Company: LPSN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001102993-25-000053
Chunk: 23

Company: LIVEPERSON INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 23
---
 of the year.The Company’s long-term deferred revenues are included in Other liabilities on the condensed consolidated balance sheets. The opening and closing balances of the Company’s contract acquisition costs, net, and deferred revenues are as follows:

13

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

Contract Acquisition Costs, Net(Non-current)Deferred Revenue (Current)Deferred Revenue (Non-current)(In thousands)Balance as of December 31, 2023$37,354 $81,858 $183 (Decrease) increase, net(3,795)(23,878)140 Balance as of December 31, 2024$33,559 $57,980 $323 (Decrease) increase, net(1,404)3,415 (141)Balance as of March 31, 2025$32,155 $61,395 $182 The changes in deferred revenue during both periods presented were primarily driven by changes in customer renewal patterns and contract structures, including the timing of renewals and shifts in service commitments. Amortization expense in connection with contract acquisition cost was approximately $4.3 million and $4.9 million for the three months ended March 31, 2025 and 2024, respectively.Accounts Receivable, NetAccounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for credit losses is the Company’s best estimate of the amount of expected credit losses in the Company’s existing accounts receivable, based on both specific and general reserves. The Company maintains general reserves on a collective basis by considering factors such as historical experience, creditworthiness, the age of the trade receivable balances, and current economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet credit exposure related to its customers. The activity in the allowance for credit losses as of the dates presented is as follows:March 31,2025December 31,2024(In thousands)Balance, beginning of year$8,627 $9,290 Additions charged to costs and expenses416 14,959 Deductions/write-offs(1,361)(15,622)Balance, end of period$7,682 $8,627 

14

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATE