LivePerson, Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues totaling $64.7 million, a decrease of 24% from $85.1 million in the same period of 2024. The drop in revenue was primarily attributed to a reduction in hosted services, which fell by $16.4 million due to customer cancellations and downsells, alongside a $4.1 million decrease in professional services. The company's net loss for the quarter was $14.1 million, an improvement from a net loss of $35.6 million in the prior year, resulting in a basic net loss per share of $0.15 compared to $0.40 in the previous year.
In terms of operational metrics, LivePerson's average annual revenue per enterprise and mid-market customer (ARPC) increased to approximately $640,000, up from $625,000 year-over-year. However, revenue retention for enterprise and mid-market customers fell to approximately 80%, below the company's target range of 105% to 115%. The company anticipates continued short-term attrition through the first half of 2025, with expectations for a transition to positive net new annual recurring revenue in the latter half of the year.
LivePerson has made strategic adjustments to its cost structure, resulting in a 26% reduction in cost of revenue to $18.2 million, driven by decreased business services and employee-related expenses. Sales and marketing expenses also decreased by 20% to $23.5 million, while general and administrative costs fell by 22% to $16.8 million. The company has been actively restructuring its operations, with restructuring costs dropping significantly to $1.3 million from $3.3 million in the prior year, indicating a more streamlined approach to its business model.
The company’s cash and cash equivalents stood at $176.3 million as of March 31, 2025, a decrease of $7 million from the end of 2024. LivePerson reported net cash used in operating activities of $3.1 million for the quarter, contrasting with a net cash inflow of $1.1 million in the same period last year. The company continues to focus on maintaining liquidity, with plans to refinance its remaining 2026 Notes before maturity. Looking ahead, LivePerson expects to navigate the current challenges while aiming for improved revenue retention and operational efficiency in the second half of 2025.
About LIVEPERSON INC
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