Company: LPSN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001102993-25-000187
Chunk: 5

Company: LIVEPERSON INC
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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2024. This decrease is primarily attributable to a decrease in salary and employee-related expenses of $1.6 million due to attrition from prior periods, a decrease in software and hosting expenses of $1.5 million, a decrease in business services and outsourced contracted labor of $1.0 million, and a decrease in stock compensation expense of $0.4 million.

Product development costs decreased by 31% to $43.3 million for the nine months ended September 30, 2025 from $62.5 million for the comparable period in 2024. This decrease is primarily attributable to a decrease in salary and employee-related expenses of $5.2 million due to attrition from prior periods, a decrease in software and hosting expenses of $5.4 million, a decrease in business services and outsourced contracted labor of $4.9 million, and a decrease in stock-based compensation expense of $2.2 million.

We continued to make investments in public cloud migration, and in the LivePerson Platform. While innovation remains a core component of our strategy, we are operating in a competitive environment characterized by aggressive investment in artificial intelligence and other technological innovation by competitors with significant resources and investment capital. For the three and nine months ended September 30, 2025, $3.0 million and $9.3 million was capitalized for internal-use software, respectively, compared to $4.7 million and $15.2 million, respectively, for the comparable periods in 2024.

Depreciation and Amortization

Our depreciation and amortization relates to depreciation and amortization of our property and equipment and to amortization of our intangible assets and finance leases. 

Three Months Ended September 30,Nine Months Ended September 30,20252024$ Change% Change20252024$ Change% Change(Dollars in thousands)(Dollars in thousands)Depreciation and amortization$5,634$10,912$(5,278)(48)%$17,210$34,751$(17,541)(50)%Percentage of total revenue9 %15 %9 %15 %

Total depreciation and amortization decreased by 48% to $5.6 million for the three months ended September 30, 2025 from $10.9 million for the comparable period in 2024. The decrease was primarily driven by the lower intangible asset balance due to impairments during 2024, which drove a reduction in amortization of $3.