Company: LPSN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001102993-25-000187
Chunk: 156

Company: LIVEPERSON INC
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 156
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 expenses decreased by 44% to $35.7 million for the nine months ended September 30, 2025 from $63.7 million for the comparable period in 2024. This decrease is primarily due to a decrease in bad debt expense of $10.1 million, a decrease in legal and other consulting fees of $9.4 million, a decrease in salary and employee-related expenses of $2.8 million, a divestiture-related working capital adjustment of $1.8 million in the first quarter of 2024, a decrease in leadership transition costs of $1.1 million, and a decrease in business services and outsourced contracted labor of $1.1 million.

40

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 September 30,Nine Months Ended September 30,20252024$ Change% Change20252024$ Change% Change(Dollars in thousands)(Dollars in thousands)Product development$13,376$18,184$(4,808)(26)%$43,253$62,493$(19,240)(31)%Percentage of total revenue22 %24 %23 %26 %Headcount (at period end)315 430 (27)%315 430 (27)%

Product development costs decreased by 26% to $13.4 million for the three months ended September 30, 2025 from $18.2 million for the comparable period in 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,