12 Best AI Penny Stocks to Buy According to Hedge Funds

10. LivePerson, Inc. (NASDAQ:LPSN)

Number of Hedge Fund Holders: 6

LivePerson, Inc. (NASDAQ:LPSN) is a global technology company specializing in conversational AI and messaging solutions. Its flagship platform, Conversational Cloud, enables businesses to engage with customers through various channels, including web, mobile, social media, and messaging apps. The platform integrates advanced AI capabilities, such as chatbots and voice assistants, to provide personalized and efficient customer interactions. LPSN serves a diverse clientele across industries like retail, financial services, telecommunications, and healthcare, offering tools for customer intent analysis and workforce optimization. The company’s solutions are utilized by over 18,000 brands worldwide, enhancing digital engagement and customer service operations.

LivePerson, Inc. (NASDAQ:LPSN) delivered a strong performance in Q4 2024, reporting revenue of $73.2 million, which surpassed their guidance range. The company also exceeded expectations for adjusted EBITDA, achieving $8.1 million, well above the guided range of $2.1 million to $7.1 million. A significant portion of this success came from recurring revenue, which totaled $68.6 million and accounted for an impressive 94% of total revenue. The company made notable strides in its GenAI capabilities, with a 17% sequential increase in customers and a 37% sequential rise in conversations leveraging these technologies. Additionally, LPSN gained momentum in deal activity, securing 39 agreements during the quarter, including 30 expansions and renewals alongside 9 new client wins. Highly regulated sectors, such as healthcare, financial services, and telecommunications, contributed 80% of the quarter’s deal values, underscoring the company’s strong industry focus.

Looking ahead, LivePerson, Inc. (NASDAQ:LPSN) plans to deepen its technological footprint with strategic integrations with Cisco and Amazon Connect, slated for the first half of 2025. However, despite these advancements, the company forecasts a revenue decline for fiscal year 2025, with projections between $240 million and $255 million, representing a year-over-year decrease of 18% to 23%. That said, the company remains committed to maintaining its high recurring revenue percentage, which is expected to be 93%. Adjusted EBITDA for 2025 is anticipated to range between $0 million and $14 million, with margins projected between 0.0% and 5.8%. These projections reflect a cautious yet strategic outlook as LPSN focuses on balancing innovation and financial stability. As at least six hedge funds own the stock as of Q4 2024, LPSN is one of the best AI penny stocks to buy according to hedge funds.