Company: LPSN
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001102993-25-000108
Chunk: 78

Company: LIVEPERSON INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 78
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30,Six Months Ended June 30,20252024$ Change% Change20252024$ Change% Change(Dollars in thousands)(Dollars in thousands)Product development$13,843$19,674$(5,831)(30)%$29,877$44,309$(14,432)(33)%Percentage of total revenue23 %25 %24 %27 %Headcount (at period end)358 424 (16)%358 424 (16)%

Product development costs decreased by 30% to $13.8 million for the three months ended June 30, 2025 from $19.7 million for the comparable period in 2024. This decrease is primarily attributable to a decrease in software and hosting expenses of $2.2 million a decrease in salary and employee-related expenses of $1.5 million due to attrition from prior periods, and a decrease in business services and outsourced contracted labor of $1.2 million.

34

Product development costs decreased by 33% to $29.9 million for the six months ended June 30, 2025 from $44.3 million for the comparable period in 2024. This decrease is primarily attributable to a decrease in salary and employee-related expenses of $5.4 million due to attrition from prior periods, a decrease in business services and outsourced contracted labor of $3.9 million and a decrease in software and hosting expenses of $3.8 million.

We continued to make investments in public cloud migration, and in enhancing and expanding new features of the LivePerson Platform. For the three and six months ended June 30, 2025, $3.0 million and $6.3 million was capitalized for internal-use software, respectively, compared to $4.8 million and $10.5 million, respectively, for the comparable periods in 2024.

Depreciation and Amortization Expense

Our depreciation and amortization expense relates to depreciation and amortization of our property and equipment and to amortization of our intangible assets and finance leases. 

Three Months Ended June 30,Six Months Ended June 30,20252024$ Change% Change20252024$ Change% Change(Dollars in thousands)(Dollars in thousands)Depreciation and amortization expense$5,758$11,396$(5,638)(50)%$11,576$23,838$(12,262)(51)%Percentage of total