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  "docSlug": "jarvis-starboard-value-liveperson-letter-to-sharedholder-may-2023",
  "documentTitle": "Starboard Value Liveperson Letter to Sharedholder May 2023",
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  "presentationDate": "2023-05-01 00:00:00",
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      "kind": "paragraph",
      "text": "As a result of this atrocious financial performance and investors' complete lack of faith in management, LivePerson has been among the worst performing publicly-traded software companies over almost any time period.",
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      "text": "Regrettably, just two weeks after the announcement of our settlement and the Board's assertion that performance would improve, LivePerson reported results for Q2 2022 and materially lowered its outlook for the full year. The stock was down more than 20% the following day. Since that time, LivePerson's performance has only gotten worse – revenue growth has continued to slow dramatically, and LivePerson has not been able to make the requisite improvements to profitability to create a sustainable financial profile. In fact, LivePerson has not generated positive annual free cash flow in any of the last five years, and the Company is expected to burn cash again in 2023.1 After the Company reported results for the latest quarter, Q4 2022, the stock fell nearly 60% the next day, due to yet another severe cut to the forward outlook.",
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      "text": "Therefore, in the spirit of constructive engagement and with the hope that the then-incumbent Board was correct in its assertions that the Company was at an inflection point, we agreed to allow Mr. LoCascio and the incumbent management team to remain in place, while ensuring that at least three new directors would join the nine-person Board.",
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      "text": "that LivePerson needed a change of CEO, the Board insisted that it was committed to Mr. LoCascio, as it felt that LivePerson was finally well positioned for success after years of challenges. Moreover, the Company's stockholder-unfriendly staggered Board structure prohibited us from pursuing a level of change that would have resulted in a change in a majority of the Board.",
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      "text": "The only conclusion we can draw from the Board's lack of action despite these results is that more change is needed in order to ensure that a majority of the Board is made up of non-conflicted, independent, and qualified directors who can make better decisions on behalf of all stockholders. To that end, we have nominated a slate of directors for election at the 2023 Annual Meeting whom",
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      "text": "1 Source: Public company filings and Bloomberg. Free cash flow calculated as Net cash provided by (used in) operating activities less Purchases of property and equipment, including capitalized software. Market data as of May 3, 2023.",
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      "text": "Relative Total Shareholder Returns(1) LivePerson Software Sector ETF(2) Underperformance Since Settlement (73.6%) (1.5%) (72.1%) 1-Year (80.6%) (4.7%) (75.9%) 3-Year (81.1%) 23.8% (104.9%) 5-Year (74.5%) 66.2% (140.6%) 10-Year (67.3%) 327.4% (394.7%)",
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