LivePerson Net Income vs. Operating Margin

LPSN Stock  USD 0.97  0.02  2.11%   
Considering LivePerson's profitability and operating efficiency indicators, LivePerson may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in December. Profitability indicators assess LivePerson's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2000-03-31
Previous Quarter
41.8 M
Current Value
-28.3 M
Quarterly Volatility
16.8 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 29th of November 2024, Price To Sales Ratio is likely to drop to 0.70. In addition to that, Days Sales Outstanding is likely to drop to 70.96. At this time, LivePerson's Total Other Income Expense Net is very stable compared to the past year. As of the 29th of November 2024, Interest Income is likely to grow to about 8.9 M, though Accumulated Other Comprehensive Income is likely to grow to (8.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.530.6447
Significantly Down
Slightly volatile
For LivePerson profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LivePerson to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LivePerson utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LivePerson's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LivePerson over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
To learn how to invest in LivePerson Stock, please use our How to Invest in LivePerson guide.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LivePerson. If investors know LivePerson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LivePerson listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.75)
Revenue Per Share
3.826
Quarterly Revenue Growth
(0.27)
Return On Assets
(0.07)
Return On Equity
(1.38)
The market value of LivePerson is measured differently than its book value, which is the value of LivePerson that is recorded on the company's balance sheet. Investors also form their own opinion of LivePerson's value that differs from its market value or its book value, called intrinsic value, which is LivePerson's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LivePerson's market value can be influenced by many factors that don't directly affect LivePerson's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LivePerson's value and its price as these two are different measures arrived at by different means. Investors typically determine if LivePerson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LivePerson's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

LivePerson Operating Margin vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining LivePerson's current stock value. Our valuation model uses many indicators to compare LivePerson value to that of its competitors to determine the firm's financial worth.
LivePerson is rated below average in net income category among its peers. It is rated below average in operating margin category among its peers . LivePerson reported last year Net Loss of (100.44 Million). The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the LivePerson's earnings, one of the primary drivers of an investment's value.

LivePerson Operating Margin vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

LivePerson

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(100.44 M)
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

LivePerson

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0.20) %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

LivePerson Operating Margin Comparison

LivePerson is currently under evaluation in operating margin category among its peers.

LivePerson Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in LivePerson, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LivePerson will eventually generate negative long term returns. The profitability progress is the general direction of LivePerson's change in net profit over the period of time. It can combine multiple indicators of LivePerson, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-8.5 M-8.1 M
Operating Income-111.4 M-105.8 M
Net Loss-100.4 M-95.4 M
Income Tax Expense4.2 M2.9 M
Income Before Tax-96.3 M-91.5 M
Total Other Income Expense Net15.1 M15.9 M
Net Loss-203.2 M-193 M
Net Loss-101.6 M-96.6 M
Non Operating Income Net Other-1.6 M-1.5 M
Interest Income8.5 M8.9 M
Net Interest Income4.4 M4.6 M
Change To Netincome121.4 M127.5 M
Net Loss(1.28)(1.21)
Income Quality 0.20  0.34 
Net Income Per E B T 1.04  1.20 

LivePerson Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on LivePerson. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of LivePerson position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the LivePerson's important profitability drivers and their relationship over time.

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When determining whether LivePerson offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of LivePerson's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Liveperson Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Liveperson Stock:
Check out Correlation Analysis.
To learn how to invest in LivePerson Stock, please use our How to Invest in LivePerson guide.
You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
To fully project LivePerson's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of LivePerson at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include LivePerson's income statement, its balance sheet, and the statement of cash flows.
Potential LivePerson investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although LivePerson investors may work on each financial statement separately, they are all related. The changes in LivePerson's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on LivePerson's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.