Earning Date, Transcript Summary & Report

Q4 Revenue Exceeds Expectations: Revenue in Q4 was $73.2 million, exceeding guidance expectations.

Q4 Adjusted EBITDA Performance: Adjusted EBITDA for Q4 was $8.1 million, also above the high end of guidance.

Retention and Win Rate Improvement: The company has seen notable improvements in retention metrics and win rates, driving sequential increases in bookings over the past 3 quarters.

AI Feature Innovation: Introduced several new AI-driven features, including Bring Your Own LLM and Copilot Rewrite, accelerating adoption of generative AI on the platform.

Voice and Digital Integration: Launched Agent Workspace for Voice, integrating voice and digital channels, marking a significant advancement in their voice and digital strategy.

Generative AI Customer Growth: Achieved a 17% sequential increase in customers leveraging generative AI and a 37% increase in conversations using the generative AI suite in Q4.

Deal Activity Increase: The company signed 39 deals in Q4, including 9 new logos and 30 expansions and renewals, translating to an 18% quarter-over-quarter increase in total deal value.

Customer Revenue Growth: Average revenue per customer increased by 2% year-over-year to $625,000, driven by expansions with large customers and improved retention.

Net Revenue Retention Improvement: Net revenue retention improved to 82% in Q4, up from 79% in Q3, indicating better customer retention and revenue generation.

Cash Position Improvement: The company ended Q4 with $183 million in cash, bolstered by a transformative agreement with Lynrock Lake, enhancing their capital structure.

Earnings Miss Report: LivePerson, Inc. misses on earnings expectations with reported EPS of $-1.27, significantly below the expected $-0.04.

Hosted Services Revenue Decline: Revenue from hosted services decreased by 23% year-over-year, indicating a decline in core business performance.

Professional Services Decline: Professional services revenue also fell by 23% year-over-year, reflecting challenges in service delivery and customer engagement.

Customer Churn Concerns: Net revenue retention was only 82% in the fourth quarter, which is still below the desired level and indicates ongoing customer churn issues.

Revenue Decline Projection: The company anticipates revenue to decline through most of 2025 due to customer cancellations, with a projected revenue range of $240 million to $255 million, down from previous levels.

Adjusted EBITDA Outlook: Adjusted EBITDA is expected to range from a $14 million loss to breakeven for the full year, indicating ongoing financial struggles.

Free Cash Flow Concerns: The company does not expect positive free cash flow in 2025, which raises concerns about liquidity and operational sustainability.

Customer Retention Challenges: Despite improvements in some areas, the company acknowledges that attrition levels are expected to remain elevated for the first half of the year, indicating ongoing challenges in customer retention.