Markets

Why LivePerson Stock Jumped on Wednesday

What happened

Shares of high-tech customer support solutions specialist LivePerson (NASDAQ: LPSN) soared on Wednesday, rising as much as 29.1%. As of 11 a.m. EDT, the stock was up 21.5%.

The stock's gain follows the tech company's second-quarter earnings release. Bullishness for the stock on Wednesday likely reflects the company's stronger-than-expected revenue and management's optimistic outlook for the rest of the year.

A chart showing a stock price rising

Image source: Getty Images.

So what

LivePerson announced revenue of $91.6 million, up 29% year over year. In addition, the company's net loss per share improved from $0.38 in the year-ago period to $0.28. 

While LivePerson's loss per share missed analysts' average forecast for a loss per share of $0.11, the company's top-line result blew past a consensus forecast for revenue of $83.9 million.

"Demand for our platform rose significantly in the second quarter as brands rushed to fill the void with AI-powered messaging," said LivePerson founder and CEO Rob LoCascio.

Now what

With such a strong quarter behind it, management lifted its full-year outlook. The company now expects revenue between $357 million and $361 million. Previously, LivePerson had guided for revenue between $340 million and $355 million. Management also said it now expects full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be between $16 million and $19 million, up from a previous forecast for $3.5 million to $10.5 million.

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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool recommends LivePerson. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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