Company: LPSN
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001102993-25-000018
Chunk: 108

Company: LIVEPERSON INC
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7
Chunk 108
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 administrative expenses decreased by 13% to $80.0 million for the year ended December 31, 2024, from $91.6 million for the year ended December 31, 2023. This is primarily related to a decrease in business services and outsourced labor of $9.4 million, a decrease in salary and related employee expenses of $5.7 million, and a decrease in other expenses of $8.3 million primarily related to legal, software and insurance costs. These items were partially offset by an increase of $12.5 million in stock-based compensation expense driven by settlement of earn-outs in 2023.

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. 

Year Ended December 31,20242023% Change(Dollars in thousands)Product development$99,917 $124,792 (20)%Percentage of total revenue32 %31 %Headcount (at period end)405 468 (13)%

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Product development costs decreased by 20% to $99.9 million for the year ended December 31, 2024, from $124.8 million for the year ended December 31, 2023. This decrease is primarily related to a decrease in business services and outsourced labor of $13.9 million, a decrease in salary and employee-related expenses of $10.6 million due to attrition from the prior year, and a decrease in software and hosting expenses of $1.4 million, partially offset by an increase in stock compensation expense of $1.0 million.

We continued to make investments in public cloud migration, and in enhancing and expanding new features of the LivePerson Platform. During the years ended December 31, 2024 and 2023, $19.3 million and $19.4 million was capitalized, respectively.

Restructuring Costs

We maintain restructuring initiatives to realign our cost structure with our current business model, in which we have flattened the organization to align to more efficient sales and service support.

Year Ended December 31,20242023% Change(Dollars in thousands)Restructuring costs$11,139 $22,664(51)%Percentage of total revenue4 %6 %

Restructuring costs decreased by 51% to $11.1 million for the year ended December