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LivePerson, which provides communications solutions for online sales, marketing and customer service, announced results and saw it's stock chopped by 20%. Quick overview of Q4 results, then a comment:


Q4 results

  • Revenue was $4.6 million, up 32% year over year and  6% sequentially.
  • Net income was $0.4 million or $0.01 per share, versus $0.4 million or $0.01 per share in Q3 and $0.3 million, or $0.01 per share a year earlier.

Guidance

  • Sequential quarterly revenue growth of 6%, to $4.9 million for Q1 2005.
  • Revenue of $22.0 million for the full year 2005. (2004 revenue was $17.4 million.)
  • EBITDA of $0.01 per share and GAAP EPS of $0.00 in Q1 2005.
  • EBITDA of $0.11 per share and GAAP EPS of $0.05 for the full year 2005. (2004 GAAP EPS was $0.06.)

Quick comment:
Interesting excerpt from the Thomson conference call transcript:

We are significantly increasing our marketing, investment, and focus on our lost person campaign...

Typo or Freudian slip?

Pattern: Internet stocks are reacting more than anything else to 2005 earnings and revenue guidance relative to expectations. Given the run-up in the stock sector in Q4, investors want to see stronger than previously forecast revenue and earnings growth in 2005, with no excuses. Re-iterating previous guidance or projecting lower growth due to investment or international expansion results in stocks being slapped down.

LPSN chart below.
Lpsn

Source: LivePerson (LPSN) DeadPerson as stock falls 20% (4Q04 earnings)