Taboolacom Ltd

Previous wording

You should read the following discussion and analysis of our financial condition and results of operations together with Taboola’s accompanying unaudited consolidated interim financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q for thethree months ended March 31, 2024 (the “Quarterly Report”) and audited consolidated financial statements and the related notes appearing in our Annual Report on Form 10-K for the year ended December 31,2023 (the“2023 Form 10-K”)filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 28,2024. Some of the information contained in this discussion and analysis is set forth in our 2023 Form 10-K, including information with respect to Taboola’s plans and strategy for Taboola’s business, and includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in Part I, Item 1A “Risk Factors” in our 2023 Form 10-K and “Note Regarding Forward-Looking Statements”in our 2023 Form 10-K and elsewhere herein, Taboola’s actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Throughout this section, unless otherwise noted or the context requires otherwise, “we,” “us,” “our” and the “Company” refer to Taboola and its consolidated subsidiaries, and in references to monetary amounts, “dollars” and “$” refer to U.S. Dollars, and “NIS” refers to New Israeli Shekels.

Current wording

You should read the following discussion and analysis of our financial condition and results of operations together with Taboola’s accompanying unaudited consolidated interim financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q for thethree and six months ended June 30, 2024 (the “Quarterly Report”) and audited consolidated financial statements and the related notes appearing in our Annual Report on Form 10-K for the year ended December 31,2023 (the“2023 Form 10-K”)filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 28,2024. Some of the information contained in this discussion and analysis is set forth in our 2023 Form 10-K, including information with respect to Taboola’s plans and strategy for Taboola’s business, and includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in Part I, Item 1A “Risk Factors” in our 2023 Form 10-K and “Note Regarding Forward-Looking Statements”in our 2023 Form 10-K and elsewhere herein, Taboola’s actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Throughout this section, unless otherwise noted or the context requires otherwise, “we,” “us,” “our” and the “Company” refer to Taboola and its consolidated subsidiaries, and in references to monetary amounts, “dollars” and “$” refer to U.S. Dollars, and “NIS” refers to New Israeli Shekels.

Previous wording

Global economic and geopolitical conditions have been increasingly volatile due to factors such as inflation, rising interest rates, supply chain disruptions and the wars in Israel and Ukraine. The economic uncertainty resulting from these factors negatively impacted advertising demand and our yields in 2022 in particular. Further, the impacts of inflation, which have continued to persist so far through 2024, has increased the costs of equipment and labor needed to operate our business, negatively impacting our business in 2022 and 2023. While these factors have stabilized over recent quarters, we entered 2024 with a lower revenue and Adjusted EBITDA run rate.We do not currently expect additional impact from these factors during 2024, though we continue to monitor macroeconomic conditions closely.

Current wording

Global economic and geopolitical conditions have been increasingly volatile. Factors such as inflation, rising interest rates, supply chain disruptions and the wars in Israel and Ukraine negatively impacted advertising demand and our yields in 2022 in particular. Further, while the impacts of inflation have relatively stabilized over recent quarters, the higher equipment and labor costs needed to operate our business negatively impacted our business in 2022 and 2023 and caused us to enter 2024 with a lower revenue and Adjusted EBITDA run rate. We do not currently expect additional impact from these factors during 2024, though we continue to monitor macroeconomic conditions closely.

Previous wording

We have a large and growing network of Advertisers, across multiple verticals. We had approximately 17,000, 18,000 and 15,000 Advertiser clients working with us directly, or through advertising agencies, worldwide during the fourth quarters of 2023, 2022 and 2021, respectively. The decline from 2022 to 2023 was primarily driven by a channel partner that had a large number of small advertisers that they reduced in 2023. A large portion of our revenue comes from Advertisers with specific performance goals, such as obtaining subscribers for email newsletters or acquiring leads for product offerings. These performance Advertisers use our service when they obtain a sufficient return on ad spend to justify their ad spend. We grow the revenue from performance Advertisers in three ways. First, we improve the performance of our network by developing new product features, improving our algorithms and optimizing our supply. Second, we secure increased budgets from existing Advertisers by offering new ad formats and helping them achieve additional goals. Third, we grow our overall Advertiser base by bringing on new Advertisers that we have not worked with previously.

Current wording

We have a large and growing network of Advertisers, across multiple verticals. We had approximately 17,000, 18,000 and 15,000 Advertiser clients working with us directly, or through advertising agencies, worldwide during the fourth quarters of 2023, 2022 and 2021, respectively. The decline from 2022 to 2023 was primarily driven by a channel partner that had a large number of small advertisers that they reduced in 2023. A large portion of our revenue comes from Advertisers with their own specific performance goals, such as obtaining subscribers for email newsletters or acquiring leads for product offerings. These performance Advertisers use our service when they obtain a sufficient return on ad spend to justify their ad spend. We grow the revenue from performance Advertisers in three ways. First, we improve the performance of our network by developing new product features, improving our algorithms and optimizing our supply. Second, we secure increased budgets from existing Advertisers by offering new ad formats and helping them achieve additional goals. Third, we grow our overall Advertiser base by bringing on new Advertisers that we have not worked with previously.

Previous wording

We view research and development expenditures as investments that help grow our business over time. These investments, which are primarily in the form of employee salaries and related expenditures and hardware infrastructure, can be broken into two categories. This first category includes product innovations that extend the capabilities of our current product offerings and help us expand into completely new markets. This includes heavy investment in AI (specifically Deep Learning) in the form of server purchases and expenses for data scientists. This category of investment is important to maintain the growth of the business but can also generally be adjusted up or down based on management’s perception of the potential value of different investment options. The second category of investments are those that are necessary to maintain our core business. These investments include items such as purchasing servers and other infrastructure necessary to handle increasing loads of recommendations that need to be served, as well as the people necessary to maintain the value delivered to our customers and digital property partners, such as investments in code maintenance for our existing products. This type of investment scales at a slower rate than the growth of our core business.

Current wording

We view research and development expenditures as investments that help grow our business over time. These investments, which are primarily in the form of employee salaries and related expenditures and hardware infrastructure, can be broken into two categories. This first category includes product innovations that extend the capabilities of our current product offerings and help us expand into completely new markets. This includes heavy investment in AI (specifically Deep Learning) in the form of server purchases and expenses for data scientists. This category of investment is important to maintain the growth of the business but can also generally be adjusted up or down based on management’s perception of the potential value of different investment options. The second category of investments are those that are necessary to maintain our core business. These investments include items such as purchasing servers and other infrastructure necessary to handle increasing loads of recommendations that need to be served, as well as the personnel necessary to maintain the value delivered to our customers and digital property partners, such as investments in code maintenance for our existing products. This type of investment scales at a slower rate than the growth of our core business.

Previous wording

In November 2022, we announced we had entered into a 30-year exclusive commercial agreement with Yahoo, under which we will power native advertising across all of Yahoo’s digital properties, expanding our native advertising offering. In January 2023 we closed on the various related agreements, including the issuance of 39,525,691 Ordinary shares and 45,198,702 Non-voting Ordinary shares to Yahoo.

Current wording

In November 2022, we announced we had entered into a 30-year exclusive commercial agreement with Yahoo, under which we will power native advertising across all of Yahoo’s digital properties, expanding our native advertising offering. In January 2023 we closed on the various related agreements, including the issuance of 39,525,691 Ordinary shares and 45,198,702 Non-voting Ordinary shares to Yahoo. For further information see Note 1b and Note 12 of Notes to the Unaudited Consolidated Interim Financial Statements.

Previous wording

Other cost of revenues includes data center and related costs, depreciation expense related to hardware supporting our platform, amortization expense related to capitalized internal-use software and acquired technology, digital and services taxes, personnel costs, and allocated facilities costs. Personnel costs include salaries, bonuses, share-based compensation, and employee benefit costs, and are primarily attributable to our operations group, which supports our platform and our Advertisers.

Current wording

Other cost of revenues includes data center and related costs, depreciation expense related to hardware supporting our platform, amortization expense related to capitalized internal-use software and acquired technology, digital and services taxes, content cost, personnel costs, and allocated facilities costs. Personnel costs include salaries, bonuses, share-based compensation, and employee benefit costs, and are primarily attributable to our operations group, which supports our platform and our Advertisers.

Previous wording

The statutory corporate tax rate in Israel was 23% for the three months ended March 31, 2024 and 2023, although we are entitled to certain tax benefits under Israeli law.

Current wording

The statutory corporate tax rate in Israel was 23% for the six months ended June 30, 2024 and 2023, although we are entitled to certain tax benefits under Israeli law.

Previous wording

As of March 31, 2024, we have an accumulated tax loss carry-forward of approximately $68.7 million in Israel. The tax loss can be offset indefinitely. Non-Israeli subsidiaries are taxed according to the tax laws in their respective jurisdictions.

Current wording

As of June 30, 2024, we have an accumulated tax loss carry-forward of approximately $65.0 million in Israel. The tax loss can be offset indefinitely. Non-Israeli subsidiaries are taxed according to the tax laws in their respective jurisdictions.

Previous wording

Revenues increased by $86.3 million, or 26.3%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. New digital property partners contributed approximately $143.2 million of new Revenues on a 12-month run rate basis calculated based on their first full month on the network, a majority of which is related to Yahoo supply. Existing digital property partners, including the growth of new digital property partners (beyond the revenue contribution determined based on the run-rate revenue generated by the partners when they are first on-boarded) decreased by approximately $56.9 million. This decrease was primarily driven by lower advertiser rates on existing digital property partners due to spend being served on new Yahoo supply added to the network.

Current wording

Revenues increased by $96.2 million, or 29.0%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. New digital property partners contributed approximately $103.7 million of new Revenues on a 12-month run rate basis calculated based on their first full month on the network, a majority of which is related to Yahoo supply. Existing digital property partners, including the growth of new digital property partners (beyond the revenue contribution determined based on the run-rate revenue generated by the partners when they are first on-boarded) decreased by approximately $7.5 million. This decrease was primarily driven by lower advertiser rates on existing digital property partners due to spend being served on new Yahoo supply added to the network.

Previous wording

Gross profit increased by $19.4 million, or 21.6%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Current wording

Gross profit increased by $17.7 million, or 18.3%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023.

Previous wording

Ex-TAC Gross Profit, a non-GAAP measure, increased by $23.1 million, or 20.0%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily due to new digital property partners, a majority of which is related to Yahoo supply.

Current wording

Ex-TAC Gross Profit, a non-GAAP measure, increased by $26.4 million, or 21.4%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023, primarily due to new digital property partners, a majority of which is related to Yahoo supply.

Previous wording

The cost of guarantees (total payments due under guarantee arrangements in excess of amounts the Company would otherwise be required to pay under revenue sharing arrangements) as a percentage of traffic acquisition costs were approximately 17% and 19% for the three months ended March 31, 2024 and March 31, 2023, respectively.

Current wording

The cost of guarantees (total payments due under guarantee arrangements in excess of amounts the Company would otherwise be required to pay under revenue sharing arrangements) as a percentage of traffic acquisition costs were approximately 18% and 20% for the three months ended June 30, 2024 and June 30, 2023, respectively.

Previous wording

Other cost of revenues increased by $3.8 million, or 14.5%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily as a result of a $3.3 million increase in depreciation expenses related to new product innovation and hosting expenses.

Current wording

Other cost of revenues increased by $8.7 million, or 33.3%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023, primarily as a result of a $4.7 million increase in data, content, communication and IT related expenses, $2.5 million increase in digital service tax expenses mostly due to the adoption of new legislation in certain jurisdictions and a $1.4 million increase in depreciation expenses related to new product innovation.

Previous wording

Sales and marketing expenses increased by $7.0 million, or 11.6%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily attributable to $5.0 million increase in employee and subcontractor headcount and related costs, including share-based compensation expenses, supporting our growth, $1.8 million increase in other marketing activities.

Current wording

Sales and marketing expenses increased by $3.6 million, or 5.9%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023, primarily attributable to $3.1 million increase in employee and subcontractor headcount and related costs, including share-based compensation expenses, supporting our growth.

Previous wording

Finance expenses, net decreased by $0.5 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, mainly attributable to $1.7 million Warrants liability devaluation in the three months ended March 31, 2023, compared to less than $0.1 million in the three months ended March 31, 2024 and a $0.6 million increase in foreign currency exchange rate losses partially offset by a decrease of $1.9 million in interest expense due to the voluntary repayments of a portion of the long-term loan in 2023.

Current wording

Finance income (expenses), net increased by $4.8 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023, mainly attributable to $3.9 million Warrants liability devaluation in the three months ended June 30, 2024, compared to revaluation of $0.7 million in the three months ended June 30, 2023 and a $1.1 million decrease in interest expense due to the repayments of a portion of the long-term loan in 2023 partially offset by $1.0 million decrease in foreign currency exchange rate gains (losses), net.

Previous wording

Income tax benefit (expenses) decreased by $4.9 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. Our effective tax rate is affected primarily by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, as well as non-deductible expenses, such as share-based compensation, and changes in our valuation allowance.

Current wording

Income tax benefit (expenses) increased by $4.8 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. Our effective tax rate is affected primarily by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, as well as non-deductible expenses, such as share-based compensation, and changes in our valuation allowance.

Previous wording

Research and development expenses increased by $4.3 million, or 13.3%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily attributable to $3.4 million increase in employee and subcontractor headcount and related costs, including share-based compensation expenses, reflecting our continued effort to enhance our product offerings and a $0.3 million increase in depreciation expenses.

Current wording

Research and development expenses increased by $3.6 million, or 5.4%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023, primarily attributable to $3.1 million increase in employee and subcontractor headcount and related costs, including share-based compensation expenses, reflecting our continued effort to enhance our product offerings and a $0.9 million increase in depreciation expenses.

Previous wording

General and administrative expenses decreased by $2.5 million, or 9.7%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, a result of a decrease of $1.6 million in employee and subcontractors related costs, including share-based compensation expenses, $1.3 million decrease in insurance and legal consultants expenses related to regulatory matters and $0.9 million decrease in credit losses expenses, partially offset by an increase of $1.1 million in rent and other expenses.

Current wording

General and administrative expenses decreased by $5.1 million, or 9.6%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023, a result of a decrease of $2.2 million in insurance expenses in connection with the Yahoo arrangement, a decrease of $2.0 million in credit losses expenses and a decrease of $1.9 million in employee and subcontractors related costs, including share-based compensation expenses, and, partially offset by an increase of $1.1 million in depreciation expenses.

Previous wording

Our primary cash needs are for working capital, personnel costs, contractual obligations, including payments to digital property partners, office leases and software and information technology costs, capital expenditures for servers and capitalized software development, payment of interest and required principal payments on our long-term loan and other commitments. We fund these cash needs primarily from cash generated from operations, as well as from cash and cash equivalents on our balance sheet when required. For the three months ended March 31, 2024 and 2023, we generated cash from operations of $32.4 million and $17.5 million, respectively.

Current wording

Our primary cash needs are for working capital, personnel costs, contractual obligations, including payments to digital property partners, office leases and software and information technology costs, capital expenditures for servers and capitalized software development, payment of interest and required principal payments on our long-term loan and other commitments. We fund these cash needs primarily from cash generated from operations, as well as from cash and cash equivalents on our balance sheet when required. For the six months ended June 30, 2024 and 2023, we generated cash from operations of $72.6 million and $29.1 million, respectively.

Previous wording

As of March 31, 2024 and December 31, 2023, we had $178.5 million and $176.1 million of cash and cash equivalents, respectively, $2.5 million and $5.7 million of short-term investments, respectively, and $5.5 million and $5.7 million in short and long-term restricted deposits, respectively, used, mainly, as security for our lease commitments. Cash and cash equivalents consist of cash in banks and highly liquid marketable securities investments and money market funds, with an original maturity of three months or less at the date of purchase and are readily convertible to known amounts of cash. Short-term investments generally consist of bank deposits, U.S. government treasuries, commercial paper, corporate debt securities, and U.S. agency bonds.

Current wording

As of June 30, 2024 and December 31, 2023, we had $182.2 million and $176.1 million of cash and cash equivalents, respectively, and $5.5 million and $5.7 million in short and long-term restricted deposits, respectively, used, mainly, as security for our lease commitments and $5.7 million of short-term investments as of December 31, 2023. As of June 30, 2024 we did not hold short-term investments. Cash and cash equivalents consist of cash in banks and highly liquid marketable securities investments and money market funds, with an original maturity of three months or less at the date of purchase and are readily convertible to known amounts of cash. Short-term investments generally consist of bank deposits, U.S. government treasuries, commercial paper, corporate debt securities, and U.S. agency bonds.

Previous wording

During the three months ended March 31, 2024, we repurchased 6.2 million Ordinary shares at an average price of $4.44 per share (excluding broker and transaction fees of $0.2 million). As of March 31, 2024 the Company had remaining authorization from our board of directors to repurchase Ordinary shares up to an aggregate amount of $92.1 million, subject to satisfying required conditions under the Israeli Companies Law and the Companies Regulations. See Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Note 9 of Notes to the Unaudited Consolidated Interim Financial Statements.

Current wording

During the six months ended June 30, 2024, we repurchased 12.5 million of our shares, consisting of 11.5 million Ordinary shares and 1.0 million Non-voting Ordinary shares at an average price of $4.32 per share (excluding broker and transaction fees of $0.3 million). As of June 30, 2024 the Company had remaining authorization from our board of directors to repurchase Ordinary shares up to an aggregate amount of $65.6 million, subject to satisfying required conditions under the Israeli Companies Law and the Companies Regulations. See Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds, and Note 9 and Note 12 of Notes to the Unaudited Consolidated Interim Financial Statements.

Previous wording

During the three months ended March 31, 2024, net cash provided by operating activities was $32.4 million, an increase of $14.9 million, compared to $17.5 million for the same period in 2023. The $32.4 million was related to our net loss of $26.8 million adjusted by non-cash charges of $41.8 million and positive changes in working capital of $17.4 million.

Current wording

During the six months ended June 30, 2024 net cash provided by operating activities was $72.6 million, an increase of $43.5 million, compared to $29.1 million for the same period in 2023. The $72.6 million was related to our net loss of $30.4 million adjusted by non-cash charges of $83.6 million and positive changes in working capital of $19.5 million.

Previous wording

The $36.8 million of non-cash charges primarily consisted of depreciation and amortization of $22.6 million and share-based compensation expense related to vested equity awards of $16.1 million, partially offset by $1.7 million of Warrants liability devaluation.

Current wording

The $83.6 million of non-cash charges consisted of depreciation and amortization of $51.2 million and share-based compensation expense related to vested equity awards of $34.7 million, partially offset by decrease of $3.9 million due to revaluation of Warrants liability.

Previous wording

The $17.4 million increase in cash resulting from changes in working capital primarily consisted of a $22.8 million decrease in trade receivables, net, a $9.2 million decrease in prepaid expenses and other assets, partially offset by a $8.3 million decrease in trade payables, a $3.7 million decrease in deferred taxes, net. and a $1.5 million decrease in accrued expenses and other liabilities.

Current wording

The $19.5 million increase in cash resulting from changes in working capital primarily consisted of a $24.6 million decrease in trade receivables, net, a $15.0 million decrease in prepaid expenses and other assets, partially offset by a $11.9 million decrease in trade payables and a $7.9 million decrease in deferred taxes, net.

Previous wording

Net cash provided by operating activities of $17.5 million for the three months ended March 31, 2023 was related to our net loss of $31.3 million adjusted by non-cash charges of $36.8 million and positive changes in working capital of $12.0 million.

Current wording

Net cash provided by operating activities of $29.1 million for the six months ended June 30, 2023 was related to our net loss of $62.7 million adjusted by non-cash charges of $77.6 million and changes in working capital of $14.1 million.

Previous wording

The $41.8 million of non-cash charges consisted of depreciation and amortization of $25.3 million and share-based compensation expense related to vested equity awards of $16.4 million.

Current wording

The $77.6 million of non-cash charges primarily consisted of depreciation and amortization of $45.4 million and share-based compensation expense related to vested equity awards of $32.6 million.

Previous wording

The $12.0 million increase in cash resulting from changes in working capital primarily consisted of a $44.4 million decrease in trade receivables, net and an increase in deferred taxes, net of $2.8 million, partially offset by a decrease in trade payables of $22.8 million and a decrease in accrued expenses and other liabilities of $13.4 million.

Current wording

The $14.1 million increase in cash resulting from changes in working capital primarily consisted of a $39.3 million decrease in trade receivables, net and $8.6 million decrease of in prepaid expenses and other current assets and long-term prepaid expenses, partially offset by $29.7 million decrease in trade payables and $6.5 million decrease in deferred taxes, net.

Previous wording

During the three months ended March 31, 2024, net cash used in investing activities was $1.6 million, a decrease of $36.9 million, compared to $35.3 million in net cash provided in the same period in 2023. Net cash used in investing activities for the three months ended March 31, 2024 primarily consisted of $5.6 million purchase of property and equipment, including capitalized internal-use software partially offset by $3.3 million proceeds from maturities of short-term investments.

Current wording

During the six months ended June 30, 2024 net cash used in investing activities was $13.2 million, a decrease of $58.3 million, compared to $45.1 million in net cash provided in the same period in 2023. Net cash used in investing activities for the six months ended June 30, 2024 primarily consisted of $18.2 million purchase of property and equipment, including capitalized internal-use software partially offset by $5.8 million proceeds from maturities of short-term investments.

Previous wording

Net cash provided by investing activities of $35.3 million for the three months ended March 31, 2023 primarily consisted of $41.9 million proceeds from maturities of short-term investments partially offset by $6.4 million purchase of property and equipment, including capitalized internal-use software.

Current wording

Net cash provided by investing activities of $45.1 million for the six months ended June 30, 2023 primarily consisted of $77.6 million proceeds from maturities of short-term investments partially offset by $22.0 million purchase of short-term investments and $10.2 million purchase of property and equipment, including capitalized internal-use software.

Previous wording

During the three months ended March 31, 2024, net cash used in financing activities was $28.8 million, an increase of $28.6 million, compared to $0.2 million net cash used in the same period in 2023. Net cash used in financing activities for the three months ended March 31, 2024 primarily consisted of $27.8 million repurchase of Ordinary shares.

Current wording

During the six months ended June 30, 2024 net cash used in financing activities was $52.6 million, an increase of $17.3 million, compared to $35.3 million net cash used in the same period in 2023. Net cash used in financing activities for the six months ended June 30, 2024 primarily consisted of $54.5 million repurchase of Ordinary shares and $1.7 million payment of tax withholding for share-based compensation expenses, partially offset by $4.7 million proceeds received from exercise of options and vested RSUs.

Previous wording

Net cash used in financing activities of $0.2 million for the three months ended March 31, 2023, consisted of $0.8 million payment of tax withholding for share-based compensation and $0.8 million repayment of the current portion of long-term loan, offset by $1.3 million proceeds received from share option exercises and vested RSUs.

Current wording

Net cash used in financing activities of $35.3 million for the six months ended June 30, 2023, consisted of $31.5 million repayment of the current portion of long-term loan and $4.4 million repurchase of Ordinary shares and $1.9 million payment of tax withholding for share-based compensation, partially offset by $2.5 million proceeds received from share option exercises and vested RSUs.

Previous wording

As of March 31, 2024, we have a provision related to unrecognized tax benefit liabilities totaling $8.8 million and other provisions related to severance pay and contribution plans, which have been excluded from the table above as we do not believe it is practicable to make reliable estimates of the periods in which payments for these obligations will be made.

Current wording

As of June 30, 2024, we have a provision related to unrecognized tax benefit liabilities totaling $9.1 million and other provisions related to severance pay and contribution plans, which have been excluded from the table above as we do not believe it is practicable to make reliable estimates of the periods in which payments for these obligations will be made.