LivePerson(LPSN) - 2024 Q3 - Quarterly Report

Financial Performance - Revenue for the three months ended September 30, 2024, was $74.244 million, a decrease of 26.8$101.332 million for the same period in 2023[9]. - Net loss for the three months ended September 30, 2024, was $28.309 million, compared to a net loss of$53.312 million for the same period in 2023, representing a 47% improvement[11]. - Total costs and expenses for the three months ended September 30, 2024, were $90.282 million, down from$145.007 million in the same period of 2023, a reduction of 37.8%[9]. - The company reported a loss from operations of $16.038 million for the three months ended September 30, 2024, compared to a loss of$43.675 million for the same period in 2023[9]. - Basic net loss per share for the three months ended September 30, 2024, was $(0.32), an improvement from$(0.68) in the same period of 2023[9]. - The company had a comprehensive loss of $25.774 million for the three months ended September 30, 2024, compared to a comprehensive loss of$55.470 million for the same period in 2023[11]. - The net loss for the nine months ended September 30, 2024, was $22,145,000, compared to a net loss of$59,910,000 for the same period in 2023[17]. Cash and Equity - Cash and cash equivalents as of September 30, 2024, were $45.906 million, reflecting a decrease from previous quarters[13]. - Total stockholders' equity as of September 30, 2024, was$45.906 million, down from $66.606 million as of June 30, 2024[13]. - As of September 30, 2023, LivePerson reported a total stockholders' equity of$45,081,000, a decrease from $90,145,000 as of June 30, 2023[15]. - Cash, cash equivalents, and restricted cash at the end of the period were$142,104,000, down from $214,332,000 at the end of the same period in 2023[19]. Revenue Breakdown - Hosted services revenue for the three months ended September 30, 2024, was$62.7 million, down from $85.7 million in the prior year, representing a decline of 26.9$11.6 million, compared to $15.6 million for the same period in 2023, a decrease of 25.5$50.9 million, down from $73.7 million in the same period of 2023, a decline of 30.9$14.3 million, compared to $16.2 million in the prior year, a decrease of 11.5$9.0 million, down from $11.4 million in the same period of 2023, a decline of 21.0$12,015,000, an improvement from $24,302,000 in 2023[17]. - The company reported a net cash used in investing activities of$23,505,000 for the nine months ended September 30, 2024, compared to $11,863,000 in 2023[17]. Asset Management - Goodwill decreased from$285.6 million as of December 31, 2023, to $282.3 million as of September 30, 2024, reflecting a goodwill impairment charge of$3.6 million[56]. - Total long-lived assets decreased from $513.8 million as of December 31, 2023, to$478.8 million as of September 30, 2024, a decrease of 6.8%[54]. - Property and equipment, net as of September 30, 2024, was $105.1 million, a decrease from$119.3 million as of December 31, 2023[67]. Debt and Financing - The Company repurchased $157.5 million of its 2024 Convertible Senior Notes for$149.7 million, resulting in a gain of $7.2 million recognized in Q1 2023[75][76]. - As of September 30, 2024, the outstanding principal amount of the 2024 Notes was reduced to$72.5 million, with no remaining principal amount after repayment[76]. - The 2026 Convertible Senior Notes had an outstanding principal amount of $361.2 million as of September 30, 2024, with a maturity date of December 15, 2026[77][78]. - The Company exchanged$146.0 million principal amount of 2026 Notes for $100.0 million principal amount of new 2029 Notes, recognizing a$68.1 million gain on debt extinguishment during Q2 2024[83]. - Interest on the 2029 Notes will accrue at a rate of 10.83% from June 3, 2024, increasing to 11.375% after the issuance of Delayed Draw Notes, and further to 13% after December 15, 2026[89]. Legal and Regulatory Matters - The company faced multiple legal actions, including a putative stockholder class action and derivative actions related to alleged misrepresentations in its public disclosures[137][138]. - The company discontinued all products and services related to COVID-19 and is cooperating with governmental inquiries regarding its previous offerings[142]. Restructuring and Costs - The Company recognized restructuring costs of $1.4 million and$7.9 million for the three and nine months ended September 30, 2024, respectively[134]. - The total restructuring costs for the nine months ended September 30, 2024, were $7.876 million, compared to$15.999 million for the same period in 2023[136]. - The balance of the restructuring liability at the end of the period was $2.005 million as of September 30, 2024, down from$2.076 million at the beginning of the year[135]. Stock-Based Compensation - Total stock-based compensation costs for the three months ended September 30, 2024, amounted to $5,375,000, compared to$11,296,000 for the nine months ended September 30, 2024[133]. - The Company had approximately $1.7 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements as of September 30, 2024[131].