LivePerson's 2025 Q1 Earnings Call: Unpacking Contradictions in Deal Dynamics and AI Strategies

Deal slippage and macro environment impact, partner attach targets, AI integration and partnership strategy, deal slippage and customer response, and customer engagement and churn improvement are the key contradictions discussed in LivePerson's latest 2025Q1 earnings call.



Revenue and Financial Performance:
- LivePerson reported revenue of $64.7 million for Q1, above the midpoint of their guidance range.
- The improvement was driven by better-than-expected retention and continued optimization of the cost structure.

AI Demand and Deal Expansion:
- LivePerson observed increasing demand for AI agents and AI orchestration, which added new approval gates for risk and compliance.
- This resulted in deal sizes expanding as they progressed through the sales cycle, reflecting a demonstrable return on investment from their platform.

Partner Ecosystem and Integration:
- LivePerson continues to see growing momentum driven by their flexible architecture and LLM-agnostic approach.
- The upcoming integration with Amazon Connect is expected to further expand their partner ecosystem and reach more customers.

Macroeconomic Factors and Sales Cycles:
- The macroeconomic environment played a role in the elongation of sales cycles, though the extent of its impact on LivePerson was unclear.
- Despite macroeconomic uncertainties, most deals did not shrink or customers back away, with many deals expanding in size.

Customer Expansion and Retention:
- LivePerson signed 50 deals in the first quarter, including five new logos and 45 expansions and renewals, a quarter-over-quarter increase of 25%.
- Propelled by AI capabilities, significant renewals and expansions included one of the world's largest banks and IBM, reflecting strong customer loyalty.