LivePerson, Inc. Q4 FY2025 earnings call

2026 marks a transition from rebuilding to execution. Prioritize customer growth and retention, innovate core conversational cloud platform and scale Centrix platform, expand technology partnerships. Q4 outperformed guidance on top and bottom lines. Launched Centrix, saw deeper AI adoption in core conversational cloud platform, on track to complete platform modernization in first half of 2026. Significant renewals from large enterprise customers, strong partnership with Google Cloud, partnerships with IT Solutions and Coral Active delivering results.

Revenue was $59.3 million, above the high end of the guidance range, driven by higher variable revenue. Adjusted EBITDA was $10.8 million, also above the high end of the guidance range. Revenue from hosted services was $51 million, down 15% year over year. Recurring revenue was $52.9 million, or 89% of total revenue. Professional services revenue was $8.3 million, down 36% year-over-year. Average revenue per customer was $680,000, up 9% year-over-year. RPO declined to $176 million. Net revenue retention was 78% in the fourth quarter, down from 80% in the third quarter.

Expect revenue to be in the range of $195 million to $207 million for 2026, and adjusted EBITDA to be between a loss of $4 million and positive $7 million. Expect positive net new ARR in the second half of 2026. For the first quarter of 2026, expect revenue to range from $53 million to $55 million, and adjusted EBITDA to range from $2 million to $5 million.

Forward-looking statements are subject to risks and uncertainties. Actual results may differ materially due to various factors including those described in the earnings press release and comments during the conference call, as well as in 10-Ks, 10-Qs, and other reports filed with the SEC.

Q: Just on maybe starting off with the bottom line and the current OpEx level...

A: The results in the fourth quarter for the bottom line are primarily driven by the larger structuring executed in the prior quarter...

Q: Maybe just to follow up on Centrix off of that last response...

A: The pricing model is conversation-based, consumption model...

Q: On Google Cloud Marketplace...

A: Google Marketplace really does represent a retention lever...

Q: Can you just help us understand from sort of the quarterly flow on adjusted EBITDA...

A: I expect Q1 to be the high point for the year as we emphasize investment on the product and commercial side