LivePerson Reports 22% Revenue Decline and Increased Net Loss for Fiscal Year 2024

LivePerson, Inc. reported a significant decline in its financial performance for the fiscal year ended December 31, 2024, with total revenue decreasing by 22% to $312.5 million, down from $402.0 million in 2023. The decrease was primarily attributed to customer cancellations and downsells, particularly in its hosted services segment, which saw a revenue drop of $71.3 million. Additionally, the company recorded a net loss of $134.3 million for the year, compared to a loss of $100.4 million in the previous year, contributing to an accumulated deficit of $991.3 million as of December 31, 2024.

In terms of operational metrics, LivePerson's average annual revenue per enterprise and mid-market customer (ARPC) increased to approximately $625,000, up from $610,000 in 2023. However, revenue retention for enterprise and mid-market customers fell to approximately 82%, significantly below the target range of 105% to 115% and down from 95% in 2023. The company anticipates continued short-term attrition into the first half of 2025, with expectations of a transition toward positive net new annual recurring revenue in the latter half of the year.

Strategically, LivePerson has undergone notable changes, including the divestiture of its WildHealth business in June 2024, which contributed to a goodwill impairment charge of $60.6 million. The company also reported an impairment of intangible assets totaling $46.9 million, primarily related to developed technology and customer relationships. These impairments reflect the company's ongoing restructuring efforts to realign its cost structure with its current business model, which included a reduction in workforce and operational costs.

LivePerson's employee headcount decreased to 928 as of December 31, 2024, down from 1,211 in the previous year. The company continues to focus on enhancing its digital customer conversation platform, leveraging artificial intelligence and automation to improve customer engagement. Looking ahead, LivePerson expects to maintain its current cash and cash equivalents of $183.2 million to support its operations and capital expenditures for at least the next 12 months, while also planning to refinance its remaining convertible senior notes due in December 2026. The company remains cautious about its revenue outlook, anticipating potential challenges in customer retention and revenue growth in the near term.