LivePerson, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in revenue, with total revenue for the three months amounting to $74.2 million, a decrease of 27% from $101.3 million in the same period of 2023. For the nine months ended September 30, 2024, revenue was $239.3 million, down 22% from $306.5 million year-over-year. The decline was primarily attributed to customer cancellations and downsells, particularly in hosted services, which saw a drop of $23.1 million in Q3 2024 compared to the previous year.
Despite the revenue decline, LivePerson managed to reduce its operational losses. The loss from operations for the three months ended September 30, 2024, was $(16.0) million, significantly improved from $(43.7) million in Q3 2023. The net loss for the same quarter was $(28.3) million, down from $(53.3) million in the prior year. For the nine-month period, the net loss was $(22.1) million, a substantial improvement from $(59.9) million in 2023.
The company’s total assets decreased to $692.0 million as of September 30, 2024, from $835.5 million at the end of 2023. Cash and cash equivalents also fell to $142.1 million from $210.8 million during the same timeframe. Total liabilities decreased to $646.1 million, down from $787.4 million, while total stockholders’ equity slightly decreased to $45.9 million from $48.1 million.
Strategically, LivePerson divested its WildHealth business in June 2024, which had contributed $8.7 million in revenue in Q3 2023. The company also reported a non-cash impairment charge of $3.6 million related to WildHealth in Q1 2024. Additionally, LivePerson has been actively managing its debt, including the extinguishment of $73.1 million in debt related to the 2026 Notes, which contributed to a significant increase in total other income for the nine months ended September 30, 2024, amounting to $62.2 million, compared to $12.4 million in the same period in 2023.
LivePerson's operational adjustments included a reduction in sales and marketing expenses by 29% in Q3 2024, alongside a 42% decrease in general and administrative expenses. The company also reported a significant increase in stock-based compensation expenses for the nine months ended September 30, 2024, totaling $18.8 million, compared to $4.5 million in the previous year.
Overall, while LivePerson faced challenges with revenue and operational performance, it demonstrated improved loss management and strategic divestitures, positioning itself for potential recovery in the future.
About LIVEPERSON INC
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