CHEGG INC

Previous wording

Our long-term strategy is centered upon our ability to utilize our Subscription Services to increase student engagement with our learning platform. We continue to invest in the expansion of our offerings and technology platform to provide a more compelling and personalized solution and deepen engagement with students. We continue to integrate artificial intelligence into our platform, and it is now conversational, more instructional, and interactive. We remain focused on providing a holistic and differentiated product offering that supports the whole student with 360 degrees of individualized academic and functional support, including the delivery of high-quality and accurate content. Additionally, we are committed to expanding our product offering internationally with fully localized product experiences in key international markets. We believe the investments we are making will allow us to maintain strong margins and cash flows and enable us to return to revenue growth over time. Our ability to achieve these long-term objectives is subject to numerous risks and uncertainties, which are described in greater detail in Part II, Item 1A, “Risk Factors.”

Current wording

Our long-term strategy is centered upon our ability to utilize our Subscription Services to increase student engagement with our learning platform. We continue to invest in the expansion of our offerings and technology platform to provide a more compelling and personalized solution and deepen engagement with students. We continue to integrate artificial intelligence into our platform, and it is now conversational, more instructional, and interactive. We remain focused on providing a holistic and differentiated product offering that supports the whole student with 360 degrees of individualized academic and functional support, including the delivery of high-quality and accurate content. We believe the investments we are making will allow us to maintain strong margins and cash flows and enable us to return to revenue growth over time. Our ability to achieve these long-term objectives is subject to numerous risks and uncertainties, which are described in greater detail below and in Part II, Item 1A, “Risk Factors.”

Previous wording

In June 2024, we announced a restructuring plan designed to realign our expenses with near-term revenue trends. The restructuring plan included a reduction in workforce, the closure of two offices outside of the United States, and a change in our Chegg Skills offering such that we will no longer offer Chegg Skills directly to customers. We estimate we will incur between $3 million and $4 million of additional restructuring charges over the next two fiscal quarters. For fiscal year 2025, we expect to realize cost savings as a result of the restructuring. See Note 5, “Property and Equipment, Net” and Note 11, “Restructuring and Other Related Charges” of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q for additional details.

Current wording

In June 2024, we undertook a strategic restructuring plan based on the environment in which we were operating to realign our expenses with the revenue trends at the time. The June 2024 restructuring plan included a reduction in workforce, the closure of two offices, and a change in our Chegg Skills offering such that we no longer offer Chegg Skills directly to customers. Since then, the factors described above have negatively impacted our business and our outlook. As a result, in November 2024, we announced an additional restructuring plan to further manage costs and align with the market. The November 2024 restructuring plan included a reduction in workforce and the closure of one office. For fiscal year 2025, we expect to realize cost savings as a result of the restructuring plans. See Note 5, “Property and Equipment, Net”, and Note 11, “Restructuring and Other Related Charges” of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q for additional details.

Previous wording

During the three months ended June 30, 2024, in consideration of the sustained decline in our stock price, industry developments, and our financial performance, we determined that impairment tests for our goodwill, intangible assets and property and equipment were necessary. As a result, we recorded $481.5 million of impairment expense during the three months ended June 30, 2024. If there continues to be a decline in our stock price or financial performance, we may be required to perform additional impairment tests, which could result in impairment expense of up to the entire remaining balances of goodwill, intangible assets and property and equipment. Any such impairment expense may be material and have an adverse effect on our financial condition and results of operations. See Note 5, “Property and Equipment, Net” and Note 6, “Goodwill and Intangible Assets” of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q for additional details.

Current wording

In September 2024 and June 2024, in consideration of the sustained decline in our stock price, industry developments, and our financial performance, we determined that impairment tests for our goodwill, intangible assets and property and equipment were necessary. As a result, we recorded $195.7 million and $677.2 million of impairment expense during the three and nine months ended September 30, 2024. See Note 5, “Property and Equipment, Net” and Note 6, “Goodwill and Intangible Assets” of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q for additional details.

Previous wording

During the three and six months ended June 30, 2024, we generated net revenues of $163.1 million and $337.5 million, respectively. During the three and six months ended June 30, 2023, we generated net revenues of $182.9 million and $370.5 million, respectively.

Current wording

During the three and nine months ended September 30, 2024, we generated net revenues of $136.6 million and $474.1 million, respectively. During the three and nine months ended September 30, 2023, we generated net revenues of $157.9 million and $528.3 million, respectively.

Previous wording

Our Subscription Services can be accessed internationally through our websites and on mobile devices and include Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu and students typically pay to access our Subscription Services on a monthly basis. Revenues from our Subscription Services are primarily recognized ratably over the monthly subscription period whereas the number of subscribers are determined as those who have paid to access our services at any time during the period. Changes in revenues are primarily related to changes in subscribers. Our Chegg Study subscription service provides access to personalized, step-by-step learning support powered by AI, computational engines, and subject matter experts. When students need writing help, including plagiarism detection scans and creating citations for their papers, they can use our Chegg Writing subscription service. Our Chegg Math subscription service, including Mathway, helps students understand math by providing a step-by-step math solver and calculator. We also offer our Chegg Study Pack as a premium subscription bundle of our Chegg Study, Chegg Writing, and Chegg Math services. Subscribers to Busuu have access to a premium language learning platform that offers comprehensive support through self-paced lessons, live classes with expert tutors and a huge community of members to practice alongside.

Current wording

Our Subscription Services can be accessed internationally through our websites and on mobile devices and include Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu. Students typically pay to access our Subscription Services on a monthly basis. Revenues from our Subscription Services are primarily recognized ratably over the monthly subscription period whereas the number of subscribers are determined as those who have paid to access our services at any time during the period. Changes in revenues are primarily related to changes in subscribers. Our Chegg Study subscription service provides access to personalized, step-by-step learning support powered by AI, computational engines, and subject matter experts. When students need writing help, including plagiarism detection scans and creating citations for their papers, they can use our Chegg Writing subscription service. Our Chegg Math subscription service, including Mathway, helps students understand math by providing a step-by-step math solver and calculator. We also offer our Chegg Study Pack as a premium subscription bundle of our Chegg Study, Chegg Writing, and Chegg Math services. Subscribers to Busuu have access to a premium language learning platform that offers comprehensive support through self-paced lessons, live classes with expert tutors and a huge community of members to practice alongside.

Previous wording

In the aggregate, Subscription Services revenues were 90% and 89% of net revenues during the three and six months ended June 30, 2024, respectively. In the aggregate, Subscription Services revenues were 91% and 90% of net revenues during the three and six months ended June 30, 2023, respectively.

Current wording

In the aggregate, Subscription Services revenues were 88% and 89% of net revenues during the three and nine months ended September 30, 2024, respectively. In the aggregate, Subscription Services revenues were 89% and 90% of net revenues during the three and nine months ended September 30, 2023, respectively.

Previous wording

In the aggregate, Skills and Other revenues were 10% and 11% during the three and six months ended June 30, 2024, respectively. In the aggregate, Skills and Other revenues were 9% and 10% during the three and six months ended June 30, 2023, respectively.

Current wording

In the aggregate, Skills and Other revenues were 12% and 11% during the three and nine months ended September 30, 2024, respectively. In the aggregate, Skills and Other revenues were 11% and 10% during the three and nine months ended September 30, 2023, respectively.

Previous wording

Our impairment expense consists of impairments of goodwill, intangible assets, and property and equipment, net that were recorded during the three months and six months ended June 30, 2024. For further information, see “Note 5, Property and Equipment, Net” and “Note 6, Goodwill and Intangible Assets” of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q.

Current wording

Our impairment expense consists of impairments of goodwill, intangible assets, and property and equipment, net. For further information, see “Note 5, Property and Equipment, Net” and “Note 6, Goodwill and Intangible Assets” of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q.

Previous wording

Subscription Services revenues decreased $19.0 million, or 11%, and $33.4 million, or 10%, during the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023. The decrease was primarily due to a 9% and 8% decrease in subscribers who have paid to access our services during the three months ended June 30, 2024 and March 31, 2024, respectively, compared to the same periods in 2023. Skills and Other revenues decreased $0.7 million, or 4%, during the three months ended June 30, 2024, compared to the same period in 2023, primarily due to lower revenues in Chegg Skills related to direct to customer enrollments. Skills and Other revenues increased $0.5 million, or 1%, during the six months ended June 30, 2024, compared to the same period in 2023, remaining relatively flat.

Current wording

Subscription Services revenues decreased $20.1 million, or 14%, and $53.5 million, or 11%, during the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The decrease was primarily due to a 13%, 9%, and 8% decrease in subscribers who have paid to access our services during the three months ended September 30, 2024, June 30, 2024 and March 31, 2024, respectively, compared to the same periods in 2023. Skills and Other revenues decreased $1.2 million, or 6%, during the three months ended September 30, 2024, compared to the same period in 2023, primarily due to lower revenues in Chegg Skills related to enrollments. Skills and Other revenues decreased $0.7 million, or 1%, during the nine months ended September 30, 2024, compared to the same period in 2023, remaining relatively flat.

Previous wording

Cost of revenues decreased $4.7 million, or 5%, during the six months ended June 30, 2024, compared to the same period in 2023. The decrease was primarily due to lower depreciation and amortization expense of $6.1 million and lower contractor spend of $2.1 million, which was partially offset by higher web hosting fees of $2.2 million and the absence of the gain on disposition of textbooks of $1.2 million. Gross margins decreased to 73% during the six months ended June 30, 2024, from 74% during the same period in 2023.

Current wording

Cost of revenues decreased $40.2 million, or 48%, during the three months ended September 30, 2024, compared to the same period in 2023. The decrease was primarily due to the absence of the $38.2 million content and related assets charge, lower payment processing fees of $1.2 million, which is primarily due to the decrease in subscribers who have paid to access our services, and lower contractor spend of $1.2 million. Gross margins increased to 68% during the three months ended September 30, 2024, from 47% during the same period in 2023.

Previous wording

Cost of revenues decreased $2.0 million, or 4%, during the three months ended June 30, 2024, compared to the same period in 2023. The decrease was primarily due to lower depreciation and amortization expense of $3.2 million and lower contractor spend of $1.5 million, which was partially offset by the absence of the gain on disposition of textbooks of $1.2 million and higher web hosting fees of $1.0 million. Gross margins decreased to 72% during the three months ended June 30, 2024, from 74% during the same period in 2023.

Current wording

Cost of revenues decreased $44.8 million, or 25%, during the nine months ended September 30, 2024, compared to the same period in 2023. The decrease was primarily due to the absence of the $38.2 million content and related assets charge, lower depreciation and amortization expense of $5.6 million, lower contractor spend of $3.3 million and lower payment processing fees of $1.9 million, which is primarily due to the decrease in subscribers who have paid to access our services, which was partially offset by higher web hosting fees of $2.4 million and the absence of the gain on disposition of textbooks of $1.2 million. Gross margins increased to 71% during the nine months ended September 30, 2024, from 66% during the same period in 2023.

Previous wording

Research and development expenses decreased $9.2 million, or 17%, during the three months ended June 30, 2024 compared to the same period in 2023. The decrease was primarily due to lower employee-related expenses, including share-based compensation expense. Research and development expenses as a percentage of net revenues were 27% during the three months ended June 30, 2024 compared to 29% during the same period in 2023.

Current wording

Research and development expenses decreased $4.9 million, or 11%, during the three months ended September 30, 2024 compared to the same period in 2023. The decrease was primarily due to lower employee-related expenses, which is primarily due to share-based compensation expense. Research and development expenses as a percentage of net revenues were flat at 30% during the three months ended September 30, 2024 and 2023.

Previous wording

Research and development expenses decreased $11.7 million, or 12%, during the six months ended June 30, 2024 compared to the same period in 2023. The decrease was primarily due to lower employee-related expenses, including share-based compensation expense. Research and development expenses as a percentage of net revenues were 26% during the six months ended June 30, 2024 compared to 27% during the same period in 2023.

Current wording

Research and development expenses decreased $16.6 million, or 11%, during the nine months ended September 30, 2024 compared to the same period in 2023. The decrease was primarily due to lower employee-related expenses, which is primarily due to share-based compensation expense. Research and development expenses as a percentage of net revenues were flat at 27% during the nine months ended September 30, 2024 and 2023.

Previous wording

Sales and marketing expenses decreased by $14.1 million, or 21%, during the six months ended June 30, 2024, compared to the same period in 2023. The decrease was primarily attributable to lower depreciation and amortization expense of $6.2 million, lower paid marketing expenses of $5.4 million and lower employee-related expenses, including share-based compensation expense, of $2.1 million. Sales and marketing expenses as a percentage of net revenues were 16% during the six months ended June 30, 2024 compared to 18% during the same period in 2023.

Current wording

Sales and marketing expenses decreased by $2.4 million, or 8%, during the three months ended September 30, 2024, compared to the same period in 2023. The decrease was primarily attributable to lower depreciation and amortization expense of $3.2 million, which was offset by higher paid marketing expenses of $1.4 million. Sales and marketing expenses as a percentage of net revenues were 19% during the three months ended September 30, 2024 compared to 18% during the same period in 2023.

Previous wording

Sales and marketing expenses decreased by $7.4 million, or 24%, during the three months ended June 30, 2024, compared to the same period in 2023. The decrease was primarily attributable to lower depreciation and amortization expense of $3.3 million, lower paid marketing expenses of $3.0 million and lower employee-related expenses, including share-based compensation expense, of $1.0 million. Sales and marketing expenses as a percentage of net revenues were 14% during the three months ended June 30, 2024 compared to 17% during the same period in 2023.

Current wording

Sales and marketing expenses decreased by $16.4 million, or 17%, during the nine months ended September 30, 2024, compared to the same period in 2023. The decrease was primarily attributable to lower depreciation and amortization expense of $9.4 million, lower paid marketing expenses of $4.0 million and lower employee-related expenses, including share-based compensation expense, of $2.5 million. Sales and marketing expenses as a percentage of net revenues were 17% during the nine months ended September 30, 2024 compared to 18% during the same period in 2023.

Previous wording

General and administrative expenses decreased $16.3 million, or 23%, during the three months ended June 30, 2024 compared to the same period in 2023. The decrease was primarily due to lower employee-related expenses, including share-based compensation expense. General and administrative expenses as a percentage of net revenues were 33% during the three months ended June 30, 2024 compared to 38% during the same period in 2023.

Current wording

General and administrative expenses decreased $1.6 million, or 3%, during the three months ended September 30, 2024 compared to the same period in 2023. The decrease was due to lower employee-related expenses of $6.9 million, which is primarily due to share-based compensation expense, which was partially offset by a loss contingency accrual of $5.1 million. General and administrative expenses as a percentage of net revenues were 38% during the three months ended September 30, 2024 compared to 34% during the same period in 2023.

Previous wording

General and administrative expenses decreased $19.7 million, or 15%, during the six months ended June 30, 2024 compared to the same period in 2023. The decrease was primarily due to lower employee-related expenses, including share-based compensation expense. General and administrative expenses as a percentage of net revenues were 32% during the six months ended June 30, 2024 compared to 35% during the same period in 2023.

Current wording

General and administrative expenses decreased $21.3 million, or 12%, during the nine months ended September 30, 2024 compared to the same period in 2023. The decrease was due to lower employee-related expenses of $27.4 million, which is primarily due to share-based compensation expense, which was partially offset by a loss contingency accrual of $5.1 million. General and administrative expenses as a percentage of net revenues were flat at 34% during the nine months ended September 30, 2024 and 2023.

Previous wording

Impairment expense was $481.5 million during the three and six months ended June 30, 2024, consisting of impairments of goodwill, intangible assets, and other related long-lived assets. See Note 5, Property and Equipment, Net” and “Note 6, Goodwill and Intangible Assets of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q for additional information.

Current wording

Impairment expense was $195.7 million and $677.2 million during the three and nine months ended September 30, 2024, respectively, consisting of impairments of goodwill, intangible assets, and other related property and equipment. Impairment expense was $3.6 million during each the three and nine months ended September 30, 2023 consisting of an impairment charge related to our intangible assets. See Note 5, Property and Equipment, Net” and “Note 6, Goodwill and Intangible Assets of our accompanying Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements (unaudited)” of this Quarterly Report on Form 10-Q for additional information.

Previous wording

Interest expense, net decreased $0.5 million, or 42%, and $1.1 million, or 45%, during the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023, primarily due to the partial early extinguishments of our convertible senior notes in 2023.

Current wording

Interest expense decreased $0.1 million, or 10%, and $1.2 million, or 37%, during the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023, primarily due to the partial early extinguishments of our convertible senior notes in 2023.

Previous wording

Other income, net decreased $57.0 million, or 89%, during the three months ended June 30, 2024 compared to the same period in 2023, primarily due to the absence of the gain on early extinguishment of a portion of the 2025 notes and 2025 notes of $53.8 million and a decrease in interest income of $3.4 million. Other income, net decreased $58.3 million, or 77%, during the six months ended June 30, 2024 compared to the same period in 2023, primarily due to the absence of the gain on early extinguishment of a portion of the 2025 notes and 2025 notes of $53.8 million and a decrease in interest income of $7.7 million.

Current wording

Other income, net decreased $32.9 million, or 81%, during the three months ended September 30, 2024 compared to the same period in 2023, primarily due to the absence of the gain on early extinguishment of a portion of the 2026 notes of $32.1 million and a decrease in interest income of $1.2 million. Other income, net decreased $91.2 million, or 78%, during the nine months ended September 30, 2024 compared to the same period in 2023, primarily due to the absence of the gain on early extinguishment of a portion of the 2026 notes and 2025 notes of $85.9 million and a decrease in interest income of $8.9 million.

Previous wording

The following tables present our provision for income taxes for the periods shown (in thousands, except percentages):

Current wording

The following tables present our benefit from (provision for) income taxes for the periods shown (in thousands, except percentages):

Previous wording

Provision for income taxes increased $118.7 million and $123.5 million during the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023. The increase was primarily due to the establishment of a valuation allowance against our U.S. federal and state deferred tax assets.

Current wording

The $2.9 million change in benefit from (provision for) income taxes during the three months ended September 30, 2024 compared to the same period in 2023, was primarily due to a decrease in worldwide income taxes, partially offset by the absence of a tax benefit from the accelerated depreciation of content and software in September 2023. The $120.7 million change in benefit from (provision for) income taxes during the nine months ended September 30, 2024 compared to the same period in 2023, was primarily due to the establishment of a valuation allowance against our U.S. federal and state deferred tax assets.

Previous wording

Cash, cash equivalents, and investments increased $25.8 million during the six months ended June 30, 2024 primarily due to the net cash provided by operating activities of $67.5 million, partially offset by the purchases of property and equipment of $45.8 million. Convertible senior notes, net increased $1.1 million during the six months ended June 30, 2024 primarily due to amortization of issuance costs.

Current wording

Cash, cash equivalents, and investments increased $51.7 million, or 9%, during the nine months ended September 30, 2024 primarily due to the net cash provided by operating activities of $107.1 million, partially offset by the purchases of property and equipment of $61.7 million. Convertible senior notes, net increased $1.6 million during the nine months ended September 30, 2024 primarily due to amortization of issuance costs.

Previous wording

As of June 30, 2024, our principal sources of liquidity were cash, cash equivalents, and investments totaling $605.4 million, which were held for working capital purposes. The substantial majority of our net revenues are from e-commerce transactions with students, which are settled immediately through payment processors, as opposed to our accounts payable, which are settled based on contractual payment terms with our suppliers. We believe that our existing sources of liquidity will be sufficient to fund our operations and debt service obligations for at least the next 12 months. Our future capital requirements will depend on many factors, including our rate of revenue growth, our investments in research and development activities, our acquisition of new products and services and our sales and marketing activities. To the extent that existing sources of liquidity are insufficient to fund our future operations, we may need to raise additional funds through public or private equity or debt financing. Additional funds may not be available on terms favorable to us or at all. If adequate funds are not available on acceptable terms, or at all, we may be unable to adequately fund our business plans and it could have a negative effect on our business, operating cash flows and financial condition. As of June 30, 2024, we have incurred cumulative losses of $670.7 million from our operations and we may incur additional losses in the future.

Current wording

As of September 30, 2024, our principal sources of liquidity were cash, cash equivalents, and investments totaling $631.2 million, which were held for working capital purposes. The substantial majority of our net revenues are from e-commerce transactions with students, which are settled immediately through payment processors, as opposed to our accounts payable, which are settled based on contractual payment terms with our suppliers. We believe that our existing sources of liquidity as well as net cash flows from operations will be sufficient to fund our operations and debt service obligations for at least the next 12 months. Our future capital requirements will depend on many factors, including our rate of revenue growth, our investments in research and development activities, our acquisition of new products and services and our sales and marketing activities. To the extent that existing sources of liquidity are insufficient to fund our future operations, we may need to raise additional funds through public or private equity or debt financing. Additional funds may not be available on terms favorable to us or at all. If adequate funds are not available on acceptable terms, or at all, we may be unable to adequately fund our business plans and it could have a negative effect on our business, operating cash flows and financial condition. As of September 30, 2024, we have incurred cumulative losses of $883.3 million from our operations and we may incur additional losses in the future.

Previous wording

Most of our cash, cash equivalents, and investments are held in the United States. We plan to repatriate a portion of the earnings from our subsidiary in India and therefore accrued $4.3 million of tax expense related to such future distributions as of June 30, 2024. As a result of the Tax Cuts and Jobs Act, we anticipate the U.S. federal impact for the remaining foreign jurisdictions to be minimal if these funds are repatriated. In addition, based on our current and future needs, we believe our current funding and capital resources for our international operations are adequate.

Current wording

Most of our cash, cash equivalents, and investments are held in the United States. We plan to repatriate a portion of the earnings from our subsidiary in India and therefore accrued $4.4 million of tax expense related to such future distributions as of September 30, 2024. As a result of the Tax Cuts and Jobs Act, we anticipate the U.S. federal impact for the remaining foreign jurisdictions to be minimal if these funds are repatriated. In addition, based on our current and future needs, we believe our current funding and capital resources for our international operations are adequate.

Previous wording

Net cash flows from operating activities decreased $68.4 million, or 50%, during the six months ended June 30, 2024 compared to the same period in 2023. The decrease was primarily driven by lower bookings as well as timing of bill payments.

Current wording

Net cash flows from operating activities decreased $61.6 million, or 37%, during the nine months ended September 30, 2024 compared to the same period in 2023. The decrease was primarily driven by lower bookings as well as timing of bill payments.

Previous wording

Net cash flows from investing activities decreased $193.5 million, or 150%, during the six months ended June 30, 2024 compared to the same period in 2023 and was primarily related to lower proceeds from the maturities of our investments of $387.0 million, lower proceeds from sale of investments of $238.7 million, and higher purchases of property and equipment of $12.0 million, partially offset by lower purchases of investments of $428.7 million and proceeds from the sale of our strategic investment of $15.5 million.

Current wording

Net cash flows from investing activities decreased $238.7 million, or 154%, during the nine months ended September 30, 2024 compared to the same period in 2023 and was primarily related to lower proceeds from the maturities of our investments of $464.3 million, lower proceeds from sale of investments of $238.7 million, and higher purchases of property and equipment of $4.4 million, partially offset by lower purchases of investments of $451.1 million and proceeds from the sale of our strategic investment of $15.5 million.

Previous wording

Net cash flows from financing activities increased $558.2 million, or 99%, during the six months ended June 30, 2024 compared to the same period in 2023 and was primarily related to the absence of repurchases of our common stock.

Current wording

Net cash flows from financing activities increased $696.3 million, or 99%, during the nine months ended September 30, 2024 compared to the same period in 2023 and was primarily related to the absences of both repayments of our convertible debt of $506.0 million and repurchases of our common stock of $186.4 million.

Previous wording

There have been no material 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 Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the year ended December 31, 2023.

Current wording

There have been no material changes in our critical accounting policies and estimates during the nine months ended September 30, 2024 as compared to the critical accounting policies and estimates disclosed in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the year ended December 31, 2023.