Company: LPSN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001102993-25-000187
Chunk: 154

Company: LIVEPERSON INC
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 154
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 respectively. 

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 September 30,Nine Months Ended September 30,20252024$ Change% Change20252024$ Change% Change(Dollars in thousands)(Dollars in thousands)Cost of revenue$17,218$19,983$(2,765)(14)%$53,474$60,869$(7,395)(12)%Percentage of total revenue29 %27 %29 %25 %Headcount (at period end)158 184(14)%158 184(14)%

Cost of revenue decreased by 14% to $17.2 million for the three months ended September 30, 2025 from $20.0 million for the comparable period in 2024. This decrease in expense is primarily attributable to a decrease in salary and employee-related expenses of $1.1 million due to attrition from prior periods, a decrease in business services and outsourced contracted labor of $1.1 million, and a decrease in software and hosting expenses of $0.4 million.

Cost of revenue decreased by 12% to $53.5 million for the nine months ended September 30, 2025 from $60.9 million for the comparable period in 2024. This decrease in expense is primarily attributable to a decrease in salary and employee-related expenses of $5.0 million due to attrition from prior periods and a decrease in business services and outsourced contracted labor of $4.7 million, partially offset by an increase in software and hosting expenses of $2.7 million.

39

Sales and Marketing 

Sales and marketing expenses consist of compensation and related expenses for sales and marketing personnel, as well as advertising, marketing events, public relations, trade show exhibit expenses and allocated occupancy costs and related overhead. 

Three Months Ended September 30,Nine Months Ended September 30,20252024$  Change% Change20252024$ Change% Change(Dollars in thousands)(Dollars in thousands)Sales and marketing$18,235$22,093$(3,858)(17)%$61,608$77,056$(15,448)(20)%Percentage of total revenue30 %30