The 10-second takeaway
For the quarter ended Dec. 31 (Q4), LivePerson beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
LivePerson notched revenue of $42.5 million. The 13 analysts polled by S&P Capital IQ foresaw sales of $41.8 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $36.5 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 12 earnings estimates compiled by S&P Capital IQ averaged $0.08 per share. GAAP EPS of $0.03 for Q4 were 57% lower than the prior-year quarter's $0.07 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 76.2%, 180 basis points worse than the prior-year quarter. Operating margin was 5.7%, 1,090 basis points worse than the prior-year quarter. Net margin was 3.5%, 710 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $42.2 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $183.9 million. The average EPS estimate is $0.37.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 448 members out of 474 rating the stock outperform, and 26 members rating it underperform. Among 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give LivePerson a green thumbs-up, and five 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 $17.32.
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