Last Updated: 08 Nov 2024
Executive Summary
LivePerson Inc. (LPSN) is a provider of conversational commerce solutions. Despite a challenging economic environment, the company has maintained a strong revenue growth trajectory, with a 4.276 TTM revenue per share. However, profitability remains a concern, with a negative EBITDA and EPS. The stock is currently trading at $1.21, below its 52-week high of $3.98.
Company Overview
LivePerson offers a cloud-based platform that enables businesses to engage with customers through messaging, voice, and video. The company's solutions are designed to improve customer experience, increase sales, and reduce costs. LivePerson has a global customer base that includes major brands such as Amazon, AT&T, and Unilever.
Fundamental Analysis
Revenue: LivePerson's revenue has grown steadily in recent years, reaching $361.8 million TTM. However, the company has experienced a slight decline in quarterly revenue growth YOY (-0.181%).
Profitability: LivePerson has struggled with profitability, with a negative EBITDA (-$50.1 million) and EPS (-$1.86). The company's profit margin is -0.242%, and its return on assets and equity are both negative.
Valuation: LivePerson's forward PE ratio is 19.3, which is above the industry average. The company's price-to-sales ratio (0.297) and price-to-book ratio (1.613) are also relatively high.
Technical Analysis
Trend: LivePerson's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages.
Support and Resistance: The stock has support at $1.00 and resistance at $1.50.
Momentum: The stock's momentum is negative, with the relative strength index (RSI) below 30.
Short Term Outlook
In the short term, LivePerson's stock is likely to continue to trade within its current range. The company's weak profitability and high valuation are likely to weigh on the stock price. However, the company's strong revenue growth could provide some support.
Long Term Outlook
In the long term, LivePerson's prospects depend on its ability to improve profitability. If the company can successfully execute its growth strategy and achieve profitability, the stock could have significant upside potential. However, if the company continues to struggle with profitability, the stock price could continue to decline.
Analyst Recommendations
Analysts are mixed on LivePerson's stock. Of the 6 analysts covering the stock, 1 has a buy rating, 4 have a hold rating, and 1 has a sell rating. The average analyst target price is $1.10.
