Snap Inc

Previous wording

•Daily Active Users, or DAUs, increased 9% year-over-year to 432 million.

Current wording

•Daily Active Users, or DAUs, increased 9% year-over-year to 443 million.

Previous wording

•Average revenue per user, or ARPU, was $2.86, compared to $2.69 in the prior year.

Current wording

•Average revenue per user, or ARPU, was $3.10, compared to $2.93 in the prior year.

Previous wording

•Revenue was $1,236.8 million, compared to $1,067.7 million in the prior year, an increase of 16% year-over-year.

Current wording

•Revenue was $1,372.6 million, compared to $1,188.6 million in the prior year, an increase of 15% year-over-year.

Previous wording

•Total costs and expenses were $1,490.7 million, compared to $1,472.0 million in the prior year.

Current wording

•Total costs and expenses were $1,545.8 million, compared to $1,568.6 million in the prior year.

Previous wording

•Diluted net loss per share was$(0.15), compared to$(0.24) in the prior year.

Current wording

•Diluted net loss per share was$(0.09), compared to$(0.23) in the prior year.

Previous wording

•Cash, cash equivalents, and marketable securities were $3.1 billion as of June 30, 2024.

Current wording

•Cash, cash equivalents, and marketable securities were $3.2 billion as of September 30, 2024.

Previous wording

We periodically make changes to our business and priorities. Recently, we conducted a strategic reprioritization to realign our focus on three strategic priorities: growing our community and deepening their engagement with our products, accelerating and diversifying our revenue growth, and investing in the future of augmented reality. We believe that we can be successful in our current operating environment, with various macroeconomic factors impacting our business, by rigorously prioritizing our investments and continuing to engage our community with our products while driving success for our advertising partners. However, the impact of our strategic reprioritization and recent restructurings is difficult to predict.

Current wording

We periodically make changes to our business and priorities. In 2022, we conducted a strategic reprioritization to realign our focus on three strategic priorities: growing our community and deepening their engagement with our products, accelerating and diversifying our revenue growth, and investing in the future of augmented reality. We believe that we can be successful in our current operating environment, with various macroeconomic factors impacting our business, by rigorously prioritizing our investments and continuing to engage our community with our products while driving success for our advertising partners. However, the impact of our strategic reprioritization and recent restructurings is difficult to predict.

Previous wording

We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter and dividing that sum by the number of days in that quarter. DAUs are broken out by geography because markets have different characteristics. We had 432 million DAUs on average in the second quarter of 2024, an increase of 36 million, or 9%, from the second quarter of 2023.

Current wording

We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarter and dividing that sum by the number of days in that quarter. DAUs are broken out by geography because markets have different characteristics. We had 443 million DAUs on average in the third quarter of 2024, an increase of 37 million, or 9%, from the third quarter of 2023.

Previous wording

We recorded revenue of $1,236.8 million for the three months ended June 30, 2024, compared to revenue of $1,067.7 million for the same period in 2023, an increase of 16% year-over-year. We monetize our business primarily through advertising. Our advertising products include Snap Ads and AR Ads.

Current wording

We recorded revenue of $1,372.6 million for the three months ended September 30, 2024, compared to revenue of $1,188.6 million for the same period in 2023, an increase of 15% year-over-year. We monetize our business primarily through advertising. Our advertising products include Snap Ads and AR Ads.

Previous wording

We measure our business using ARPU because it helps us understand the rate at which we are monetizing our daily user base. ARPU was $2.86 in the second quarter of 2024, compared to $2.69 in the second quarter of 2023. For purposes of calculating ARPU, revenue by user geography is apportioned to each region based on a determination of the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity. This differs from the presentation of our revenue by geography in the notes to our consolidated financial statements, where revenue is based on the billing address of the advertising customer.

Current wording

We measure our business using ARPU because it helps us understand the rate at which we are monetizing our daily user base. ARPU was $3.10 in the third quarter of 2024, compared to $2.93 in the third quarter of 2023. For purposes of calculating ARPU, revenue by user geography is apportioned to each region based on a determination of the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity. This differs from the presentation of our revenue by geography in the notes to our consolidated financial statements, where revenue is based on the billing address of the advertising customer.

Previous wording

Three and Six Months Ended June 30, 2024 and 2023

Current wording

Three and Nine Months Ended September 30, 2024 and 2023

Previous wording

Revenue for the three and six months ended June 30, 2024 increased $169.1 million and $375.3 million compared to the same periods in 2023. The increase in both periods was primarily due to a combination of growth in advertisers, optimization efficiencies, and improvement in auction-based advertising demand. The increase in both periods was also driven by higher subscription revenue due to growth in the number of subscribers.

Current wording

Revenue for the three and nine months ended September 30, 2024 increased $184.0 million and $559.3 million compared to the same periods in 2023. The increase in both periods was primarily due to a combination of growth in advertisers, optimization efficiencies, and improvement in auction-based advertising demand. The increase in both periods was also driven by higher subscription revenue due to growth in the number of subscribers.

Previous wording

Cost of revenue for the three and six months ended June 30, 2024 increased $92.0 million and $226.8 million compared to the same periods in 2023. The increase in both periods was primarily driven by increased infrastructure costs attributable to DAU growth and investments in machine learning and AI, partially offset by improvements to our cloud infrastructure unit costs resulting from engineering efficiencies and pricing improvements.

Current wording

Cost of revenue for the three and nine months ended September 30, 2024 increased $83.2 million and $310.0 million compared to the same periods in 2023. The increase in both periods was primarily driven by increased infrastructure costs attributable to DAU growth and investments in machine learning and AI, partially offset by improvements to our cloud infrastructure unit costs resulting from engineering efficiencies and pricing improvements.

Previous wording

Research and development expenses for the three and six months ended June 30, 2024 decreased $71.5 million and $76.8 million compared to the same periods in 2023. The decrease in both periods was primarily driven by lower cash and stock-based compensation expenses due to lower headcount compared to the prior period, partially offset by $38.8 million relating to restructuring charges primarily recognized in the first quarter of 2024.

Current wording

Research and development expenses for the three and nine months ended September 30, 2024 decreased $81.8 million and $158.6 million compared to the same periods in 2023. The decrease in both periods was primarily driven by lower cash and stock-based compensation expenses due to lower headcount compared to the prior periods. Additionally, the decrease for the nine months ended September 30, 2024 was partially offset by $38.8 million relating to restructuring charges primarily recognized in the first quarter of 2024.

Previous wording

Sales and marketing expenses for the three and six months ended June 30, 2024 decreased $14.3 million and $6.7 million compared to the same periods in 2023. The decrease in both periods was primarily driven by lower cash and stock-based compensation expenses due to lower headcount compared to the prior period, partially offset by $19.9 million relating to restructuring charges primarily recognized in the first quarter of 2024.

Current wording

Sales and marketing expenses for the three and nine months ended September 30, 2024 decreased $24.1 million and $30.8 million compared to the same periods in 2023. The decrease in both periods was primarily driven by lower cash and stock-based compensation expenses due to lower headcount compared to the prior periods, partially offset by increased marketing investments. The decrease for the nine months ended September 30, 2024 was also partially offset by $19.9 million relating to restructuring charges primarily recognized in the first quarter of 2024.

Previous wording

General and administrative expenses for the three and six months ended June 30, 2024 increased $12.4 million and $49.6 million compared to the same periods in 2023. The increase in both periods was primarily driven by higher spend on external professional services, increased facilities costs associated with return to office initiatives, and $10.3 million relating to restructuring charges primarily recognized in the first quarter of 2024, partially offset by lower stock-based compensation expenses. The increase was also driven by an $8.2 million charge in the second quarter of 2024 related to the digital services tax that was implemented by the Canadian government, the majority of which is attributable to prior periods due to the tax applying retroactively to January 1, 2022.

Current wording

General and administrative expenses for the three months ended September 30, 2024 were $221.0 million, compared to $221.1 million for the same period in 2023. The change is primarily driven by lower cash and stock-based compensation expenses, offset by higher spend on external professional services. General and administrative expenses for the nine months ended September 30, 2024 increased $49.5 million compared to the same period in 2023. The increase was primarily driven by higher spend on external professional services, increased facilities costs, and $10.3 million relating to restructuring charges primarily recognized in the first quarter of 2024, partially offset by lower cash and stock-based compensation expenses.

Previous wording

Interest income for the three and six months ended June 30, 2024 decreased $6.7 million and $4.7 million compared to the same periods in 2023. The decrease in both periods was primarily driven by lower overall invested cash balances, partially offset by higher interest rates on U.S. government-backed securities.

Current wording

Interest income for the three and nine months ended September 30, 2024 decreased $5.3 million and $10.0 million compared to the same periods in 2023. The decrease in both periods was primarily driven by lower overall invested cash balances.

Previous wording

Interest expense for the three and six months ended June 30, 2024 decreased $0.2 million and $1.4 million compared to the same periods in 2023. Interest expense for all periods consists primarily of amortization of debt issuance costs and contractual interest expense.

Current wording

Interest expense for the three months ended September 30, 2024 increased $0.4 million compared to the same period in 2023. Interest expense for the nine months ended September 30, 2024 decreased $1.0 million compared to the same period in 2023. Interest expense for all periods consists primarily of amortization of debt issuance costs and contractual interest expense.

Previous wording

Other expense, net for the three months ended June 30, 2024 was primarily a result of a $15.5 million loss on extinguishment associated with the Note Repurchases and $2.0 million in unrealized losses on publicly traded securities classified as marketable securities. Other income, net for the three months ended June 30, 2023 was not material.

Current wording

Other expense, net for the three months ended September 30, 2024 was not material. Other expense, net for the three months ended September 30, 2023 was primarily the result of $20.9 million in total losses on publicly traded securities classified as marketable securities.

Previous wording

Other expense, net for the six months ended June 30, 2024 was primarily a result of a $6.7 million net loss on extinguishment associated with the Note Repurchases, $4.7 million in unrealized losses on publicly traded securities classified as marketable securities, and $6.8 million in net losses on strategic investments. Other income, net for the six months ended June 30, 2023 was primarily a result of $15.0 million in total gains on publicly traded securities classified as marketable securities.

Current wording

Other expense, net for the nine months ended September 30, 2024 was primarily the result of $7.1 million in net losses on strategic investments, a $6.7 million net loss on extinguishment associated with the Note Repurchases, and $5.2 million in unrealized losses on publicly traded securities classified as marketable securities. Other expense, net for the nine months ended September 30, 2023 was primarily a result of $5.9 million in total losses on publicly traded securities classified as marketable securities.

Previous wording

Income tax expense for the three and six months ended June 30, 2024 was $5.2 million and $12.1 million, respectively, compared to an income tax expense of $12.1 million and $18.9 million for the same periods in 2023. The prior periods’ higher tax expense was primarily due to the integration of acquired technologies from business acquisitions. Our effective tax rate differs from the U.S. statutory tax rate primarily due to valuation allowances on our deferred tax assets as it is more likely than not that some or all of our deferred tax assets will not be realized.

Current wording

Income tax expense for the three and nine months ended September 30, 2024 was $8.3 million and $20.5 million, respectively, compared to an income tax expense of $5.8 million and $24.8 million for the same periods in 2023. Our effective tax rate differs from the U.S. statutory tax rate primarily due to valuation allowances on our deferred tax assets as it is more likely than not that some or all of our deferred tax assets will not be realized.

Previous wording

Net loss for the three and six months ended June 30, 2024 was $248.6 million and $553.7 million, compared to $377.3 million and $706.0 million for the same periods in 2023. The decrease in net loss for both periods was primarily the result of the changes in revenues and expenses discussed above.

Current wording

Net loss for the three and nine months ended September 30, 2024 was $153.2 million and $707.0 million, respectively, compared to $368.3 million and $1,074.2 million for the same periods in 2023. The decrease in net loss for both periods was primarily the result of the changes in revenues and expenses discussed above.

Previous wording

Adjusted EBITDA for the three and six months ended June 30, 2024 was $55.0 million and $100.6 million, compared to $(38.5) million and $(37.7) million for the same periods in 2023. The increase for both periods was primarily attributable to increased revenue, partially offset by higher cost of revenue and general and administrative expenses.

Current wording

Adjusted EBITDA for the three and nine months ended September 30, 2024 was $132.0 million and $232.6 million, respectively, compared to $40.1 million and $2.4 million for the same periods in 2023. The increase for both periods was primarily attributable to increased revenue, lower research and development expenses, and lower sales and marketing expenses, partially offset by higher cost of revenue and general and administrative expenses.

Previous wording

Cash, cash equivalents, and marketable securities were $3.1 billion as of June 30, 2024, primarily consisting of cash on deposit with banks and highly liquid investments in U.S. government and agency securities, publicly traded equity securities, corporate debt securities, certificates of deposit, and commercial paper. Our primary source of liquidity is cash generated through financing activities. Our primary uses of cash include operating costs such as personnel-related costs and the infrastructure costs of the Snapchat application, facility-related capital spending, and acquisitions and investments. There are no known material subsequent events that could have a material impact on our cash or liquidity. We may contemplate and engage in merger and acquisition activity that could materially impact our liquidity and capital resource position.

Current wording

Cash, cash equivalents, and marketable securities were $3.2 billion as of September 30, 2024, primarily consisting of cash on deposit with banks and highly liquid investments in U.S. government and agency securities, money market funds, corporate debt securities, certificates of deposit, commercial paper, and publicly traded equity securities. Our primary source of liquidity is cash generated through financing activities. Our primary uses of cash include operating costs such as personnel-related costs and the infrastructure costs of the Snapchat application, facility-related capital spending, and acquisitions and investments. There are no known material subsequent events that could have a material impact on our cash or liquidity. We may contemplate and engage in merger and acquisition activity that could materially impact our liquidity and capital resource position.

Previous wording

As of June 30, 2024, approximately 3.2% of our cash, cash equivalents, and marketable securities was held outside the United States. These amounts were primarily held in the United Kingdom and are utilized to fund our foreign operations. Cash held outside the United States may be repatriated, subject to certain limitations, and would be available to be used to fund our domestic operations. However, repatriation of funds may result in additional tax liabilities. We believe our existing cash balance in the United States is sufficient to fund our working capital needs.

Current wording

As of September 30, 2024, approximately 3.8% of our cash, cash equivalents, and marketable securities was held outside the United States. These amounts were primarily held in the United Kingdom and are utilized to fund our foreign operations. Cash held outside the United States may be repatriated, subject to certain limitations, and would be available to be used to fund our domestic operations. However, repatriation of funds may result in additional tax liabilities. We believe our existing cash balance in the United States is sufficient to fund our working capital needs.

Previous wording

In May 2022, we entered into afive-year senior unsecured revolving credit facility, or Credit Facility, with certain lenders that allows us to borrow up to$1.05 billion to fund working capital and general corporate-purpose expenditures. Loans bear interest, at our option, at a rate equal to (i) a term secured overnight financing rate, or SOFR, plus 0.75% or the base rate, if selected by us, for loans made in U.S. dollars, (ii) the Sterling overnight index average plus 0.7826% for loans made in Sterling, or (iii) foreign indices as stated in the credit agreement plus 0.75% for loans made in other permitted foreign currencies. The base rate is defined as the greatest of (i) the Wall Street Journal prime rate, (ii) the greater of the (a) federal funds rate and (b) the overnight bank funding rate, plus 0.50%, and (iii) the applicable SOFR for a period ofone month (but not less than zero) plus 1.00. The Credit Facility also contains an annual commitment fee of 0.10% on the daily undrawn balance of the facility. As of June 30, 2024, we had$67.3 million in the form of outstanding standby letters of credit, withno amounts outstanding under the Credit Facility.

Current wording

In May 2022, we entered into afive-year senior unsecured revolving credit facility, or Credit Facility, with certain lenders that allows us to borrow up to$1.05 billion to fund working capital and general corporate-purpose expenditures. Loans bear interest, at our option, at a rate equal to (i) a term secured overnight financing rate, or SOFR, plus 0.75% or the base rate, if selected by us, for loans made in U.S. dollars, (ii) the Sterling overnight index average plus 0.7826% for loans made in Sterling, or (iii) foreign indices as stated in the credit agreement plus 0.75% for loans made in other permitted foreign currencies. The base rate is defined as the greatest of (i) the Wall Street Journal prime rate, (ii) the greater of the (a) federal funds rate and (b) the overnight bank funding rate, plus 0.50%, and (iii) the applicable SOFR for a period ofone month (but not less than zero) plus 1.00. The Credit Facility also contains an annual commitment fee of 0.10% on the daily undrawn balance of the facility. As of September 30, 2024, we had$65.6 million in the form of outstanding standby letters of credit, withno amounts outstanding under the Credit Facility.

Previous wording

In May 2024, we entered into a purchase agreement for the sale of an aggregate of $750.0 million principal amount of convertible senior notes due in 2030. The net proceeds from the issuance of the 2030 Notes were $671.5 million, net of debt issuance costs and the 2030 Capped Call Transactions discussed further in Note 7 in our consolidated financial statements. The 2030 Notes mature on May 1, 2030 unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The sale price requirement for conversion was not satisfied as of June 30, 2024 and as a result, the 2030 Notes will not be eligible for optional conversion during the third quarter of 2024. As of June 30, 2024, the outstanding principal of the 2030 Notes was $750.0 million.

Current wording

In May 2024, we entered into a purchase agreement for the sale of an aggregate of $750.0 million principal amount of convertible senior notes due in 2030. The net proceeds from the issuance of the 2030 Notes were $671.5 million, net of debt issuance costs and the 2030 Capped Call Transactions discussed further in Note 7 in our consolidated financial statements. The 2030 Notes mature on May 1, 2030 unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The sale price requirement for conversion was not satisfied as of September 30, 2024 and as a result, the 2030 Notes will not be eligible for optional conversion during the fourth quarter of 2024. As of September 30, 2024, the outstanding principal of the 2030 Notes was $750.0 million.

Previous wording

In February 2022, we entered into a purchase agreement for the sale of an aggregate of $1.50 billion principal amount of convertible senior notes due in 2028. The net proceeds from the issuance of the 2028 Notes were $1.31 billion, net of debt issuance costs and the 2028 Capped Call Transactions discussed further in Note 7 in our consolidated financial statements. The 2028 Notes mature on March 1, 2028 unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The sale price requirement for conversion was not satisfied as of June 30, 2024 and as a result, the 2028 Notes will not be eligible for optional conversion during the third quarter of 2024. As of June 30, 2024, the outstanding principal of the 2028 Notes was $1.50 billion.

Current wording

In February 2022, we entered into a purchase agreement for the sale of an aggregate of $1.50 billion principal amount of convertible senior notes due in 2028. The net proceeds from the issuance of the 2028 Notes were $1.31 billion, net of debt issuance costs and the 2028 Capped Call Transactions discussed further in Note 7 in our consolidated financial statements. The 2028 Notes mature on March 1, 2028 unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The sale price requirement for conversion was not satisfied as of September 30, 2024 and as a result, the 2028 Notes will not be eligible for optional conversion during the fourth quarter of 2024. As of September 30, 2024, the outstanding principal of the 2028 Notes was $1.50 billion.

Previous wording

In April 2021, we entered into a purchase agreement for the sale of an aggregate of $1.15 billion principal amount of convertible senior notes due in 2027. The net proceeds from the issuance of the 2027 Notes were $1.05 billion, net of debt issuance costs and the 2027 Capped Call Transactions discussed further in Note 7 in our consolidated financial statements. The 2027 Notes mature on May 1, 2027 unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The sale price requirement for conversion was not satisfied as of June 30, 2024 and as a result, the 2027 Notes will not be eligible for optional conversion during the third quarter of 2024. As of June 30, 2024, the outstanding principal of the 2027 Notes was $1.15 billion.

Current wording

In April 2021, we entered into a purchase agreement for the sale of an aggregate of $1.15 billion principal amount of convertible senior notes due in 2027. The net proceeds from the issuance of the 2027 Notes were $1.05 billion, net of debt issuance costs and the 2027 Capped Call Transactions discussed further in Note 7 in our consolidated financial statements. The 2027 Notes mature on May 1, 2027 unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The sale price requirement for conversion was not satisfied as of September 30, 2024 and as a result, the 2027 Notes will not be eligible for optional conversion during the fourth quarter of 2024. As of September 30, 2024, the outstanding principal of the 2027 Notes was $1.15 billion.

Previous wording

In April 2020, we entered into a purchase agreement for the sale of an aggregate of $1.0 billion principal amount of convertible senior notes due in 2025. The net proceeds from the issuance of the 2025 Notes were $888.6 million, net of debt issuance costs and the 2025 Capped Call Transactions discussed further in Note 7 in our consolidated financial statements. The 2025 Notes mature on May 1, 2025 unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The sale price requirement for conversion was not satisfied as of June 30, 2024 and as a result, the 2025 Notes will not be eligible for optional conversion during the third quarter of 2024. As of June 30, 2024, the outstanding principal of the 2025 Notes was $36.2 million.

Current wording

In April 2020, we entered into a purchase agreement for the sale of an aggregate of $1.0 billion principal amount of convertible senior notes due in 2025. The net proceeds from the issuance of the 2025 Notes were $888.6 million, net of debt issuance costs and the 2025 Capped Call Transactions discussed further in Note 7 in our consolidated financial statements. The 2025 Notes mature on May 1, 2025 unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The sale price requirement for conversion was not satisfied as of September 30, 2024 and as a result, the 2025 Notes will not be eligible for optional conversion during the fourth quarter of 2024. On or after February 1, 2025, the 2025 Notes are convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. As of September 30, 2024, the outstanding principal of the 2025 Notes was $36.2 million.

Previous wording

In August 2019, we entered into a purchase agreement for the sale of an aggregate of $1.265 billion principal amount of convertible senior notes due in 2026. The net proceeds from the issuance of the 2026 Notes were $1.15 billion, net of debt issuance costs and the 2026 Capped Call Transactions discussed further in Note 7 in our consolidated financial statements. The 2026 Notes mature on August 1, 2026 unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The sale price requirement for conversion was not satisfied as of June 30, 2024 and as a result, the

Current wording

In August 2019, we entered into a purchase agreement for the sale of an aggregate of $1.265 billion principal amount of convertible senior notes due in 2026. The net proceeds from the issuance of the 2026 Notes were $1.15 billion, net of debt issuance costs and the 2026 Capped Call Transactions discussed further in Note 7 in our consolidated financial statements. The 2026 Notes mature on August 1, 2026 unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The sale price requirement for conversion was not satisfied as of September 30, 2024 and as a result, the 2026 Notes will not be eligible for optional conversion during the fourth quarter of 2024. As of September 30, 2024, the outstanding principal of the 2026 Notes was $249.8 million.

Previous wording

We have non-cancelable contractual agreements primarily related to the hosting of our data processing, storage, and other computing services, as well as lease, content and developer partner, and other commitments. We had $2.2 billion in commitments, as of June 30, 2024, primarily due within three years. For additional discussion on our leases, see Note 9 to our consolidated financial statements.

Current wording

We have non-cancelable contractual agreements primarily related to the hosting of our data processing, storage, and other computing services, as well as lease, content and developer partner, and other commitments. We had $5.4 billion in commitments, as of September 30, 2024, primarily due within three years. For additional discussion on our leases, see Note 9 to our consolidated financial statements.

Previous wording

In October 2023, our board of directors authorized a stock repurchase program of up to $500.0 million of our Class A common stock. We completed this program in April 2024. For the six months ended June 30, 2024, we repurchased and retired 27.9 million shares of our Class A common stock for an aggregate of $311.1 million, including costs associated with the repurchases.

Current wording

In October 2023, our board of directors authorized a stock repurchase program of up to $500.0 million of our Class A common stock. We completed this program in April 2024. For the nine months ended September 30, 2024, we repurchased and retired 27.9 million shares of our Class A common stock for an aggregate of $311.1 million, including costs associated with the repurchases.

Previous wording

The following table sets forth the major components of our consolidated statements of cash flows for the six months ended June 30, 2024 and 2023:

Current wording

The following table sets forth the major components of our consolidated statements of cash flows for the nine months ended September 30, 2024 and 2023:

Previous wording

Net cash provided by operating activities was $67.0 million for the six months ended June 30, 2024, compared to $69.2 million for the same period in 2023, resulting primarily from our net loss, adjusted for non-cash items, including stock-based compensation expense of $523.1 million and depreciation and amortization expense of $79.6 million. Net cash provided by operating activities for the six months ended June 30, 2024 was also driven by a $125.3 million decrease in accounts receivable due to higher collections and a reduction in billings in the period, partially offset by a $95.6 million decrease in accounts payable, primarily due to the timing of payments.

Current wording

Net cash provided by operating activities was $182.8 million for the nine months ended September 30, 2024, compared to $81.9 million for the same period in 2023, resulting primarily from our net loss, adjusted for non-cash items, including stock-based compensation expense of $783.3 million and depreciation and amortization expense of $118.5 million. Net cash provided by operating activities for the nine months ended September 30, 2024 was also driven by a $73.3 million decrease in accounts receivable due to higher collections and a reduction in billings in the period, partially offset by a $112.3 million decrease in accounts payable, primarily due to the timing of payments.

Previous wording

Net cash used in investing activities was $345.5 million for the six months ended June 30, 2024, compared to net cash used in investing activities of $20.6 million for the same period in 2023. Our investing activities for the six months ended June 30, 2024 primarily consisted of purchases of marketable securities of $1.2 billion and purchases of property and equipment of $102.5 million, partially offset by maturities of marketable securities of $832.1 million and sales of marketable securities of $166.6 million. Our investing activities for the six months ended June 30, 2023 primarily consisted of purchases of marketable securities of $1.5 billion, purchases of property and equipment of $84.6 million, and cash paid for acquisitions, net of cash acquired of $50.3 million, partially offset by maturities of marketable securities of $1.5 billion and sales of marketable securities of $91.3 million

Current wording

Net cash used in investing activities was $568.3 million for the nine months ended September 30, 2024, compared to net cash used in investing activities of $52.2 million for the same period in 2023. Our investing activities for the nine months ended September 30, 2024 primarily consisted of purchases of marketable securities of $1.9 billion and purchases of property and equipment of $146.6 million, partially offset by maturities of marketable securities of $1.2 billion and sales of marketable securities of $354.3 million. Our investing activities for the nine months ended September 30, 2023 primarily consisted of purchases of marketable securities of $2.0 billion, purchases of property and equipment of $158.0 million, and cash paid for acquisitions, net of cash acquired of $50.3 million, partially offset by maturities of marketable securities of $2.1 billion and sales of marketable securities of $107.7 million

Previous wording

Net cash used in financing activities was $438.9 million for the six months ended June 30, 2024, compared to net cash used in financing activities of $243.7 million for the same period in 2023. Our financing activities for the sixmonths ended June 30, 2024 primarily consisted of the Note Repurchases for$859.0 million, repurchases of our Class A common stock for $311.1 million, and the purchase of the 2030 Capped Call Transactions for$68.9 million, partially offset by the issuance of the 2030 Notes for net proceeds of$740.4 million and the termination of the 2025 Capped Call Transactions for proceeds of$62.7 million. Our financing activities for the six months ended June 30, 2023 primarily consisted of $244.1 million of deferred payments for acquisitions completed in prior periods.

Current wording

Net cash used in financing activities was $428.6 million for the nine months ended September 30, 2024, compared to net cash used in financing activities of $254.1 million for the same period in 2023. Our financing activities for the nine months ended September 30, 2024 primarily consisted of the Note Repurchases for$859.0 million, repurchases of our Class A common stock for $311.1 million, and the purchase of the 2030 Capped Call Transactions for$68.9 million, partially offset by the issuance of the 2030 Notes for net proceeds of$740.4 million and the termination of the 2025 Capped Call Transactions for proceeds of$62.7 million. Our financing activities for the nine months ended September 30, 2023 primarily consisted of $254.6 million of deferred payments for acquisitions completed in prior periods.

Previous wording

Free Cash Flow was $(35.5) million for the six months ended June 30, 2024, compared to $(15.4) million for the same period in 2023. Free Cash Flow in all periods was composed of net cash provided by (used in) operating activities, resulting primarily from net loss, adjusted for non-cash items and changes in working capital. Free Cash Flow also included purchases of property and equipment of $102.5 million for the six months ended June 30, 2024, compared to $84.6 million for the same period in 2023. Purchases of property and equipment in all periods are primarily related to improvements to our leased facilities to support our team workspaces. See “Non-GAAP Financial Measures.”

Current wording

Free Cash Flow was $36.3 million for the nine months ended September 30, 2024, compared to $(76.1) million for the same period in 2023. Free Cash Flow in all periods was composed of net cash provided by (used in) operating activities, resulting primarily from net loss, adjusted for non-cash items and changes in working capital. Free Cash Flow also included purchases of property and equipment of $146.6 million for the nine months ended September 30, 2024, compared to $158.0 million for the same period in 2023. Purchases of property and equipment in all periods are primarily related to improvements to our leased facilities to support our team workspaces. See “Non-GAAP Financial Measures.”

Previous wording

(1)Restructuring charges are primarily related to cash severance, stock-based compensation expense, and other charges associated with the 2024 restructuring. These charges are not reflective of underlying trends in our business. Refer to Note 15 in our consolidated financial statements.

Current wording

(1)Restructuring charges during 2024 are primarily related to cash severance, stock-based compensation expense, and other charges associated with the 2024 restructuring. Restructuring charges during 2023 are primarily related to cash severance and stock-based compensation expense associated with the wind down of our AR Enterprise business. These charges are not reflective of underlying trends in our business. Refer to Note 15 in our consolidated financial statements.