Please ensure Javascript is enabled for purposes of website accessibility

Why LivePerson Stock Jumped on Wednesday

By Daniel Sparks – Aug 5, 2020 at 11:55AM

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

Here's what investors love about LivePerson's second-quarter update.

What happened

Shares of high-tech customer support solutions specialist LivePerson (LPSN -3.06%) soared on Wednesday, rising as much as 29.1%. As of 11 a.m. EDT, the stock was up 21.5%.

The stock's gain follows the tech company's second-quarter earnings release. Bullishness for the stock on Wednesday likely reflects the company's stronger-than-expected revenue and management's optimistic outlook for the rest of the year.

A chart showing a stock price rising

Image source: Getty Images.

So what

LivePerson announced revenue of $91.6 million, up 29% year over year. In addition, the company's net loss per share improved from $0.38 in the year-ago period to $0.28. 

While LivePerson's loss per share missed analysts' average forecast for a loss per share of $0.11, the company's top-line result blew past a consensus forecast for revenue of $83.9 million.

"Demand for our platform rose significantly in the second quarter as brands rushed to fill the void with AI-powered messaging," said LivePerson founder and CEO Rob LoCascio.

Now what

With such a strong quarter behind it, management lifted its full-year outlook. The company now expects revenue between $357 million and $361 million. Previously, LivePerson had guided for revenue between $340 million and $355 million. Management also said it now expects full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be between $16 million and $19 million, up from a previous forecast for $3.5 million to $10.5 million.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool recommends LivePerson. The Motley Fool has a disclosure policy.

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.
LPSN
$9.65 (-3.06%) $0.30

*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
342%
 
S&P 500 Returns
107%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/29/2022.

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.