Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of LivePerson Surged Today

By Timothy Green - May 4, 2018 at 5:13PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

After a long period of weak revenue, the company roared back with a double-digit increase in the first quarter.

What happened

Shares of LivePerson Inc. (LPSN 2.01%) jumped on Friday following the cloud-based chat software company's first-quarter report. LivePerson beat out analyst estimates across the board, registering its best revenue growth in years. The stock was up about 9.6% at 3:45 p.m. EDT Friday.

So what

LivePerson reported first-quarter revenue of $58.2 million, up 14% year over year and about $1 million higher than the average analyst estimate. Revenue from business operations rose 15% to $53.6 million, while revenue from consumer operations jumped 12% to $4.7 million. The company signed 98 deals during the quarter, up 32% year over year.

A rising chart on a screen.

Image source: Getty Images.

Non-GAAP earnings per share came in at $0.01, flat compared to the first quarter of 2017 and $0.01 better than analysts were expecting. The company lost $0.06 per share on a GAAP basis, an improvement over the $0.10 per-share loss it reported in the prior-year period.

"It is extremely rewarding to see our investments in LiveEngage, our go-to-market strategy, and our development capabilities pay off and translate into renewed double-digit growth," said LivePerson CEO Rob LoCascio.

Now what

For the second quarter, LivePerson expects revenue between $59 million and $60 million, along with a non-GAAP net profit between break-even and $0.01 per share. The company reported revenue of $54.1 million and non-GAAP EPS of $0.01 in the second quarter of 2017.

For the full year, LivePerson sees revenue between $239 million and $243 million, and non-GAAP earnings per share between $0.11 and $0.15. Both ranges are higher than the company's previous 2018 guidance.

After suffering through a long stretch of revenue declines and otherwise sluggish revenue growth, LivePerson shareholders finally have something to celebrate.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

LivePerson, Inc. Stock Quote
LivePerson, Inc.
$14.70 (2.01%) $0.29

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.