The 10-second takeaway
For the quarter ended March 31 (Q1), LivePerson met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share was unchanged.
Gross margins increased, operating margins shrank, net margins dropped.
LivePerson recorded revenue of $36.8 million. The eight analysts polled by S&P Capital IQ expected to see revenue of $37.2 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $30.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.09. The nine earnings estimates compiled by S&P Capital IQ averaged $0.09 per share. GAAP EPS of $0.06 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 78.4%, 500 basis points better than the prior-year quarter. Operating margin was 13.3%, 340 basis points worse than the prior-year quarter. Net margin was 8.5%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $38.8 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $162.5 million. The average EPS estimate is $0.42.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 452 members out of 476 rating the stock outperform, and 24 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give LivePerson a green thumbs-up, and four 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 $17.33.
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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.