Image source: LivePerson.

What: Shares of LivePerson (LPSN -5.78%), a provider of mobile and online messaging services, sank on Thursday following the company's second-quarter report. Declining revenue, growing losses, and a reduction in guidance all conspired to send the stock down 20% by 11:30 a.m. ET.

So what: LivePerson reported quarterly revenue of $56.7 million, down 4% year over year. Revenue from business operations accounted for $52.4 million of sales, down 5%, while consumer operations generated $4.2 million of sales, up 10%. The company signed 117 deals during the quarter, adding 36 new customers.

Non-GAAP EPS came in at a loss of $0.04, down from $0.01 during the prior-year period. On a GAAP basis, EPS was a loss of $0.14, down from negative $0.09. Lower revenue and the lack of a tax benefit enjoyed during the second quarter of 2015 drove the decline in earnings.

Along with announcing its second-quarter results, LivePerson reduced its guidance for the full year. The company now expects to produce revenue of $221 million to $225 million, down from a previous range of $230 million and $235 million. Non-GAAP EPS, previously expected to be between $0.05 and $0.10, is now expected to come in at a loss, from negative $0.08 to negative $0.03. LivePerson blamed Brexit-related currency issues and delays related to anticipated upsells from existing customers for the guidance reduction.

Now what: LivePerson CEO Robert LoCascio tried to play down the company's problems: "Execution is strong, aside from some delays in upsells to existing customers as we accelerate migrations to LiveEngage. We look forward to the potential upsides that will come from completing the shift to LiveEngage and transforming customer care."

LivePerson's new guidance points to a significant revenue decline this year. While the company doesn't believe the issues that are hurting its results this year are serious, investors aren't so sure.