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LivePerson Inc. (LPSN-9.68%) has submitted its annual report on Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details a decrease in revenue to $312.5 million from $402.0 million in the previous year, primarily due to customer cancellations and downsells. Hosted services revenue decreased by $71.3 million, while professional services revenue decreased by $18.2 million.
Cost of revenue decreased by 35% to $93.4 million, driven by reductions in outsourced labor, software and hosting expenses, and employee-related costs.
Sales and marketing expenses decreased by 20% to $100.5 million, with reductions in salary expenses, marketing costs, and outsourced labor.
General and administrative expenses fell by 13% to $80.0 million, mainly due to decreased costs in business services, employee expenses, and legal and software costs.
Product development expenses decreased by 20% to $99.9 million, attributed to reductions in outsourced labor and employee expenses.
Restructuring costs were $11.1 million, down from $22.7 million, primarily due to lower IT contract termination costs and severance expenses.
The company recorded a goodwill impairment charge of $60.6 million, primarily related to its annual impairment test.
Impairment of intangibles and other assets amounted to $46.9 million, including charges for developed technology and customer relationships.
Interest expense increased to $14.5 million due to convertible debt, while interest income decreased to $5.9 million.
The company reported a gain on debt extinguishment of $73.1 million related to the exchange and repurchase of convertible notes.
Total other income, net increased to $51.7 million, primarily due to the gain on debt extinguishment.
The provision for income taxes was $2.7 million, with the effective tax rate impacted by statutory rates, valuation allowances, and changes in unrecognized tax benefits.
Net cash used in operating activities was $15.1 million, driven by a net loss of $134.3 million, adjusted for non-cash expenses and changes in working capital.
Net cash used in investing activities was $28.2 million, primarily for capital expenditures and software capitalization.
Net cash provided by financing activities was $15.0 million, mainly from the issuance of convertible notes and proceeds from delayed draw notes.
The company had cash, cash equivalents, and restricted cash of $183.2 million as of December 31, 2024, a decrease of $29.7 million from the previous year.
The filing also discusses various legal proceedings, including stockholder litigation and regulatory matters.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the LivePerson Inc. annual 10-K report dated March 14, 2025. To report an error, please email earnings@qz.com.