Company: LPSN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001102993-25-000053
Chunk: 51

Company: LIVEPERSON INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 1 – Description of Business and Basis of Presentation under Item 1 of this Quarterly Report on Form 10-Q for additional information about recent accounting guidance not yet adopted and recently adopted accounting pronouncements.

Results of Operations

We enable brands to leverage the LivePerson Platform’s sophisticated intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. Our platform enables businesses to have conversations with millions of consumers as personally as they would with one consumer.

Comparison of the Three Months Ended March 31, 2025 and March 31, 2024

The following tables set forth our results of operations for the periods presented and as a percentage of our revenues for those periods. The period-to-period comparison of financial results is not necessarily indicative of future results.    

Revenue

Three Months Ended March 31,20252024$ Change% Change(Dollar in thousands)Revenue$64,700 $85,149 $(20,449)(24)%

Revenue decreased by 24% to $64.7 million for the three months ended March 31, 2025 from $85.1 million for the comparable period in 2024. This decrease in revenue is due to a decrease in hosted services of $16.4 million primarily driven by customer cancellations and downsells and a decrease in professional services of $4.1 million. Included in hosted services is a decrease of $5.4 million in revenue that is variable based on interactions and usage for the three months ended March 31, 2025. 

Cost of Revenue (exclusive of depreciation and amortization shown separately below)

Cost of revenue consists of compensation costs relating to employees who provide customer service to our customers, compensation costs relating to our network support staff, outside labor provider costs, the cost of supporting our server and network infrastructure, and allocated occupancy costs and related overhead.

Three Months Ended March 31,20252024$ Change% Change(Dollar in thousands)Cost of revenue$18,218 $24,455$(6,237)(26)%Percentage of total revenue28 %29 %Headcount (at period end)179 229(22)%

Cost of revenue decreased by 26% to $18.2 million for the three months ended March 31, 2025 from $24.5 million for the comparable period in 2024. This decrease in expense is primarily attributable to a decrease in business services and outsourced contracted labor of $3.1 million, a decrease in