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AI Customer Service Surges Past Humans, Boosting LivePerson's Fortunes

Published 2020-08-05, 11:05 a/m
Updated 2020-08-05, 11:07 a/m
© Reuters.

By Christiana Sciaudone

Investing.com --  Seems like it's not just teens that prefer to chat rather than talk these days, and LivePerson is benefiting. 

The artificial intelligence company surged more than 21% after boosting guidance and reporting better-than-expected results as the shift away from traditional call centers speeds ahead, and robots replace humans.

LivePerson Inc (NASDAQ:LPSN) raised revenue guidance for the 2020 to a range of $357 million to $361 million, up from previous guidance of $340 million to $355 million. The company is targeting full year growth of 22% to 24%, up from 17% to 22% previously. Adjusted earnings before taxes, interest, depreciation and amortization for the year is expected at between $16 million and $19 million, up from prior guidance of $3.5 million to $10.5 million.

For the second quarter, LivePerson reported a loss per share of 3 cents, which beat the expected loss of 10 cents, on $91.6 million in revenue, which was 29% higher than a year earlier. The average analyst estimate was for revenue of $84 million.

 "LivePerson delivered one of the best quarters in its history as it helped leading brands navigate one of the most challenging events in history," said CEO and Founder, Rob LoCascio. "With work from home and social distancing the new normal, the concept of the traditional voice call center has become obsolete. Demand for our platform rose significantly in the second quarter as brands rushed to fill the void with AI-powered messaging."          

The shares have 11 buy ratings, two holds and no sells. 

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