Company: LPSN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001102993-25-000053
Chunk: 113

Company: LIVEPERSON INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 113
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, and a decrease in software and hosting expenses of $0.9 million.

General and Administrative 

Our general and administrative expenses consist of compensation and related expenses for executive, accounting, legal, human resources and administrative personnel, professional fees and other general corporate expenses. 

Three Months Ended March 31,20252024$ Change% Change(Dollar in thousands)General and administrative$16,784 $21,594 $(4,810)(22)%Percentage of total revenue26 %25 %Headcount (at period end)137 143 (4)%

General and administrative expenses decreased by 22% to $16.8 million for the three months ended March 31, 2025 from $21.6 million for the comparable period in 2024. This decrease is primarily due to a $4.3 million reduction in bad debt expense and a divestiture-related working capital adjustment of $1.8 million in the first quarter of 2024, partially offset by an increase in legal and other consulting costs of $1.4 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 March 31,20252024$ Change% Change(Dollar in thousands)Product development$16,034 $24,635 $(8,601)(35)%Percentage of total revenue25 %29 %Headcount (at period end)351 468 (25)%

Product development costs decreased by 35% to $16.0 million for the three months ended March 31, 2025 from $24.6 million for the comparable period in 2024. This decrease is primarily attributable to a decrease in business services and outsourced contracted labor of $2.7 million, a decrease in salary and employee-related expenses of $2.3 million due to attrition from prior periods, a decrease in software and hosting expenses of $1.6 million, and a decrease in stock compensation expense of $1.6 million.

33

We continued to make investments in public cloud migration, and in enhancing and expanding new features of the LivePerson Platform. During the three months ended March 31, 2025 and 2024, $3.3 million and $5.7 million was capitalized, respectively.

Depreciation and Amortization Expense

Our depreciation and amortization expense relates