LPSN - LivePerson stock rises 9% as more upsells WildHealth outperformance drive upbeat outlook

LivePerson ( NASDAQ: LPSN ) stock climbed ~9% on Tuesday after the SaaS provider raised its FY revenue guidance , citing more upsells, early renewals and strong performance by its platform WildHealth.

The company now expects 2022 revenue of $517M-$521M vs. consensus estimate of $514.09M. Its prior outlook was $507.1M-$518.3M.

LivePerson ( LPSN ) reaffirmed its 2022 adj. EBITDA guidance on the back of its expectation for potential revenue upside and additional P&L optimizations.

Q4 revenue is projected to be $124.5M-$128.7M vs. consensus estimate of $127.75M.

LivePerson ( LPSN ) expects Q4 adj. EBITDA of $14.9M-$24M and adj. gross margin of 72-74%.

"We're making durable changes to our operating model that will position us to generate double-digit adj. EBITDA margins and positive free cash flow in 2023," said CFO John Collins.

B. Riley raised its FY22 estimates for revenue and adj. EBITDA to $519.3M and $5M, respectively, from $513.6M and $1.4M. It also introduced FY24 estimates for revenue and adj. EBITDA at $620.2M and $80.7M, respectively.

"We are encouraged by management's solid execution against its profitable growth initiatives, but considering the potential macro headwinds over the next 12-18 months, we maintain our Neutral rating," analyst Zach Cummins wrote in a note to clients.

He reiterated $12 price target on LivePerson ( LPSN ), implying 18.6% potential upside to its last close.

Barclays and Mizuho lowered their PTs on the stock to $11 from $16 (8.7% potential upside) and $12 from $14 (18.6% potential upside), respectively.

While Wall Street analysts on average rate LivePerson ( LPSN ) Hold, SA Quant has a Strong Sell rating on the stock as it is at high risk of performing badly .

Shares of LivePerson ( LPSN ) dropped ~69% YTD.

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