The 10-second takeaway
For the quarter ended June 30 (Q2), LivePerson met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted significantly. GAAP earnings per share.
Margins dropped across the board.
LivePerson chalked up revenue of $43.2 million. The 13 analysts polled by S&P Capital IQ predicted revenue of $42.9 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $38.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.03. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.04 per share. Non-GAAP EPS of $0.03 for Q2 were 63% lower than the prior-year quarter's $0.08 per share. GAAP EPS were -$0.03 for Q2 versus $0.00 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 75.5%, 240 basis points worse than the prior-year quarter. Operating margin was -4.6%, 620 basis points worse than the prior-year quarter. Net margin was -4.2%, 460 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $44.0 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $176.6 million. The average EPS estimate is $0.19.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 442 members out of 470 rating the stock outperform, and 28 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 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 $13.52.
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