3% 24.5%
salesforce.com (NYSE: CRM  ) 7.7 37.9% (1.3%) (2.1%)

Source: Reuters. TTM = trailing 12 months. MRQ = most recent quarter.

LivePerson is far smaller than some of these other players, but it continues to grow, and is cheaper than salesforce.com. The company has a ways to go before it can expand its profitability to be on par with other enterprise software providers.

What's next?
I think LivePerson will continue to enjoy the momentum that it's building, so I'm also giving it an outperform CAPScall today, as it continues to serve up digital interactions for its customers.

Add these companies to your Watchlist to make sure that you get the latest news.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Microsoft, Oracle, and Salesforce.com. Motley Fool newsletter services have recommended buying shares of LivePerson, Microsoft, and salesforce.com, creating a bear put spread position in salesforce.com, and creating a bull call spread position in Microsoft. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1907847, ~/Articles/ArticleHandler.aspx, 10/1/2014 12:41:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement