LivePerson (LPSN) Stock Forecast & Price Target

LivePerson Inc. demonstrates a positive outlook through its improved financial metrics, particularly an adjusted EBITDA of $0.5 million, which reflects a year-over-year increase of $1.8 million and a margin of 0.6%, surpassing initial estimates. Additionally, the company's gross margins expanded significantly by 361 basis points year-over-year, reaching 69.7%, although slightly under the forecast. The contribution of approximately $7 million from Wild Health-related Medicare reimbursement revenue during Q3 further bolsters its financial position, aligning with management's prior guidance and suggesting momentum in operational transformation efforts.

LivePerson Inc. is experiencing a significant decline in revenue, with guidance for 2Q24 indicating a drop of 20% year-over-year to between $76.0 million and $80.0 million, falling short of consensus estimates. The company's 2024 revenue outlook projects total revenues of $300 million to $315 million, representing a decline of 22%, which is also below consensus expectations, highlighting increasing customer cancellations and a growing trend of contraction in both hosted and professional services revenues. Overall, the consistent underperformance against market expectations and the substantial negative revenue growth trajectory raise concerns about the company's future financial stability.