The 10-second takeaway
For the quarter ended March 31 (Q1), LivePerson met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share contracted to zero.
Margins dropped across the board.
LivePerson reported revenue of $42.5 million. The 13 analysts polled by S&P Capital IQ predicted revenue of $42.6 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $36.8 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 $0.06. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.07 per share. Non-GAAP EPS of $0.06 for Q1 were 33% lower than the prior-year quarter's $0.09 per share. GAAP EPS contracted to zero from the prior-year quarter's $0.06.
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%, 220 basis points worse than the prior-year quarter. Operating margin was -1.4%, much worse than the prior-year quarter. Net margin was -0.5%, 900 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $44.2 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $182.8 million. The average EPS estimate is $0.22.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 439 members out of 465 rating the stock outperform, and 26 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give LivePerson a green thumbs-up, and seven 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 $16.85.
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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. The Motley Fool recommends 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.