What's happening: Shares of LivePerson (NASDAQ:LPSN) soared on Thursday after the company reported its second-quarter results, beating analyst estimates for both revenue and earnings. The company also provided solid guidance for the third quarter. At 1:05 p.m., the stock was up 19.75%.
Why it's happening: LivePerson reported quarterly revenue of $59.3 million, an increase of 16% compared to the same period last year, and slightly higher than analysts were expecting. On a constant-currency basis, revenue grew by 22%. Sales to businesses totaled $55.5 million, with the remaining revenue coming from consumer operations.
Non-GAAP EPS was $0.02 for the quarter, down from $0.05 during the same period last year, beating analyst estimates by a penny. On a GAAP basis, the company lost $0.09 per share, worse than a $0.02 per-share loss during the same period last year.
LivePerson also provided strong guidance for the third quarter. Revenue is expected between $60.5 million and $61.5 million, in line with analyst expectations of $61 million. Guidance for non-GAAP EPS between $0.03 and $0.05 was favorable compared to an analyst consensus of $0.03. For the full year, LivePerson raised its previous guidance for non-GAAP EPS. The company now expects to earn between $0.12 and $0.15, up from a previous range of $0.10-$0.15.
After shares of LivePerson collapsed earlier this year following weak results and guidance, the company has turned the tables during the second quarter, beating analyst estimates and providing solid guidance. LivePerson remains unprofitable on a GAAP basis, but investors clearly like the progress they're seeing.
Timothy Green has no position in any stocks mentioned. 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.