Klaviyo Inc

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes that appear elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on February 29, 2024. As discussed in the section titled “Special Note Regarding Forward-Looking Statements,” the following discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Risk Factors” included under Part II, Item 1A within this Quarterly Report on Form 10-Q.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes that appear elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on February 29, 2024. As discussed in the section titled “Special Note Regarding Forward-Looking Statements,” the following discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Risk Factors” included under Part II, Item 1A within this Quarterly Report on Form 10-Q.

Previous wording

Our platform combines our proprietary data and application layers into one vertically-integrated solution with advanced machine learning and artificial intelligence capabilities. This enables business users of any skill level to harness their data in order to send the right message at the right time across email, short message service (“SMS”), and push notifications, more accurately measure and predict performance, and deploy the specific actions and campaigns that drive the highest impact. Our reviews add-on allows our customers to collect product reviews within our platform to provide a seamless experience across the customer lifecycle, and our Customer Data Platform (“CDP”) offering gives customers user-friendly ways to track new types of data, transform and cleanse data, run more advanced reporting and predictive analysis to drive revenue growth, and sync data in to and out of Klaviyo at scale. We focused on marketing automation within eCommerce as our first application use case, and we believe our software is highly extensible across a broad range of functions and verticals. As of June 30, 2024, our platform had efficiently scaled to over 151,000 customers. Today, our customers primarily operate within the retail and eCommerce vertical. Due to the flexibility and adaptability of our technology, we also see organic growth from customers in other verticals, such as education, events and entertainment, restaurants, and travel, as well as from business-to-business (“B2B”) companies. See the section below titled “Key Performance Metrics – Customers” for additional information on how we define customers and customers outside of retail.

Current wording

Our platform combines our proprietary data and application layers into one vertically-integrated solution with advanced machine learning and artificial intelligence capabilities. This enables business users of any skill level to harness their data in order to send the right message at the right time across email, short message service (“SMS”), and push notifications, more accurately measure and predict performance, and deploy the specific actions and campaigns that drive the highest impact. Our reviews add-on allows our customers to collect product reviews within our platform to provide a seamless experience across the customer lifecycle, and our Customer Data Platform (“CDP”) offering gives customers user-friendly ways to track new types of data, transform and cleanse data, run more advanced reporting and predictive analysis to drive revenue growth, and sync data in to and out of Klaviyo at scale. We focused on marketing automation within eCommerce as our first application use case, and we believe our software is highly extensible across a broad range of functions and verticals. As of September 30, 2024, our platform had efficiently scaled to over 157,000 customers. Today, our customers primarily operate within the retail and eCommerce vertical. Due to the flexibility and adaptability of our technology, we also see organic growth from customers in other verticals, such as education, events and entertainment, restaurants, and travel, as well as from business-to-business (“B2B”) companies. See the section below titled “Key Performance Metrics – Customers” for additional information on how we define customers and customers outside of retail.

Previous wording

We believe we have significant expansion opportunities in international markets. We started by serving customers in North America and, in 2019, we expanded our operations to London, England to penetrate the European region. In 2022, we opened our office in Sydney, Australia to capitalize on the opportunities in Asia Pacific. We have already experienced significant growth with international sales outside of the Americas accounting for 31.9% of our revenue for the six months ended June 30, 2024. We continue to expand our SMS offering, and as of June 30, 2024, we offer our SMS capabilities in more than 10 countries. In April 2024, we began offering our platform in French to help better serve our international customers based in French-speaking countries. We believe that the introduction of additional languages and currencies to our platform will increase our efficacy and ease of use in other regions.

Current wording

We believe we have significant expansion opportunities in international markets. We started by serving customers in North America and, in 2019, we expanded our operations to London, England to penetrate the European region. In 2022, we opened our office in Sydney, Australia to capitalize on the opportunities in Asia Pacific. We have already experienced significant growth with international sales outside of the Americas accounting for 32.2% of our revenue for the nine months ended September 30, 2024. We continue to expand our product offerings to better serve the international market. As of the date of this Quarterly Report on Form 10-Q, we offer our SMS capabilities in more than 15 countries, and we offer our platform in seven languages, including English, French, German, Portuguese, Korean, Spanish and Italian. We believe that the introduction of additional languages and currencies to our platform will increase our efficacy and ease of use in other regions.

Previous wording

As of June 30, 2024, we had 2,386 customers generating over $50,000 of ARR, compared to 1,458 customers generating over $50,000 of ARR as of June 30, 2023, representing growth of 64% year-over-year.

Current wording

As of September 30, 2024, we had 2,619 customers generating over $50,000 of ARR, compared to 1,699 customers generating over $50,000 of ARR as of September 30, 2023, representing growth of 54% year-over-year.

Previous wording

As of June 30, 2024 and 2023, our NRR was 112% and 119%, respectively. We implemented a price increase in September 2022, which positively increased revenue growth in 2022 and 2023. This price increase also impacted the various measures we use to assess our usage and subscription levels based on revenue, such as NRR, and our revenue growth rate, and following its implementation, those measures experienced corresponding increases as a result. The decrease in these measures from June 30, 2023 to June 30, 2024 was largely driven by lapping the one-year anniversary of this price increase.

Current wording

As of September 30, 2024 and 2023, our NRR was 110% and 119%, respectively. We implemented a price increase in September 2022, which positively increased revenue growth in 2022 and 2023. This price increase also impacted the various measures we use to assess our usage and subscription levels based on revenue, such as NRR, and our revenue growth rate, and following its implementation, those measures experienced corresponding increases as a result. The decrease in these measures from September 30, 2023 to September 30, 2024 was largely driven by lapping the one-year anniversary of this price increase in September 2023.

Previous wording

Three and Six Months Ended June 30, 2024 Compared to the Three and Six Months Ended June 30, 2023

Current wording

Three and Nine Months Ended September 30, 2024 Compared to the Three and Nine Months Ended September 30, 2023

Previous wording

Revenue for the three months ended June 30, 2024 increased by $57.6 million or 35.0%, to $222.2 million compared to $164.6 million for the three months ended June 30, 2023. The increase was due to new business, expanded usage of our platform, and growth of our SMS channel. For the three months ended June 30, 2024, sales to existing customers accounted for approximately 42% of the increase in revenue, and approximately 58% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.

Current wording

Revenue for the three months ended September 30, 2024 increased by $59.3 million or 33.7%, to $235.1 million compared to $175.8 million for the three months ended September 30, 2023. The increase was due to new business, expanded usage of our platform, and growth of our SMS channel. For the three months ended September 30, 2024, sales to existing customers accounted for approximately 41% of the increase in revenue, and approximately 59% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.

Previous wording

Revenue for the six months ended June 30, 2024 increased by $111.5 million or 34.8%, to $432.2 million compared to $320.7 million for the six months ended June 30, 2023. The increase was due to new business, expanded usage of our platform, and growth of our SMS channel. For the six months ended June 30, 2024, sales to existing customers accounted for approximately 52% of the increase in revenue, and approximately 48% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.

Current wording

Revenue for the nine months ended September 30, 2024 increased by $170.8 million or 34.4%, to $667.3 million compared to $496.5 million for the nine months ended September 30, 2023. The increase was due to new business, expanded usage of our platform, and growth of our SMS channel. For the nine months ended September 30, 2024, sales to existing customers accounted for approximately 59% of the increase in revenue, and approximately 41% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.

Previous wording

Cost of revenue for the three months ended June 30, 2024 increased by $12.8 million or 34.1%, to $50.3 million compared to $37.5 million for the three months ended June 30, 2023. This was primarily due to an increase of approximately $6.8 million in outbound communication sending costs on behalf of our customers due to increased usage, $3.0 million in salaries and personnel expenses as a result of increases in headcount, and $2.6 million of stock-based compensation expense related to the vesting of restricted stock units (“RSUs”).

Current wording

Cost of revenue for the three months ended September 30, 2024 decreased by $4.5 million or 7.6%, to $54.4 million compared to $58.8 million for the three months ended September 30, 2023. This was primarily due to a decrease of approximately $19.9 million of stock-based compensation expense related to the vesting of restricted stock units (“RSUs”) in connection with our initial public offering (“IPO”) in September 2023, offset by an increase of $13.7 million in outbound communication sending costs on behalf of our customers due to increased usage, $1.5 million in salaries and personnel expenses as a result of increases in headcount, and $0.8 million in amortization expense associated with capitalized internal-use software development costs.

Previous wording

Cost of revenue for the six months ended June 30, 2024 increased by $21.2 million or 28.6%, to $95.2 million compared to $74.1 million for the six months ended June 30, 2023. This was primarily due to an increase of approximately $11.1 million in outbound communication sending costs on behalf of our customers due to increased usage, $5.0 million of stock-based compensation expense related to the vesting of RSUs, $4.0 million in salaries and personnel expenses as a result of increases in headcount, and $1.1 million in amortization expense associated with capitalized internal-use software development costs.

Current wording

Cost of revenue for the nine months ended September 30, 2024 increased by $16.7 million or 12.6%, to $149.6 million compared to $132.9 million for the nine months ended September 30, 2023. This was primarily due to an increase of approximately $24.7 million in outbound communication sending costs on behalf of our customers due to increased usage, $5.5 million in salaries and personnel expenses as a result of increases in headcount, and $1.9 million in amortization expense associated with capitalized internal-use software development costs, offset by a decrease of $14.9 million of stock-based compensation expense related to the vesting of RSUs in connection with our IPO in September 2023.

Previous wording

Gross profit for the three months ended June 30, 2024 increased by $44.8 million or 35.3%, to $171.9 million compared to $127.1 million for the three months ended June 30, 2023. This increase was primarily due to revenue growth and ongoing efforts to optimize our costs including (i) higher volume-based discounts and pricing improvements on our purchases of third-party cloud hosting infrastructure and (ii) more efficient use of data storage and elimination of legacy storage architecture.

Current wording

Gross profit for the nine months ended September 30, 2024 increased by $154.1 million or 42.4%, to $517.7 million compared to $363.6 million for the nine months ended September 30, 2023. This increase was primarily due to revenue growth, decrease in stock-based compensation expense, and ongoing efforts to optimize our costs including (i) higher volume-based discounts and pricing improvements on our purchases of third-party cloud hosting infrastructure and (ii) more efficient use of data storage and elimination of legacy storage architecture.

Previous wording

Selling and marketing expenses for the three months ended June 30, 2024 increased by $31.1 million or 49.2%, to $94.5 million compared to $63.4 million for the three months ended June 30, 2023. This increase was primarily due to an increase of approximately $12.4 million in salaries and related personnel expenses as a result of increases in headcount, $10.1 million of stock-based compensation due to the vesting of RSUs, $2.2 million in partnership-related expenses across our ecosystem, $3.7 million in marketing expenses associated with our advertising campaigns across multiple channels of media, and $2.7 million in professional services.

Current wording

Selling and marketing expenses for the three months ended September 30, 2024 decreased by $67.9 million or 40.4%, to $100.0 million compared to $167.9 million for the three months ended September 30, 2023. This was primarily due to a decrease of approximately $87.4 million of stock-based compensation expense related to the vesting of RSUs in connection with our IPO in September 2023, offset by an increase of $9.3 million in salaries and related personnel expenses as a result of increases in headcount, $3.4 million in professional services, $3.3 million in marketing expenses associated with our advertising campaigns across multiple channels of media, $2.4 million in partnership-related expenses across our ecosystem, and $1.0 million in technology expenses.

Previous wording

Selling and marketing expenses for the six months ended June 30, 2024 increased by $62.4 million or 50.3%, to $186.4 million compared to $124.0 million for the six months ended June 30, 2023. This increase was primarily due to an increase of approximately $26.3 million in salaries and related personnel expenses as a result of increases in headcount, $21.3 million of stock-based compensation due to the vesting of RSUs, $4.7 million in partnership-related expenses across our ecosystem, $5.5 million in marketing expenses associated with our advertising campaigns across multiple channels of media, $3.8 million in professional services, and $1.6 million in technology expenses. The increase was offset by a decrease of approximately $1.9 million in restructuring expenses.

Current wording

Selling and marketing expenses for the nine months ended September 30, 2024 decreased by $5.5 million or 1.9%, to $286.4 million compared to $291.8 million for the nine months ended September 30, 2023. This was primarily due to a decrease of approximately $66.2 million of stock-based compensation expense related to the vesting of RSUs in connection with our IPO in September 2023, offset by an increase of $35.7 million in salaries and related personnel expenses as a result of increases in headcount, $8.8 million in marketing expenses associated with our advertising campaigns across multiple channels of media, $7.2 million in professional services, $7.1 million in partnership-related expenses across our ecosystem, and $2.6 million in technology expenses.

Previous wording

General and administrative expenses for the three months ended June 30, 2024 increased by $12.1 million or 51.1%, to $35.8 million compared to $23.7 million for the three months ended June 30, 2023. This increase was primarily due to an increase of approximately $7.5 million of stock-based compensation due to the vesting of RSUs, $3.4 million in salaries and related personnel expenses as a result of increases in headcount, $1.5 million in payment processing fees, and $0.9 million in professional services, primarily attributable to expenses incurred to operate as a public company, partially offset by a $1.5 million release attributed to tax filings in international jurisdictions.

Current wording

General and administrative expenses for the nine months ended September 30, 2024 decreased by $43.3 million or 27.7%, to $113.2 million compared to $156.5 million for the nine months ended September 30, 2023. This was primarily due to a decrease of approximately $52.6 million of stock-based compensation expense related to the vesting of RSUs in connection with our IPO in September 2023 and a $3.9 million release in reserves due to tax filings in international jurisdictions. This decrease was offset by an increase of approximately $4.9 million in salaries and related personnel expenses as a result of increases in headcount, $4.6 million in payment processing fees, $1.9 million in professional services primarily attributable to expenses incurred to operate as a public company, and $1.5 million in technology expenses.

Previous wording

Interest income for the three months ended June 30, 2024 increased by $5.5 million to $10.0 million compared to $4.5 million for the three months ended June 30, 2023. This increase was due to greater interest income from the larger cash balances held in interest-bearing accounts, including money market funds.

Current wording

Interest income for the three months ended September 30, 2024 increased by $4.3 million to $10.5 million compared to $6.2 million for the three months ended September 30, 2023. This increase was due to greater interest income from the larger cash balances held in interest-bearing accounts, including money market funds.

Previous wording

Interest income for the six months ended June 30, 2024 increased by $11.2 million to $19.5 million compared to $8.3 million for the six months ended June 30, 2023. This increase was due to greater interest income from the larger cash balances held in interest-bearing accounts, including money market funds.

Current wording

Interest income for the nine months ended September 30, 2024 increased by $15.5 million to $30.0 million compared to $14.5 million for the nine months ended September 30, 2023. This increase was due to greater interest income from the larger cash balances held in interest-bearing accounts, including money market funds.

Previous wording

Provision for Income Taxes - Three Month Change

Current wording

(Benefit) Provision for Income Taxes - Three Month Change

Previous wording

Income tax expense for the three months ended June 30, 2024 increased by an immaterial amount compared to the three months ended June 30, 2023.

Current wording

Income tax expense for the nine months ended September 30, 2024 decreased by $1.7 million to $0.1 million compared to $1.8 million for the nine months ended September 30, 2023. This was primarily due to filings in foreign jurisdictions.

Previous wording

Since our inception through June 30, 2024, we have financed our operations primarily through sales of equity securities and payments received from our customers. In September 2023, we completed our initial public offering (“IPO”) which resulted in aggregate cash proceeds of approximately $320.1 million, after deducting approximately $17.7 million in underwriting discounts and commissions, and $7.4 million in offering-related expenses.

Current wording

Since our inception through September 30, 2024, we have financed our operations primarily through sales of equity securities and payments received from our customers. In September 2023, we completed our IPO, which resulted in aggregate cash proceeds of approximately $320.1 million, after deducting approximately $17.7 million in underwriting discounts and commissions and $7.4 million in offering-related expenses.

Previous wording

As of June 30, 2024, our principal sources of liquidity included cash, cash equivalents, and restricted cash totaling $794.6 million, with such amounts held for working capital purposes. Our cash equivalents were comprised of $322.8 million in money market funds.

Current wording

As of September 30, 2024, our principal sources of liquidity included cash, cash equivalents, and restricted cash totaling $827.9 million, with such amounts held for working capital purposes. Our cash equivalents were comprised of $274.9 million in money market funds.

Previous wording

(1)Restricted cash related to our required collateral to fund payroll and credit card obligations in the Australia entity.

Current wording

(1)Restricted cash related to our required collateral to fund payroll and credit card obligations in our Australia entity.

Previous wording

The following table sets forth, for the periods indicated, our beginning balance of cash, net cash flows provided by operating, investing and financing activities, and our ending balance of cash. For additional detail, see our consolidated financial statements and the accompanying notes thereto included elsewhere in this Quarterly Report on Form 10-Q.

Current wording

The following table sets forth, for the periods indicated, our beginning balance of cash, net cash flows provided by operating, investing and financing activities, and our ending balance of cash. For additional detail, see our condensed consolidated financial statements and the accompanying notes thereto included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

Net cash provided by operating activities of $67.1 million for the six months ended June 30, 2024 was primarily attributable to a net loss of $17.8 million adjusted for non-cash charges of $118.8 million and net cash outflows of $33.9 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $69.1 million of stock-based compensation expense, $26.4 million of prepaid marketing expense amortization, $8.4 million of amortization related to deferred contract acquisition costs, $8.2 million of depreciation and amortization expense, and $6.3 million of operating lease costs. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $14.7 million increase in deferred contract acquisition costs related to increase in sales commissions resulting from the increase in revenues, a $7.8 million decrease in operating lease liabilities due to payments related to our operating lease obligations, a $7.3 million increase in prepaid expenses due to prepayments for cloud infrastructure and hosting costs, and a $4.7 million decrease in accrued expenses and accounts payable due to timing of payments. The cash outflow was offset by cash inflows primarily from a $6.7 million increase in deferred revenue resulting from increased billings for subscriptions.

Current wording

Net cash provided by operating activities of $105.9 million for the nine months ended September 30, 2024 was primarily attributable to a net loss of $19.2 million adjusted for non-cash charges of $176.1 million and net cash outflows of $51.1 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $100.7 million of stock-based compensation expense, $39.7 million of prepaid marketing expense amortization, $13.8 million of amortization related to deferred contract acquisition costs, $12.8 million of depreciation and amortization expense, and $9.6 million of operating lease costs. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $24.5 million increase in deferred contract acquisition costs related to increase in sales commissions resulting from the increase in revenues, a $14.0 million increase in prepaid expenses due to prepayments for cloud infrastructure and hosting costs, a $11.8 million decrease in operating lease liabilities due to payments related to our operating lease obligations, a

Previous wording

Net cash provided by operating activities of $57.0 million for the six months ended June 30, 2023 was primarily attributable to a net income of $15.2 million adjusted for non-cash charges of $49.1 million and net cash outflows of $7.2 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $26.4 million of prepaid marketing expense amortization, $7.3 million of amortization related to deferred contract acquisition costs, $6.6 million of operating lease costs, $6.5 million of depreciation and amortization expense, and $2.3 million of stock-based compensation expense. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $12.0 million increase in deferred contract acquisition costs related to increase in sales commissions resulting from the increase in revenues, a $7.6 million decrease in operating lease liabilities due to payments related to our operating lease obligations, a $3.9 million increase in prepaid expenses due to prepayments for cloud infrastructure and hosting costs, and a $2.4 million increase in accounts receivable due to an increase in customer billings. The cash outflow was offset by cash inflows primarily from a $14.7 million increase in accrued expenses and accounts payable due to timing of payments and a $4.1 million increase in deferred revenue resulting from increased billings for subscriptions.

Current wording

Net cash provided by operating activities of $80.7 million for the nine months ended September 30, 2023 was primarily attributable to a net loss of $281.9 million adjusted for non-cash charges of $373.3 million and net cash outflows of $10.7 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $302.3 million of stock-based compensation expense, $39.7 million of prepaid marketing expense amortization, $11.4 million of amortization related to deferred contract acquisition costs, $9.8 million of depreciation and amortization expense, and $9.6 million of operating lease costs. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $19.0 million increase in deferred contract acquisition costs related to increase in sales commissions resulting from the increase in revenues, a $11.5 million decrease in operating lease liabilities due to payments related to our operating lease obligations, a $7.0 million increase in accounts receivable due to an increase in customer billings, and a $5.5 million increase in prepaid expenses due to prepayments for cloud infrastructure and hosting costs. The cash outflow was offset by cash inflows primarily from a $19.1 million increase in accrued expenses and accounts payable due to timing of payments and a $7.8 million increase in deferred revenue resulting from increased billings for subscriptions.

Previous wording

Net cash used in investing activities of $3.6 million for the six months ended June 30, 2023 consisted of $2.8 million of capitalized software development costs and $0.8 million purchases of property and equipment.

Current wording

Net cash used in investing activities of $11.6 million for the nine months ended September 30, 2024 consisted of $8.0 million of capitalized software development costs and $3.6 million purchases of property and equipment.

Previous wording

Net cash used in investing activities of $7.1 million for the six months ended June 30, 2024 consisted of $2.0 million purchases of property and equipment and $5.0 million of capitalized software development costs.

Current wording

Net cash used in investing activities of $5.4 million for the nine months ended September 30, 2023 consisted of $4.6 million of capitalized software development costs and $0.8 million purchases of property and equipment.

Previous wording

Net cash used in financing activities of $5.1 million for the six months ended June 30, 2024 primarily consisted of approximately $4.3 million of proceeds from the exercise of stock options and $4.4 million of proceeds from the employee stock purchase plan offset by $13.8 million used for the payment of employee tax obligations related to the vesting of stock-based compensation awards.

Current wording

Net cash used in financing activities of $6.0 million for the nine months ended September 30, 2024 primarily consisted of approximately $7.0 million of proceeds from the employee stock purchase plan and $6.2 million of proceeds from the exercise of stock options offset by $19.3 million used for the payment of employee tax obligations related to the vesting of stock-based compensation awards.

Previous wording

We enter into various noncancellable lease agreements for certain office space and equipment used in the normal course of business. Our noncancellable lease obligations as of June 30, 2024 were $49.3 million, with $13.3 million payable within 12 months.

Current wording

We enter into various noncancellable lease agreements for certain office space and equipment used in the normal course of business. Our noncancellable lease obligations as of September 30, 2024 were $46.1 million, with $13.4 million payable within 12 months. In addition, during the three months ended September 30, 2024, we entered into a lease in the

Previous wording

We enter into various noncancellable agreements with marketing vendors and various service providers. Our noncancellable obligations as of June 30, 2024 were $279.2 million.

Current wording

We enter into various noncancellable agreements with marketing vendors and various service providers. Our noncancellable obligations as of September 30, 2024 were $276.6 million.

Previous wording

There have been no significant changes in our critical accounting policies and estimates during the six months ended June 30, 2024 as compared to the critical accounting policies and estimates disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024.

Current wording

There have been no significant changes in our critical accounting policies and estimates during the nine months ended September 30, 2024 as compared to the critical accounting policies and estimates disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024.

Previous wording

See Note 2. Summary of Significant Accounting Policies in the notes to our consolidated financial statements included elsewhere in this filing for a discussion about new accounting pronouncements adopted as of the date of this Quarterly Report on Form 10-Q.

Current wording

See Note 2. Summary of Significant Accounting Policies in the notes to our condensed consolidated financial statements included elsewhere in this filing for a discussion about new accounting pronouncements adopted as of the date of this Quarterly Report on Form 10-Q.