PLAYSTUDIOS Inc

Previous wording

Each of our legacy social casino games and our Tetris®-branded mobile games are powered by our proprietary playAWARDS program and incorporates loyalty points that are earned by players as they engage with our games. The rewards are provided by our collection of rewards partners, with the majority of rewards partners providing their rewards at no cost to us, in exchange for product integration, marketing support, and participation in our loyalty program. The program is enabled by our playAWARDS platform which consists of a robust suite of tools that enable our rewards partners to manage their rewards in real time, measure the value of our players’ engagement, and gain insight into the effectiveness and value they derive from the program. Through our self-service platform, rewards partners can launch new rewards, make changes to existing rewards, and in real time see how players are engaging with their brands. The platform tools also provide rewards partners the ability to measure the off-line value our players generate as consumers and patrons of their real-world establishments.

Current wording

Each of our legacy social casino games and our Tetris®-branded mobile games are powered by our proprietary playAWARDS program and incorporates loyalty points that are earned by players as they engage with our games. The rewards are provided by our collection of rewards partners, with the majority of rewards partners providing their rewards at no cost to us, in exchange for product integration, marketing support, and participation in our loyalty program. The program is enabled by our playAWARDS platform which consists of a robust suite of tools that enable our rewards partners to manage their rewards in real time, measure the value of our players’ engagement, and gain insight into the effectiveness and value they derive from the program. Through our self-service platform, rewards partners can launch new rewards, make changes to existing rewards, and in real time see how players are engaging with their brands. The platform tools also provide rewards partners with the ability to measure the off-line value our players generate as consumers and patrons of their real-world establishments.

Previous wording

Comparison of the three and six months ended June 30, 2024 versus the three and six months ended June 30, 2023

Current wording

Comparison of the three and nine months ended September 30, 2024 versus the three and nine months ended September 30, 2023

Previous wording

The following table summarizes our consolidated results of operations for the three and six months ended June 30, 2024 and 2023 (in thousands, except percentages):

Current wording

The following table summarizes our consolidated results of operations for the three and nine months ended September 30, 2024 and 2023 (in thousands, except percentages):

Previous wording

Net revenue decreased $3.3 million, or (2.2)%, to $150.4 million during the six months ended June 30, 2024 compared to $153.7 million during the six months ended June 30, 2023. The decrease was due to a $9.3 million decrease in virtual currency revenue primarily driven by decreases in DPU. The decrease was offset by growth in advertising revenue.

Current wording

Net revenue decreased $4.6 million, or (6.1)%, to $71.2 million during the three months ended September 30, 2024 compared to $75.9 million during the three months ended September 30, 2023. The decrease was due to a $4.0 million decrease in virtual currency revenue primarily driven by decreases in DPU.

Previous wording

Net revenue decreased $3.5 million, or (4.6)%, to $72.6 million during the three months ended June 30, 2024 compared to $76.1 million during the three months ended June 30, 2023. The decrease was due to a $5.1 million decrease in virtual currency revenue primarily driven by decreases in DPU. The decrease was offset by growth in advertising revenue.

Current wording

Net revenue decreased $8.0 million, or (3.5)%, to $221.6 million during the nine months ended September 30, 2024 compared to $229.6 million during the nine months ended September 30, 2023. The decrease was due to a $13.3 million decrease in virtual currency revenue primarily driven by decreases in DPU. The decrease was offset by growth in advertising revenue.

Previous wording

Net revenue decreased by $1.7 million during the three months ended June 30, 2024, due to the non-renewal of a licensing arrangement with a customer. The key performance indicators presented above are used by management to assess the playAWARDS segment's operating performance, however are not indicative revenue metrics.

Current wording

Net revenue remained flat during the three months ended September 30, 2024 compared to the same period in prior year. The key performance indicators presented above are used by management to assess the playAWARDS segment's operating performance, however are not indicative revenue metrics.

Previous wording

Net revenue decreased by $4.2 million during the six months ended June 30, 2024, due to the non-renewal of a licensing arrangement with a customer. The key performance indicators presented above are used by management to assess the playAWARDS segment's operating performance, however are not indicative revenue metrics.

Current wording

Net revenue decreased by $4.2 million during the nine months ended September 30, 2024, compared to the same period in prior year, due to the non-renewal of a licensing arrangement with a customer. The key performance indicators presented above are used by management to assess the playAWARDS segment's operating performance, however are not indicative revenue metrics.

Previous wording

Cost of revenue decreased by $0.8 million to $18.1 million during the three months ended June 30, 2024 compared to $18.9 million during the three months ended June 30, 2023. The decrease was primarily related to a decrease in virtual currency revenue. As a percentage of revenue, cost of revenue increased from 24.3% for the three months ended June 30, 2023 to 24.9% for the three months ended June 30, 2024.

Current wording

Cost of revenue decreased by $2.0 million to $17.8 million during the three months ended September 30, 2024 compared to $19.9 million during the three months ended September 30, 2023. The decrease was primarily related to a decrease in virtual currency revenue. As a percentage of revenue, cost of revenue decreased from 26.2% for the three months ended September 30, 2023 to 25.0% for the three months ended September 30, 2024.

Previous wording

Cost of revenue decreased by $1.4 million to $37.0 million during the six months ended June 30, 2024 compared to $38.4 million during the six months ended June 30, 2023. The decrease was primarily related to a decrease in virtual currency revenue. As a percentage of revenue, cost of revenue increased from 24.3% for the six months ended June 30, 2023 to 24.6% for the six months ended June 30, 2024.

Current wording

Cost of revenue decreased by $3.4 million to $54.9 million during the nine months ended September 30, 2024 compared to $58.3 million during the nine months ended September 30, 2023. The decrease was primarily related to a decrease in virtual currency revenue. As a percentage of revenue, cost of revenue decreased from 24.9% for the nine months ended September 30, 2023 to 24.7% for the nine months ended September 30, 2024.

Previous wording

Selling and marketing expenses decreased by $1.4 million to $17.1 million during the three months ended June 30, 2024 compared to $18.4 million during the three months ended June 30, 2023. The decrease was primarily due to decreases in user acquisition expense of $1.6 million. This was offset by an increase of other selling and marketing expenses of $0.2 million. As a percentage of revenue, selling and marketing expenses decreased from 23.7% for the three months ended June 30, 2023 to 23.5% for the three months ended June 30, 2024.

Current wording

Selling and marketing expenses decreased by $3.7 million to $15.1 million during the three months ended September 30, 2024 compared to $18.8 million during the three months ended September 30, 2023. The decrease was primarily due to decreases in user acquisition expense of $5.3 million. This was offset by increases of other selling and marketing expenses of $1.6 million. As a percentage of revenue, selling and marketing expenses decreased from 24.8% for the three months ended September 30, 2023 to 21.2% for the three months ended September 30, 2024.

Previous wording

Selling and marketing expenses decreased by $0.9 million to $35.6 million during the six months ended June 30, 2024 compared to $36.5 million during the six months ended June 30, 2023. The decrease was primarily due to decreases in user acquisition expense of $1.8 million. This was offset by an increases to outside service costs of $0.4 million, IT software of $0.4 million, and other selling and marketing expenses of $0.1 million. As a percentage of revenue, selling and marketing expenses increased from 23.1% for the six months ended June 30, 2023 to 23.7% for the six months ended June 30, 2024.

Current wording

Selling and marketing expenses decreased by $4.5 million to $50.8 million during the nine months ended September 30, 2024 compared to $55.3 million during the nine months ended September 30, 2023. The decrease was primarily due to decreases in user acquisition expense of $7.0 million. This was offset by increases to marketing expenses of $1.2 million, IT software of $0.6 million, outside service costs of $0.5 million, and $0.2 million of other expenses. As a percentage of revenue, selling and marketing expenses decreased from 23.6% for the nine months ended September 30, 2023 to 22.9% for the nine months ended September 30, 2024.

Previous wording

Research and development expenses decreased by $1.6 million to $16.7 million during the three months ended June 30, 2024 compared to $18.4 million during the three months ended June 30, 2023. The decrease was primarily due to a decrease of stock compensation of $0.6 million, employee costs of $0.4 million, outside services of $0.4 million, and facilities expenses of $0.3 million. This was offset by an increase of $0.1 million of other research and development costs.

Current wording

Research and development expenses decreased by $0.7 million to $16.7 million during the three months ended September 30, 2024 compared to $17.4 million during the three months ended September 30, 2023. The decrease was primarily due to a decrease of stock compensation of $0.5 million and a decrease of employee costs of $0.4 million. This was offset by an increase of $0.2 million of other research and development costs.

Previous wording

Research and development expenses decreased by $1.4 million to $34.8 million during the six months ended June 30, 2024 compared to $36.1 million during the six months ended June 30, 2023. The decrease was primarily due to a decrease of stock compensation of $0.8 million, facilities expenses of $0.5 million, and employee costs of $0.4 million. This was offset by an increase of $0.3 million of other research and development costs.

Current wording

Research and development expenses decreased by $2.1 million to $51.4 million during the nine months ended September 30, 2024 compared to $53.5 million during the nine months ended September 30, 2023. The decrease was primarily due to a decreases of stock compensation of $1.3 million, employee costs of $0.8 million, and facilities expenses of $0.4 million. This was offset by an increase of other research and development costs of $0.4 million.

Previous wording

General and administrative expenses increased by $0.6 million to $11.6 million during the three months ended June 30, 2024 compared to $11.0 million during the three months ended June 30, 2023. The increase is primarily due to an increase of employee costs of $0.7 million. This was offset by a reduction of $0.1 million of other general and administrative costs.

Current wording

General and administrative expenses increased by $0.8 million to $11.6 million during the three months ended September 30, 2024 compared to $10.7 million during the three months ended September 30, 2023. The increase is primarily due to increases of stock compensation of $0.6 million and employee costs of $0.5 million. This was offset by a reduction of $0.3 million of other general and administrative costs.

Previous wording

General and administrative expenses increased by $0.5 million to $23.4 million during the six months ended June 30, 2024 compared to $22.9 million during the six months ended June 30, 2023. The increase is primarily due to an increases to employee costs of $0.6 million and IT applications of $0.5 million. This was offset by a reduction of insurance expense of $0.6 million.

Current wording

General and administrative expenses increased by $1.3 million to $35.0 million during the nine months ended September 30, 2024 compared to $33.7 million during the nine months ended September 30, 2023. The increase is primarily due to increases to employee costs of $1.1 million, IT expenses of $1.1 million, and stock compensation of $0.9 million. This was offset by decreases in insurance expense of $0.9 million and $0.9 million of other general and administrative costs.

Previous wording

Depreciation and amortization expenses increased by $0.5 million to $11.7 million during the three months ended June 30, 2024 compared to $11.1 million during the three months ended June 30, 2023. The increase was primarily due to license renewals.

Current wording

Depreciation and amortization expenses increased by $0.1 million to $11.6 million during the three months ended September 30, 2024 compared to $11.5 million during the three months ended September 30, 2023. The increase was primarily due to increased amortization of intangible assets related to the acquisition of Pixode assets.

Previous wording

Depreciation and amortization expenses increased by $1.1 million to $23.2 million during the six months ended June 30, 2024 compared to $22.1 million during the six months ended June 30, 2023. The increase was primarily due to license renewals.

Current wording

Depreciation and amortization expenses increased by $1.1 million to $34.8 million during the nine months ended September 30, 2024 compared to $33.7 million during the nine months ended September 30, 2023. The increase was primarily due to the increased amortization of intangible assets related to the acquisition of Pixode assets, as well as increased amortization as a result of other license renewals.

Previous wording

Restructuring expenses decreased by $0.4 million from the three months ended June 30, 2023 to the three months ended June 30, 2024. The decrease was primarily due to a decrease of $0.9 million for a non-cash impairment charge related to certain investments and a decrease of $0.3 million related to the Tender Offer. This was offset by an increase of $0.5 million related to fees for various merger and acquisition opportunities and an increase of $0.3 million related to other restructuring costs.

Current wording

Restructuring expenses increased by $2.0 million from the three months ended September 30, 2023 to the three months ended September 30, 2024. The increase was primarily due to an increase of $0.7 million for non-cash impairment charges, an increase of $0.7 million related to legal fees and other costs incurred in connection with litigation arising out of the Acies Merger transaction, and an increase of $0.6 million related to other restructuring costs.

Previous wording

Restructuring expenses decreased by $3.8 million from the six months ended June 30, 2023 to the six months ended June 30, 2024. The decrease was primarily due to decreases of $1.8 million related to management restructurings and severance, $1.2 million related to fees for various merger and acquisition opportunities, $0.9 million for a non-cash impairment charge related to certain investments, and a decrease of $0.3 million related to the Tender Offer. This was offset by an increase of $0.1 million related to other restructuring costs.

Current wording

Restructuring expenses decreased by $1.9 million from the nine months ended September 30, 2023 to the nine months ended September 30, 2024. The decrease was primarily due to decreases of $1.6 million related to management restructurings and severance, a decrease of $0.9 million related to fees for various merger and acquisition opportunities, a decrease of $0.3 million related to the Tender Offer, and a decrease of $0.2 million for non-cash impairment charges. This was offset by an increase of $1.1 million related to other restructuring costs.

Previous wording

The change in fair value of warrant liabilities is related to the warrants discussed in Note 12—Warrant Liabilities to our condensed consolidated financial statements herein. Interest income, net is related to interest earned on cash and cash equivalents offset by fees and expenses associated with the Credit Agreement as discussed in Note 15—Long-Term Debt to our condensed consolidated financial statements herein. Other income primarily relates to gains or (losses) from equity investments and gains or (losses) from foreign currency transactions with our foreign subsidiaries.

Current wording

The change in fair value of warrant liabilities is related to the warrants discussed in Note 12—Accrued and Other Liabilities to our condensed consolidated financial statements herein. Interest income, net is related to interest earned on cash and cash equivalents offset by fees and expenses associated with the Credit Agreement as discussed in Note 14—Long-Term Debt to our condensed consolidated financial statements herein. Other income primarily relates to gains or (losses) from equity investments and gains or (losses) from foreign currency transactions with our foreign subsidiaries.

Previous wording

Provision for income taxes resulted in a tax expense of $0.5 million for the three months ended June 30, 2024, compared to a tax benefit of $0.6 million for the three months ended June 30, 2023. Our effective tax rate was (22.2)% for the three months ended June 30, 2024 compared to our statutory tax rate of 21%. Our effective tax rate was increased by remeasured income taxes payable in Israel at reduced tax rates, the fair value adjustment to the warrant liability, and research and development credits that we can utilize on our federal and state tax returns. Our effective tax rate was decreased by nondeductible stock compensation, foreign branch income, and other nondeductible expenses including officer compensation.

Current wording

Provision for income taxes resulted in a tax benefit of $0.5 million for the three months ended September 30, 2024, compared to a tax benefit of $2.1 million for the three months ended September 30, 2023. Our effective tax rate was 14.7% for the three months ended September 30, 2024 compared to our statutory tax rate of 21%. Our effective tax rate was increased by the valuation allowance recorded against our US deferred tax assets, foreign branch income, and other nondeductible expenses including officer compensation. Our effective tax rate was decreased by nondeductible stock compensation, research and development credits that we can utilize on our federal and state tax returns, and tax expense related to uncertain tax benefits on research and development credits.

Previous wording

Provision for income taxes resulted in a tax expense of $0.6 million for the six months ended June 30, 2024, compared to a tax benefit of $0.3 million for the six months ended June 30, 2023. Our effective tax rate was (22.8)% for the six months ended June 30, 2024 compared to our statutory tax rate of 21%. Our effective tax rate was increased by the valuation allowance recorded against our US deferred tax assets, lower foreign tax rates in significant foreign jurisdictions, the fair value adjustment to the warrant liability, and discrete tax benefits related to remeasured income taxes payable in Israel at reduced tax rates. Our effective tax rate was decreased by nondeductible stock compensation, foreign branch income, and other nondeductible expenses including officer compensation.

Current wording

Provision for income taxes resulted in a tax expense of $0.1 million for the nine months ended September 30, 2024, compared to a tax benefit of $2.4 million for the nine months ended September 30, 2023. Our effective tax rate was (0.9)% for the nine months ended September 30, 2024 compared to our statutory tax rate of 21%. Our effective tax rate was increased by the valuation allowance recorded against our US deferred tax assets, the fair value adjustment to the warrant liability, and lower foreign tax rates in significant jurisdictions. Our effective tax rate was decreased by nondeductible stock compensation, foreign branch income, and other nondeductible expenses including officer compensation.

Previous wording

Comparison of the three and six months ended June 30, 2024 versus the three and six months ended June 30, 2023

Current wording

Comparison of the three and nine months ended September 30, 2024 versus the three and nine months ended September 30, 2023

Previous wording

playGAMES AEBITDA was $21.9 million for the three months ended June 30, 2024 compared to $21.6 million for the three months ended June 30, 2023, an increase of $0.3 million. playGAMES AEBITDA margin was 30.2% for the three months ended June 30, 2024 compared to 28.4% for the three months ended June 30, 2023. The current period benefited from an increase in advertising revenue which does not incur platform fees, driving a reduction in cost of sales.

Current wording

playGAMES AEBITDA was $23.2 million for the three months ended September 30, 2024 compared to $21.6 million for the three months ended September 30, 2023, an increase of $1.6 million. playGAMES AEBITDA margin was 32.6% for the three months ended September 30, 2024 compared to 28.5% for the three months ended September 30, 2023. The current period benefited from an increase in direct-to-consumer sales which incurs lower processing fees, driving a reduction in cost of sales, as well as a reduction of user acquisition costs.

Previous wording

playGAMES AEBITDA was $45.4 million for the six months ended June 30, 2024 compared to $44.2 million for the six months ended June 30, 2023, an increase of $1.2 million. playGAMES AEBITDA margin was 30.2% for the six months ended June 30, 2024 compared to 28.8% for the six months ended June 30, 2023. The current period benefited from an increase in advertising revenue which does not incur platform fees driving a reduction in cost of sales.

Current wording

playGAMES AEBITDA was $68.6 million for the nine months ended September 30, 2024 compared to $65.8 million for the nine months ended September 30, 2023, an increase of $2.8 million. playGAMES AEBITDA margin was 31.0% for the nine months ended September 30, 2024 compared to 28.7% for the nine months ended September 30, 2023. The current period benefited from an increase in advertising revenue, which does not incur platform fees, and an increase in direct-to-consumer sales which incurs lower processing fees, driving a reduction in cost of sales, and a reduction of user acquisition costs.

Previous wording

playAWARDS AEBITDA was $(7.1) million for the six months ended June 30, 2024 compared to $(2.3) million for the six months ended June 30, 2023. The decrease in AEBITDA can be attributed to lower net revenue and an increase in employee costs associated with the myVIP program and the further advancement of the playAWARDS platform.

Current wording

playAWARDS AEBITDA was $(4.0) million for the three months ended September 30, 2024 compared to $(4.2) million for the three months ended September 30, 2023. The increase in AEBITDA can be attributed to a decrease in employee costs associated with the myVIP program and the further advancement of the playAWARDS platform.

Previous wording

playAWARDS AEBITDA was $(3.5) million for the three months ended June 30, 2024 compared to $(1.7) million for the three months ended June 30, 2023. The decrease in AEBITDA can be attributed to lower net revenue and an increase in employee costs associated with the myVIP program and the further advancement of the playAWARDS platform.

Current wording

playAWARDS AEBITDA was $(11.1) million for the nine months ended September 30, 2024 compared to $(6.5) million for the nine months ended September 30, 2023. The decrease in AEBITDA can be attributed to lower net revenue and an increase in employee costs associated with the myVIP program and the further advancement of the playAWARDS platform.

Previous wording

Consolidated Adjusted EBITDA, or Consolidated AEBITDA, as used herein, is a non-GAAP financial performance measure that is presented as a supplemental disclosure and is reconciled to net loss and net loss margin as the most directly comparable GAAP measures. We define Consolidated AEBITDA as net income before interest, income taxes, depreciation and amortization, restructuring and related costs (consisting primarily of severance and other restructuring related costs), stock-based compensation expense, changes in fair value of warrant liabilities, and other income and expense items (including special infrequent items, foreign currency gains and losses, and other non-cash items). We also use Consolidated AEBITDA Margin, another non-GAAP measure, which we calculate as the percentage of Consolidated AEBITDA to revenue.

Current wording

Consolidated Adjusted EBITDA, or Consolidated AEBITDA, as used herein, is a non-GAAP financial performance measure that is presented as a supplemental disclosure and is reconciled to net (loss) income and net (loss) income margin as the most directly comparable GAAP measures. We define Consolidated AEBITDA as net income before interest, income taxes, depreciation and amortization, restructuring and related costs (consisting primarily of severance and other restructuring related costs), stock-based compensation expense, changes in fair value of warrant liabilities, and other income and expense items (including special infrequent items, foreign currency gains and losses, and other non-cash items). We also use Consolidated AEBITDA Margin, another non-GAAP measure, which we calculate as the percentage of Consolidated AEBITDA to revenue.

Previous wording

The following table sets forth the reconciliation of Consolidated AEBITDA and Consolidated AEBITDA Margin to net loss and net loss margin, the most directly comparable GAAP measure (in thousands, except percentages).

Current wording

The following table sets forth the reconciliation of Consolidated AEBITDA and Consolidated AEBITDA Margin to net (loss) income and net (loss) income margin, the most directly comparable GAAP measure (in thousands, except percentages).

Previous wording

(1)Amounts reported during the three and six months ended June 30, 2023 relate to non-cash impairment charges related to certain investments and fees related to evaluating various merger, acquisition and restructuring opportunities. Amounts reported during the three and six months ended June 30, 2024 relate to internal reorganization costs, including severance-related costs, fees related to evaluating various merger and acquisition opportunities, and legal fees and other costs incurred in connection with litigation arising out of the Acies Merger transaction.

Current wording

(1)Amounts reported during the three and nine months ended September 30, 2023 relate to non-cash impairment charges related to certain investments and fees related to evaluating various merger, acquisition and restructuring opportunities. Amounts reported during the three and nine months ended September 30, 2024 relate to internal reorganization costs, including severance-related costs, fees related to evaluating various merger and acquisition opportunities, and legal fees and other costs incurred in connection with litigation arising out of the Acies Merger transaction.

Previous wording

As of June 30, 2024, we had cash and cash equivalents of $106.3 million, which consisted of cash on hand and money market mutual funds. Historically, we have funded our operations, including capital expenditures, primarily through cash flow from operating activities. We believe that our existing cash and cash equivalents, the cash generated from operations, and the borrowing capacity under our Credit Agreement as described below will be sufficient to fund our operations and capital expenditures for at least the next twelve (12) months. However, we intend to continue to make significant investments to support our business growth and may require additional funds to respond to business challenges, including the need to develop new games and features or enhance our existing games, improve our operating infrastructure, or acquire complementary businesses, personnel and technologies. Accordingly, we may need to engage in equity or debt financings to secure additional funds or we may decide to do so opportunistically.

Current wording

Agreement as described below will be sufficient to fund our operations and capital expenditures for at least the next twelve (12) months. However, we intend to continue to make significant investments to support our business growth and may require additional funds to respond to business challenges, including the need to develop new games and features or enhance our existing games, improve our operating infrastructure, or acquire complementary businesses, personnel and technologies. Accordingly, we may need to engage in equity or debt financing to secure additional funds or we may decide to do so opportunistically.

Previous wording

During the six months ended June 30, 2024, operating activities provided $19.5 million of net cash as compared to $23.9 million during the six months ended June 30, 2023. The decrease in cash provided from operating activities was primarily due to an unfavorable change in operating assets and liabilities due to timing fluctuations in payables being paid.

Current wording

During the nine months ended September 30, 2024, operating activities provided $34.1 million of net cash as compared to $36.4 million during the nine months ended September 30, 2023. The decrease in cash provided from operating activities was primarily due to a decrease in net revenue.

Previous wording

During the six months ended June 30, 2024, investing activities used $13.1 million of net cash as compared to $14.2 million during the six months ended June 30, 2023. The change in cash used in investing activities was due to a lower amount of additions to internal-use software during the six months ended June 30, 2024.

Current wording

During the nine months ended September 30, 2024, investing activities used $22.1 million of net cash as compared to $21.9 million during the nine months ended September 30, 2023. The change in cash used in investing activities was due to the cash payment of $3.4 million for the Pixode Acquisition, offset by lower purchases of property and equipment during the nine months ended September 30, 2024.

Previous wording

During the six months ended June 30, 2024, financing activities used $32.4 million of net cash as compared to $15.6 million during the six months ended June 30, 2023. The change in cash used in financing activities was due to an additional $13.2 million of share repurchases, $2.3 million of less proceeds received from stock option exercises, $0.7 million in increased minimum guarantee payments made, and $0.6 million of payments for tax withholding of stock-based compensation.

Current wording

During the nine months ended September 30, 2024, financing activities used $38.6 million of net cash as compared to $17.8 million during the nine months ended September 30, 2023. The change in cash used in financing activities was due to an additional $13.7 million of share repurchases, $4.8 million in increased minimum guarantee payments made, and $2.7 million of less proceeds received from stock option exercises. This was offset by $0.4 million less of payments for tax withholding of stock-based compensation.