Analysts have sharply lowered their fair value estimate for LivePerson from $18.75 to $8.00. They cite concerns around declining revenue growth and modestly reduced profit margin expectations.
What's in the News
- LivePerson provided earnings guidance for Q4 and full-year 2025, projecting a year-over-year revenue decline of 24% to 31% (Corporate Guidance).
- The company launched Conversation Simulator, a new GenAI testing platform designed to improve AI accuracy, compliance, and agent training (Product-Related Announcements).
- Shareholders approved a reverse stock split at a ratio of 1-for-15, along with a corresponding reduction in authorized common shares. Implementation is expected before market open on October 13, 2025 (Changes in Company Bylaws/Rules).
- The company increased authorized shares of common stock from 200 million to 300 million, effective October 3, 2025 (Changes in Company Bylaws/Rules).
Valuation Changes
- Fair Value Estimate: Lowered significantly from $18.75 to $8.00.
- Discount Rate: Remains unchanged at 12.5%.
- Revenue Growth: The decline has deepened, with the rate falling from -15.1% to -18.7%.
- Net Profit Margin: Decreased modestly from 13.03% to 12.35%.
- Future Price-to-Earnings (P/E): Increased slightly from 8.62x to 9.33x.
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