LPSN - LivePerson stock down after trimmed guidance fell short of consensus

• LivePerson ( NASDAQ: LPSN ) shares plunged after missing Q2 consensus mark and guidance cut.
• The company sees Q3 revenue outlook of $120.5M - $123.6M below consensus of $132.5M.
• FY2022 revenue guidance cut from $544.8M - $563.3M to $507.1M - $518.3M vs. consensus of $536.53M.
• The company is raising guidance of non-GAAP gross margin from 70% - 72% to 72% - 74% for the FY2022 and 3Q22.
• The company is guiding for Q3 adjusted EBITDA in a range of $0M - $4.3M or a 0% - 3.5% adjusted EBITDA margin.
• The company is maintaining its FY2022 adjusted EBITDA guidance to a range of $1M to $10M, or a 0.0% - 2.0% adjusted EBITDA margin.
• Q2 revenue grew 11% Y/Y, business operations revenue up 12% Y/Y and consumer operations up 7% Y/Y.
• The company signed 5 seven-figure deals and 104 deals in total for the quarter, comprising of 45 new and 59 existing customer contracts.
• "Our second quarter results demonstrate strong execution against our profitable growth plan, " added CFO John Collins. "In addition to expense reductions, we have begun eliminating low-quality sources of revenue in order to further optimize the overall health of the P&L. While we expect the magnitude of both the expense reductions and the elimination of low-quality revenue to impact near-term growth, we believe these strategic moves will set a long term foundation for a best-in-class gross margin, significant free cash flow generation, and a return to a Rule of 40 framework."
• CEO comment: "We’re seeing progress with our quota carrying reps and continue to expect them to be productive with bookings in Q4 and contributing to revenue in 2023, and beyond. We continue to expect to generate positive and free cash flow in the fourth quarter position as well for profitable growth in 2023 and beyond."
• Shares down 21% at last check.

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