Why LivePerson Stock Tumbled Today

·2 min read

Shares of LivePerson (NASDAQ: LPSN) were taking a dive today after the conversational artificial-intelligence company missed the mark in its second-quarter earnings report and lowered its guidance for the year. LivePerson, a software-as-a-service company that powers chatbots and other messaging tools for businesses, said that revenue in the quarter increased 11% to $132.6 million, which was below estimates at $135.6 million. Revenue growth was sluggish in part because of the company's efforts to eliminate "low-quality sources of revenue" in order to focus on larger deals with high-value customers to expand its margins.