LivePerson(US:LPSN)2025-08-13 21:12Financial Performance - Revenue for Q2 2025 was $59.6 million, a decrease of 25.4% compared to $79.9 million in Q2 2024[14] - Net loss for Q2 2025 was $15.7 million, compared to a net income of $41.8 million in Q2 2024[16] - Total comprehensive loss for Q2 2025 was $12.2 million, compared to a comprehensive income of $41.8 million in Q2 2024[16] - Net loss for the six months ended June 30, 2025, was $29,843,000 compared to a net income of $6,164,000 for the same period in 2024[21] - For the six months ended June 30, 2025, total revenue was $124.3 million, down 24.7% from $165.0 million in the prior year[48] - Hosted services revenue for the three months ended June 30, 2025, was $50.3 million, a decline of 25.2% from $67.3 million in 2024[48] - Professional services revenue for the three months ended June 30, 2025, was $9.3 million, down 26.0% from $12.6 million in 2024[48] Assets and Liabilities - Total assets as of June 30, 2025, were $604.2 million, slightly down from $607.8 million at the end of 2024[12] - Total liabilities increased to $686.6 million as of June 30, 2025, from $675.1 million at the end of 2024[12] - Cash and cash equivalents decreased to $162.0 million from $183.2 million at the end of 2024[12] - Total prepaid expenses and other current assets increased to $45,331,000 as of June 30, 2025, compared to $19,250,000 as of December 31, 2024[39] - Total long-lived assets as of June 30, 2025 were $373,415 thousand, a slight decrease from $376,554 thousand as of December 31, 2024[67] - The total accrued expenses and other current liabilities as of June 30, 2025 were $71,554 thousand, an increase from $66,582 thousand as of December 31, 2024[80] Operating Expenses - Cost of revenue for Q2 2025 was $18.0 million, up from $16.4 million in Q2 2024[14] - Sales and marketing expenses decreased to $19.9 million in Q2 2025 from $25.7 million in Q2 2024[14] - General and administrative expenses dropped to $7.9 million in Q2 2025 from $24.4 million in Q2 2024[14] - The company reported a loss from operations of $6.4 million in Q2 2025, compared to a loss of $29.8 million in Q2 2024[14] - Stock-based compensation expense for the six months ended June 30, 2025, was $8,969,000, down from $13,458,000 in 2024[21] - The Company recognized restructuring costs of $0.6 million and $1.9 million for Q2 2025 and the first half of 2025, respectively[149] Cash Flow and Financing - The company reported a net cash used in operating activities of $14,772,000 for the six months ended June 30, 2025, compared to $16,832,000 in 2024[21] - The company incurred $6,895,000 in purchases of property and equipment for the six months ended June 30, 2025[21] - The company recognized a gain on debt extinguishment of $73,083,000 in the previous period, which is not reflected in the current period[21] - The Company recognized a $68.1 million gain on debt extinguishment during Q2 2024 from the exchange of $146.0 million principal amount of 2026 Notes for new 2029 Notes[92] - The Company entered into an exchange agreement on August 11, 2025, involving approximately $341.1 million of 2026 Notes for $45.0 million in cash and $115.0 million of 2029 Notes[96] Debt and Interest - The aggregate principal amount of the 2026 Notes was $361.2 million, with a carrying amount of $359.2 million[95] - The carrying amount of the 2029 Notes is $178.7 million as of June 30, 2025, consisting of principal of $214.4 million, net of unamortized issuance costs of $6.8 million and debt discount of $28.8 million[110] - Total interest expense for the three months ended June 30, 2025, was $7.866 million, compared to $2.423 million for the same period in 2024[111] - The effective interest rate for the 2029 Notes is 19.13%, while the Delayed Draw Notes have an effective interest rate of 13.28% as of June 30, 2025[110] Stock and Equity - The Company matched 100% of the first 3% and 50% of the next 2% of eligible compensation under its 401(k) plan, with employer matching contributions totaling $0.5 million for Q2 2025[131] - The number of shares authorized for issuance under the 2019 Stock Incentive Plan was 52,307,744 as of June 30, 2025[138] - The Company had 11,507 thousand non-vested RSUs outstanding as of June 30, 2025, with an aggregate fair value of $11.622 million[144] - The Company has 4,500,000 shares authorized for issuance under the Employee Stock Purchase Plan, with 2,439,870 shares remaining available as of June 30, 2025[139] Legal and Regulatory - The Company faced multiple legal actions, including a dismissed class action lawsuit and ongoing derivative actions related to alleged misrepresentations in public disclosures[151][154] - The Company has discontinued all products and services related to COVID-19 and is cooperating with governmental inquiries regarding its previous offerings[157] - The Company is evaluating the impacts of the One Big Beautiful Bill Act ("OBBBA") enacted on July 4, 2025, which includes significant changes to business expenditure deductibility[164] Risk Management - The Company actively monitors foreign currency exchange risks and may consider using derivative financial instruments to mitigate such risks in the future[224]