Slides
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Earnings Call Supplemental Slides Second Quarter 2025 John Sabino, Chief Executive Officer John Collins, Chief Financial Officer and Chief Operating Officer August 11, 2025
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LivePerson, Inc. Proprietary Information. © 2025 LivePerson, Inc. All Rights Reserved. This presentation as well as the associated earnings release and earnings call contain and will contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. You can generally identify forward-looking statements by our use of forward-looking terminology such as “anticipate,ˮ “believe,ˮ “continue,ˮ “could,ˮ “estimate,ˮ “expect,ˮ “goal,ˮ “intend,ˮ “may,ˮ “might,ˮ “plan,ˮ “potential,ˮ “predict,ˮ “seek,ˮ “should,ˮ “visionˮ or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those projected. Please refer to our filings with the Securities and Exchange Commission, particularly the “Risk Factorsˮ included in our Annual Report on Form 10K and our Quarterly Reports on Form 10Q, for factors that could cause actual results to materially differ from those we project. The forward-looking statements contained in this presentation, our earnings release and our earnings call are made as of the date hereof or thereof, and LivePerson, Inc. (the “Companyˮ) assumes no obligation to update such statements. This presentation includes adjusted EBITDA, a non-GAAP financial measure, which supplements the Companyʼs financial measures prepared in accordance with GAAP. This non-GAAP financial measure is not intended to supersede or replace the Companyʼs GAAP results. Net Loss, the most directly comparable GAAP financial measure, and a detailed reconciliation between Net Loss and Adjusted EBITDA for the second quarter of 2025 are included in the Appendix to this presentation. This presentation also contains the forward-looking non-GAAP financial guidance measures adjusted EBITDA and adjusted EBITDA margin for the third quarter and full year 2025. The Company does not present a quantitative reconciliation of the forward-looking non-GAAP financial measures adjusted EBITDA and adjusted EBITDA margin to the most directly comparable GAAP financial measures (or otherwise present such forward-looking GAAP measures) because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized. In particular, these non-GAAP financial measures exclude certain items, including interest expense, interest income, provision for income taxes, depreciation, amortization of purchased intangibles and finance leases, litigation, consulting and other employee costs, restructuring costs, stock-based compensation expense, change in fair value of warrants, IT transformation costs, and other income, net, which depend on future events that the Company is unable to predict. Depending on the size of these items, they could have a significant impact on the Companyʼs GAAP financial results. Disclaimer
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LivePerson, Inc. Proprietary Information. © 2025 LivePerson, Inc. All Rights Reserved. ● 45% sequential increase in conversations leveraging LivePerson Generative AI capabilities ● Expanded partnership with Google Cloud to integrate its advanced AI capabilities directly into the LivePerson Platform Product Update ● Total deal count of 38 in 2Q25 including: ○ 35 expansion & renewal deals ○ 3 new logo wins ● Continued traction within highly regulated industries, including healthcare, financial services, and telecommunications Go-to-market Update Second Quarter Business Highlights ● 2Q25 Revenue of $59.6M, above the midpoint of our guidance range of $57M to $60M ● Adjusted EBITDA¹ of $2.9M, above the high-end of our guidance range of $4M to $2M ● Recurring Revenue2 was $55.0M, or 92% of Total Revenue ● Enters into agreement to exchange $341.1 million of its outstanding 2026 Convertible Senior Notes for $45.0 million in cash, $115.0 million of 2029 Senior Subordinated Secured Notes and Common and Preferred Equity Financial Update Note 1 For a reconciliation between GAAP and non-GAAP financial measures, please see the Appendix to this presentation or our Press Release issued on August 11, 2025. Note 2 Recurring Revenue = recurring software revenue and recurring professional services revenue.
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LivePerson, Inc. Proprietary Information. © 2025 LivePerson, Inc. All Rights Reserved. Notable Wins of the Quarter Products Used: LivePerson Platform, social channels, custom middleware Major European Retailer Products Used: Web Messaging, In-app, FAQ bot European Digital Marketing Agency Products Used: Tenfold Leading U.S. Health Plan Provider Use cases: Predominantly social and web messaging. Integrating with 3rd Party Automation provider to build out automated journeys and handling customer queries related to deliveries, loyalty card and complaints. Use cases: Initially deploying on all subsidiary brands across the companyʼs top 3 markets handling intents such as account queries and transactions Use cases: Natively integrated CRM and telephony systems to supercharge the agent experience with a unified single point of access to critical information. This increases agents' efficiency while also providing agents with relevant customer context at the moment of interaction.
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LivePerson, Inc. Proprietary Information. © 2025 LivePerson, Inc. All Rights Reserved. Second Quarter Financial & Operational Highlights Revenue by Geography InternationalU.S. Definitions: Recurring Revenue = recurring software revenue and recurring professional services revenue Recurring Revenue as % of Total Revenue Non-Recurring Revenue Recurring Revenue 2Q24 1Q25 1Q25 93% $64.7M 38% 62% 2Q24 93% $79.9M 28% 72%93% $74.2M 3Q24 3Q24 33% 67%94% $73.2M 4Q24 4Q24 34% 66% $59.6M 92% 2Q25 2Q25 38% 62%
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LivePerson, Inc. Proprietary Information. © 2025 LivePerson, Inc. All Rights Reserved. Average Revenue per Customer ARPC2 Second Quarter Financial & Operational Highlights (cont’d) Note 1 Revenue retention measures the percentage change in recurring revenue YOY by comparing the sum of revenue from the prior year quarter compared to the current year quarter for the same cohort of customers. Note 2 ARPC is a measure of the average recurring revenue per enterprise and midmarket customer over the trailing twelve months. Both metrics use Recurring Revenue. Note 3 YoY decline driven by customer cancellations and downsells. Net Revenue Retention Rate for Recurring Revenue1 Remaining Performance Obligations3 2Q24 1Q25 $630K 2Q24 $283M $630K 3Q24 $256M 3Q24 $625K 4Q24 $232M 4Q24 $221M $640K 1Q25 2Q24 3Q24 4Q24 1Q25 83% 79% 82% 80% 78% 2Q25 2Q25 $655K $197M 2Q25
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LivePerson, Inc. Proprietary Information. © 2025 LivePerson, Inc. All Rights Reserved. 3Q25 Guidance FY25 Guidance Revenue $56M $59M $230M $240M Yo Y Revenue Growth 25% - 21% 26% - 23% Recurring Revenue % of Total Revenue 93% 93% Adjusted EBITDA1 $4M $2M $3M $7M Adjusted EBITDA Margin 7.1% - 3.4% 1.3% 2.9% Note 1 Adjusted EBITDA is a Non-GAAP financial measure. For detailed current financial expectations, please see our Press Release issued on August 11, 2025 3Q25 and FY25 Guidance
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LivePerson, Inc. Proprietary Information. © 2025 LivePerson, Inc. All Rights Reserved. Appendix
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LivePerson, Inc. Proprietary Information. © 2025 LivePerson, Inc. All Rights Reserved. 9 Reconciliation of Adjusted EBITDA Note: Dollar amounts in thousands. Certain items may not total due to rounding. Adjusted EBITDA is a Non-GAAP financial measure. Adjusted EBITDA excludes interest expense, interest income, provision for income taxes, depreciation, amortization of purchased intangibles and finance leases, litigation, consulting and other employee costs, restructuring costs, stock-based compensation expense, change in fair value of warrants, IT transformation costs, and other income, net. 2Q25 GAAP net loss $15,710 Interest expense 7,866 Interest income 1,493 Provision for income taxes 384 Depreciation 5,578 Amortization of purchased intangibles and finance leases 180 Litigation, consulting and other employee costs 1,337 Restructuring costs 561 Stock-based compensation expense 4,260 Change in fair value of warrants 2,999 IT transformation costs 110 Other income, net 479 Adjusted EBITDA $2,919