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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