ROKU INC
For the period ended Sep 30, 2024. Filed Oct 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 31, 2024
ROKU$160.52+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-02.
0001428439-24-000034
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0001428439-24-000042
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 99 previous paragraphs and 104 current paragraphs.
68 unchanged; 26 reworded; 10 added; 4 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Beginning with our results for the first quarter of 2025, we will no longer report quarterly updates on Streaming Households and, by extension, ARPU. Since we first reported our key performance metrics in connection with our initial public offering in 2017, our business and the streaming industry have evolved significantly. Now, we are primarily focused on the growth of revenue of our platform segment and Adjusted earnings before interest, tax, depreciation and amortization (Adjusted EBITDA). As a result, effective as of the first quarter of 2025, our key performance metrics will be Streaming Hours, Platform Revenue, Adjusted EBITDA, and Free Cash Flow.
Current report
ARPU was relatively flat at $41.10 as of September 30, 2024 as compared to $41.03 as of September 30, 2023. This reflects relatively consistent growth rates of Platform revenue and Streaming Households.
Current report
Research and development expenses decreased by $103.4 million, or 37%, during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. The decrease was due to lower restructuring charges of $96.0 million, lower office facilities and IT infrastructure expenses of $5.2 million, and lower personnel-related expenses of $2.0 million.
Current report
Sales and marketing expenses decreased by $70.6 million, or 23%, during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. The decrease was due to lower restructuring charges of $65.0 million, lower office facilities and IT infrastructure expenses of $5.3 million, and lower personnel-related expenses of $3.6 million, partially offset by higher consulting expenses of $1.6 million.
Current report
Sales and marketing expenses decreased by $108.0 million, or 14%, during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The decrease was due to lower restructuring charges of $63.2 million, lower personnel-related expenses of $29.8 million, lower office facilities and IT infrastructure expenses of $11.9 million, and lower marketing, retail, and merchandising expenses of $7.7 million, partially offset by higher consulting expenses of $3.5 million.
Current report
Income tax expense increased by $1.0 million during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023, primarily due to an increase in U.S. tax liability.
Current report
Debt
Current report
On September 16, 2024, we entered into a Credit Agreement, by and among the Company, as borrower, certain of our subsidiaries, as guarantors, the lenders and issuing banks party thereto, and with Citibank N.A., as administrative agent (the “Credit Agreement”), which provides for (i) a five-year revolving credit facility in an aggregate principal amount of up to $300.0 million, and (ii) an uncommitted increase option of up to an additional $300.0 million exercisable upon the satisfaction of certain customary conditions. The Credit Agreement provides for a $100.0 million sub-facility for the issuance of letters of credit, and certain existing letters of credit were deemed outstanding under this facility. The Credit Agreement will mature on September 16, 2029. Proceeds from the Credit Agreement may be used for general corporate purposes, including to finance working capital requirements.
Current report
Our obligations under the Credit Agreement are secured by substantially all the assets of the Company and our subsidiaries that are guarantors under the Credit Agreement. We may prepay, and in certain circumstances would be required to prepay, loans under the Credit Agreement without payment of a premium. The Credit Agreement also contains customary representations and warranties, customary affirmative and negative covenants, financial covenants requiring the maintenance of a minimum interest coverage ratio and a maximum total net leverage ratio, as well as customary events of default, the occurrence of which could result in amounts borrowed under the Credit Agreement becoming due and payable and remaining commitments terminated prior to its scheduled September 16, 2029 termination date.
Current report
We had outstanding letters of credit secured by the Credit Agreement of $36.4 million as of September 30, 2024. As of September 30, 2024, we had not borrowed against the Credit Agreement, and we were in compliance with all of the covenants of the Credit Agreement.
Removed paragraphs (4)
Previous report
ARPU stayed flat at $40.68 as of June 30, 2024 as compared to $40.67 as of June 30, 2023 due to an increasing share of Streaming Households in international markets which outpaced the monetization of our streaming platform and our growth in revenue.
Previous report
Research and development expenses decreased by $16.9 million, or 9%, during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The decrease was primarily due to lower personnel-related expenses of $11.3 million and lower office facilities and IT infrastructure expenses of $6.4 million.
Previous report
Sales and marketing expenses decreased by $5.5 million, or 2%, during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The decrease was due to lower personnel-related expenses of $9.9 million, lower marketing, retail, and merchandising expenses of $2.3 million, and lower office facilities and IT infrastructure expenses of $3.7 million, offset by higher restructuring charges of $7.6 million and higher consulting expenses of $2.5 million.
Previous report
Sales and marketing expenses decreased by $37.3 million, or 8%, during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The decrease was due to lower personnel-related expenses of $26.2 million, lower marketing, retail, and merchandising expenses of $8.1 million, and lower office facilities and IT infrastructure expenses of $6.5 million, offset by higher restructuring charges of $1.8 million and higher consulting expenses of $1.9 million.
Reworded paragraphs (26)
Previous wording
The key performance metrics we use to evaluate our business, measure our performance, develop financial forecasts and make strategic decisions are Streaming Households, Streaming Hours, Average Revenue Per User (“ARPU”), and Free Cash Flow.
Current wording
The key performance metrics we use to evaluate our business, measure our performance, develop financial forecasts and make strategic decisions are currently Streaming Households, Streaming Hours, Average Revenue Per User (“ARPU”), and Free Cash Flow.
Previous wording
We had 83.6 million and 73.5 million Streaming Households as of June 30, 2024 and 2023, respectively, reflecting an increase of 14%.
Current wording
We had 85.5 million and 75.8 million Streaming Households as of September 30, 2024 and 2023, respectively, reflecting an increase of 13%.
Previous wording
We streamed 30.1 billion and 25.1 billion hours during the three months ended June 30, 2024 and 2023, respectively, reflecting an increase of 20%.
Current wording
We streamed 32.0 billion and 26.7 billion hours during the three months ended September 30, 2024 and 2023, respectively, reflecting an increase of 20%.
Previous wording
Our Free Cash Flow was $317.9 million and negative $169.3 million for the TTM periods ended June 30, 2024 and 2023, respectively.
Current wording
Our Free Cash Flow was $157.3 million and $100.8 million for the TTM periods ended September 30, 2024 and 2023, respectively.
Previous wording
For the three and six months ended June 30, 2024, and 2023, other income, net primarily consists of interest income on cash and cash equivalents, income recognized related to non-cash consideration associated with the delivery of services as part of a strategic commercial arrangement, foreign currency re-measurement and transaction gains and losses, and net change in the fair value of the Strategic Investment (as defined in Note 7 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report).
Current wording
For the three and nine months ended September 30, 2024, and 2023, other income, net primarily consists of interest income on cash and cash equivalents, and net change in the fair value of the strategic investment in convertible promissory notes (see Note 7 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report).
Previous wording
Our income tax expense (benefit) consists primarily of income taxes in certain foreign jurisdictions where we conduct business and income taxes in the United States. We have a full valuation allowance against net deferred tax assets in the U.S. During the three months ended June 30, 2024, we released the valuation allowance on certain foreign deferred tax assets and recognized an income tax benefit.
Current wording
Our income tax expense (benefit) consists primarily of income taxes in certain foreign jurisdictions where we conduct business and income taxes in the United States. We have a full valuation allowance against net deferred tax assets in the U.S. During the nine months ended September 30, 2024, we released the valuation allowance on certain foreign deferred tax assets and recognized an income tax benefit.
Previous wording
Comparison of the Three and Six Months Ended June 30, 2024 and June 30, 2023
Current wording
Comparison of the Three and Nine Months Ended September 30, 2024 and September 30, 2023
Previous wording
Platform revenue increased by $80.5 million, or 11%, during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The increase was primarily due to higher revenue from streaming services distribution, such as revenue share on content subscriptions and Premium Subscriptions through The Roku Channel, in addition to slightly higher advertising revenue, despite continued weakness in the media and entertainment vertical.
Current wording
Platform revenue increased by $121.4 million, or 15%, during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. The increase was primarily due to higher revenue from streaming services distribution, such as revenue share on content subscriptions and Premium Subscriptions through The Roku Channel, in addition to higher advertising revenue, despite continued weakness in the media and entertainment vertical.
Previous wording
Platform revenue increased by $200.8 million, or 15%, during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The increase was primarily due to higher revenue from streaming services distribution, such as revenue share on content subscriptions and Premium Subscriptions through The Roku Channel, in addition to higher advertising revenue, despite continued weakness in the media and entertainment vertical.
Current wording
Platform revenue increased by $322.2 million, or 15%, during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The increase was primarily due to higher revenue from streaming services distribution, such as revenue share on content subscriptions and Premium Subscriptions through The Roku Channel, in addition to higher advertising revenue, despite continued weakness in the media and entertainment vertical.
Previous wording
Devices revenue increased by $40.5 million, or 39%, during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The increase was primarily due to higher revenue from Roku-branded TVs and to a lesser extent higher revenue from streaming players and accessories. This was offset by lower revenue from audio and smart home products and services. During the three months ended June 30, 2024, the average selling price of all devices shipped increased by 22% and the volume of all devices shipped increased by 13% as compared to the three months ended June 30, 2023. The increase in average selling price is due to increased sales of Roku-branded TVs which generally sell at higher prices compared to streaming players. The increase in the volume of devices shipped was mainly due to higher sales of Roku-branded TVs and to a lesser extent higher sales of streaming players, offset by lower sales of audio and smart home products.
Current wording
Devices revenue increased by $28.8 million, or 23%, during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. The increase was primarily due to higher revenue from Roku-branded TVs, offset by lower revenue from streaming players and accessories. During the three months ended September 30, 2024, the average selling price of all devices shipped increased by 11% and the volume of all devices shipped increased by 13% as compared to the three months ended September 30, 2023. The increase in average selling price is due to increased sales of Roku-branded TVs, which generally sell at higher prices compared to streaming players. The increase in the volume of devices shipped was mainly due to higher sales of Roku-branded TVs.
Previous wording
Devices revenue increased by $60.7 million, or 29%, during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The increase was primarily due to higher revenue from Roku-branded TVs and to a lesser extent higher revenue from streaming players and accessories. This was offset by lower revenue from licensing arrangements with service operators and lower revenue from audio and smart home products and services. During the six months ended June 30, 2024, the average selling price of all devices shipped increased by 26% and the volume of all devices shipped increased by 7% as compared to the six months ended June 30, 2023. The increase in average selling price is due to increased sales of Roku-branded TVs which generally sell at higher prices compared to streaming players. The increase in the volume of devices shipped was mainly due to higher sales of Roku-branded TVs and to a lesser extent higher sales of streaming players offset by lower sales of audio and smart home products.
Current wording
Devices revenue increased by $89.5 million, or 27%, during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The increase was primarily due to higher revenue from Roku-branded TVs and to a lesser extent higher revenue from streaming players and accessories. This was offset by lower revenue from licensing arrangements with service operators and lower revenue from audio and smart home products and services. During the nine months ended September 30, 2024, the average selling price of all devices shipped increased by 20% and the volume of all devices shipped increased by 9%as compared to the nine months ended September 30, 2023. The increase in average selling price is due to increased sales of Roku-branded TVs, which generally sell at higher prices compared to streaming players. The increase in the volume of devices shipped was mainly due to higher sales of Roku-branded TVs and to a lesser extent higher sales of streaming players offset by lower sales of smart home products.
Previous wording
The cost of revenue, platform increased by $36.4 million, or 10%, during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The increase was primarily driven by higher costs of acquiring content, write-off of content assets, and higher credit card processing fees, partially offset by lower content asset amortization and lower cost of advertising inventory.
Current wording
The cost of revenue, platform increased by $7.8 million, or 2%, during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. The increase was primarily driven by higher costs of acquiring content, higher cost of advertising inventory, and higher credit card processing fees, partially offset by lower impairment charges relating to content assets, and lower content asset amortization.
Previous wording
The cost of revenue, platform increased by $96.4 million, or 15%, during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The increase was primarily driven by higher costs of acquiring content, write-off of content assets, and higher credit card processing fees, partially offset by lower content asset amortization and lower cost of advertising inventory.
Current wording
The cost of revenue, platform increased by $104.3 million, or 10%, during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The increase was primarily driven by higher costs of acquiring content, write-off of content assets, and higher credit card processing fees, partially offset by lower impairment charges relating to content assets, lower content asset amortization, and lower cost of advertising inventory.
Previous wording
The cost of revenue, devices increased by $38.1 million, or 32%, during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The increase was primarily driven by higher manufacturing costs of $30.1 million, higher freight costs of $4.7 million, and higher inventory related provisions including losses on firm purchase commitments of $8.0 million. The increase in manufacturing costs was driven primarily by the cost of manufacturing Roku-branded TVs. The increases were offset by lower royalty costs and rebates of $4.4 million.
Current wording
The cost of revenue, devices increased by $31.1 million, or 23%, during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. The increase was primarily driven by higher manufacturing costs of $34.8 million, driven primarily by the cost of manufacturing Roku-branded TVs, and higher freight costs of $11.0 million. The increases were partially offset by lower royalty costs of $5.2 million and lower restructuring charges of $3.2 million.
Previous wording
The cost of revenue, devices increased by $67.9 million, or 30%, during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The increase was primarily driven by higher manufacturing costs of $52.3 million, higher freight costs of $9.1 million, and higher inventory related provisions including losses on firm purchase commitments of $6.8 million. The increase in manufacturing costs was driven primarily by the cost of manufacturing Roku-branded TVs.
Current wording
The cost of revenue, devices increased by $99.0 million, or 28%, during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The increase was primarily driven by higher manufacturing costs of $87.0 million, driven primarily by the cost of manufacturing Roku-branded TVs, and higher freight costs of $20.1 million.
Previous wording
Research and development expenses decreased by $56.5 million, or 14%, during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The decrease was due to lower personnel-related expenses of $26.2 million, lower restructuring charges of $12.1 million, lower office facilities and IT infrastructure expenses of $10.2 million, and lower consulting expenses of $6.7 million.
Current wording
Research and development expenses decreased by $159.9 million, or 23%, during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The decrease was mainly due to lower restructuring charges of $108.1 million, lower personnel-related expenses of $28.2 million, lower office facilities and IT infrastructure expenses of $15.4 million, and lower consulting expenses of $6.6 million.
Previous wording
General and administrative expenses increased by $14.2 million, or 17%, during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The increase was due to higher legal and consulting expenses of $8.1 million, higher restructuring charges of $2.2 million and higher bad debt expense of $3.3 million, offset by lower personnel-related expenses of $0.9 million and lower office facilities and IT infrastructure expenses of $0.7 million.
Current wording
General and administrative expenses decreased by $28.7 million, or 22%, during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. The decrease was mainly due to lower restructuring charges of $37.5 million, lower bad debt expense of $1.2 million, and lower office facilities and IT infrastructure expenses of $1.0 million, partially offset by higher legal and consulting expenses of $10.8 million and higher personnel-related expenses of $2.2 million.
Previous wording
General and administrative expenses decreased by $4.2 million, or 2%, during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The decrease was due to lower restructuring charges of $8.5 million, lower personnel-related expenses of $3.5 million and lower office facilities and IT infrastructure expenses of $1.4 million, offset by higher legal and consulting expenses of $5.9 million and higher bad debt expense of $1.4 million.
Current wording
General and administrative expenses decreased by $32.9 million, or 11%, during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The decrease was due to lower restructuring charges of $46.1 million, lower office facilities and IT infrastructure expenses of $2.5 million, and lower personnel-related expenses of $1.3 million, partially offset by higher legal and consulting expenses of $16.7 million.
Previous wording
Other income, net, increased $8.1 million, or 41%, during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The increase was primarily driven by an increase in interest income of $5.7 million from higher interest rates on our cash balances and an increase in other income of $3.1 million from higher unrealized gains related to the change in the fair value of the Strategic Investment, offset by foreign exchange losses of $1.0 million due to fluctuations in exchange rates.
Current wording
Other income, net, increased $8.0 million, or 35%, during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. The increase was primarily driven by an increase in interest income of $2.0 million from higher cash balances, an increase in other income of $2.7 million mainly from higher unrealized gains related to the change in the fair value of the strategic investment in convertible promissory notes, and foreign exchange gains of $3.4 million due to fluctuations in exchange rates.
Previous wording
Other income, net, increased $11.7 million, or 27%, during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The increase was primarily driven by an increase in interest income of $10.2 million from higher interest rates on our cash balances and an increase in other income of $2.1 million from higher unrealized gains related to the change in the fair value of the Strategic Investment, offset by foreign exchange losses of $0.6 million due to fluctuations in exchange rates.
Current wording
Other income, net, increased $19.6 million, or 30%, during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The increase was primarily driven by an increase in interest income of $12.2 million from higher cash balances, an increase in other income of $3.7 million mainly from higher unrealized gains related to the change in the fair value of the strategic investment in convertible promissory notes, and foreign exchange gains of $2.8 million due to fluctuations in exchange rates.
Previous wording
Income tax expense decreased by $10.8 million, to reflect a benefit during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023, primarily due to a tax benefit from the release of a valuation allowance on certain foreign deferred tax assets.
Current wording
Income tax expense decreased by $8.6 million during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023, primarily due to a tax benefit from the release of a valuation allowance on certain foreign deferred tax assets.
Previous wording
As of June 30, 2024, we had cash and cash equivalents of $2,058.5 million. Approximately 6% of our cash was held outside the United States in accounts held by our foreign subsidiaries, which is used to fund foreign operations.
Current wording
As of September 30, 2024, we had cash and cash equivalents of $2,127.0 million. Approximately 6% of our cash was held outside the United States in accounts held by our foreign subsidiaries, which is used to fund foreign operations.
Previous wording
We believe our existing cash and cash equivalents balance will be sufficient to meet our working capital, capital expenditures, and material cash requirements from known contractual obligations for the next twelve months and beyond. Our future capital requirements, the adequacy of available funds, and cash flows from operations could be affected by various risks, uncertainties, including, but not limited to, those detailed in Part II, Item 1A, Risk Factors in this Quarterly Report and the effects of the current macroeconomic environment. While the current macroeconomic environment has not severely impacted our liquidity and capital resources to date, it has contributed to disruption and volatility in local economies and in capital and credit markets, which could adversely affect our liquidity and capital resources in the future.
Current wording
We believe our existing cash and cash equivalents balance, and our undrawn available balance under our Credit Agreement (as discussed further below), will be sufficient to meet our working capital, capital expenditures, and material cash requirements from known contractual obligations for the next twelve months and beyond. Our future capital requirements, the adequacy of available funds, and cash flows from operations could be affected by various risks, uncertainties, including, but not limited to, those detailed in Part II, Item 1A, Risk Factors in this Quarterly Report and the effects of the current macroeconomic environment. While the current macroeconomic environment has not severely impacted our liquidity and capital resources to date, it has contributed to disruption and volatility in local economies and in capital and credit markets, which could adversely affect our liquidity and capital resources in the future.
Previous wording
Our operating activities provided cash of $70.1 million for the six months ended June 30, 2024. Our net loss of $84.8 million for the six months ended June 30, 2024 was adjusted by non-cash charges of $360.2 million comprised primarily of stock-based compensation, amortization and write-off of content assets, depreciation and amortization of property and equipment and intangible assets, and amortization of operating lease right-of-use assets. The changes in our operating assets and liabilities used cash of $205.3 million, primarily due to a decrease in accounts payable and accrued liabilities due to timing of payments, payments made to acquire content, payments made for operating leases liabilities, a decrease in deferred revenue, an increase in prepaid expenses and other current assets, other long-term assets and the inventory balance. This was offset mainly by a decrease in the accounts receivable balance.
Current wording
Our operating activities provided cash of $138.8 million for the nine months ended September 30, 2024. Our net loss of $93.8 million for the nine months ended September 30, 2024 was adjusted by non-cash charges of $548.0 million comprised primarily of stock-based compensation, amortization and write-off of content assets, depreciation and amortization of property and equipment and intangible assets, amortization of operating lease right-of-use assets, and impairment of assets. The changes in our operating assets and liabilities used cash of $315.4 million, primarily due to a decrease in accounts payable due to timing of payments, payments made to acquire content, payments made for operating leases liabilities, a decrease in deferred revenue, an increase in prepaid expenses and other current assets, increases in other long-term assets, and increases in inventory. This was partially offset by a decrease in the accounts receivable balance and an increase in accrued liabilities.
Previous wording
Our investing activities for the six months ended June 30, 2024 included cash outflows of $1.5 million consisting of purchases of property and equipment.
Current wording
Our investing activities for the nine months ended September 30, 2024 included cash outflows of $22.6 million consisting of purchases of property and equipment of $2.6 million and a purchase of a strategic investment of $20.0 million.
Previous wording
Our financing activities used cash of $32.9 million for the six months ended June 30, 2024. The cash outflow related primarily to the tax payments of $41.6 million made by us on net settlement of the equity awards vested during the period offset by $8.7 million received from proceeds from the exercise of employee stock options.
Current wording
Our financing activities used cash of $56.7 million for the nine months ended September 30, 2024. The cash outflow related primarily to the tax payments of $63.9 million made by us on net settlement of the equity awards vested during the period and the payment of $1.8 million in issuance costs related to our credit agreement, partially offset by $9.0 million received from proceeds from the exercise of employee stock options.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Income tax expense decreased by $9.6 million, to reflect a benefit during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, primarily due to a tax benefit from the release of a valuation allowance on certain foreign deferred tax assets.