The 10-second takeaway
For the quarter ended Sep. 30 (Q3), LivePerson missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins shrank, net margins contracted.
LivePerson reported revenue of $39.7 million. The 12 analysts polled by S&P Capital IQ looked for net sales of $41.1 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $34.3 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 $0.08. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS of $0.03 for Q3 were 40% lower than the prior-year quarter's $0.05 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 77.2%, 160 basis points better than the prior-year quarter. Operating margin was 6.5%, 840 basis points worse than the prior-year quarter. Net margin was 4.0%, 400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $44.7 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $161.0 million. The average EPS estimate is $0.33.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 456 members out of 484 rating the stock outperform, and 28 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give LivePerson a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LivePerson is outperform, with an average price target of $20.17.
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