Company: LPSN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001102993-25-000187
Chunk: 2

Company: LIVEPERSON INC
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 2
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Revenue decreased by 19% to $60.2 million and by 23% to $184.5 million for the three and nine months ended September 30, 2025, respectively, from $74.2 million and $239.3 million for the comparable periods in 2024. This decrease in revenue is due to a decrease in hosted services of $11.5 million and $44.8 million primarily driven by customer cancellations and downsells and a decrease in professional services of $2.6 million and $10.0 million for the three and nine months ended September 30, 2025, respectively. Included in hosted services is a decrease of $3.2 million and $11.2 million in revenue that is variable based on interactions and usage for the three and nine months ended September 30, 2025, respectively. 

Cost of Revenue (exclusive of depreciation and amortization shown separately below)

Cost of revenue consists of compensation costs relating to employees who provide customer service to our customers, compensation costs relating to our network support staff, outside labor provider costs, the cost of supporting our server and network infrastructure, and allocated occupancy costs and related overhead.

Three Months Ended September 30,Nine Months Ended September 30,20252024$ Change% Change20252024$ Change% Change(Dollars in thousands)(Dollars in thousands)Cost of revenue$17,218$19,983$(2,765)(14)%$53,474$60,869$(7,395)(12)%Percentage of total revenue29 %27 %29 %25 %Headcount (at period end)158 184(14)%158 184(14)%

Cost of revenue decreased by 14% to $17.2 million for the three months ended September 30, 2025 from $20.0 million for the comparable period in 2024. This decrease in expense is primarily attributable to a decrease in salary and employee-related expenses of $1.1 million due to attrition from prior periods, a decrease in business services and outsourced contracted labor of $1.1 million, and a decrease in software and hosting expenses of $0.4 million.

Cost of revenue decreased by 12% to $53.5 million for the nine months ended September 30, 2025 from $60.9 million for the comparable period in 2024. This decrease in expense is primarily attributable to a decrease in salary and employee