John DeNeen Collins, the Chief Financial Officer and Chief Operating Officer of LivePerson Inc. (NASDAQ:LPSN), a leader in conversational AI, has sold a significant amount of company stock. On September 16, 2024, Collins sold 85,126 shares of LivePerson stock at a price of $1.05 per share, totaling approximately $89,382.
The transaction was executed to cover tax liabilities associated with the vesting of restricted stock units, as per the footnotes in the filing. After the sale, Collins still holds a substantial number of shares in the company, with the reported number including 90,546 unvested restricted stock units.
LivePerson Inc., headquartered in New York, specializes in providing software solutions that facilitate real-time customer engagement. The stock transaction by a top executive may be of interest to investors monitoring insider activity as an indicator of the company's financial health and future prospects.
The filing was signed by Monica L. Greenberg, Attorney-in-Fact for John DeNeen Collins, and was submitted on September 17, 2024. Collins' remaining ownership in LivePerson includes both vested and unvested shares, reflecting his continued stake in the company's performance and growth.
In other recent news, LivePerson Inc. has been taking strategic steps to navigate its current financial challenges. The company's Q2 2024 earnings revealed 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 by 17% and core recurring revenue by 18%, LivePerson ended the quarter with $146 million in cash and anticipates improvements in new annual recurring revenue.
In a move to strengthen the board, Robert P. LoCascio, founder and former CEO of LivePerson, nominated two new candidates, Walter Bachtiger and Michal Czwarno. Both nominees bring a wealth of experience in AI and B2B operations, which could be instrumental in LivePerson's recovery efforts.
Additionally, the company announced a successful deal with Lynrock Lake to address 2026 convertible notes and an early launch of new pricing. The divestiture of Wild Health resulted in savings of $3 to $5 million in expenses, and plans are underway to raise new capital to reduce debt and strengthen the balance sheet. These recent developments underscore LivePerson's commitment to improving its financial health and laying the groundwork for future growth.
InvestingPro Insights
As investors digest the news of John DeNeen Collins' recent stock sale at LivePerson Inc. (NASDAQ:LPSN), it's important to consider the company's financial standing through the lens of InvestingPro data and tips. With a market capitalization of $93.03 million and a challenging financial performance in the recent past, LivePerson appears to be navigating through some headwinds.
InvestingPro data reveals that the company's revenue has experienced a significant decline of 20.86% over the last twelve months as of Q2 2024. This contraction is mirrored in the quarterly figures, with an 18.1% drop in revenue in Q2 2024. The gross profit margin remains relatively strong at 66.97%, but the operating income margin is deeply negative, at -27.83%, indicating that operating expenses are taking a substantial bite out of the company's earnings.
The InvestingPro Tips highlight that LivePerson operates with a significant debt burden and may have trouble making interest payments on its debt, which is a crucial consideration for investors. The company is also quickly burning through cash, and analysts have revised their earnings downwards for the upcoming period. Additionally, analysts do not anticipate the company will be profitable this year, and the stock price has been quite volatile, with a noteworthy decline over the last month.
Investors who follow insider activity as a sign of confidence may find it relevant that the company's CFO and COO has pared down his holdings, albeit for tax liability reasons. With the stock's price at the previous close standing at $1.07, and an InvestingPro fair value estimation of $1.64, there is a disparity that could signal potential undervaluation or reflect market skepticism about the company's future performance.
For those looking to delve deeper into the financial health and future prospects of LivePerson, InvestingPro offers a total of 14 additional tips, providing a comprehensive analysis that can help investors make informed decisions. These insights are available at https://www.investing.com/pro/LPSN, where the full suite of InvestingPro tools and metrics can be accessed to gauge the investment potential of LivePerson Inc. in the context of its industry and the broader market.
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