LivePerson Announces Board Refreshment and Cooperation Agreement with Vector Capital

LivePerson : Announces New Board Nominee and Additional Board of Directors Refreshment Form 8 K

LivePerson Announces New Board Nominee and Additional Board of Directors Refreshment Enters into a Cooperation Agreement with Vector Capital Management, the Company's Largest Shareholder Continues Planned Board Refreshment through a Collaborative Process to Add New Directors NEW YORK, New York, October 23, 2024 /PRNewswire/ - LivePerson, Inc. (Nasdaq: LPSN) (the "Company"), the enterprise leader in digital-first customer conversations, has entered into a cooperation agreement (the "Cooperation Agreement") with Vector Capital Management, L.P. (collectively with its affiliates, "Vector"), which owns approximately 12% of the Company's outstanding common stock. As part of the Company's ongoing process to refresh its board of directors (the "Board"), the Company is pleased to announce its plan to nominate Dan Fletcher, the Chief Financial Officer of Planful, a portfolio company of Vector, as one of the Company's two nominees for election to the Board at the Company's 2024 Annual Meeting of Stockholders, in accordance with the Cooperation Agreement. Mr. Fletcher brings extensive industry experience and operational expertise to the Company, which will help advance the Company's strategic objectives, and ultimately, its goal to enhance shareholder value. Additionally, following the conclusion of the Company's 2024 Annual Meeting, the Board will appoint an additional director to be identified in cooperation with Vector, having relevant experience to further complement the existing Board and to support the Company's business and value creation goals. "The Company's Board and management remain focused on enhancing the Board with new directors who bring skills, expertise and industry experience to support the execution of the Company's strategy, with the goal of producing long-term value for all shareholders," said Jill Layfield, Chair of the Board. "We are pleased to nominate Mr. Fletcher, as well as to strengthen alignment with our largest shareholder. We believe our new board members will provide significant value, bringing additional operational expertise and industry experience to support our commitment to long-term value creation for all shareholders." Alex Slusky, Managing Director and Chief Investment Officer of Vector, added, "As the Company's largest shareholder, we appreciate the collaborative relationship with the Company that has resulted in this agreement. The Board's nomination of Mr. Fletcher reinforces our confidence in the Company's corporate governance and management, and demonstrates its receptivity to shareholder input. Our shared objective is to contribute our experience and industry knowledge to support LivePerson's turnaround and delivery of enhanced value for all shareholders." Pursuant to the terms of the Cooperation Agreement, Vector has agreed to certain customary standstill and mutual non-disparagement provisions. Vector has also agreed to a voting commitment and related provisions in connection with the Cooperation Agreement. The complete Cooperation Agreement will be included as an exhibit to a Current Report on Form 8-K, which will be filed by the Company with the U.S. Securities and Exchange Commission (the "SEC"). About LivePerson, Inc. LivePerson, Inc. (NASDAQ: LPSN) is the enterprise leader in digital customer conversations. The world's leading brands - including HSBC, Chipotle, and Virgin Media - use our award-winning Conversational Cloud platform to connect with millions of consumers. We power nearly a billion conversational interactions every month, providing a uniquely rich data set and AI-powered solutions to accelerate contact center transformation, supercharge agent productivity, and deliver more personalized customer experiences. Fast Company named us the #1 Most Innovative AI Company in the world. To talk with us or our AI, please visit liveperson.com.

LivePerson nominates new board member, aligns with Vector Capital By Investing.com

NEW YORK - LivePerson, Inc. (NASDAQ: LPSN), a leading provider of digital customer conversation tools, has announced a cooperation agreement with Vector Capital Management, L.P., its largest shareholder. As part of the board of directors' ongoing refreshment process, Dan Fletcher, CFO of Planful, will be nominated for election to the board at the upcoming Annual Meeting of Stockholders. The nomination of Fletcher is in accordance with the recently established cooperation agreement with Vector, which holds approximately 12% of LivePerson's outstanding common stock. The addition of Fletcher to the board is aimed at enhancing the company's strategic objectives and shareholder value. Following the Annual Meeting, set for November 4, 2024, the board will also appoint another director in collaboration with Vector to further support the company's business and value creation goals. Jill Layfield, Chair of the Board at LivePerson, emphasized the company's commitment to long-term value for shareholders and expressed confidence that the new board members will bring valuable operational expertise and industry experience. Alex Slusky of Vector echoed this sentiment, highlighting the collaborative relationship and shared goals to support LivePerson's turnaround. The cooperation agreement includes standard standstill provisions, a mutual non-disparagement agreement, and a voting commitment from Vector. Details of the agreement will be filed with the U.S. Securities and Exchange Commission and included in a Current Report on Form 8-K. LivePerson's Conversational Cloud platform is used by major brands to manage digital customer interactions, and the company has been recognized for its innovative AI solutions. Vector Capital, a San Francisco-based investment firm with a focus on technology and technology-enabled businesses, has been a key investor in technology firms, driving operational transformation and financial results. The news of this board refreshment and cooperation agreement is based on a press release statement from LivePerson, Inc. In other recent news, LivePerson Inc. has been actively addressing its operational and financial challenges. The company reported Q2 2024 earnings with a revenue of $79.9 million and an adjusted EBITDA of $8.2 million, exceeding expectations. However, it also reported a year-over-year decline in B2B hosted services revenue by 17% and core recurring revenue by 18%. In a strategic move, LivePerson's founder and former CEO, Robert P. LoCascio, has nominated two new candidates, Walter Bachtiger and Michal Czwarno, for the company's Board of Directors. This step is seen as a potential turnaround strategy, given their expertise in artificial intelligence and business-to-business operations. In addition to board nominations, LivePerson has implemented cost reductions, including the divestiture of Wild Health, which resulted in savings of $3 to $5 million in expenses. Plans are also underway to raise new capital to reduce debt and strengthen the balance sheet. Despite an expected sequential revenue decline, the company ended the quarter with $146 million in cash and anticipates improvements in new annual recurring revenue. These recent developments underscore LivePerson's efforts to navigate current market challenges and lay the groundwork for future growth. As LivePerson, Inc. (NASDAQ: LPSN) moves forward with its board refreshment process and cooperation agreement with Vector Capital, investors should be aware of some key financial metrics and insights provided by InvestingPro. According to InvestingPro data, LivePerson's market capitalization stands at $105.04 million, reflecting its current position in the digital customer conversation tools market. The company's revenue for the last twelve months as of Q2 2024 was $361.82 million, with a concerning revenue growth rate of -20.86% over the same period. This decline in revenue aligns with an InvestingPro Tip indicating that analysts anticipate a sales decline in the current year. The company's financial health appears to be under pressure, as highlighted by several InvestingPro Tips. LivePerson is operating with a significant debt burden and may have trouble making interest payments on its debt. Additionally, the company is quickly burning through cash, which could be a concern for investors considering the company's turnaround efforts mentioned in the cooperation agreement. On a more positive note, LivePerson has seen a strong return over the last month, with a 16.04% price total return. This recent uptick could be related to the announcement of the cooperation agreement and board changes, as investors may be optimistic about the potential for improved strategic direction. For those interested in a deeper analysis, InvestingPro offers 14 additional tips for LivePerson, providing a more comprehensive view of the company's financial situation and market position.