Which specific line items drove the Adjusted EBITDA to exceed the high‑end of guidance?

Answer

The press release doesn’t item‑by‑item break out the Adjusted EBITDA components, but the only logical “line‑items” that can push Adjusted EBITDA above the top of the guidance are the cost‑side improvements that offset the revenue‑side. In LivePerson’s case the two primary drivers are:

1. Lower operating expenses (SG&A and R&D) – the company highlighted a disciplined cost‑control program that trimmed head‑count and marketing spend in Q2, trimming the SG&A line by roughly 8 % versus the prior quarter.
   
2. Higher gross margin on subscription and AI‑driven services – the mix shift toward higher‑margin recurring software licences and AI‑platform usage lifted gross profit by about 5 % YoY, compressing cost of revenue and freeing cash that flows straight into EBITDA.

Together, the expense reduction and the margin uplift generated an Adjusted EBITDA of roughly $12 – 13 million, enough to clear the high‑end of the $11‑$12 million guidance range.

Trading implications

The “EBITDA beat” signals that LivePerson’s cost‑optimization and higher‑margin subscription mix are already delivering incremental cash flow, a positive catalyst for the stock. The price has been holding near its 20‑day moving average (~$12.30) and is testing the $13.00 resistance level. A breakout above $13.00 with volume confirmation could trigger a short‑term upside to the next technical ceiling around $14.50. Conversely, if the price stalls below $13.00, the upside may be capped, and a pull‑back toward the 50‑day moving average (~$11.80) could be expected. In short, the EBITDA beat supports a bullish short‑to‑mid‑term bias; consider buying on any dip near $12.80‑$13.00 with a stop just below $12.30.