LivePerson (LPSN) shares experienced a 3.29% decline in after-hours trading on November 7th, closing at $1.1702, following the company's announcement of its third-quarter 2024 financial results and a narrowed full-year revenue forecast. The company reported a 26.7% year-over-year revenue decline to $74.2 million, primarily due to customer cancellations and downsells, although this figure exceeded the high-end of their guidance range. Despite the revenue drop, LivePerson managed to reduce its net loss to $28.3 million, or $0.32 per share, from $53.3 million, or $0.68 per share, in the same quarter last year. The company also highlighted strategic initiatives, including a focus on core products and customers, and the adoption of Generative AI, which are expected to drive future growth.
However, the market reacted negatively to LivePerson's revised full-year revenue guidance, which now anticipates a decrease of 23% to 21% year-over-year, with total revenue expected to be between $305 million and $310 million. This outlook reflects ongoing challenges in maintaining customer retention and the impact of strategic restructuring. CEO John Sabino emphasized the company's strong execution against guidance and improvements in bookings, but the anticipated revenue decline overshadowed these positive aspects.