Rob LoCascio | CEO

Dan Murphy | CFO

Investor UpdateMarch 2017

2

Safe Harbor ProvisionStatements in this presentation regarding LivePerson that are not historical facts are forward-looking statements and are subject to risks and uncertainties that

could cause actual future events or results to differ materially from such statements. Any such forward-looking statements, including but not limited to financial

guidance, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. It is routine for our internal projections and

expectations to change as the quarter and year progress, and therefore it should be clearly understood that the internal projections and beliefs upon which we

base our expectations may change. Although these expectations may change, we are under no obligation to inform you if they do. Actual events or results

may differ materially from those contained in the projections or forward-looking statements. Some of the factors that could cause actual results to differ

materially from the forward-looking statements contained herein include, without limitation: potential fluctuations in our quarterly revenue and operating results;

competition in the markets for online sales, marketing and customer service solutions, and online consumer services; our abil ity to retain existing clients and

attract new clients; risks related to new regulatory or other legal requirements that could materially impact our business; volatility of the value of certain

currencies in relation to the U.S. dollar, particularly the currency of regions where we have operations; additional regulatory requirements, tax liabilities,

currency exchange rate fluctuations and other risks as we expand internationally and/or as we expand into direct-to-consumer services; impairments to

goodwill that result in significant charges to earnings; responding to rapid technological change and changing client preferences; the adverse effect that the

global economic downturn may have on our business and results of operations; our ability to retain key personnel, attract new personnel and to manage staff

attrition; our ability to expand our operations internationally; risks related to the ability to successfully integrate past or potential future acquisitions; failures or

security breaches in our services, those of our third party providers, or in the websites of our customers; risks related to the regulation or possible

misappropriation of personal information belonging to our customers’ Internet users; technology systems beyond our control and technology-related defects

that could disrupt the LivePerson services; privacy concerns relating to the Internet that could result in new legislation or negative public perception; legal

liability and/or negative publicity for the services provided to consumers via our technology platforms; risks related to protecting our intellectual property rights

or potential infringement of the intellectual property rights of third parties; risks related to technological or other defects distributing our services; increased

allowances for doubtful accounts as a result of an increasing amount of receivables due from customers with greater credit risk; delays in our implementation

cycles; risks associated with the recent volatility in the capital markets; our ability to secure additional financing to execute our business strategy; risks

associated with our current or any future stock repurchase programs, including whether such programs will enhance long-term stockholder value, and whether

such stock repurchases could increase the volatility of the price of our common stock and diminish our cash reserves; our abi lity to license necessary third

party software for use in our products and services, and our ability to successfully integrate third party software; changes in accounting principles generally

accepted in the United States; our ability to maintain our reputation; risks related to our complex products; our recognition of revenue from subscriptions; our

lengthy sales cycles; risks related to our operations in Israel, and the civil and political unrest in that region; natural catastrophic events and interruption to our

business by man-made problems; the high volatility of our stock price; and risks related to our common stock being traded on more than one securities

exchange. This list is intended to identify only certain of the principal factors that could cause actual results to differ from those discussed in the forward-looking

statements. Readers are referred to the reports and documents filed from time to time by us with the Securities and Exchange Commission for a discussion of

these and other important risk factors that could cause actual results to differ from those discussed in forward-looking statements.

3

The Leading Messaging Platform Connecting Brands and Consumers

Strong Historical Operating Performance

($ in millions)

LPSN Snapshot

• Founded 1995

• Public since 2000

(NASDAQ: LPSN)

• 1,000 employees (approx.)

• 18,000 customers (approx.)

• 2B visitors monitored

(per month)

• Headquartered in New York

City with offices across Asia,

Australia, Europe and the U.S.

270 BILcustomer service

calls each year

85%of callers are

put on hold

67%hang up

48%feel unhelped

5

Pioneering Brand-to-Consumer Messaging

2000

User-Initiated ‘Click to

Chat’ on the Web

REACTIVE CHAT

2016

100012 6

EmployeesOffices Data Centers

Fully Integrated Platform

Powering Always on Digital

Connection across Devices

LIVE ENGAGE

SECURE AND

SCALABLE ENTERPRISE

MESSAGING PLATFORM

2011

~ 130 million interactions

INTELLIGENT

DIGITAL ENGAGEMENT

SUITE

2006

Targeted Chat Invites

Based on Real-Time

Consumer Behavior

PROACTIVE CHAT

~ 30 million chats

Enterprise Chat, Content,

& Analytics Solutions

Fueled by Big Data

• Begins Investing in

LiveEngage

• Advances International

Expansion

~ 300 million interactions

Millions of devices~ 5 million chats

Opens 1st International

Office in London

Initial Public Offering

Click to edit

Master title style

Click to Edit Master

Title StyleThe Consumer has Moved On

We’re Past the Mobile Tipping PointN

um

be

r o

f G

loba

l U

se

rs (

Mill

ions)

2007 2008 2009 2010 2011 2012 2013 2014 2015

2000

1800

1600

1400

1200

1000

800

600

400

200

0

You are here

Mobile

Desktop

Source: comScore, The U.S. Mobile App Report, 2014

People prefer the freedom of messaging over being tied to a phone call

How We Connect

76% 5:1 #1 5 to 3would rather use

a mobile app

than call the

contact center

time spent

messaging vs

calling

Messaging ranks

1st for uses of a

mobile phone…

voice ranks 6th

65+ year olds

message more

than call

Sources: Amdocs, IDC, Hailo and Pew Research

Wants time back

Multitasking

"Always on” relationship

Call us (800#)

Navigate IVR & wait on hold

Single task

Transactional

Consumer Brand

Messaging •

•

•

•

•

•

•

•

10

The Heart of the Connection Center LiveEngage, our open platform

Consumer endpoints LiveEngage platform Backend integrations

APIs to support

any endpoint

APIs to

support any

backend

system

Workforce

managementWorkflowmessaging and workflow software

Measurementsbuilt-in advanced analytics

(A)-IntelligenceAI, bots, and other advanced technologies

CRM

E-commerce

Business

intelligenceApps

Facebook

Mobile web

Google / SMS

Web

Click to edit

Master title style

Redefining Best-in-Class Brand Connections

LiveEngage Platform

• Built for Mobile & Messaging

• Open Platform for AI/Bots

• Role-based Real-time Analytics

• Robust Real-time Reporting

• Predictive Intelligence

• Measuring Connection

• Designed to Simplify

Enterprise Scalability

2B Visits monthly

300M Interactions per year

~ 2M Parameters per minute

Millions of messaging devices

Enterprise Security

12

Connection Center vs Contact Center VisionDramatically Improve Customer Experience & Profitability

CX

Increase customer satisfaction• Engaging on your time

• Always on connection

• Increased first contact resolution

• Fewer escalations

• Continuous conversation history

• Agents own the relationship

Profitability

Increase revenue through:• Higher customer lifetime value

• Increase customer spend

Reduce expenses through:

• Fewer interactions

• Lower cost per interaction

• Reduced agent attrition

• Shorter learning curve

13

Messaging TAM of 270 Billion Conversations

1-800 # Calls

270 Billion

10% (27 Billion)

Initial Target

A Transformative Opportunity for Customer Care and LivePerson

…but limited penetration of each contact center

Leading web chat share…

6x-10x Interaction

Expansion

Opportunity

~300 million

interactions

Up to

15%

14

Completing the Migration in 2017

3Q:17E

Annualized Revenue on Legacy ~ $10M

Revenue % on Legacy < 5%

Revenue Rapidly Shifting to LiveEngage

1Q:16 2Q:16 3Q:16 4Q:16

% Customers on LiveEngage 57% 72% 79% 93%

% Software RMR on LiveEngage 24% 37% 58%

% Including Migration Funnel 60% 73% 84%

*Note: RMR is recurring monthly revenue. Migration funnel represents the remaining revenue from customers that have already begun moving business onto LiveEngage.

Migration to End 3Q:17 with Small Group of Sandboxed Legacy Customers

15

Strong Leading Indicators for LiveEngage

4Q:16 Usage LiveEngage Historical Legacy

Full Service Brands with > 1 Interaction Type ~ 25% ~ 10%

Interactions on Mobile ~ 30% ~ 10%

Same-Customer YoY Usage Growth > 10%

Devices Installed with Messaging > 10M

2016 Retention LiveEngage LivePerson

$ Retention Rate 100%+ ~ 90%

*Note:. Dollar retention rate measures the % of revenue retained at year end 2016, from full service customers that were either on LiveEngage or with LivePerson,

respectively, at year end 2015.

Click to edit

Master title styleFinance

High–Tech

Retail

Telecom

Automotive

Select Clients and Industry Awards

17

Guidance and Year-Over-Year Comparison1

2017 Guidance (as of 2/8/17) 2016 Actual

Revenue $201.0 - $209.0 $222.8

Gross Margin ~ 73.5% 71.7%

GAAP Net Loss $(22.8) - $(17.6) $(25.9)

Adjusted EBITDA1 $17.3 - $21.3 $19.2

Adjusted EBITDA Margin 8.6% - 10.2% 8.6%

YoY FX Impact ~ $(3.0) ($3.5)

• 2017 revenue guidance (as of 2/8/17) primarily reflects final attrition tied to Legacy end of life

• Target revenue bottoms 1H:17 and rebuilds 2H:17, setting stage for renewed growth in 2018

• Target margin expansion by saving $16-$19 million (excluding one-time, restructuring and non-

cash expenses) as align on LiveEngage growth strategy and wind down Legacy

• 2017 GAAP net loss includes $8.7-$9.6 million of projected restructuring and one-time fees: $2.7-

$3.1 million tied primarily to wind down of Legacy offering and $6.0-$6.5 million tied to litigation

*Notes: Dollar amounts in millions. Adjusted EBITDA is a Non-GAAP financial measure. The presentation of this financial information is not

intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with

U.S. GAAP. For a definition of adjusted EBITDA and a reconciliation to net income (loss) please see slide 18. For detailed current financial

expectations, please see our Press Release issued on February 8, 2017.

Click to edit Master text styles 18|

Non-GAAP Adjusted EBITDA Reconciliation1

2017 Guidance(as of 2/8/17)

2016 Actual

GAAP net income (loss) $(22.8) – $(17.6) $(25.9)

Depreciation and amortization $15.2 $18.7

Stock-based compensation $10.5 $9.7

One-time charges $8.7 – $9.6 $10.2

Other expense (income), net $0.0 $0.5

Provision for taxes $5.7 - $3.6 $5.9

Adjusted EBITDA $17.3 – $21.3 $19.2

1Notes: Dollar amounts in millions. Adjusted EBITDA is a Non-GAAP financial measure. Adjusted EBITDA excludes provision for (benefit from)

income taxes, other (income)/expense, net, depreciation and amortization, stock-based compensation, restructuring costs, acquisition costs and

other non-recurring charges. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or

superior to, the financial information prepared and presented in accordance with U.S. GAAP. For detailed current financial expectations, please

see our Press Release issued on February 8, 2017.

NASDAQ: LPSN

Thank You