NasdaqGS:LPSN

Stock Analysis Report

Executive Summary

LivePerson, Inc. provides conversational commerce solutions.

Snowflake

Fundamentals

Mediocre balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has LivePerson's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LPSN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.3%

LPSN

2.5%

US Software

0.7%

US Market


1 Year Return

89.3%

LPSN

32.7%

US Software

13.7%

US Market

Return vs Industry: LPSN exceeded the US Software industry which returned 32.7% over the past year.

Return vs Market: LPSN exceeded the US Market which returned 13.7% over the past year.


Shareholder returns

LPSNIndustryMarket
7 Day9.3%2.5%0.7%
30 Day4.9%9.9%4.7%
90 Day-1.0%4.7%6.1%
1 Year89.3%89.3%34.5%32.7%16.2%13.7%
3 Year350.8%350.8%125.4%116.8%48.8%39.2%
5 Year197.5%197.5%173.6%154.3%62.5%44.5%

Price Volatility Vs. Market

How volatile is LivePerson's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LivePerson undervalued compared to its fair value and its price relative to the market?

14.88x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LPSN ($38.32) is trading above our estimate of fair value ($1.1)

Significantly Below Fair Value: LPSN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LPSN is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: LPSN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LPSN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LPSN is overvalued based on its PB Ratio (14.9x) compared to the US Software industry average (5.8x).


Next Steps

Future Growth

How is LivePerson forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

39.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LPSN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: LPSN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: LPSN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: LPSN's revenue (17.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: LPSN's revenue (17.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LPSN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has LivePerson performed over the past 5 years?

-28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LPSN has high quality earnings.

Growing Profit Margin: LPSN's current net profit margins (-27%) are lower than last year (-9.2%).


Past Earnings Growth Analysis

Earnings Trend: LPSN is unprofitable, and losses have increased over the past 5 years at a rate of -28.7% per year.

Accelerating Growth: Unable to compare LPSN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LPSN is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (25.8%).


Return on Equity

High ROE: LPSN has a negative Return on Equity (-46.13%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LivePerson's financial position?


Financial Position Analysis

Short Term Liabilities: LPSN's short term assets ($300.7M) exceeds its short term liabilities ($137.6M)

Long Term Liabilities: LPSN's short term assets ($300.7M) exceeds its long term liabilities (191.3M)


Debt to Equity History and Analysis

Debt Level: LPSN's debt to equity ratio (108.2%) is considered high.

Reducing Debt: Insufficient data to determine if LPSN's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: LPSN has a low level of unsold assets or inventory.

Debt Coverage by Assets: LPSN's debt is covered by short term assets (assets are 1.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LPSN has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if LPSN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is LivePerson's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.4%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate LPSN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LPSN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LPSN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LPSN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LPSN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of LivePerson's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Rob LoCascio (50yo)

24yrs

Tenure

US$2,951,204

Compensation

Mr. Robert P. LoCascio, also known as Rob, has been the Chairman and Chief Executive Officer of LivePerson, Inc. since its inception in November 1995. Mr. LoCascio Founded LivePerson, Inc. in 1995 and serv ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD2.95M) is below average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.7yrs

Average Tenure

48yo

Average Age

Experienced Management: LPSN's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

12.2yrs

Average Tenure

57yo

Average Age

Experienced Board: LPSN's board of directors are seasoned and experienced ( 12.2 years average tenure).


Insider Trading

Insider Buying: LPSN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$4,29806 Nov 19
Daryl Carlough
EntityIndividual
Role
Senior Key Executive
Senior VP of Global & Corporate Controller
Shares106
Max PriceUS$40.55
SellUS$84,94227 Sep 19
Monica Greenberg
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development & Strategic Alliances
Shares2,284
Max PriceUS$37.19
SellUS$65,88931 Jul 19
Robert LoCascio
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,389
Max PriceUS$27.58
SellUS$3,48130 Jul 19
Daryl Carlough
EntityIndividual
Role
Senior Key Executive
Senior VP of Global & Corporate Controller
Shares106
Max PriceUS$32.84
SellUS$11,47330 Jul 19
Daryl Carlough
EntityIndividual
Role
Senior Key Executive
Senior VP of Global & Corporate Controller
Shares416
Max PriceUS$27.58
SellUS$113,93007 Jun 19
Daryl Carlough
EntityIndividual
Role
Senior Key Executive
Senior VP of Global & Corporate Controller
Shares4,113
Max PriceUS$27.70
SellUS$12,30630 Apr 19
Daryl Carlough
EntityIndividual
Role
Senior Key Executive
Senior VP of Global & Corporate Controller
Shares418
Max PriceUS$29.44
SellUS$41,04018 Apr 19
Monica Greenberg
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development & Strategic Alliances
Shares1,424
Max PriceUS$28.82
SellUS$411,68418 Apr 19
Alexander Spinelli
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares15,080
Max PriceUS$27.30
SellUS$68,39018 Apr 19
Robert LoCascio
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,373
Max PriceUS$28.82
SellUS$12,19118 Apr 19
Daryl Carlough
EntityIndividual
Role
Senior Key Executive
Senior VP of Global & Corporate Controller
Shares423
Max PriceUS$28.82
SellUS$149,27918 Apr 19
Christopher Greiner
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares5,033
Max PriceUS$29.66
SellUS$827,63304 Jan 19
Robert LoCascio
EntityIndividual
Role
Chief Executive Officer
Founder
Shares45,837
Max PriceUS$18.06
SellUS$38,46821 Dec 18
Monica Greenberg
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development & Strategic Alliances
Shares2,044
Max PriceUS$18.82
SellUS$64,08221 Dec 18
Robert LoCascio
EntityIndividual
Role
Chief Executive Officer
Founder
Shares3,405
Max PriceUS$18.82
SellUS$8,20621 Dec 18
Daryl Carlough
EntityIndividual
Role
Senior Key Executive
Senior VP of Global & Corporate Controller
Shares436
Max PriceUS$18.82

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.3%.


Management Team

  • Rob LoCascio (50yo)

    Founder

    • Tenure: 24yrs
    • Compensation: US$2.95m
  • Monica Greenberg (50yo)

    Executive VP of Corporate Development & Strategic Alliances

    • Tenure: 13yrs
    • Compensation: US$1.53m
  • Alex Spinelli (46yo)

    Chief Technology Officer

    • Tenure: 1.7yrs
    • Compensation: US$4.49m
  • Matthew Kempler

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Daryl Carlough (48yo)

    Senior VP of Global & Corporate Controller

    • Tenure: 6.2yrs
    • Compensation: US$923.43k
  • Chris Greiner (43yo)

    Chief Financial Officer

    • Tenure: 1.7yrs
    • Compensation: US$2.15m
  • Craig Berman

    Senior Vice President of Global Communications

    • Tenure: 0.08yrs
  • Michael Montour

    Senior Vice President of North American Sales

    • Tenure: 4.2yrs
  • Jon Borgese

    Senior Vice President - Commercial Strategy & Marketing

    • Tenure: 0.8yrs
  • Loren Bunche

    Senior Vice President of People Group

    • Tenure: 0.8yrs

Board Members

  • Rob LoCascio (50yo)

    Founder

    • Tenure: 24yrs
    • Compensation: US$2.95m
  • Kevin Lavan (66yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$334.85k
  • Bill Wesemann (62yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: US$327.60k
  • Fred Mossler (52yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$314.85k
  • Jill Layfield (44yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$331.35k
  • Peter Block (79yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$314.85k

Company Information

LivePerson, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LivePerson, Inc.
  • Ticker: LPSN
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$2.433b
  • Shares outstanding: 63.49m
  • Website: https:// www.liveperson.com

Number of Employees


Location

  • LivePerson, Inc.
  • 475 Tenth Avenue
  • 5th Floor
  • New York
  • New York
  • 10018
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LPSNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2000
LVODB (Deutsche Boerse AG)YesCommon StockDEEURApr 2000
LPSNTASE (The Tel-Aviv Stock Exchange)YesCommon StockILILSApr 2000

Biography

LivePerson, Inc. provides conversational commerce solutions. The company operates in two segments, Business and Consumer. The Business segment enables brands to leverage LiveEngage’s intelligence engine to ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 23:45
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.