The 10-second takeaway
For the quarter ended Dec. 31 (Q4), LivePerson met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded.
Margins expanded across the board.
LivePerson booked revenue of $36.5 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $36.8 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $29.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.10. The nine earnings estimates compiled by S&P Capital IQ forecast $0.09 per share on the same basis. GAAP EPS of $0.07 for Q4 were 17% higher than the prior-year quarter's $0.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 78.0%, 550 basis points better than the prior-year quarter. Operating margin was 16.6%, 290 basis points better than the prior-year quarter. Net margin was 10.6%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $37.3 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $162.8 million. The average EPS estimate is $0.42.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 444 members out of 468 rating the stock outperform, and 24 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give LivePerson a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LivePerson is buy, with an average price target of $15.13.
New technology paradigms and mobile devices are driving the next wave of Internet services. Many older companies won't survive the change, while fortunes will be made by the first movers in the field. Where does LivePerson fit in? What's the fortune-making change? Check out "The Two Words Bill Gates Doesn't Want You to Hear." Click here for instant access to this free report.
- Add LivePerson to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of LivePerson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.