John DeNeen Collins, the Chief Financial Officer and Chief Operating Officer of LivePerson Inc. (NASDAQ:LPSN), recently sold 130,000 shares of the company's common stock. The shares were sold at a weighted average price of $0.85 per share, amounting to a total transaction value of $110,500.
This sale was conducted on November 22, 2024, and was carried out as an open market transaction. According to the filing, the sale was made to cover tax liabilities arising from equity-based compensation. Following this transaction, Collins retains direct ownership of 997,604 shares, which includes 930,546 unvested restricted stock units (RSUs).
LivePerson, a company based in New York, is known for its services in prepackaged software, and Collins has been a key executive in the firm. The transaction was documented in a Form 4 filing with the Securities and Exchange Commission.
In other recent news, LivePerson, Inc. has reported Q2 2024 earnings, posting a revenue of $79.9 million and an adjusted EBITDA of $8.2 million, surpassing expectations. However, the company also experienced a year-over-year decline in B2B hosted services revenue by 17% and core recurring revenue by 18%. As part of their ongoing strategic enhancements, LivePerson has nominated Dan Fletcher, CFO of Planful, for election to the board at the upcoming Annual Meeting of Stockholders, a move aligned with their cooperation agreement with Vector Capital Management, their largest shareholder.
LivePerson has also made operational adjustments, including the divestiture of Wild Health, resulting in $3 to $5 million in expense savings. In a bid to strengthen their balance sheet, there are plans to raise new capital to reduce debt. Despite an expected sequential revenue decline, the company closed the quarter with $146 million in cash and projects improvement in new annual recurring revenue.
Robert P. LoCascio, the company's founder and former CEO, has nominated two new candidates, Walter Bachtiger and Michal Czwarno, for the company's Board of Directors, a step seen as a pivotal part of their turnaround strategy. These recent developments highlight LivePerson's efforts to navigate market challenges and set the stage for future growth.
InvestingPro Insights
In light of John DeNeen Collins' recent stock sale, it's worth examining LivePerson's current financial position. According to InvestingPro data, LivePerson's market capitalization stands at $91.76 million, reflecting the company's current valuation in the market.
The company's financial health appears to be under pressure. An InvestingPro Tip indicates that LivePerson is "quickly burning through cash," which could be a concern for investors given the recent insider sale. This cash burn rate may explain why the company "does not pay a dividend to shareholders," another insight from InvestingPro.
LivePerson's revenue for the last twelve months as of Q3 2024 was $334.74 million, with a concerning revenue growth rate of -21.97% over the same period. This aligns with another InvestingPro Tip suggesting that "analysts anticipate sales decline in the current year."
The stock's performance has been volatile, with a significant 19.16% return over the last week, contrasting sharply with a -65.52% return over the past year. This volatility is reflected in an InvestingPro Tip noting that "stock price movements are quite volatile."
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for LivePerson, providing a deeper understanding of the company's financial situation and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.