Good afternoon, ladies and gentlemen. Thank you for standing up. Welcome to LivePerson's first quarter 2025 earnings conference call. My name is Jamie, and I will be your conference operator today. At this time, all participants are in a listen-only mode. After the pre-prepared remarks, the management team from LivePerson will conducnnnt a question-and-answer session, and the conference participants will be given instructions at that time. To give everyone the opportunity to participate, please limit yourselves to one question and one follow-up. As a reminder, today's conference call is being recorded. At this time, I'd like to turn the floor over to Mr. Jonathan Perachio, Vice President, Investor Relations.
Thank you, Jamie. Joining me on today's call is John Sabino, CEO, and John Collins, CFO and COO. Please note that during today's call, we will make forward-looking statements, which are predictions, projections, and other statements about future results. These statements are based on our current expectations and assumptions as of today, May 7, 2025, and are subject to risks and uncertainties. Actual results may differ materially due to various factors, including those described in today's earnings press release and the comments made during the conference call, as well as in any 10-Ks, 10-Qs, and other reports we file with the SEC. We assume no obligation to update any forward-looking statements. Also, during this call, we'll discuss certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP is included in today's earnings press release.
Both the press release and the supplemental slides, which include highlights for the quarter, are available on the Investor Relations section of LivePerson's website, ir.liveperson.com. With that, I'll turn the call over to LivePerson CEO, John Sabino.
Thank you so much, Jonathan. Thank you all for joining us today. Let me begin by highlighting what sets LivePerson apart in today's rapidly evolving market. LivePerson has a proven track record of partnering with enterprise brands across both regulated industries, such as financial services, healthcare, telecommunications, and non-regulated industries, including retail, travel, and hospitality. As organizations accelerate their digital and AI transformations, they rely on LivePerson as a trusted partner to help guide them through their journey forward. Our strength lies in combining deep first-party expertise with a broad ecosystem of trusted partners to deliver a unified, AI-powered platform for voice and digital engagement. The LivePerson platform brings together live agents, intelligent automation, and advanced analytics seamlessly orchestrated across all channels and third-party systems. The result is consistent, contextual customer experiences that drive real business outcomes.
Our value is clear to enterprises, weighed down by legacy CX infrastructure like outdated chat systems, on-prem technology, and early-generation CCaaS platforms. LivePerson provides the flexibility to adopt AI and digital capabilities within a single platform without the need for a costly rip-and-replace. We call this innovation without disruption. This strategy positions LivePerson as the partner of choice for enterprises addressing today's customer and workforce experience challenges. Whether they're out front with AI looking to scale their advantage or stuck behind legacy tech and internal blockers, we meet them where they are and help them move forward. By addressing the full spectrum of enterprise needs with speed, flexibility, and focus on outcomes, we are well-positioned to lead in the rapidly evolving market. Before we dive deeper into our product and go-to-market updates, let me briefly discuss our high-level results for the first quarter.
Revenue in the first quarter of $64.7 million was above the midpoint of our guidance range. An adjusted EBITDA of $0.2 million was above the high end of our guidance range. John Collins will provide more detail about our financials, but I want to underscore that we are continuing to deliver on our financial commitments and executing on our turnaround. Now, let me move to our product update. We structure our product strategy around three core dimensions, each essential to delivering greater value for our customers and reinforcing LivePerson's position as a market leader in enterprise digital engagement and conversational AI. These dimensions are differentiation, high-value innovation, and foundational capabilities. Our differentiation comes from a focus on agentic orchestration with leadership and advanced AI tooling and unified analytics and generative insights.
A great example of this is a health insurance provider that wanted to improve the accuracy of their inquiry routing while reducing maintenance labor. By implementing our AI agent capabilities, they boosted intent match rates from 70% to 90% in just two weeks and cut human-agent conversation times by 30%. The results were more efficient operations, enhanced customer experiences, and substantial cost savings. Our platform integrates generative AI with customer data, business logic, and third-party agentic pods and tools to power personalized, context-aware interactions at scale. This keeps LivePerson at the center of the customer experience, orchestrating engagements even as the ecosystem around us continues to shift. It is our core driver of differentiation and competitive advantage, establishing LivePerson as a system of action and intelligence for enterprises. This is not just about automation. It's about delivering real-time, goal-driven experiences that span digital channels, voice, and back-end systems.
Much of this is what we're doing now, and our roadmap is designed to accelerate it, keeping pace with new technologies and the evolution of foundational models. Second, we're delivering on our high-value add capabilities that extend our leadership in generative AI. This includes our AI Builder and AI Blueprints, next-gen tools for building and managing and analyzing AI-driven conversations, along with core generative AI agents for key use cases like FAQs, data collection, and routing. We're also continuing to expand our industry-leading offerings with Unified Analytics for real-time AI-powered insights and AI assistance and Agent Co-pilots that significantly improve agent productivity. These are capabilities that are already driving measurable impact. In Q1, we saw a 14% increase in the number of customers using our generative AI tools and a 25% sequential increase in conversations powered by generative AI. These are not abstract metrics.
They represent real value delivered to real customers. For example, a U.K.-based telecom company and a leading solar company are now using generative AI in 80% and 90%, respectively, of their customer conversations. In addition, a global luxury fashion company and one of the world's largest banks renewed and expanded their partnership with us, citing our leadership in generative AI and enterprise-grade guardrails. The final dimension of our product strategy is about maintaining our foundations with evolving consumer expectations. We continue to deliver the essential contact center and communication capabilities our customers depend on. This foundation is critical to running day-to-day operations and delivering a consistent, reliable customer experience. It includes a broad range of connectivity across digital, social, voice, and email channels. We also offer standardized APIs and SDKs that make integration easier for enterprises, partners, and developers.