LPSN  Liveperson Inc.

Exchange

NASDAQ

Sector

Technology

Industry

Computer Software: Prepackaged Software

Market Cap.

408.70B

Vuru Grade

35.63/100

Current Price

$7.05
+0.00 (+0.00%)

Growth Price

$4.77
Overvalued by 32.39%

Stability Price

$7.86
Undervalued by 11.44%

Company Metrics

  • P/E 965.83
  • P/S 1834.53
  • P/B 2.84
  • EPS -0.46
  • Cash ROIC 13.56%
  • Cash Ratio 0.88
  • Dividend 0 / N/A %
  • Avg. Vol. 289,952.00
  • Shares 56.45M
  • Market Cap. 408.70B

Company Description

LivePerson, Inc. provides online engagement solutions that facilitate real-time assistance and advice. It connects businesses and independent service providers with consumers seeking help on its hosted software platform. The company's hosted platform supports and manages real time online interactions, such as chat, voice/click-to-call, email, and self service/knowledgebase from a single agent desk... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

LivePerson Inc. Earnings: Bring Out Your Dead
Motley Fool - Jul 28, 2016
There's not a lot of life at LivePerson (NASDAQ:LPSN) these days. The provider of high-tech customer support reported another quarter of sluggish performance after Wednesday's market close.
LivePerson Announces Second Quarter 2016 Financial Results - PR Newswire (press release)
LivePerson Announces Fourth Quarter 2016 Financial Results
PR Newswire (press release) - Feb 8, 2017
LivePerson, Inc. Reconciliation of Non-GAAP Financial Information to GAAP (In Thousands, Except Share and Per Share Data) Unaudited.
LivePerson Inc. (LPSN) Soars 5.3% on February 09 - Equities.com
LivePerson Inc. Earnings: Another Growth Streak Bites the Dust
Motley Fool - May 10, 2016
LivePerson (NASDAQ:LPSN) is going the wrong way in its latest quarterly report, and with the stock heading lower in five of the six trading days leading up to its announcement of fresh financials, it seems as if the shares are following suit.
LivePerson Inc. Earnings: New Lows Aren't Fun
Motley Fool - Feb 11, 2016
Shares of LivePerson (NASDAQ:LPSN) opened sharply lower on Thursday after serving up unappetizing results for the fourth quarter.
LivePerson Announces Fourth Quarter 2015 Financial Results - PR Newswire (press release)
Why Shares of LivePerson Inc. Jumped 10% Today
Motley Fool - Mar 14, 2016
What: Shares of LivePerson (NASDAQ:LPSN) jumped on Monday on no company-specific news. The stock has been tumbling since the beginning of 2015, but has rebounded strongly over the past month.
LivePerson Helps Millions of T-Mobile Customers Message for Service
PR Newswire (press release) - Nov 9, 2016
NEW YORK, Nov. 9, 2016 /PRNewswire/ -- LivePerson, Inc. (Nasdaq: LPSN), a leading provider of cloud mobile and online business messaging solutions, today announced that T-Mobile has launched LivePerson's mobile messaging as a customer service ...
LivePerson's (LPSN) CEO Robert LoCascio on Q3 2016 Results - Earnings Call ... - Seeking Alpha
LivePerson Inc.
MarketWatch - Jul 16, 2009
LivePerson Inc. upgraded to buy from hold at Benchmark. 6:37 a.m. July 7, 2016. - Trey Williams. Elliott Management adds stakes in Alcoa, CenterPoint Energy; sells off Comcast and Juniper.
Jill Layfield of Tamara Mellon to join LivePerson Board of Directors
PR Newswire (press release) - Nov 22, 2016
NEW YORK, Nov. 22, 2016 /PRNewswire/ -- LivePerson, Inc. (Nasdaq: LPSN), a leading provider of cloud mobile and online business messaging solutions, today announced that Jill Layfield, CEO of Tamara Mellon and former CEO of Backcountry, will be ...
LivePerson introduces new mobile app for automotive and real estate brands
PR Newswire (press release) - Dec 9, 2016
9, 2016 /PRNewswire/ -- LivePerson, Inc. (Nasdaq: LPSN), the leading provider of cloud mobile and online business messaging solutions, announced today a completely new Contact At Once!
LivePerson to Announce Fourth Quarter 2016 Financial Results on February 8, 2017
PR Newswire (press release) - Jan 25, 2017
NEW YORK, Jan. 25, 2017 /PRNewswire/ -- LivePerson, Inc. (Nasdaq: LPSN), a leading provider of cloud-based mobile and online business messaging, today announced the planned release of its third quarter financial results after the market close on ...
LivePerson Inc. (LPSN) Moves Lower on Volume Spike for January 25 - Equities.com
JPMorgan Chase & Co. Takes Position in LivePerson Inc. (LPSN) - Sports Perspectives
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for LPSN to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate LPSN's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$7.05 Current Price

$4.77 Growth Price (DCF)

Overvalued by 32.39%


Growth Rate Assumed by Market: 34.06%


Future Free Cash Flow Growth Rate: 14.9%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$7.86 Stability Price (EPV)

Undervalued by 11.44%


Discount Rate: 15.0%

$0.59 NCA Price

Overvalued by 91.58%

$12.31 Book Price

Undervalued by 74.65%


Inconsistent Cash Return on Invested Capital over the past 5 years

LPSN has somewhat efficiently invested its financial resources in buildings, projects, and equipment. However, there has been some inconsistency from year-to-year. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

LPSN has created $13.56 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 17.81M 5.99M 8.91M 1.63M 8.85M
divided by
Invested Capital 47.12M 69.68M 68.88M 131.70M 122.13M
Cash ROIC 37.79% 8.60% 12.94% 1.24% 7.25%

Very Poor Return on Equity over the past 5 years

LPSN has shown an inability to deliver results for shareholders. This could be due to poor management, LPSN operating in a highly competitive industry, or having a weak business in general.

LPSN has generated a $1.96 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 12.04M 6.36M -3.50M -7.35M -26.44M
divided by
Stockholders' Equity 137.70M 170.24M 159.05M 180.34M 165.31M
Return on Equity 8.74% 3.73% -2.20% -4.07% -16.00%

Excellent Business Performance over the past 10 years

LPSN has been able to maintain profitability in good times and bad. This could mean LPSN has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

LPSN has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 1.72M 7.28M 1.15M 15.58M 7.55M 17.81M 5.99M 8.91M 1.63M 8.85M

Good Balance Sheet

LPSN's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 21.73M 26.22M 25.50M 45.57M 61.34M 93.28M 103.34M 91.91M 49.37M 48.80M
Current Assets 27.32M 34.09M 36.70M 60.96M 85.70M 122.01M 136.15M 133.18M 93.70M 94.38M
Total Assets 43.32M 102.49M 81.95M 104.28M 131.14M 166.05M 208.58M 205.09M 239.82M 226.19M
Current Liabilities 8.08M 16.45M 16.98M 20.96M 24.10M 25.66M 35.56M 44.31M 58.75M 55.26M
Total Liabilities 8.77M 17.78M 18.37M 23.14M 26.50M 28.35M 38.33M 46.04M 59.48M 60.89M
Stockholder' Equity 34.55M 84.71M 63.58M 81.14M 104.64M 137.70M 170.24M 159.05M 180.34M 165.31M
Current Ratio 3.38 2.07 2.16 2.91 3.56 4.76 3.83 3.01 1.59 1.71
TL-to-TA 0.20 0.17 0.22 0.22 0.20 0.17 0.18 0.22 0.25 0.27

Low or No Reinvestment of Profits over the past 10 years

LPSN has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to LPSN operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings -99.18M -93.36M -117.20M -109.43M -100.17M -88.14M -81.78M -85.28M -92.63M -119.07M
Retained Earnings Growth - 5.87% -25.53% 6.62% 8.46% 12.02% 7.21% -4.28% -8.62% -28.55%

Loss Making Entity over the past 10 years

LPSN has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$0.04 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 2.20M 5.82M -23.84M 7.76M 9.26M 12.04M 6.36M -3.50M -7.35M -26.44M
divided by
Revenue 33.52M 52.23M 74.66M 87.49M 109.86M 133.09M 157.41M 177.81M 209.93M 239.01M
Net Profit Margin 6.57% 11.15% -31.93% 8.87% 8.43% 9.05% 4.04% -1.97% -3.50% -11.06%

Strong Pricing Power over the past 10 years

LPSN has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$75.68 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 25.90M 38.69M 54.35M 66.41M 80.22M 112.87M 121.83M 135.25M 157.23M 168.70M
divided by
Revenue 33.52M 52.23M 74.66M 87.49M 109.86M 133.09M 157.41M 177.81M 209.93M 239.01M
Gross Margin 77.26% 74.09% 72.80% 75.91% 73.02% 84.81% 77.40% 76.07% 74.90% 70.58%

High Capital Intensity over the past 10 years

LPSN spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

105.49% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 885,000.00 1.71M 6.83M 5.44M 8.00M 7.27M 22.02M 8.04M 14.04M 12.98M
divided by
Net Income 2.20M 5.82M -23.84M 7.76M 9.26M 12.04M 6.36M -3.50M -7.35M -26.44M
Capital Expenditure Ratio 40.19% 29.36% -28.67% 70.10% 86.42% 60.38% 346.48% -229.89% -191.07% -49.08%

No Dividend History over the past 10 years

LPSN has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 43.35M 46.81M 47.43M 49.01M 52.91M 55.01M 57.13M 54.73M 54.48M 56.45M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 5.23 5.28 1.79 7.02 11.23 12.55 12.89 14.58 13.61 7.00
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

LPSN has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 43.35M 46.81M 47.43M 49.01M 52.91M 55.01M 57.13M 54.73M 54.48M 56.45M
Stock Bought Back - -7.41% -1.29% -3.22% -7.37% -3.82% -3.71% 4.40% 0.45% -3.50%
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