Shares in LivePerson are leaping almost 15% in pre-market trading after the company raised its revenue and profit outlook for the year fueled by a robust sales pipeline and increased demand from existing customers.
LPSN) also raised its full year 2020 revenue guidance to a range of $357 million to $361 million, up from previous guidance of $340 million to $355 million. Analysts had forecast $347.45 million. For the third quarter, the company expects to generate $92 million-$93 million, which is above the analyst consensus of $89.35 million.” data-reactid=”13″>The stock is surging to $52.90 in Wednesday’s pre-market trading after the company lifted its 2020 adjusted EBITDA to a range of $16 million to $19 million, up from prior guidance of $3.5 million to $10.5 million. The Street consensus was for $6.6 million. LivePerson (LPSN) also raised its full year 2020 revenue guidance to a range of $357 million to $361 million, up from previous guidance of $340 million to $355 million. Analysts had forecast $347.45 million. For the third quarter, the company expects to generate $92 million-$93 million, which is above the analyst consensus of $89.35 million.
In addition, LivePerson is targeting full-year growth of 22% to 24%, up from 17% to 22% previously. LivePerson is helping companies to better communicate with customers through its AI-based communication platform. The coronavirus pandemic has forced multiple call centers around the world to change their work mode from office- to-home, which in turn has boosted demand for the company’s services.
“We expect that our focus on internal automation and a tight discipline around expense controls will enable the company to continuing driving year-over-year profit improvements and margin expansion even while investing in key growth drivers of AI, product innovation, go-to-market capacity and tech infrastructure,” the company said in a statement. “LivePerson is entering the second half of 2020 with a favorable backdrop comprised of strong year-to-date contract signings, better-than-anticipated conversation volumes on our platform and a robust sales pipeline.”
LivePerson added that it “continues to balance this strengthening outlook with a healthy respect for the potential risks that may arise from a poor macroeconomic environment.”
Ryan MacDonald ramped up the stock’s price target to $60 (30% upside potential) from $33 and reiterated a Buy rating, saying that the company is “firing on all cylinders.”” data-reactid=”21″>Following the guidance, Needham analyst Ryan MacDonald ramped up the stock’s price target to $60 (30% upside potential) from $33 and reiterated a Buy rating, saying that the company is “firing on all cylinders.”
“The COVID-19 pandemic has clearly driven increased volumes within the contact center, requiring businesses to expand the number of channels through which they can interact with consumers,” MacDonald wrote in a note to investors. “We expect LPSN to remain a key beneficiary and continue to accelerate top line growth into FY21, while also improving leverage in the model.”
Strong Buy analyst consensus boasts 9 Buys versus 2 Holds. With shares up 25% so far this year, the $47.70 average price target implies a modest 3.2% upside potential to current levels. (See LPSN stock analysis on TipRanks)” data-reactid=”23″>The rest of the Street shares MacDonald’s bullish outlook. The Strong Buy analyst consensus boasts 9 Buys versus 2 Holds. With shares up 25% so far this year, the $47.70 average price target implies a modest 3.2% upside potential to current levels. (See LPSN stock analysis on TipRanks)
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