Company: LPSN
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001102993-25-000108
Chunk: 125

Company: LIVEPERSON INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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 cost of supporting our server and network infrastructure, and allocated occupancy costs and related overhead.

Three Months Ended June 30,Six Months Ended June 30,20252024$ Change% Change20252024$ Change% Change(Dollars in thousands)(Dollars in thousands)Cost of revenue$18,038$16,432$1,606 10 %$36,256$40,887$(4,631)(11)%Percentage of total revenue30 %21 %29 %25 %Headcount (at period end)176 202(13)%176 202(13)%

Cost of revenue increased by 10% to $18.0 million for the three months ended June 30, 2025 from $16.4 million for the comparable period in 2024. This increase in expense is primarily attributable to an increase in software and hosting expenses of $3.9 million, partially offset by a decrease in salary and employee-related expenses of $1.8 million due to attrition from prior periods, and a decrease in business services and outsourced contracted labor of $0.5 million.

Cost of revenue decreased by 11% to $36.3 million for the six months ended June 30, 2025 from $40.9 million for the comparable period in 2024. This decrease in expense is primarily attributable to a decrease in salary and employee-related expenses of $4.2 million due to attrition from prior periods and a decrease in business services and outsourced contracted labor of $3.6 million, partially offset by an increase in software and hosting expenses of $3.2 million.

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 June 30,Six Months Ended June 30,20252024$  Change% Change20252024$ Change% Change(Dollars in thousands)(Dollars in thousands)Sales and marketing$19,888$25,733$(5,845)(23)%$43,373$54,963$(11,590)(21)%Percentage of total revenue33 %32 %35 %33 %Headcount (at period end)221 250(12)%221250(12)%

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Sales and marketing expenses decreased by 23% to $19.9 million for the three months