LivePerson's Q2 2025: Diverging Views on Deal Timing, Renewals, and Sales Cycles Amid Macroeconomic Shifts

Deal timing and macro environment impact, impact of macroeconomic environment on renewals, win rates and sales cycle impact, renewal pressure and customer confidence are the key contradictions discussed in LivePerson's latest 2025Q2 earnings call.



Improved Financial Performance:
- LivePerson reported revenue of $59.6 million for Q2 2025, exceeding the midpoint of their guidance range.
- The company achieved an adjusted EBITDA of $2.9 million, surpassing the high end of their guidance range.

Product Innovation and AI Adoption:
- Conversations powered by LivePerson's Generative AI Suite increased by 45% sequentially, with over 17% of all conversations leveraging at least one form of Generative AI feature.
- The growth in AI adoption reflects the value delivered to customers by improving efficiency and enhancing customer experience.

Strategic Partnerships and Cloud Migration:
- LivePerson deepened its relationship with Google Cloud and expanded its partnership with Databricks, aiming to optimize services and enhance AI capabilities.
- The migration to Google Cloud aims to improve resiliency, free up engineering resources, and better serve customers.

Commercial Challenges and Debt Refinancing:
- The company experienced slower-than-anticipated bookings in the first half of 2025, with renewal hesitation from some larger customers.
- The refinancing agreement with 2026 noteholders was aimed at addressing financial instability concerns and supporting long-term strategic partnerships.

Macroeconomic Uncertainty and Customer Concerns:
- Renewal hesitation was attributed to broader macroeconomic uncertainty extending enterprise buying cycles for high-value AI solutions.
- The refinancing agreement directly addresses customer and partner feedback on financial stability, providing reassurance and potentially benefiting future renewal conversations.