Slides
Page 1
Earnings Call Supplemental Slides Third Quarter 2025 John Sabino, Chief Executive Officer John Collins, Chief Financial Officer and Chief Operating Officer November 10, 2025
Page 2
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 Income, the most directly comparable GAAP financial measure, and a detailed reconciliation between Net Income and Adjusted EBITDA for the third 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 fourth 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, gain on troubled debt transaction, and other expense, 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
Page 3
LivePerson, Inc. Proprietary Information. © 2025 LivePerson, Inc. All Rights Reserved. ● Google Partnership Expands ○ LivePerson Platform now live on Google Cloud Marketplace ○ Announced the integration with Googleʼs RCS platform ○ Launches CoPilot Translate, built on Gemini 2.5 ● Launched breakthrough product, Conversation Simulator, creating a new revenue stream and growth lever ○ Secured early adoption from 3 customers, including Telstra and Open University Product Update ● Total deal count of 28 in 3Q25 including: ○ 26 expansion & renewal deals ○ 2 new logo wins ● Renewed multiple large accounts that previously expressed hesitation, including a major U.S. telecom company and a leading amusement park and entertainment company. Go-to-market Update Third Quarter Business Highlights ● 3Q25 Revenue of $60.2M, above the high-end of our guidance range of $56M to $59M ● Adjusted EBITDA¹ of $4.8M, above the high-end of our guidance range of $4M to $2M ● Recurring Revenue2 was $55.1M, or 92% of Total Revenue ● Stabilized financial foundation through completed debt refinancing and cost restructuring actions ● Raised FY25 Revenue and Adjusted EBITDA guidance; Expect Adjusted EBITDA to exceed Capex in FY25 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 November 10, 2025. Note 2 Recurring Revenue = recurring software revenue and recurring professional services revenue.
Page 4
LivePerson, Inc. Proprietary Information. © 2025 LivePerson, Inc. All Rights Reserved. Notable Wins of the Quarter Products Used: LivePerson Platform Leading Amusement Park and Entertainment Company Products Used: LivePerson Platform, Bots, WhatsApp, Automation, Proactive and Professional Services Sanlam, A Leading South African Financial Services Group Products Used: Web, In-App, Proactive SMS, Agent Workspace, Skill Based Routing, 3rd-party bot integration, Summarization and ReWrite Leading U.S. Health Plan Provider Use cases: Primarily leverages LivePerson within customer care. Key use cases include sales support and ticket booking, customer service support and routing, advanced intent and routing strategies to maximize customer satisfaction and streamline trip planning. Use cases: Servicing customers across Risk & Savings line of business, exploring automation for high volume service journeys, and early stage exploration of GenAI for agent productivity and intent detection. Use cases: Health Plan Member and Provider messaging across customer care. Uses LivePerson Platform mostly for Agent Workspace and ability to integrate with third-party bots to drive digital shift from voice to messaging + AI.
Page 5
LivePerson, Inc. Proprietary Information. © 2025 LivePerson, Inc. All Rights Reserved. Third 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 3Q24 1Q25 1Q25 93% $64.7M 38% 62%93% $74.2M 3Q25 3Q24 33% 67%94% $73.2M 4Q24 4Q24 34% 66% $59.6M 92% 2Q25 2Q25 38% 62%92% $60.2M 3Q25 39% 61%
Page 6
LivePerson, Inc. Proprietary Information. © 2025 LivePerson, Inc. All Rights Reserved. Average Revenue per Customer ARPC2 Third 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 3Q251Q25 $182M $630K 3Q24 $256M 3Q24 $625K 4Q24 $232M 4Q24 $221M $640K 1Q25 3Q24 4Q24 1Q25 79% 82% 80% 78% 2Q25 2Q25 $655K $197M 2Q25 80% 3Q25 $665K 3Q25
Page 7
LivePerson, Inc. Proprietary Information. © 2025 LivePerson, Inc. All Rights Reserved. 4Q25 Guidance FY25 Guidance Revenue $50.5M $55.5M $235M $240M Yo Y Revenue Growth 31% - 24% 25% - 23% Recurring Revenue % of Total Revenue 93% 93% Adjusted EBITDA1 $0.3M $4.7M $7.5M $12.5M Adjusted EBITDA Margin 0.6% 8.5% 3.2% 5.2% Note 1 Adjusted EBITDA is a Non-GAAP financial measure. For detailed current financial expectations, please see our Press Release issued on November 10, 2025 4Q25 and FY25 Guidance
Page 8
LivePerson, Inc. Proprietary Information. © 2025 LivePerson, Inc. All Rights Reserved. Appendix
Page 9
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, gain on troubled debt transaction, IT transformation costs, and other expense, net. 3Q25 GAAP net income $8,711 Interest expense 8,113 Interest income 1,207 Provision for income taxes 394 Depreciation 5,468 Amortization of purchased intangibles and finance leases 166 Litigation, consulting and other employee costs 1,646 Restructuring costs 9,312 Stock-based compensation expense 2,635 Change in fair value of warrants 2,933 IT transformation costs 111 Gain on troubled debt transaction 27,720 Other expense, net 55 Adjusted EBITDA $4,751