It's been a mediocre week for LivePerson, Inc. (NASDAQ:LPSN) shareholders, with the stock dropping 14% to US$1.01 in the week since its latest quarterly results. Revenues of US$60m arrived in line with expectations, although statutory losses per share were US$0.17, an impressive 38% smaller than what broker models predicted. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus, from the four analysts covering LivePerson, is for revenues of US$236.9m in 2025. This implies an uncomfortable 13% reduction in LivePerson's revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 61% to US$0.71. Before this earnings announcement, the analysts had been modelling revenues of US$241.7m and losses of US$0.91 per share in 2025. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a very favorable reduction to losses per share in particular.

See our latest analysis for LivePerson

There's been no major changes to the consensus price target of US$1.12, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic LivePerson analyst has a price target of US$1.50 per share, while the most pessimistic values it at US$0.85. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. Over the past five years, revenues have declined around 4.0% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 24% decline in revenue until the end of 2025. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 13% per year. So while a broad number of companies are forecast to grow, unfortunately LivePerson is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$1.12, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple LivePerson analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that LivePerson is showing 5 warning signs in our investment analysis , and 1 of those can't be ignored...

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