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The Research Note Destroying LivePerson

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The Research Note Destroying LivePerson
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In a report published Tuesday, Credit Suisse analysts downgraded the rating on LivePerson, Inc. (NASDAQ: LPSN) from Outperform to Neutral, while reducing the price target from $19 to $8. The analysts cited the loss of AT&T Inc. (NYSE: T) as the main reason for the downward revisions.

LivePerson reported its 1Q15 revenue at $59.8M, representing 25 percent y/y growth. The results missed the Street expectation of $60.8M, or 27.1 percent y/y growth). The company's EPS came in at $0.04, in-line with expectations.

LivePerson guided to 2Q15 revenue of $58.5-59.5M, representing 14.5-16.5 percent growth, significantly short of the Street estimate of $63.9M, or 25 percent growth. The EPS guidance for the quarter was announced at $0.00-$0.02, which was also disappointing, with the Street projecting $0.06.

Related Link: Credit Suisse On Rackspace: 2015 Guidance Intact Despite Q2 'Hiccup'

The revenue estimates for 2015 and 2016 have been reduced from $268.2M to $245.2M and from $302.1M to $280.8M, respectively. The EPS estimates for 2015 and 2016 have been reduced from $0.29 to $0.12 and from $0.37 to $0.28, respectively.

In the report Credit Suisse noted, "1Q15 was roughly in-line but mgmt was forced to lower their 2015 revenue guidance by $21M (-10% yr/yr at the midpt), mostly due to the loss of AT&T as a pay-for-performance chat customer, with the rest stemming from FX and a slow sales start to the yr; the reduction in 2015 revenue guidance was far larger than we had hoped it would be, and as a result, we estimate that LPSN's organic growth in 2015 will be <+10% in CC, causing us to downgrade the shares since we no longer believe that they will outperform."

Latest Ratings for LPSN

DateFirmActionFromTo
Sep 2016BenchmarkMaintainsBuy
Jul 2016BenchmarkUpgradesHoldBuy
Feb 2016Roth CapitalDowngradesBuyNeutral

View More Analyst Ratings for LPSN
View the Latest Analyst Ratings

Posted-In: Credit SuisseAnalyst Color Short Ideas Downgrades Price Target Analyst Ratings Movers Trading Ideas Best of Benzinga

 

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