Company: LPSN
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001102993-25-000108
Chunk: 4

Company: LIVEPERSON INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 4
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.1 million, a divestiture-related working capital adjustment of $1.8 million in the first quarter of 2024, a decrease in salary and employee-related expenses of $1.5 million, a decrease in leadership transition costs of $1.1 million, and a decrease in business services and outsourced contracted labor of $1.1 million.

Product Development

Our product development expenses consist of compensation and related expenses for product development personnel as well as allocated occupancy costs and related overhead and outsourced labor and expenses for testing new versions of our software. 

 Three Months Ended June 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.

Dep