Can LivePerson, Inc. (NASDAQ: LPSN) Live Up To Expectations?


If you are looking at the stock of LivePerson, Inc. (NASDAQ: LPSN), you can see that it is down more than 30% from the past one year. LivePerson has disappointed investors in the recent years and its stock has been punished as well. But some analysts believe that LivePerson is ripe to return to revenue growth and they are not shy to lift their ratings on the stock.

The analysts at Benchmark have caused a buzz in the stock of LivePerson, Inc. (NASDAQ: LPSN) after they upgraded their rating on the stock to a BUY from a HOLD. The decision by Benchmark analysts to upgrade their rating on LivePerson generated hope among investors that the company was poised for greater things in the future.

What transpired in 1Q for LivePerson, Inc. (NASDAQ: LPSN)?

There was little for LivePerson to show in 1Q2016. What the company reported was a more than 7% decline in revenue to $55.5 million. The only area of the business that grew in the quarter was consumer operations where revenue rose 2% to $3.8 million. But in business operations division, revenue pulled back 8% to $51.7 million.

After all that, LivePerson, Inc. (NASDAQ: LPSN) ended up with a net loss of $2.7 million or $0.05 per share. That was worst that a net loss of $0.04 per share in the like quarter a year earlier.

Fresh and repeat contracts

Despite the decrease in revenue and the deterioration of the bottom-line, LivePerson, Inc. (NASDAQ: LPSN) did achieve some milestones during the quarter that kept management hopeful that a turnaround is attainable. For instance, the company was able to sign a number of fresh business deals and got some existing customers to expand their orders.

Some of customers LivePerson signed new deals with in 1Q included Liberty Global, which is billed as the world’s largest international cable company. The company also inked deals with unnamed telecom service provider in Latin America and a Japanese automotive insurer. Another IT consulting firm in Asia-Pacific also gave LivePerson business in 1Q.

LivePerson also expanded existing contracts with a Fortune 500 company in the technology sector, a national apparel retailer and an unnamed global financial services company.

All these deals plus others that LivePerson, Inc. (NASDAQ: LPSN) hope to ink in the future are expected to accelerate the company’s return to revenue growth and profitability.


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