Company: LPSN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001102993-25-000053
Chunk: 53

Company: LIVEPERSON INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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034 $24,635 $(8,601)(35)%Percentage of total revenue25 %29 %Headcount (at period end)351 468 (25)%

Product development costs decreased by 35% to $16.0 million for the three months ended March 31, 2025 from $24.6 million for the comparable period in 2024. This decrease is primarily attributable to a decrease in business services and outsourced contracted labor of $2.7 million, a decrease in salary and employee-related expenses of $2.3 million due to attrition from prior periods, a decrease in software and hosting expenses of $1.6 million, and a decrease in stock compensation expense of $1.6 million.

33

We continued to make investments in public cloud migration, and in enhancing and expanding new features of the LivePerson Platform. During the three months ended March 31, 2025 and 2024, $3.3 million and $5.7 million was capitalized, respectively.

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 March 31,20252024$ Change% Change(Dollar in thousands)Depreciation and amortization expense$5,818 $12,442 $(6,624)(53)%Percentage of total revenue9 %15 %

Total depreciation and amortization expense decreased by 53% to $5.8 million for the three months ended March 31, 2025 from $12.4 million for the comparable period in 2024. The decrease was primarily driven by the lower intangible asset balance due to impairments during 2024, which drove a reduction in amortization of $4.0 million, in addition to a reduction in depreciation of $2.6 million primarily related to a lower internal-use software development balance due to impairments during 2024.

Impairment of Goodwill

Three Months Ended March 31,20252024$ Change% Change(Dollar in thousands)Impairment of goodwill$— $3,627 $(3,627)(100)%Percentage of total revenue— %4 %

There were no impairment charges for the three months ended March 31, 2025. The impairment charge during the comparable period was attributable to goodwill associated with our WildHealth reporting unit, which was fully