Is LivePerson sending any potential warning signs? However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. In addition, Internet service providers and licensors of software products have introduced a variety of systems and products to filter out certain types of commercial email, without any common protocol to determine whether the recipient desired to receive the email being blocked. On October 31, 2017, 59,524,518 shares of the registrant’s common stock were outstanding. Shares were hurt by fears about slowing growth, plus a shift in sentiment away from many tech-based growth stocks in November.
It also marked the sixth consecutive quarter of at least 25% growth, year over year. Prior to nearing Florida, Hurricane Ian pummeled Cuba on Tuesday, leaving at least two dead and an islandwide blackout. So, let’s get back to our original question: Based on DSO and sales, does LivePerson look like it might miss its numbers in the next quarter or two? Opera is a proprietary web browser that has pioneered open web standards for over two decades. MakeMKV can convert video from proprietary (and usually encrypted) discs into a set of MKV files, preserving most information but not changing it in any way. Use it to specify that when the agent or Amazon Lex bot has disconnected from the chat and only the customer remains, the set disconnect flow should run. Today’s customer experience is inconvenient, uninteresting, and provides little value to customers and brands. Their open platform, LiveEngage, is how large brands with millions of consumers deploy messaging at scale. Quarterly periods. Dollar amounts in millions.
Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates. For the quarter ended June 30 (Q2), LivePerson met expectations on revenues and missed estimates on earnings per share. Sales expanded 25% through late September, the artificial intelligence (AI) chat specialist revealed on Nov. 2. That revenue figure, in addition to the adjusted earnings margin of 6% of sales, was near the top of management’s short-term outlook. Operating margin was -4.6%, 620 basis points worse than the prior-year quarter. End-of-quarter DSO increased 18.4% over the prior-year quarter. LivePerson’s latest average DSO stands at 51.3 days, and the end-of-quarter figure is 52.1 days. I prefer to look at end-of-quarter receivables, but I’ve plotted both above. When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.
Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors. Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. The standard way to calculate DSO uses average accounts receivable. Next year’s average estimate for revenue is $176.6 million. LivePerson’s short-term outlook calls for sales growth to slow in the fourth quarter, with revenue rising about 22% to $125 million. For the last fully reported fiscal quarter, LivePerson’s year-over-year revenue grew 15.6%, and its AR grew 38.4%. That’s a yellow flag. Compared to the prior-year quarter, revenue grew. For the quarter, gross margin was 75.5%, 240 basis points worse than the prior-year quarter. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month.