Update: LivePerson Earnings

| About: LivePerson, Inc. (LPSN)


The company managed to beat 2Q consensus on the top and bottom lines.

Our long-term thesis is still bearish despite the huge move upward of late.

We didn’t anticipate the latest strength, but still see the competition as a big headwind.

LivePerson (NASDAQ:LPSN) managed to post 2Q earnings of $0.06 a share (besting consensus of $0.05) and revenues marginally beat. The company put its 2014 guidance for EPS to a loss of $0.11 to $0.07.

Consensus for 2014 remains at a loss of $0.07 a share. But revenue guidance for 2014 was up to $204 million to $207 million, above previous consensus of $202.7 million.

Shares are up 37% since we first covered it in October. This comes as shares are up 28% over the last month thanks to 2Q earnings. We put a price target of $5.40 back in October and the company moved against us of late. But at the time, we noted,

Competition is also fierce, and LivePerson doesn't appear to offer any distinct advantages. And the other issue is that switching costs for customers are minimal. Its service agreements are terminable with just 30 to 90 days' notice. As far as how LivePerson stacks up to competitors, consider Top 10 Reviews breakdown of the live chat support market.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.