Xometry Inc

Previous wording

The effect of macroeconomic conditions may not be fully reflected in our results of operations until future periods. If, however, economic uncertainty increases or the global economy worsens, our business, financial condition and results of operations may be harmed. For further discussion of the potential impacts of macroeconomic events on our business, financial condition, and operating results, see the section titled “Risk Factors.”

Current wording

The effect of macroeconomic conditions may not be fully reflected in our results of operations until future periods. If, however, economic uncertainty increases or the global economy worsens, our business, financial condition and results of operations may be harmed. For further discussion of the potential impacts of macroeconomic events on our business, financial condition, and operating results, see the section titled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023.

Previous wording

Active Buyers has consistently grown over time. The number of Active Buyers on our platform reached 58,504 as of March 31, 2024, up 32% from 44,451 as of March 31, 2023. The key drivers of Active Buyer growth are continued account and buyer engagement and the success of our strategy to attract new buyers. We have adjusted the number of Active Buyers for each quarter of 2023 to reflect an immaterial correction in the calculation of Active Buyers.

Current wording

Active Buyers has consistently grown over time. The number of Active Buyers on our platform reached 61,530 as of June 30, 2024, up 27% from 48,340 as of June 30, 2023. The key drivers of Active Buyer growth are continued account and buyer engagement and the success of our strategy to attract new buyers.

Previous wording

For the quarter ended March 31, 2024, 95% of our revenue was generated from existing accounts. We believe the repeat purchase activity from existing accounts reflects the underlying strength of our business and provides us with substantial revenue visibility and predictability.

Current wording

For the quarter ended June 30, 2024, 96% of our revenue was generated from existing accounts. We believe the repeat purchase activity from existing accounts reflects the underlying strength of our business and provides us with substantial revenue visibility and predictability.

Previous wording

Accounts with Last Twelve-Month, or LTM, Spend of At Least $50,000 means an account that has spent at least $50,000 on our marketplace in the most recent twelve-month period. We view the acquisition of an account as a foundation for the addition of long-term buyers to our marketplace. Once an account joins our platform, we aim to expand the relationship and increase engagement and spending activities from that account over time. The number of accounts with LTM Spend of at least $50,000 on our platform reached 1,381 as of March 31, 2024, up 25% from 1,109 as of March 31, 2023.

Current wording

Accounts with Last Twelve-Month, or LTM, Spend of At Least $50,000 means an account that has spent at least $50,000 on our marketplace in the most recent twelve-month period. We view the acquisition of an account as a foundation for the addition of long-term buyers to our marketplace. Once an account joins our platform, we aim to expand the relationship and increase engagement and spending activities from that account over time. The number of accounts with LTM Spend of at least $50,000 on our platform reached 1,436 as of June 30, 2024, up 24% from 1,159 as of June 30, 2023.

Previous wording

Active Paying Suppliers has changed over time. The number of Active Paying Suppliers on our platform was 7,159 as of March 31, 2024, down 6% from 7,621 as of March 31, 2023. The key drivers of Active Paying Suppliers are continued supplier engagement and the success of our strategy to attract new suppliers. The decline during the quarter ended March 31, 2024 is primarily due to our exit from the tools and materials business. Excluding the tools and materials business, Active Paying Suppliers on our platform reached 7,147 as of March 31, 2024, down 2% from 7,295 as of March 31, 2023.

Current wording

Active Paying Suppliers has changed over time. The number of Active Paying Suppliers on our platform was 6,992 as of June 30, 2024, down 7% from 7,553 as of June 30, 2023. The decline during the quarter ended June 30, 2024 is primarily due to our exit from the tools and materials business and the wind down of Thomas non-core services.

Previous wording

We define Adjusted EBITDA as net loss, adjusted for interest expense, interest and dividend income and other (expenses) income, provision for income taxes, and certain other non-cash or non-recurring items impacting net loss from time to time, principally comprised of depreciation and amortization, amortization of lease intangible, stock-based compensation, charitable contributions of common stock, income from an unconsolidated joint venture, impairment of assets and acquisition and other adjustments not reflective of our ongoing business, such as adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance. Adjusted EBITDA is a performance measure that we use to assess our operating performance and the operating leverage in our business. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period.

Current wording

We define Adjusted EBITDA as net loss, adjusted for interest expense, interest and dividend income, other expenses, provision (benefit) for income taxes, and certain other non-cash or non-recurring items impacting net loss from time to time, principally comprised of depreciation and amortization, amortization of lease intangible, stock-based compensation, payroll tax expense related to stock-based compensation, lease abandonment, charitable contributions of common stock, income from an unconsolidated joint venture, impairment of assets, restructuring charges, costs to exit the tools and materials business and acquisition and other adjustments not reflective of our ongoing business, such as adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance. Adjusted EBITDA is a performance measure that we use to assess our operating performance and the operating leverage in our business. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period.

Previous wording

For the three months ended March 31, 2024, Adjusted EBITDA loss was $(7.5) million, as compared to Adjusted EBITDA loss of $(11.8) million for the same quarter in 2023. For the quarter ended March 31, 2024, Adjusted EBITDA Margin was (6.1)% of revenue, as compared to (11.2)% of revenue for the same quarter in 2023, driven primarily by increased operating efficiencies as we continue to grow our revenue and margins faster than our expenses.

Current wording

For the three months ended June 30, 2024, Adjusted EBITDA loss was $(2.6) million, as compared to Adjusted EBITDA loss of $(8.7) million for the same quarter in 2023. For the quarter ended June 30, 2024, Adjusted EBITDA Margin was (2.0)% of revenue, as compared to (7.8)% of revenue for the same quarter in 2023, driven primarily by increased operating efficiencies as we continue to grow our revenue and margins faster than our expenses.

Previous wording

We define Non-GAAP net loss, as net loss adjusted for depreciation and amortization, stock-based compensation, amortization of lease intangible, amortization of deferred costs on convertible notes, loss on sale of property and equipment, charitable contributions of common stock, impairment of assets, and acquisition and other adjustments not reflective of our ongoing business, such as adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance.

Current wording

We define Non-GAAP net loss, as net loss adjusted for depreciation and amortization, stock-based compensation, payroll tax expense related to stock-based compensation, amortization of lease intangible, amortization of deferred costs on convertible notes, loss (gain) on sale of property and equipment, charitable contributions of common stock, lease abandonment and termination, impairment of assets, restructuring charges, costs to exit the tools and materials business and acquisition and other adjustments not reflective of our ongoing business, such as adjustments related to purchase accounting, the revaluation of contingent consideration, transaction costs and executive severance.

Previous wording

For the three months ended March 31, 2024, Non-GAAP net loss was $(5.7) million, as compared to Non-GAAP net loss of $(9.8) million for the same quarter in 2023. For the quarter ended March 31, 2024, Non-GAAP net loss was (4.7)% of revenue, as compared to (9.3)% of revenue for the same quarter in 2023.

Current wording

For the three months ended June 30, 2024, Non-GAAP net loss was $(0.6) million, as compared to Non-GAAP net loss of $(6.6) million for the same quarter in 2023. For the quarter ended June 30, 2024, Non-GAAP net loss was (0.5)% of revenue, as compared to (6.0)% of revenue for the same quarter in 2023.

Previous wording

Total revenue increased $17.4 million, or 16%, from $105.3 million for the three months ended March 31, 2023 to $122.7 million for the three months ended March 31, 2024. This growth was a result of an increase in marketplace revenue, partially offset by a decrease in supplier services revenue. Total revenue from marketplace and supplier services for the three months ended March 31, 2024 was $107.2 million and $15.5 million, respectively, as compared to $86.7 million and $18.6 million, respectively, for the three months ended March 31, 2023. Marketplace revenue increased $20.5 million, or 24% from $86.7 million for the three months ended

Current wording

Total revenue increased $21.6 million, or 19%, from $111.0 million for the three months ended June 30, 2023 to $132.6 million for the three months ended June 30, 2024. This growth was a result of an increase in marketplace revenue, partially offset by a decrease in supplier services revenue. Marketplace revenue increased $23.8 million, or 25%, from $93.5 million for the three months ended June 30, 2023 to $117.3 million for the three months ended June 30, 2024. The increase in marketplace revenue was primarily due to increased buyer activity on the platform for the three months ended June 30, 2024 as compared to the prior year period.

Previous wording

Supplier services revenue decreased $3.1 million, or 17% from $18.6 million for the three months ended March 31, 2023 to $15.5 million for the three months ended March 31, 2024. The decrease in revenue was due to our exit from the tools and materials business in the U.S. during the second quarter of 2023 and, to a lesser extent, a decrease in Thomas advertising and marketing services revenue.

Current wording

Supplier services revenue decreased $2.2 million, or 13% from $17.5 million for the three months ended June 30, 2023 to $15.3 million for the three months ended June 30, 2024. The decrease in revenue was due to our exit from the tools and materials business in the U.S. during the second quarter of 2023, a decrease in Thomas non-core services and to a lesser extent a decrease in Thomas advertising and marketing services.

Previous wording

Total revenue for the three months ended March 31, 2024 and 2023, was $103.4 million and $93.9 million, respectively, for the U.S. operating segment, and $19.3 million and $11.4 million, respectively, for the International operating segment.

Current wording

Total revenue for the three months ended June 30, 2024 and 2023, was $112.2 million and $95.4 million, respectively, for the U.S. operating segment, and $20.4 million and $15.6 million, respectively, for the International operating segment.

Previous wording

Total cost of revenue increased $8.8 million, or 13%, from $66.0 million for the three months ended March 31, 2023 to $74.8 million for the three months ended March 31, 2024. This increase was the result of an increase in marketplace cost of revenue offset by a decrease in supplier services costs of revenue. Total cost of revenue from marketplace and supplier services for the three months ended March 31, 2024 was $72.9 million and $1.9 million, respectively, as compared to $61.7 million and $4.2 million, respectively for the three months ended March 31, 2023.

Current wording

Total cost of revenue increased $12.3 million, or 18%, from $67.5 million for the three months ended June 30, 2023 to $79.7 million for the three months ended June 30, 2024. This increase was the result of an increase in marketplace cost of revenue offset by a decrease in supplier services costs of revenue. Total cost of revenue from marketplace and supplier services for the three months ended June 30, 2024 was $78.0 million and $1.7 million, respectively, as compared to $63.9 million and $3.5 million, respectively for the three months ended June 30, 2023.

Previous wording

Gross profit increased $8.5 million, or 22%, from $39.4 million for the three months ended March 31, 2023 to $47.9 million for the three months ended March 31, 2024. The increase in gross profit was primarily due to increases in revenue from marketplace and improved marketplace gross margins as compared to the prior year period.

Current wording

Gross profit increased $9.3 million, or 21%, from $43.6 million for the three months ended June 30, 2023 to $52.9 million for the three months ended June 30, 2024. The increase in gross profit was primarily due to increases in revenue from marketplace and improved marketplace gross margins as compared to the prior year period.

Previous wording

Gross margin for marketplace was 32.0% for the three months ended March 31, 2024, as compared to 28.8% for the three months ended March 31, 2023. The improvement over the prior year period was due in part to our AI-driven platform and increasing supplier selection. Pricing has become more efficient due to the increased number of orders over time, improving the data set and thus making our pricing decisions more accurate. Additionally, we continue to grow our active suppliers resulting in more competition for buyers’ orders and therefore a lower cost of revenue. Gross margin for our supplier services was 87.9% for the three months ended March 31, 2024, as compared to 77.4% for the three months ended March 31, 2023. The increase in gross margin for supplier services is primarily due to a higher mix of marketing services revenue and the exit from the lower margin tools and materials business. As marketplace revenue continues to grow faster than supplier services, our aggregate gross margin will fluctuate.

Current wording

Gross margin for marketplace was 33.5% for the three months ended June 30, 2024, as compared to 31.7% for the three months ended June 30, 2023. The improvement over the prior year period was due largely to our AI-driven platform and expanding supplier network which optimizes pricing to buyers and suppliers. Gross margin for our supplier services was 88.9% for the three months ended June 30, 2024, as compared to 79.8% for the three months ended June 30, 2023. The increase in gross margin for supplier services is primarily due to a higher mix of marketing services revenue and the exit from the lower margin tools and materials business. As marketplace revenue continues to grow faster than supplier services, our aggregate gross margin will fluctuate.

Previous wording

Sales and marketing expense increased $4.8 million, or 21%, from $22.4 million for the three months ended March 31, 2023 to $27.2 million for the three months ended March 31, 2024, primarily due to increases in commissions expense and additional sales and marketing employees and their compensation costs, including stock-based compensation. As a percent of total revenue, sales and marketing expenses increased to 22.2% for the three months ended March 31, 2024 from 21.3% for the three months ended March 31, 2023.

Current wording

Sales and marketing expense increased $4.8 million, or 21%, from $22.7 million for the three months ended June 30, 2023 to $27.5 million for the three months ended June 30, 2024, primarily due to additional sales and marketing employees and their compensation costs, including stock-based compensation and marketing and advertising expense. As a percent of total revenue, sales and marketing expenses increased to 20.7% for the three months ended June 30, 2024 from 20.4% for the three months ended June 30, 2023.

Previous wording

Product development expense increased $1.5 million, or 18%, from $8.1 million for the three months ended March 31, 2023 to $9.6 million for the three months ended March 31, 2024, primarily as result of increases in software costs, amortization expense related to capitalized internal-use software development costs, hiring additional product development employees and their compensation, including stock-based compensation, offset by a decrease in consulting expenses. As a percent of total revenue, product development expenses increased to 7.8% for the three months ended March 31, 2024 as compared to 7.7% for the three months ended March 31, 2023.

Current wording

Product development expense increased $1.1 million, or 12%, from $8.9 million for the three months ended June 30, 2023 to $10.0 million for the three months ended June 30, 2024, primarily as result of increases in amortization expense related to capitalized internal-use software development costs and increases in software costs. As a percent of total revenue, product development expenses decreased to 7.6% for the three months ended June 30, 2024 as compared to 8.0% for the three months ended June 30, 2023.

Previous wording

General and administrative expense decreased $1.0 million, or 6% from $16.0 million for the three months ended March 31, 2023 to $14.9 million for the three months ended March 31, 2024. The decrease is due to a lower facility cost due to the abandonment of leased offices in the second quarter of 2023 and decrease in professional fees, software and maintenance costs, consulting and insurance costs, offset by severance expense. As a percent of total revenue, general and administrative expenses decreased to 12.2% for the for the three months ended March 31, 2024 from 15.2% for the three months ended March 31, 2023.

Current wording

General and administrative expense decreased $9.1 million, or 36% from $25.6 million for the three months ended June 30, 2023 to $16.5 million for the three months ended June 30, 2024. The decrease is due to a lower facility cost due to the abandonment of leased offices in the second quarter of 2023 and decreases in depreciation and amortization expense offset by an increase in general and administrative employees and their compensation costs, including stock-based compensation, and non-cash charitable contributions. As a percent of total revenue, general and administrative expenses decreased to 12.4% for the for the three months ended June 30, 2024 from 23.0% for the three months ended June 30, 2023.

Previous wording

Interest and dividend income remained flat at $2.7 million for the three months ended March 31, 2024 and 2023, and is primarily due to dividend income from our marketable securities.

Current wording

Interest and dividend income decreased $0.2 million, or 7% from $3.0 million for the three months ended June 30, 2023 to $2.8 million for the three months ended June 30, 204. Interest and dividend income is primarily due to dividend income from our marketable securities.

Previous wording

Other expenses increased by $0.4 million, primarily to foreign exchange losses.

Current wording

Other expenses decreased by $0.3 million, primarily due to foreign exchange losses.

Previous wording

Income from unconsolidated joint venture remained flat at $0.1 million for the three months ended March 31, 2024 and 2023.

Current wording

Income from unconsolidated joint venture remained flat at $0.2 million for the three months ended June 30, 2024 and 2023.

Previous wording

Total segment loss from our U.S. operating segment for the three months ended March 31, 2024 and 2023, was $11.8 million and $12.9 million, respectively. Total segment loss from our International operating segment for the three months ended March 31, 2024 and 2023, was $4.8 million and $5.4 million, respectively.

Current wording

Total segment loss from our U.S. operating segment for the three months ended June 30, 2024 and 2023 was $7.1 million and $22.9 million, respectively. Total segment loss from our International operating segment for the three months ended June 30, 2024 and 2023 was $6.6 million and $3.6 million, respectively.

Previous wording

Operations and support expense increased $1.4 million, or 11%, from $12.6 million for the three months ended March 31, 2023 to $14.0 million for the three months ended March 31, 2024, due to hiring additional operations and support employees and their compensation costs, including stock-based compensation and the cost of additional consultants. As a percent of total revenue, operations and support expenses decreased to 11.4% for the three months ended March 31, 2024 from 12.0% for the three months ended March 31, 2023.

Current wording

Operations and support expense increased $1.4 million, or 5%, from $26.8 million for the six months ended June 30, 2023 to $28.2 million for the six months ended June 30, 2024, primarily due to hiring of additional operations and support employees and their compensation costs including stock-based compensation. As a percent of total revenue, operations and support expenses decreased to 11.1% for the six months ended June 30, 2024 from 12.4% for the six months ended June 30, 2023.

Previous wording

We have financed our operations primarily through sales of our equity securities and borrowings under our convertible notes. As of March 31, 2024, our cash and cash equivalents and marketable securities totaled $253.8 million. We believe our existing cash and cash equivalents and marketable securities will be sufficient to support our working capital and capital expenditure requirements for at least the next twelve months. We believe we will meet our longer-term expected future cash requirements primarily from a combination of cash flow from operating activities and available cash and cash equivalents and marketable securities. We may also engage in equity or debt financings to secure additional funds. Our future capital requirements will depend on many factors, including our revenue growth rate, receivable and payable cycles, the timing and extent of investments in product development, sales and marketing, operations and support and general and administrative expenses.

Current wording

We have financed our operations primarily through sales of our equity securities and borrowings under our convertible notes. As of June 30, 2024, our cash and cash equivalents and marketable securities totaled $240.9 million. We believe our existing cash and cash equivalents and marketable securities will be sufficient to support our working capital and capital expenditure requirements for at least the next twelve months. We believe we will meet our longer-term expected future cash requirements primarily from a combination of cash flow from operating activities and available cash and cash equivalents and marketable securities. We may also engage in equity or debt financings to secure additional funds. Our future capital requirements will depend on many factors, including our revenue growth rate, receivable and payable cycles, the timing and extent of investments in product development, sales and marketing, operations and support and general and administrative expenses.

Previous wording

As of March 31, 2024, the 2027 Notes have a carrying value of $282.2 million with an effective annual interest rate of 1.6%.

Current wording

As of June 30, 2024, the 2027 Notes have a carrying value of $282.7 million with an effective annual interest rate of 1.6%.

Previous wording

The following table presents a summary of our cash flows from operating, investing, and financing activities for the three months ended March 31, 2024 and 2023.

Current wording

The following table presents a summary of our cash flows from operating, investing, and financing activities for the six months ended June 30, 2024 and 2023.

Previous wording

For the three months ended March 31, 2024, net cash used in operating activities was $11.7 million, primarily due to a net loss of $(16.6) million adjusted for non-cash charges of $11.1 million and a net decrease in our operating assets and liabilities of $(6.3) million. The non-cash adjustments primarily relate to stock-based compensation of $6.0 million, depreciation and amortization of $3.2 million, and $1.1 million of reduction to our right of use lease assets. The net decrease in operating assets and liabilities is primarily driven by changes in accounts payable of $10.6 million due to the timing of payments and lease liabilities of $1.7 million, offset by changes in accrued expenses of $4.4 million and contract liabilities of $2.3 million.

Current wording

For the six months ended June 30, 2024, net cash used in operating activities was $20.8 million, primarily due to a net loss of $(30.3) million adjusted for non-cash charges of $24.4 million and a net decrease in our operating assets and liabilities of $(14.9) million. The non-cash adjustments primarily relate to stock-based compensation of $14.2 million, depreciation and amortization of $6.4 million, and a $2.2 million of reduction to our right of use lease assets. The net decrease in operating assets and liabilities is primarily driven by changes in accounts payable of $14.4 million due to the timing of payments and reductions in lease liabilities of $3.4 million, offset by changes in other assets of $2.6 million.

Previous wording

For the three months ended March 31, 2023, net cash used in operating activities was $16.5 million, primarily due to a net loss of $(18.3) million adjusted for non-cash charges of $10.1 million and a net decrease in our operating assets and liabilities of $(8.2) million. The non-cash adjustments primarily relate to stock-based compensation of $4.7 million, depreciation and amortization of $2.6 million, and $1.9 million of reduction to our right of use lease assets. The net decrease in operating assets and liabilities is primarily driven by an increase in accounts receivable of $2.8 million, an increase in other assets of $3.7 million, and a decrease in accrued expenses of $2.1 million. These decreases were offset by an increase in contract liabilities of $1.4 million.

Current wording

For the six months ended June 30, 2023, net cash used in operating activities was $22.6 million, primarily due to a net loss of $(44.9) million adjusted for non-cash charges of $29.9 million and a net decrease in our operating assets and liabilities of $(7.6) million. The non-cash adjustments primarily relate to $12.2 million of reduction to our right of use lease assets, stock-based compensation of $10.5 million, and depreciation and amortization of $5.5 million. The net decrease in operating assets and liabilities is primarily driven by an increase in accounts receivable of $8.3 million, an increase in other assets of $2.5 million, and a decrease in lease liabilities of $2.4 million. These decreases were offset by an increase in accrued expenses of $2.7 million and contract liabilities of $1.5 million.

Previous wording

For the three months ended March 31, 2024, net cash provided by investing activities was $2.9 million, primarily due to the proceeds from the sale of marketable securities of $10.0 million offset by the purchase of property and equipment (which includes internal-use software development costs) of $4.3 million and $2.7 million for the purchase of marketable securities.

Current wording

For the six months ended June 30, 2024, net cash used by investing activities was $12.1 million, primarily due to the purchase of marketable securities $13.5 million and purchase of property and equipment (which includes the internal-use software development costs) of $8.8 million offset from the sale of marketable securities of $10.0 million.

Previous wording

For the three months ended March 31, 2023, net cash used by investing activities was $10.0 million, primarily due to the purchase of property and equipment (which includes internal-use software development costs) of $4.2 million, $3.3 million for the acquisition of Tridi and $2.7 million for the purchase of marketable securities.

Current wording

For the six months ended June 30, 2023, net cash provided by investing activities was $12.7 million, primarily due to the proceeds from the sale of marketable securities of $30.0 million offset by the purchase of property and equipment (which includes internal-use software development costs) of $8.5 million, $5.6 million for the purchase of marketable securities, and $3.3 million for the acquisition of Tridi.

Previous wording

For the three months ended March 31, 2024, net cash provided by financing activities was $1.2 million, relating to proceeds from the exercise of stock options.

Current wording

For the six months ended June 30, 2024, net cash provided by financing activities was $1.8 million, relating to proceeds from the exercise of stock options.

Previous wording

For the three months ended March 31, 2023, net cash provided by financing activities was $0.5 million, relating to proceeds from the exercise of stock options.

Current wording

For the six months ended June 30, 2023, net cash provided by financing activities was $1.1 million, relating to proceeds from the exercise of stock options.

Previous wording

Our condensed consolidated financial statements and accompanying notes have been prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Actual results may differ from these estimates. To the extent that there are material differences between these estimates and our actual results, our future financial statements will be affected. For additional information about our critical accounting policies and estimates, see the disclosure included in our Annual Report on Form 10-K as well as Note 2 – Basis of Presentation and Summary of Significant Accounting Policies in the notes to the condensed consolidated financial statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q.

Current wording

Our condensed consolidated financial statements and accompanying notes have been prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Actual results may differ from these estimates. To the extent that there are material differences between these estimates and our actual results, our future financial statements will be affected. For additional information about our critical accounting policies and estimates, see the disclosure included in our Annual Report on Form 10-K for the year ended December 31, 2023 as well as Note 2 – Basis of Presentation and Summary of Significant Accounting Policies in the notes to the condensed consolidated financial statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q. There have been no material changes to our critical accounting policies and accounting estimates as compared to those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.