Jeffrey Ford (NYSE:F), the Chief Accounting Officer of LivePerson Inc. (NASDAQ:LPSN), recently sold 21,935 shares of the company's common stock. The transaction, dated October 21, was valued at approximately $24,896, with shares sold at an average price of $1.135 each. This sale was executed to cover Ford's tax liabilities related to the vesting of restricted stock units. Following this transaction, Ford retains ownership of 378,707 shares, which includes 340,482 unvested restricted stock units.
In other recent news, LivePerson Inc. has seen significant developments. The company's Q2 2024 earnings report revealed a revenue of $79.9 million, exceeding expectations, and an adjusted EBITDA of $8.2 million. However, the company also reported a year-over-year decline in B2B hosted services revenue by 17% and core recurring revenue by 18%.
LivePerson founder and former CEO, Robert P. LoCascio, has nominated two new candidates, Walter Bachtiger and Michal Czwarno, for the company's Board of Directors. This comes as LivePerson faces challenges, including a substantial revenue loss and stock value decline. The nominees' expertise in artificial intelligence and business-to-business operations could be instrumental in LivePerson's recovery.
LivePerson also announced a successful deal with Lynrock Lake to address 2026 convertible notes, and the early launch of new pricing. The divestiture of Wild Health resulted in savings of $3 to $5 million in expenses, and plans are underway to raise new capital to reduce debt and strengthen the balance sheet. Despite an expected sequential revenue decline, the company ended the quarter with $146 million in cash and anticipates improvements in new annual recurring revenue.
InvestingPro Insights
As LivePerson's Chief Accounting Officer Jeffrey Ford sells shares to cover tax liabilities, investors might benefit from a closer look at the company's financial health. According to InvestingPro data, LivePerson's market capitalization stands at $109.94 million, reflecting its current position in the market.
Two key InvestingPro Tips shed light on LivePerson's financial situation. First, the company is "quickly burning through cash," which aligns with the recent stock sale by an executive to cover tax obligations. Second, LivePerson "operates with a significant debt burden," potentially impacting its financial flexibility.
The company's revenue for the last twelve months as of Q2 2023 was $361.82 million, with a concerning revenue growth of -20.86% over the same period. This decline in revenue is consistent with another InvestingPro Tip indicating that "analysts anticipate sales decline in the current year."
These insights provide context to Ford's stock transaction and LivePerson's overall financial picture. For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on LivePerson, providing a deeper understanding of the company's prospects and challenges.
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