NEW YORK - LivePerson , Inc. (NASDAQ:LPSN), a company specializing in enterprise conversational AI, has expanded its Board of Directors with the appointment of two new members, Dan Fletcher and Karin-Joyce (KJ) Tjon, as announced today. The appointments aim to strengthen the board's expertise in financial and operational strategy to support the company's strategic objectives and enhance shareholder value. According to InvestingPro data, these appointments come at a crucial time as the company, currently valued at $72.48 million, faces significant operational challenges with a substantial debt burden of $470.56 million and negative EBITDA of -$40.28 million in the last twelve months.
Dan Fletcher joins the board with a wealth of experience in financial and operational transformations in the SaaS industry. As the Chief Financial Officer of Planful and an Operating Principal at Vector Capital Management, L.P., LivePerson's largest investor, Fletcher's role is expected to provide valuable financial insights. His previous tenure as CFO at MarkLogic and his current board position at Gappify also contribute to his strategic background.
Karin-Joyce Tjon brings over two decades of executive leadership and board experience in technology and SaaS sectors. Her track record in business transformation and financial restructuring is anticipated to be beneficial for LivePerson's growth. Tjon has held significant roles, including CFO at Alorica, Inc. and President and COO at Scientific Games (NASDAQ:LNW), Inc., and she currently serves on the boards of Solidion Technology, Inc. and Volcon, Inc.
With these new appointments, LivePerson's Board now comprises eight directors, seven of whom are independent, and six have joined within the last two years. The appointments were made following approval from shareholders at the company's annual meeting.
LivePerson is recognized for its Conversational Cloud platform, which is employed by leading brands to engage with consumers, facilitating nearly a billion conversational interactions monthly. The platform provides data analytics and safety tools to harness the capabilities of conversational AI. The company has been acknowledged by Fast Company as the #1 Most Innovative AI Company.
The information in this article is based on a press release statement from LivePerson, Inc. Recent InvestingPro analysis reveals the company's challenging position, with revenue declining by 22% year-over-year to $334.74 million and the stock price dropping nearly 79% year-to-date to $0.80. InvestingPro subscribers have access to 13 additional key insights and a comprehensive Pro Research Report, offering detailed analysis of LivePerson's financial health and future prospects.It should be noted that statements in the press release that are not historical facts are forward-looking and involve risks and uncertainties. Actual events or results may differ materially from expectations due to various factors, including the company's ability to execute on business and product plans.
In other recent news, LivePerson Inc. has reported Q2 2024 earnings with a revenue of $79.9 million and an adjusted EBITDA of $8.2 million, exceeding expectations, despite a year-over-year decline in B2B hosted services revenue and core recurring revenue by 17% and 18% respectively. The company also announced the departure of its Chief Product & Technology Officer, Alex Kroman, and is actively seeking a successor. In other developments, LivePerson has expanded its stock incentive and employee stock purchase plans, following approval from shareholders.
The company has also announced a cooperation agreement with Vector Capital Management, its largest shareholder, and has nominated Dan Fletcher, CFO of Planful, for election to the board. This aligns with the company's strategic objectives and shareholder value enhancement efforts. Furthermore, LivePerson has implemented cost reductions, including the divestiture of Wild Health, resulting in savings of $3 to $5 million in expenses.
Lastly, LivePerson plans to raise new capital to reduce debt, despite an expected sequential revenue decline. The company ended the quarter with $146 million in cash and anticipates improvements in new annual recurring revenue. These are recent developments that have marked the company's progress.
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