LivePerson, Inc.: 113% Gains in 2019, Looks More Bullish in Q4

LivePerson, Inc.: 113% Gains in 2019, Looks More Bullish in Q4
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LivePerson, Inc. Gains 25% in Q3, Closes in on Record High

Sell in May and go away? Not if you’re an investor in LivePerson, Inc. (NASDAQ:LPSN). LivePerson stock has been one of the best-performing stocks in 2019, posting strong gains during the typically quiet summer months.

That’s why we’ve been following this company closely all year long.

LPSN stock advanced 25% during the lazy days of the third quarter and it’s currently trading up 113% year-to-date.

Thanks to the company’s record second-quarter revenue and revision of its full-year guidance higher, LivePerson stock looks even more bullish as it heads into the fourth quarter.

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LPSN Stock Overview

If it wasn’t already too easy to spend money online, LivePerson, Inc. has made it even more convenient.

The New York City-based company’s artificial intelligence (AI)-powered conversational e-commerce platform makes it easy for consumers to buy products and get their questions answered. (Source: “About,” LivePerson, Inc., last accessed October 16, 2019.)

The company’s real-time messaging platforms for web site and social media accounts include live, AI, and call-to-message.

Like a certain pair of shoes? LivePerson will help you find ones to match, even if you didn’t think you needed them.

The company’s 18,000+ customers include huge companies like Adobe Inc (NASDAQ:ADBE), Lancôme, Virgin Atlantic Airways Ltd., IBM (NYSE:IBM), and Home Depot Inc (NYSE:HD).

LPSN Stock Information

Market Cap $2.6 Billion
52-Week Change 76.3%
52-Week High $41.00
52-Week Low $16.98
Shares Outstanding 65.5 Million
Float 58.3 Million
50-Day Moving Average $37.77
200-Day Moving Average $32.37

(Source: “LivePerson, Inc. (LPSN),” Yahoo! Finance, last accessed October 16, 2019.)

LivePerson Raises 2019 Guidance After Record Q2 Revenue Growth

On July 31, LivePerson, Inc. announced its revenue for the second quarter (ended June 30) increased 15% year-over-year to a record $71.0 million. (Source: “LivePerson Announces Second Quarter 2019 Financial Results,” LivePerson, Inc., July 31, 2019.)

Of that total, business operations revenue was up 14%, at $64.8 million, while revenue from consumer operations was up 24%, at $6.1 million.

LivePerson reported a second-quarter net loss of $24.0 million ($0.38 per share), versus a loss of $8.3 million ($0.14 per share) in the same period last year.

Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was a loss of $5.3 million, or $0.08 per share. That’s up from $3.8 million, or $0.06 per share, in the same prior-year period.

LivePerson, Inc. ended the second quarter with cash and cash equivalents of $224.7 million, up from $66.4 million at the end of 2018.

Also during the second quarter, LivePerson signed 142 deals. New customers included one of the biggest telco companies in North America, one of the biggest fast food chains in the U.S., and one of the largest apparel retailers on the planet.

Furthermore, LivePerson expanded its business relationship with a Fortune 100 finance company, a global software company, and one of Japan’s biggest e-commerce companies.

These developments resulted in LivePerson revising its 2019 full-year revenue guidance upward, to the range of $288.5 to $292.0 million. Previous guidance called for full-year revenue to be in the range of $284.5 to $291.5 million.

Third-quarter revenue is expected to grow by between 15% and 17%.

LivePerson, Inc. should be releasing its third-quarter financial results in the first half of November.

Analyst Take

LivePerson, Inc. is a great under-the-radar tech stock that has been quietly rewarding buy-and-hold investors in 2019.

The company reported record first- and second-quarter revenue growth, with momentum coming from all industries and geographies. This resulted in the company raising its full-year guidance.

This bodes well for LivePerson stock in the fourth quarter, with momentum carrying into 2020.