HUBSPOT INC

Previous wording

We focus on selling to mid-market business-to-business, or B2B, companies, which we define as companies that have between two and 2,000 employees. While our customer platform was built to grow with any company, we focus on selling to mid-market businesses because we believe we have significant competitive advantages attracting and serving this market segment. These mid-market businesses seek an integrated, easy-to-implement and easy-to-use solution to reach customers and compete with organizations that have larger marketing, sales, and customer service budgets. We efficiently reach these businesses at scale through our proven inbound methodology, our Solutions Partners, and our “freemium” model. A Solutions Partner is a service provider that helps businesses with strategy, execution, and implementation of go-to-market activities and technology solutions. Our freemium model attracts customers who begin using our customer platform through our free products and then upgrade to our paid products. As of March 31, 2024, we had 7,829 full-time employees and 216,060 Customers of varying sizes in more than 135 countries, representing many industries.

Current wording

We focus on selling to mid-market business-to-business, or B2B, companies, which we define as companies that have between two and 2,000 employees. While our customer platform was built to grow with any company, we focus on selling to mid-market businesses because we believe we have significant competitive advantages attracting and serving this market segment. These mid-market businesses seek an integrated, easy-to-implement and easy-to-use solution to reach customers and compete with organizations that have larger marketing, sales, and customer service budgets. We efficiently reach these businesses at scale through our proven inbound methodology, our Solutions Partners, and our “freemium” model. A Solutions Partner is a service provider that helps businesses with strategy, execution, and implementation of go-to-market activities and technology solutions. Our freemium model attracts customers who begin using our customer platform through our free products and then upgrade to our paid products. As of June 30, 2024, we had 8,002 full-time employees and 228,054 Customers of varying sizes in more than 135 countries, representing many industries.

Previous wording

We derive most of our revenue from subscriptions to our cloud-based customer platform and related professional services, which consist of customer on-boarding, training and consulting services. Subscription revenue accounted for 98% of our total revenue for the three months ended March 31, 2024 and 2023. We sell multiple product plans at different base prices on a subscription basis, each of which includes our Smart CRM and integrated applications to meet the needs of the various customers we serve. Customers pay additional fees if the number of contacts stored and tracked in the customer’s database exceeds specified thresholds. We also generate additional revenue based on the purchase of additional subscriptions and products, and the number of account users and subdomains. Most of our Customers’ subscriptions are one year or less in duration.

Current wording

We derive most of our revenue from subscriptions to our cloud-based customer platform and related professional services, which consist of customer on-boarding, training and consulting services. Subscription revenue accounted for 98% of our total revenue for the three and six months ended June 30, 2024 and 2023. We sell multiple product plans at different base prices on a subscription basis, each of which includes our Smart CRM and integrated applications to meet the needs of the various customers we serve. Customers pay additional fees if the number of contacts stored and tracked in the customer’s database exceeds specified thresholds. We also generate additional revenue based on the purchase of additional subscriptions, products and seats, and the number of account users and subdomains. Most of our Customers’ subscriptions are one year or less in duration.

Previous wording

Many of our customers purchase on-boarding, training, and consulting services, as well as other tools, which are designed to help customers enhance their ability to attract, engage and delight their customers using our customer platform. We also generate revenue from Commerce Hub and a number of revenue-share agreements with other companies based on mutually agreed upon terms. Professional services and other revenue accounted for 2% of total revenue for three months ended March 31, 2024 and 2023.

Current wording

Many of our customers purchase on-boarding, training, and consulting services, as well as other tools, which are designed to help customers enhance their ability to attract, engage and delight their customers using our customer platform. We also generate revenue from Commerce Hub and a number of revenue-share agreements with other companies based on mutually agreed upon terms. Professional services and other revenue accounted for 2% of total revenue for three and six months ended June 30, 2024 and 2023.

Previous wording

We believe that the growth of our business is dependent on many factors, including our ability to expand our customer base, increase adoption of our customer platform within existing customers, develop new products and applications to extend the functionality of our customer platform and provide a high level of customer service. We have invested and intend to continue investing for long-term growth. We intend to continue to invest in sales and marketing to support our growth. We plan to continue to invest in research and development as we continue to introduce new products and applications to extend the functionality of our customer platform. We intend to continue maintaining a high level of customer service and support which we consider critical for our continued success. We also plan to continue investing in our data center infrastructure and services capabilities in order to support continued future customer growth. We also expect to continue to incur additional general and administrative expenses as a result of both our growth and the infrastructure required to be a public company. We expect to use our cash flow from operations and the proceeds from our convertible debt to fund these growth strategies and support our business and do not expect to be profitable in the next 12 months.

Current wording

We believe that the growth of our business is dependent on many factors, including our ability to expand our customer base, increase adoption of our customer platform within existing customers, develop new products and applications to extend the functionality of our customer platform and provide a high level of customer service. We have invested and intend to continue investing for long-term growth. We intend to continue to invest in sales and marketing to support our growth. We plan to continue to invest in research and development as we continue to introduce new products and applications to extend the functionality of our customer platform. We intend to continue maintaining a high level of customer service and support which we consider critical for our continued success. We also plan to continue investing in our data center infrastructure and services capabilities in order to support continued future customer growth. We also expect to continue to incur additional general and administrative expenses as a result of both our growth and the infrastructure required to be a public company. We expect to use our cash flow from operations to fund these growth strategies and support our business and do not expect to be profitable in the next 12 months.

Previous wording

Customers. We believe that our ability to increase our customer base is an indicator of our market penetration, the growth of our business, and our potential future business opportunities as we continue to expand our sales force and invest in marketing efforts. We define our Customers at the end of a particular period as the number of business entities with one or more paid subscriptions to our customer platform either purchased directly with us or purchased from a Solutions Partner. We do not include in Customers any legacy PieSync products. A single customer may have separate paid subscriptions to our customer platform, but we count these as one Customer if certain customer-provided information such as company name, URL, or email address indicate that these subscriptions are managed by the same business entity.

Current wording

Customers. We believe that our ability to increase our customer base is an indicator of our market penetration, the growth of our business, and our potential future business opportunities as we continue to expand our sales force and invest in marketing efforts. We define our Customers at the end of a particular period as the number of business entities with one or more paid subscriptions to our customer platform either purchased directly with us or purchased from a Solutions Partner. A single customer may have separate paid subscriptions to our customer platform, but we count these as one Customer if certain customer-provided information such as company name, URL, or email address indicate that these subscriptions are managed by the same business entity.

Previous wording

Average Subscription Revenue per Customer. We believe that our ability to increase the Average Subscription Revenue per Customer is an indicator of our ability to grow the long-term value of our existing customer relationships. We define Average Subscription Revenue per Customer during a particular period as subscription revenue, excluding revenue from our legacy PieSync products, from our Customers during the period divided by the average Customers during the same period.

Current wording

Average Subscription Revenue per Customer. We believe that our ability to increase the Average Subscription Revenue per Customer is an indicator of our ability to grow the long-term value of our existing customer relationships. We define Average Subscription Revenue per Customer during a particular period as subscription revenue from our Customers during the period divided by the average Customers during the same period.

Previous wording

Three Months Ended March 31, 2024 Compared to the Three Months Ended March 31, 2023

Current wording

Three and Six Months Ended June 30, 2024 Compared to the Three and Six Months Ended June 30, 2023

Previous wording

Subscription revenue increased during the three months ended March 31, 2024 compared to the same period in 2023 primarily due to the increase in Customers, which grew from 177,298 as of March 31, 2023 to 216,060 as of March 31, 2024. Average Subscription Revenue per Customer increased from $11,365 for the three months ended March 31, 2023 to $11,447 for the three months ended March 31, 2024. The growth in Customers was primarily driven by increased demand for our lower-priced Starter products. The increase in Average Subscription Revenue per Customer was primarily driven by a continued demand for our Professional and Enterprise products, as well as the addition of customers from the acquisition of Clearbit, offset by continued purchases of our lower-priced Starter products.

Current wording

Subscription revenue increased during the three months ended June 30, 2024 compared to the same period in 2023 primarily due to the increase in Customers, which grew from 150,865 as of June 30, 2023 to 228,054 as of June 30, 2024. Average Subscription Revenue per Customer decreased from $11,432 for the three months ended June 30, 2023 to $11,215 for the three months ended June 30, 2024. The growth in Customers was primarily driven by increased demand for our lower-priced Starter products, as well as Professional and Enterprise products from our new seats model. The decrease in Average Subscription Revenue per Customer was primarily driven by continued purchases of our lower-priced Starter products and the impact of our new seats pricing model, offset by a continued demand for our Professional and Enterprise products, as well as the addition of customers from the acquisition of Clearbit.

Previous wording

Total cost of revenue for the three months ended March 31, 2024 increased compared to the same period in 2023 primarily due to an increase in subscription and hosting costs, amortization of capitalized software development costs, amortization of acquired technology and employee-related costs, offset by a decrease in allocated overhead expenses. Gross margins remained consistent year-over-year.

Current wording

Total cost of revenue for the three and six months ended June 30, 2024 increased compared to the same period in 2023 primarily due to an increase in subscription and hosting costs, amortization of capitalized software development costs, amortization of acquired technology and employee-related costs, offset by a decrease in allocated overhead expenses. Gross margins remained consistent year-over-year.

Previous wording

The increase in subscription cost of revenue for the three months ended March 31, 2024 compared to the same period in 2023 was primarily due to the following:

Current wording

The increase in subscription cost of revenue for the three and six months ended June 30, 2024 compared to the same period in 2023 was primarily due to the following:

Previous wording

Subscription and hosting costs increased primarily due to growth in our Customer base from 177,298 as of March 31, 2023 to 216,060 as of March 31, 2024. We also saw higher subscription and hosting costs as we continued to focus on the security, reliability and performance of our customer platform. Amortization of capitalized software development costs increased due to the increased number of developers working on our software platform as we continued to develop new products and increased functionality. Amortization of acquired technology increased due to the amortization of acquired technology associated with our acquisition of Clearbit in December 2023. Employee-related costs increased as a result of increased headcount as we continue to grow our customer support organization to support our customer growth and improve service levels and offerings. Allocated overhead expenses decreased primarily due to the reduction of our leased space as a result of the global lease consolidation under the Restructuring Plan.

Current wording

Subscription and hosting costs increased primarily due to growth in our Customer base from 150,865 as of June 30, 2023 to 228,054 as of June 30, 2024. We also saw higher subscription and hosting costs as we continued to focus on the security, reliability and performance of our customer platform. Amortization of capitalized software development costs increased due to the increased number of developers working on our software platform as we continued to develop new products and increased functionality. Amortization of acquired technology increased due to the amortization of acquired technology associated with our acquisition of Clearbit in December 2023. Employee-related costs increased as a result of increased headcount as we continue to grow our customer support organization to support our customer growth and improve service levels and offerings. Allocated overhead expenses decreased primarily due to the reduction of our leased space as a result of the global lease consolidation under the Restructuring Plan, offset slightly by an increase in shared company third-party services costs.

Previous wording

The increase in professional services and other cost of revenue for three months ended March 31, 2024 compared to the same period in 2023 was primarily due to the following:

Current wording

The increase in professional services and other cost of revenue for three and six months ended June 30, 2024 compared to the same period in 2023 was primarily due to the following:

Previous wording

Allocated overhead and other expenses increased primarily due to increased costs associated with our other service offerings. Employee-related costs decreased as we continue to leverage our Solutions Partners to deliver on-boarding and other professional services.

Current wording

Allocated overhead and other expenses increased primarily due to increased costs associated with our other service offerings, including Commerce Hub. Employee-related costs decreased as we continue to leverage our Solutions Partners to deliver on-boarding and other professional services.

Previous wording

The increase in research and development expense for the three months ended March 31, 2024 compared to the same period in 2023 was primarily due to the following:

Current wording

The increase in research and development expense for the three and six months ended June 30, 2024 compared to the same period in 2023 was primarily due to the following:

Previous wording

Employee-related costs increased as a result of increased headcount as we continued to grow our engineering organization to develop new products, increase functionality and to maintain our existing customer platform. Allocated overhead expenses increased due to an increase in shared company expenses associated with our systems and infrastructure as we continued to grow our business, offset slightly by a decrease in expense from the reduction of our leased office space under the Restructuring Plan.

Current wording

Employee-related costs increased as a result of increased headcount as we continued to grow our engineering organization to develop new products, increase functionality and to maintain our existing customer platform. Allocated overhead expenses increased due to an increase in shared company expenses associated with our systems and infrastructure as we continued to grow our business. Professional fees increased due to an increase in the use of third-party services and contractors.

Previous wording

The increase in sales and marketing expense for the three months ended March 31, 2024 compared to the same period in 2023 was primarily due to the following:

Current wording

The increase in sales and marketing expense for the three and six months ended June 30, 2024 compared to the same period in 2023 was primarily due to the following:

Previous wording

Employee-related costs increased as a result of increased headcount as we expanded our selling and marketing organizations to grow our customer base. Marketing programs increased due to the timing and size of certain marketing efforts as we made investments in attracting new customers. Allocated overhead expenses increased due to an increase in shared company expenses associated with our systems and infrastructure, offset slightly by a decrease in expense from the reduction of our leased office space under the Restructuring Plan. Solutions Partner commissions decreased as we changed the duration of certain Solutions Partner commissions term from lifetime to three years and began to defer these costs and amortize over a period of approximately two to four years in the first quarter of 2023.

Current wording

Employee-related costs increased as a result of increased headcount as we expanded our selling and marketing organizations to grow our customer base. Marketing programs increased due to the timing and size of certain marketing efforts as we made investments in attracting new customers. Allocated overhead expenses increased due to an increase in shared company expenses associated with our systems and infrastructure. Solutions Partner commissions decreased as we changed the duration of certain Solutions Partner commissions term from lifetime to three years and began to defer these costs and amortize over a period of approximately two to four years in the first quarter of 2023.

Previous wording

The increase in general and administrative expense for the three months ended March 31, 2024 compared to the same period in 2023 was primarily due to the following:

Current wording

The increase in general and administrative expense for the three and six months ended June 30, 2024 compared to the same period in 2023 was primarily due to the following:

Previous wording

Employee-related costs increased as a result of increased headcount as we grew our business and required additional personnel to support our expanded operations. Customer credit card fees increased due to increased customer transactions as we continued to grow our business. Allocated overhead expenses increased due to an increase in shared company expenses associated with our systems and infrastructure as we continued to grow our business, offset slightly by a decrease in expense from the reduction of our leased office space under the Restructuring Plan.

Current wording

Employee-related costs increased as a result of increased headcount as we grew our business and required additional personnel to support our expanded operations. Customer credit card fees increased due to increased customer transactions as we continued to grow our business. Allocated overhead expenses increased due to an increase in shared company expenses associated with our systems and infrastructure as we continued to grow our business. Professional fees increased due to an increase in the use of third-party services and contractors.

Previous wording

Restructuring charges decreased due to facilities-related, severance and other costs associated with the implementation of the Restructuring Plan in the first quarter of 2023. Restructuring charges incurred in the three months ended March 31, 2024 consisted of variable facilities-related costs on unused space.

Current wording

Restructuring charges in the three months ended June 30, 2024 consists of only variable facilities-related costs on unused space. Restructuring charges were $63.9 million in the three months ended June 30, 2023 due to the implementation of the Restructuring Plan in the first quarter of 2023 and its continued execution during the second quarter. Restructuring costs consisted primarily of facilities related costs for the terminations and abandonments of leases globally.

Previous wording

Interest income primarily consists of interest earned on invested cash and cash equivalents balances and investments. The increase during the three months ended March 31, 2024 is due to an increase in yields on our investment balances.

Current wording

Interest income primarily consists of interest earned on invested cash and cash equivalents balances and investments. The increase during the three and six months ended June 30, 2024 is due to an increase in yields on our investment balances.

Previous wording

The change in other income (expense) during three months ended March 31, 2024 is primarily due to the following:

Current wording

The change in other income (expense) during six months ended June 30, 2024 is primarily due to the following:

Previous wording

Other income (expense) primarily consists of the impact of foreign currency transaction gains and losses associated with monetary assets and liabilities. The change in foreign currency transactions is primarily attributable to the increase in the value of the Euro and British Pound Sterling relative to the U.S. Dollar. The increase in the impairment of and gain on strategic investments is due to an impairment of $3.6 million and gains of $16.4 million from observable price changes in the value of certain strategic investments in the first quarter of 2024 that did not occur in 2023.

Current wording

Other income (expense) primarily consists of the impact of foreign currency transaction gains and losses associated with monetary assets and liabilities. The change in foreign currency transactions is primarily attributable to the increase in the value of the Euro and British Pound Sterling relative to the U.S. Dollar. The increase in the impairment of and gain on strategic investments is due to an impairment of $4.1 million and gains of $18.5 million from observable price changes in the value of certain strategic investments in the six months ended June 30, 2024 that did not occur in 2023.

Previous wording

Income tax expense consists of current and deferred taxes for U.S. and foreign income taxes. The decrease in income tax expense was primarily due to an increase in shared-based compensation windfall benefits.

Current wording

Income tax expense consists of current and deferred taxes for U.S. and foreign income taxes. The increase in income tax expense was primarily due to income generated in higher tax jurisdictions offset by an increase in shared-based compensation windfall benefits.

Previous wording

The following table shows cash and cash equivalents, working capital, net cash and cash equivalents provided by operating activities, net cash and cash equivalents used in investing activities, and net cash and cash equivalents provided by financing activities for the three months ended March 31, 2024 and 2023.

Current wording

The following table shows cash and cash equivalents, working capital, net cash and cash equivalents provided by operating activities, net cash and cash equivalents used in investing activities, and net cash and cash equivalents provided by financing activities for the six months ended June 30, 2024 and 2023.

Previous wording

Our cash and cash equivalents at March 31, 2024 were held for working capital purposes. At March 31, 2024, $201.7 million of our cash and cash equivalents was held in accounts outside the United States. We do not assert indefinite reinvestment of our foreign earnings because these earnings have been subject to United States Federal tax. While we have concluded that any incremental tax incurred upon ultimate distribution of these earnings to be immaterial, our current plans do not demonstrate a need to repatriate undistributed earnings to fund our U.S. operations.

Current wording

Our cash and cash equivalents at June 30, 2024 were held for working capital purposes. At June 30, 2024, $225.0 million of our cash and cash equivalents was held in accounts outside the United States. We do not assert indefinite reinvestment of our foreign earnings because these earnings have been subject to United States Federal tax. While we have concluded that any incremental tax incurred upon ultimate distribution of these earnings to be immaterial, our current plans do not demonstrate a need to repatriate undistributed earnings to fund our U.S. operations.

Previous wording

Net cash and cash equivalents provided by operating activities during the three months ended March 31, 2024 primarily reflected our net income of $5.9 million, $21.2 million of depreciation and amortization, $111.1 million in stock-based compensation and an impairment of strategic investments of $3.6 million, $0.5 million of amortization of debt discount and issuance costs, offset by non-cash expenses that included $12.6 million accretion of bond discounts, a gain on strategic investments of $16.4 million, and $0.5 million of unrealized currency translation. Working capital sources of cash and cash equivalents primarily included a $31.2 million increase in deferred revenue primarily resulting from the growth in the number of customers invoiced during the period, a $25.4 million decrease in accounts receivable related to increased collection, and a $6.4 million increase in right-of-use asset. These sources of cash and cash equivalents were offset by a $5.5 million increase in prepaid expenses and other assets, a $12.7 million decrease in operating lease liabilities, a $17.0 million increase in deferred commissions, a $1.3 million increase in accounts payable related to timing of bill payments, and $13.3 million decrease in accrued expenses and other liabilities.

Current wording

Net cash and cash equivalents provided by operating activities during the six months ended June 30, 2024 primarily reflected our net loss of $8.5 million, $43.4 million of depreciation and amortization, $240.1 million in stock-based compensation, an impairment of strategic investments of $4.1 million, and $1.0 million of amortization of debt discount and issuance costs, offset by non-cash expenses that included $23.1 million accretion of bond discounts, a gain on strategic investments of $18.5 million, and $0.9 million of unrealized currency translation. Working capital sources of cash and cash equivalents primarily included a $44.3 million increase in deferred revenue primarily resulting from the growth in the number of customers invoiced during the period, a $18.4 million decrease in accounts receivable related to increased collection, a $15.0 million decrease in accrued expenses and other liabilities, and a $20.4 million increase in right-of-use asset. These sources of cash and cash equivalents were offset by a $27.2 million increase in prepaid expenses and other assets, a $23.2 million decrease in operating lease liabilities, a $40.1 million increase in deferred commissions, and a $0.2 million increase in accounts payable related to timing of bill payments.

Previous wording

Net cash and cash equivalents provided by operating activities during the three months ended March 31, 2023 primarily reflected our net loss of $36.7 million, $8.0 million accretion of bond discounts, offset by non-cash expenses that included $16.6 million of depreciation and amortization, $83.0 million in stock-based compensation, restructuring charges of $2.2 million, and $0.5 million of amortization of debt discount and issuance costs. Working capital sources of cash and cash equivalents primarily included a $28.6 million increase in deferred revenue primarily resulting from the growth in the number of customers invoiced during the period, a $30.6 million decrease in accounts receivable related to increased collection, a $8.5 million increase in right-of-use asset, and $22.7 million increase in accrued expenses and other liabilities. These sources of cash and cash equivalents were offset by a $20.4 million increase in prepaid expenses and other assets, a $9.8 million decrease in operating lease liabilities, a $18.5 million increase in deferred commissions, and a $17.9 million increase in accounts payable related to timing of bill payments.

Current wording

Net cash and cash equivalents provided by operating activities during the six months ended June 30, 2023 primarily reflected our net loss of $157.2 million, $18.8 million accretion of bond discounts, offset by non-cash expenses that included $33.0 million of depreciation and amortization, $211.0 million in stock-based compensation, restructuring charges of $64.9 million, and $1.0 million of amortization of debt discount and issuance costs. Working capital sources of cash and cash equivalents primarily included a $41.4 million increase in deferred revenue primarily resulting from the growth in the number of customers invoiced during the period, a $21.6 million decrease in accounts receivable related to increased collection, a $21.0 million increase in right-of-use asset, and $46.5 million increase in accrued expenses and other liabilities. These sources of cash and cash equivalents were offset by a $47.4 million increase in prepaid expenses and other assets, a $18.0 million decrease in operating lease liabilities, a $37.0 million increase in deferred commissions, and a $17.8 million increase in accounts payable related to timing of bill payments.

Previous wording

Net cash and cash equivalents used in investing activities during the three months ended March 31, 2024 consisted primarily of $399.3 million purchases of investments, $5.9 million of purchased property and equipment, and $21.6 million of capitalized software development costs. These uses of cash were offset by $352.8 million received related to the maturity of investments.

Current wording

Net cash and cash equivalents provided by investing activities during the six months ended June 30, 2024 consisted primarily of $849.6 million received related to the maturity of investments and $1.9 million of proceeds from a net working capital settlement, offset by cash used for $651.7 million purchases of investments, $14.1 million of purchased property and equipment, and $43.1 million of capitalized software development costs.

Previous wording

Net cash and cash equivalents used in investing activities during the three months ended March 31, 2023 consisted primarily of $362.2 million purchases of investments and $3.6 million of purchased property and equipment, $6.0 million of purchases of strategic investments, and $14.9 million of capitalized software development costs. These uses of cash were offset by $288.0 million received related to the maturity of investments.

Current wording

Net cash and cash equivalents used in investing activities during the six months ended June 30, 2023 consisted primarily of $731.4 million purchases of investments and $14.2 million of purchased property and equipment, $6.0 million of purchases of strategic investments, and $31.6 million of capitalized software development costs. These uses of cash were offset by $729.8 million received related to the maturity of investments.

Previous wording

Our financing activities have consisted primarily of the repayment of our 2025 Notes, the issuance of common stock under our stock plans, and payments of employee taxes related to the net share settlement of stock-based awards.

Current wording

Our financing activities have consisted primarily of the issuance of common stock under our stock plans, and payments of employee taxes related to the net share settlement of stock-based awards.

Previous wording

For the three months ended March 31, 2024 cash provided in financing activities consisted of $19.9 million of proceeds related to issuance of common stock under stock plans, offset by $8.8 million used for payment of employee taxes related to the net share settlement of stock-based awards.

Current wording

For the six months ended June 30, 2024 cash provided in financing activities consisted of $45.2 million of proceeds related to issuance of common stock under stock plans, offset by $13.5 million used for payment of employee taxes related to the net share settlement of stock-based awards.

Previous wording

For the three months ended March 31, 2023 cash used in financing activities consisted of $1.2 million used for payment of employee taxes related to the net share settlement of stock-based awards, offset by $11.3 million of proceeds related to issuance of common stock under stock plans.

Current wording

For the six months ended June 30, 2023 cash used in financing activities consisted $4.1 million used for payment of employee taxes related to the net share settlement of stock-based awards, offset by $24.6 million of proceeds related to issuance of common stock under stock plans.

Previous wording

There have been no significant changes in our critical accounting policies and estimates during the three months ended March 31, 2024 as compared to the critical accounting policies and estimates disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.

Current wording

There have been no significant changes in our critical accounting policies and estimates during the six months ended June 30, 2024 as compared to the critical accounting policies and estimates disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.