LivePerson, Inc. (LPSN) saw its loss widen to $5.68 million, or $0.10 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $2.66 million, or $0.05 a share. On the other hand, adjusted net income for the quarter stood at $0.52 million, or $0.01 a share compared with $1.44 million or $0.03 a share, a year ago. Revenue during the quarter dropped 8.19 percent to $50.92 million from $55.46 million in the previous year period. Gross margin for the quarter expanded 154 basis points over the previous year period to 72.94 percent. Operating margin for the quarter stood at negative 9.67 percent as compared to a negative 4.95 percent for the previous year period.
Operating loss for the quarter was $4.92 million, compared with an operating loss of $2.74 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.28 million compared with $4.75 million in the prior year period. At the same time, adjusted EBITDA margin contracted 212 basis points in the quarter to 6.44 percent from 8.56 percent in the last year period.
"We shifted back to a focus on growth in the first quarter," said chief executive officer Robert LoCascio. "Our selling activity accelerated back to pre-migration levels, we signed multiple new messaging deals, and we generated a record average selling price. The breadth and sophistication of our enterprise-class LiveEngage platform affords LivePerson a clear lead as we aim to transform customer care. Our focus is to extend this lead and capitalize on the enormous potential of messaging plus bots and AI. The filled-to-capacity AI and bots summit we held just last week, where we launched LiveEngage for Bots and unveiled our integration with several bot & AI vendors, provides yet another reference point for our unique market position and thought leadership."
For financial year 2017, LivePerson, Inc. forecasts revenue to be in the range of $204 million to $209 million. The company projects net loss to be in the range of $22.80 million to $17.60 million and expects adjusted net income to be in the range of $4.40 million to $7 million. It company expects diluted loss per share to be in the range of $0.40 to $0.31. The company expects diluted earnings per share to be in the range of $0.07 to $0.12 on adjusted basis.
For the second-quarter 2017, LivePerson, Inc. forecasts revenue to be in the range of $51 million to $52 million. The company projects net loss to be in the range of $6.70 million to $6.10 million and expects adjusted net income to be in the range of $0.50 million to $1 million. It company expects diluted loss per share to be in the range of $0.12 to $0.10. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.01 to $0.02.
Working capital drops significantly
LivePerson, Inc. has witnessed a decline in the working capital over the last year. It stood at $17.36 million as at Mar. 31, 2017, down 51.92 percent or $18.74 million from $36.10 million on Mar. 31, 2016. Current ratio was at 1.24 as on Mar. 31, 2017, down from 1.66 on Mar. 31, 2016. Days sales outstanding went up to 52 days for the quarter compared with 50 days for the same period last year.
At the same time, days payable outstanding went up to 43 days for the quarter from 41 for the same period last year.
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