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The call reflects cautious optimism: clear execution wins (Q4 beat, positive adjusted EBITDA, product launch of Syntrix, accelerating AI adoption, meaningful enterprise renewals, and stronger partnerships especially with Google) balanced against material near-term revenue headwinds (hosted and professional services declines, sub-80% net revenue retention trend, RPO declines) and guidance that implies year-over-year revenue pressure in 2026. Management framed 2026 as a transition year with investments to achieve positive net new ARR in H2; upside depends on scaling Syntrix and marketplace motions.
LivePerson guided full-year 2026 revenue of $195M–$207M (≈92% recurring) with adjusted EBITDA of a loss of $4M to a gain of $7M (and does not expect adjusted EBITDA less CapEx to be positive in 2026); the company expects positive net new ARR in H2 but said prior negative net ARR will cause revenue to decline through the year with the rate of decline flattening in H2. For Q1 2026 it guided revenue of $53M–$55M (roughly a $5M midpoint sequential decline vs Q4’s $59.3M) and adjusted EBITDA of $2M–$5M, expects slightly negative free cash flow, finished Q4 with $95M cash, and noted that Syntrix commercialization and Google Cloud Marketplace represent upside to the guidance.
Q4 revenue of $59.3M came in above the high end of guidance (driven by higher variable revenue). Adjusted EBITDA was $10.8M, also above the high end of guidance, reflecting benefits from the prior restructuring and disciplined cost execution.
Launched Syntrix (simulation and assurance platform) with Conversation Simulator as GA; moved from early access to paying enterprise customers across banking, telecommunications and technology. Syntrix uses conversation-based (consumption) pricing and management stated early opportunities are 'millions, not hundreds of thousands.'
Over 20% of Q4 conversations leveraged LivePerson's generative AI suite. Multiyear platform modernization remains on track for completion in H1 2026 to support higher generative AI traffic and improved resiliency.
Deepening Google Cloud partnership (standardized on Google Gemini, launched RCS channel) and a multimillion-dollar renewal via Google Cloud Marketplace; expecting a material amount of revenue to flow through marketplace by end of 2026. Partnerships with IT Solutions and Coral Active (LivePerson Sync) expanding market reach and simplifying procurement.
Signed 40 deals in Q4 (4 new logos, 36 expansions). Notable renewals included 7 major financial services institutions, 2 airlines, 3 telecom/ISPs and a major health care provider. Over 40% of renewals included expansion commitments. Average revenue per customer increased to $680K, up 9% year-over-year.
Ended Q4 with $95M cash and reported improved cost structure from prior quarter restructuring that materially improved adjusted EBITDA. Management emphasized disciplined spending and targeted reinvestments to drive future growth.
Recurring revenue was $52.9M, representing 89% of total revenue (company expects ~92% recurring for full-year 2026), highlighting a durable subscription-like revenue base.