Company: LPSN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001102993-25-000053
Chunk: 5

Company: LIVEPERSON INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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expense), net consists primarily of fair value adjustments for our Warrants and foreign currency gains and losses. 

Three Months Ended March 31,20252024$ Change% Change(Dollar in thousands)Interest expense$(7,478)$(701)$(6,777)(967)%Interest income1,457 2,033 (576)(28)%Other income (expense), net8,487 (237)8,724 3,681 %Total other income, net$2,466 $1,095 $1,371 125 %

Total other income, net increased by 125% to $2.5 million for the three months ended March 31, 2025 from $1.1 million for the comparable period in 2024. This increase is primarily due to a $8.8 million adjustment to the fair value of our Warrants recorded in other income (expense), net, partially offset by a $6.8 million increase in interest expense on our convertible debt. The remaining amount of total other income, net, is primarily attributable to interest income on our money market accounts, and the impact of currency rate fluctuations.

(Benefit from) Provision for Income Taxes

Three Months Ended March 31,20252024$ Change% Change(Dollar in thousands)(Benefit from) provision for income taxes$(345)$362 $(707)(195)%

Benefit from income taxes was $0.3 million for the three months ended March 31, 2025, compared to the provision for income taxes of $0.4 million for the comparable period in 2024. Our consolidated effective tax rate was impacted by the statutory income tax rates applicable to each of the jurisdictions in which we operate, valuation allowance recorded against losses generated in the U.S. and Germany, a tax benefit related to an increase in tax receivables, and changes to unrecognized tax benefits in Israel. The overall tax provision recorded represents tax on non-U.S. earnings in the various jurisdictions in which we operate and the provision for U.S. state and local impacts. The total tax expense associated with non-U.S. jurisdictions is relatively consistent between periods.

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Liquidity and Capital Resources

The following describes the Company’s cash flows for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,20252024(In thousands)Condensed Consolidated Statements of Cash Flows Data:Net cash (used in) provided by operating activities$(3,