Company: LPSN
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001102993-25-000108
Chunk: 44

Company: LIVEPERSON INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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Information about Contract BalancesThe Company defers all incremental commission costs incurred to obtain the contract. These contract acquisition costs, which are comprised of sales commissions, have balances at June 30, 2025 and December 31, 2024 of $30.3 million and $33.6 million, respectively. The Company amortizes these costs over the related period of benefit using the customer expected life that the Company determined to be four years, which is consistent with the transfer to the customer of the services to which the asset relates. The Company classifies contract acquisition costs as long-term.The deferred revenue balance consists of services, which have been invoiced upfront, and are recognized as revenue only when the revenue recognition criteria are met.In some arrangements, the Company allows customers to pay for access to the LivePerson Platform over the term of the software subscription. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables, anticipated to be invoiced in the next twelve months, are included in Accounts receivable, net of allowances for credit losses on the condensed consolidated balance sheets. The Company recognized revenue of $13.5 million and $39.8 million for the three and six months ended June 30, 2025, respectively, and $22.2 million and $64.7 million for the three and six months ended June 30, 2024, respectively, which was included in the corresponding deferred revenue balance at the beginning of the year.The Company’s long-term deferred revenues are included in Other liabilities on the condensed consolidated balance sheets. The opening and closing balances of the Company’s contract acquisition costs, net, and deferred revenues are as follows:

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

Contract Acquisition Costs, Net(Non-current)Deferred Revenue (Current)Deferred Revenue (Non-current)(In thousands)Balance as of December 31, 2023$37,354 $81,858 $183 (Decrease) increase, net(3,795)(23,878)140 Balance as of December 31, 2024$33,559 $57,980 $323 Decrease, net(3,263)(826)(200)Balance as of June 30, 2025$30,296 $57,154 $123 The changes in deferred revenue during both periods presented were primarily driven by changes in customer renewal