Nextdoor Holdings Inc

Previous wording

Nextdoor is the essential neighborhood network, connecting users, businesses, and public agencies to the neighborhoods that matter to them. As a purpose-driven company, Nextdoor leverages technology to cultivate a kinder world where everyone has a neighborhood they can rely on — both online and in the real world. As of June 30, 2024, Nextdoor was in more than 335,000 neighborhoods around the world and in 1 in 3 households in the United States.

Current wording

Nextdoor is the essential neighborhood network, connecting users, businesses, and public agencies to the neighborhoods that matter to them. As a purpose-driven company, Nextdoor leverages technology to cultivate a kinder world where everyone has a neighborhood they can rely on — both online and in the real world. As of September 30, 2024, Nextdoor was in more than 340,000 neighborhoods around the world and in 1 in 3 households in the United States.

Previous wording

•Weekly Active Users (“WAUs”) were 45.1 million, an increase of 8% compared to the three months ended June 30, 2023.

Current wording

•Weekly Active Users (“WAUs”) were 45.9 million, an increase of 13% compared to the three months ended September 30, 2023.

Previous wording

•Average revenue per weekly active user (“ARPU”) was $1.40, an increase of 3% compared to the three months ended June 30, 2023.

Current wording

•Average revenue per weekly active user (“ARPU”) was $1.43, an increase of 3% compared to the three months ended September 30, 2023.

Previous wording

Financial Results as of and for the three and six months ended June 30, 2024 are as follows:

Current wording

Financial Results as of and for the three and nine months ended September 30, 2024 are as follows:

Previous wording

•Revenue for the three months ended June 30, 2024 was $63.3 million, an increase of 11% compared to the three months ended June 30, 2023. Revenue for the six months ended June 30, 2024 was $116.4 million, an increase of 9% compared to the six months ended June 30, 2023.

Current wording

•Revenue for the three months ended September 30, 2024 was $65.6 million, an increase of 17% compared to the three months ended September 30, 2023. Revenue for the nine months ended September 30, 2024 was $182.0 million, an increase of 12% compared to the nine months ended September 30, 2023.

Previous wording

•Total costs and expenses for the three months ended June 30, 2024 were $112.3 million, an increase of 14% compared to the three months ended June 30, 2023. Total costs and expenses for the six months ended June 30, 2024 were $200.2 million, an increase of 7% compared to the six months ended June 30, 2023.

Current wording

•Total costs and expenses for the three months ended September 30, 2024 were $86.4 million, a decrease of 14% compared to the three months ended September 30, 2023. Total costs and expenses for the nine months ended September 30, 2024 were $286.6 million, a decrease of less than 1% compared to the nine months ended September 30, 2023.

Previous wording

•Net loss for the three months ended June 30, 2024 increased 21% to $42.8 million, compared to $35.4 million for the three months ended June 30, 2023. Net loss for the six months ended June 30, 2024 increased 3% to $71.0 million, compared to $69.1 million for the six months ended June 30, 2023.

Current wording

•Net loss for the three months ended September 30, 2024 decreased 61% to $14.9 million, compared to $38.1 million for the three months ended September 30, 2023. Net loss for the nine months ended September 30, 2024 decreased 20% to $85.9 million, compared to $107.2 million for the nine months ended September 30, 2023.

Previous wording

•Adjusted EBITDA loss for the three months ended June 30, 2024 decreased 68% to $6.0 million, compared to $18.6 million for the three months ended June 30, 2023. Adjusted EBITDA loss for the six months ended June 30, 2024 decreased 50% to $20.0 million, compared to $40.3 million for the six months ended June 30, 2023.

Current wording

•Adjusted EBITDA loss for the three months ended September 30, 2024 decreased 93% to $1.3 million, compared to $19.8 million for the three months ended September 30, 2023. Adjusted EBITDA loss for the nine months ended September 30, 2024 decreased 65% to $21.3 million, compared to $60.1 million for the nine months ended September 30, 2023.

Previous wording

•Cash, cash equivalents, and marketable securities were $456.5 million as of June 30, 2024.

Current wording

•Cash, cash equivalents, and marketable securities were $424.7 million as of September 30, 2024.

Previous wording

We define a WAU as a Nextdoor user who opens our application, logs on to our website, or engages with an email with monetizable content at least once during a defined 7-day period.1 We calculate average WAUs for a particular period by calculating the count of unique users, on a rolling basis for the past seven days, for each day of that period, and dividing that sum by the number of days in that period. W

Current wording

We define a WAU as a Nextdoor user who opens our application, logs on to our website, or engages with an email with monetizable content at least once during a defined 7-day period.1 We calculate average WAUs for a particular period by calculating the count of unique users, on a rolling basis for the past seven days, for each day of that period, and dividing that sum by the number of days in that period. We assess the health of our business by measuring WAUs because we believe that weekly usage best captures the cadence at which we expect a healthy user base to engage with, and derive the most utility from our platform, and by extension their neighborhood. We also present WAUs by geography because we are more advanced in engagement and monetization in the United States than internationally.

Previous wording

Our WAU for the three months ended June 30, 2024 and 2023 were 45.1 million and 41.6 million, respectively, which represents 8% growth period over period.

Current wording

Our WAU for the three months ended September 30, 2024 and 2023 were 45.9 million and 40.4 million, respectively, which represents 13% growth period over period.

Previous wording

U.S. ARPU is higher primarily due to our decision to focus our earliest monetization efforts there, the size and maturity of our audience in the United States, as well the size of the U.S. advertising market. For purposes of calculating ARPU, revenue by user geography is apportioned to each region based on a determination of the location of the account where the revenue-generating activities occur. Our ARPU for the three months ended June 30, 2024 and 2023 was $1.40 and $1.37, respectively, with the increase due to stronger revenue growth relative to WAU growth.

Current wording

U.S. ARPU is higher primarily due to our decision to focus our earliest monetization efforts there, the size and maturity of our audience in the United States, as well the size of the U.S. advertising market. For purposes of calculating ARPU, revenue by user geography is apportioned to each region based on a determination of the location of the account where the revenue-generating activities occur. Our ARPU for the three months ended September 30, 2024 and 2023 was $1.43 and $1.39, respectively, with the increase due to growth in both revenue and WAU.

Previous wording

Performance marketing costs related to user acquisition largely consist of the distribution of mailed invitations and, to a lesser extent, digital advertising. Performance marketing costs related to small and mid-sized customer acquisition largely consists of digital advertising and, to a lesser extent, direct mail campaigns. Fluctuations in our performance marketing expenses are driven by a variety of factors, including but not limited to: our target geographies, whether we are acquiring users or businesses, assessment of return on investment of marketing spend, strategic priorities, and seasonal factors.

Current wording

Performance marketing costs related to user acquisition largely consist of the distribution of mailed invitations and digital advertising. Performance marketing costs related to small and mid-sized customer acquisition largely consists of digital advertising and, to a lesser extent, direct mail campaigns. Fluctuations in our performance marketing expenses are driven by a variety of factors, including but not limited to: our target geographies, whether we are acquiring users or businesses, assessment of return on investment of marketing spend, strategic priorities, and seasonal factors.

Previous wording

Comparison of the Three and Six Months Ended June 30, 2024 and 2023

Current wording

Comparison of the Three and Nine Months Ended September 30, 2024 and 2023

Previous wording

Revenue increased by $6.4 million, or 11%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The increase was primarily due to an increase in advertiser demand for our product offerings, which was driven by increased marketer spending as well as increased user engagement as measured by an 8% increase in Q2 WAUs. ARPU increased 3% in the three months ended June 30, 2024 compared to the three months ended June 30, 2023, reflecting stronger year-over-year revenue growth relative to WAU growth.

Current wording

Revenue increased by $9.5 million, or 17%, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. The increase was primarily due to increased advertiser spending as well as increased user engagement as measured by a 13% increase in Q3 WAUs. ARPU increased 3% in the three months ended September 30, 2024 compared to the three months ended September 30, 2023, reflecting year-over-year growth in both revenue and WAUs.

Previous wording

Revenue increased by $9.8 million, or 9%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The increase was primarily due to an increase in advertiser demand for our product offerings, which was driven by increased marketer spending as well as increased user engagement as measured by an 8% increase in Q2 WAUs. Year-to-date ARPU increased 4% in the six months ended June 30, 2024 compared to the six months ended June 30, 2023, reflecting stronger year-over-year revenue growth relative to WAU growth.

Current wording

Revenue increased by $19.3 million, or 12%, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The increase was primarily due to increased advertiser spending as well as increased user engagement as measured by a 13% increase in Q3 WAUs. Year-to-date ARPU increased 4% in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, reflecting year-over-year growth in both revenue and WAUs.

Previous wording

Cost of revenue decreased by $0.2 million, or 2%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The decrease was primarily due to a $0.7 million decrease in allocated personnel-related costs, partially offset by a $0.5 million increase in third-party hosting costs.

Current wording

Cost of revenue increased by $0.4 million, or 4%, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. The increase was primarily due to a $0.5 million increase in third-party hosting costs.

Previous wording

Cost of revenue decreased by $0.1 million, or less than 1%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The decrease was primarily due to a $1.0 million decrease in allocated personnel-related costs, partially offset by a $0.4 million increase in third-party hosting costs and a $0.3 million increase in third-party costs associated with delivering and supporting our advertising products.

Current wording

Cost of revenue increased by $0.3 million, or 1%, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The increase was primarily due to a $0.8 million increase in third-party hosting costs and a $0.6 million increase in third-party costs associated with delivering and supporting our advertising product, partially offset by a $1.2 million decrease in allocated personnel-related costs.

Previous wording

Sales and marketing expenses decreased by $0.3 million, or less than 1%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The decrease was primarily due to a $0.5 million decrease in personnel-related costs, inclusive of restructuring costs, primarily driven by a decrease in headcount and a $0.3 million decrease in neighbor services, partially offset by a $0.3 million increase in performance marketing costs for user acquisition and a $0.2 million increase in performance marketing costs to attract local businesses.

Current wording

Sales and marketing expenses decreased by $4.7 million, or 5%, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The decrease was primarily due to a $7.0 million decrease in personnel-related costs, inclusive of restructuring costs, primarily driven by a decrease in headcount, and a $0.7 million decrease in neighbor services, partially offset by a $1.6 million increase in performance marketing costs to attract local businesses and a $1.3 million increase in performance marketing costs for user acquisition.

Previous wording

Sales and marketing expenses decreased by $0.9 million, or 3%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The decrease was primarily due to a $0.5 million decrease in personnel-related costs, inclusive of restructuring costs, primarily driven by a decrease in headcount and a $0.4 million decrease in neighbor services.

Current wording

General and administrative expenses decreased by $2.3 million, or 12%, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. The decrease was primarily due to a $1.9 million decrease in personnel-related costs primarily driven by a decrease in headcount and a $0.4 million decrease in insurance expenses.

Previous wording

General and administrative expenses increased by $21.1 million, or 109%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The increase was primarily due to a $23.3 million increase in restructuring costs, inclusive of $22.7 million of impairment costs related to office space reductions, partially offset by a $0.5 million decrease in personnel-related costs primarily driven by a decrease in headcount, a $0.7 million decrease in professional fees, and a $0.4 million decrease in insurance expenses.

Current wording

General and administrative expenses increased by $19.0 million, or 34%, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The increase was primarily due to a $23.3 million increase in restructuring costs, inclusive of $22.7 million of impairment costs related to office space reductions, partially offset by a $1.7 million decrease in personnel-related costs primarily driven by a decrease in headcount, a $1.1 million decrease in insurance expenses, and a $0.9 million decrease in professional fees.

Previous wording

Interest income increased by $0.1 million, or 1%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The increase was primarily driven by higher interest rates.

Current wording

Interest income decreased by $1.0 million, or 14%, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. The decrease was driven by lower returns on marketable securities as a result of lower invested balances partially offset by higher interest rates.

Previous wording

Interest income increased by $1.4 million, or 12%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The increase was primarily driven by higher interest rates.

Current wording

Interest income increased by $0.4 million, or 2%, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The increase was driven by higher returns on marketable securities as a result of higher interest rates partially offset by lower invested balances.

Previous wording

Other income (expense), net increased by $0.3 million, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The increase was primarily due to the periodic re-measurement of monetary assets and liabilities denominated in non-functional currencies and gains and losses on marketable securities and foreign currency transactions.

Current wording

Other income (expense), net increased by $0.5 million for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. The increase was primarily due to the periodic re-measurement of monetary assets and liabilities denominated in non-functional currencies and gains and losses on marketable securities and foreign currency transactions.

Previous wording

Other expense decreased by $0.3 million, or 94%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The decrease was primarily due to the periodic re-measurement of monetary assets and liabilities denominated in non-functional currencies and gains and losses on marketable securities and foreign currency transactions.

Current wording

Other income (expense), net increased by $0.8 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The increase was primarily due to the periodic re-measurement of monetary assets and liabilities denominated in non-functional currencies and gains and losses on marketable securities and foreign currency transactions.

Previous wording

Provision for income taxes increased by $0.2 million, or 155%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The increase was primarily due to an increase in foreign income tax expenses.

Current wording

Provision for income taxes decreased by $0.1 million, or 42%, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. The decrease was primarily due to a decrease in foreign income tax expenses.

Previous wording

Provision for income taxes increased by $0.1 million, or 21%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The increase was primarily due to an increase in foreign income tax expenses.

Current wording

Provision for income taxes decreased by less than $0.1 million, or 4%, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The decrease was primarily due to a decrease in foreign income tax expenses.

Previous wording

We have generated losses from our operations, as reflected in our accumulated deficit of $837.1 million as of June 30, 2024. We incurred operating losses and cash outflows from operations by supporting the growth of our business. We expect these losses and operating cash outflows to continue for the foreseeable future. We also expect to incur significant research and development, sales and marketing, and general and administrative expenses over the next several years in connection with the continued development and strategic expansion of our business.

Current wording

We have generated losses from our operations, as reflected in our accumulated deficit of $852.0 million as of September 30, 2024. We incurred operating losses and cash outflows from operations by supporting the growth of our business. We expect these losses and operating cash outflows to continue for the foreseeable future. We also expect to incur significant research and development, sales and marketing, and general and administrative expenses over the next several years in connection with the continued development and strategic expansion of our business.

Previous wording

As of June 30, 2024, we had $456.5 million in cash, cash equivalents, and marketable securities. We anticipate satisfying our short-term cash requirements, including meeting our working capital and capital expenditure requirements, with our existing cash, cash equivalents, and marketable securities. In the long term, we may satisfy our cash requirements with cash, cash equivalents, and marketable securities on hand or with proceeds from any future equity or debt financings. Our ability to support our requirements and plans for cash, including working capital and capital expenditure requirements, will depend on many factors, including the rate of our revenue growth, the timing and extent of spending on research and development efforts and other business initiatives, the expansion of sales and marketing activities, the introduction of new and enhanced product offerings and features, the continuing market adoption of our platform, the number of shares repurchased under our share repurchase program (the “Share Repurchase Program”), and our ability to obtain equity or debt financing. Moreover, any instability in the U.S. or international banking systems may impact liquidity both in the short term and long term.

Current wording

As of September 30, 2024, we had $424.7 million in cash, cash equivalents, and marketable securities. We anticipate satisfying our short-term cash requirements, including meeting our working capital and capital expenditure requirements, with our existing cash, cash equivalents, and marketable securities. In the long term, we may satisfy our cash requirements with cash, cash equivalents, and marketable securities on hand or with proceeds from any future equity or debt financings. Our ability to support our requirements and plans for cash, including working capital and capital expenditure requirements, will depend on many factors, including the rate of our revenue growth, the timing and extent of spending on research and development efforts and other business initiatives, the expansion of sales and marketing activities, the introduction of new and enhanced product offerings and features, the continuing market adoption of our platform, the number of shares repurchased under our share repurchase program (the “Share Repurchase Program”), and our ability to obtain equity or debt financing. Moreover, any instability in the U.S. or international banking systems may impact liquidity both in the short term and long term.

Previous wording

On May 31, 2022, our Board of Directors authorized and approved the Share Repurchase Program to repurchase up to $100.0 million in aggregate of our Class A common stock, with the authorization to expire on June 30, 2024. The timing of any repurchases will depend on market conditions and other investment opportunities, and will be made at our discretion. The Share Repurchase Program does not obligate us to repurchase any dollar amount or number of shares, and the program may be extended, modified, suspended, or discontinued at any time. On February 21, 2024, our Board of Directors authorized and approved an increase of $150.0 million to the Share Repurchase Program and extended the expiration date to March 31, 2026. During the three and six months ended June 30, 2024, we repurchased and retired 18.1 million and 22.5 million shares of Class A common stock at an average purchase price of $2.42 and $2.38 per share for an aggregate repurchase price of $43.7 million and $53.5 million, respectively. As of June 30, 2024, we had $119.3 million available for future share repurchases under the Share Repurchase Program.

Current wording

On May 31, 2022, our Board of Directors authorized and approved the Share Repurchase Program to repurchase up to $100.0 million in aggregate of our Class A common stock, with the authorization to expire on June 30, 2024. The timing of any repurchases will depend on market conditions and other investment opportunities, and will be made at our discretion. The Share Repurchase Program does not obligate us to repurchase any dollar amount or number of shares, and the program may be extended, modified, suspended, or discontinued at any time. On February 21, 2024, our Board of Directors authorized and approved an increase of $150.0 million to the Share Repurchase Program and extended the expiration date to March 31, 2026. During the three and nine months ended September 30, 2024, we repurchased and retired 7.5 million and 30.0 million shares of Class A common stock at an average purchase price of $2.64 and $2.44 per share for an aggregate repurchase price of $19.8 million and $73.3 million, respectively. As of September 30, 2024, we had $99.5 million available for future share repurchases under the Share Repurchase Program.

Previous wording

Cash used in operating activities during the six months ended June 30, 2024 was $19.0 million which resulted from a net loss of $71.0 million, adjusted for non-cash charges of $58.1 million and net cash outflows of $6.0 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $35.7 million of stock-based compensation expense, $22.8 million of non-cash impairment charges related to lease abandonment, and $2.5 million of depreciation and amortization expense, partially offset by $3.3 million of accretion on investments. The net cash outflows from changes in operating assets and liabilities were primarily due to a $5.3 million decrease in accrued expenses and other liabilities, a $3.0 million decrease in operating lease liabilities due to lease payments, and a $1.9 million increase in accounts receivable. These amounts were partially offset by a $2.4 million decrease in operating lease right-of-use assets due to normal amortization, a $0.9 million increase in accounts payable, and a $0.8 million decrease in prepaid expenses and other assets.

Current wording

Cash used in operating activities during the nine months ended September 30, 2024 was $32.0 million which resulted from a net loss of $85.9 million, adjusted for non-cash charges of $76.2 million and net cash outflows of $22.2 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $54.2 million of stock-based compensation expense, $22.8 million of non-cash impairment charges related to lease abandonment, and $3.3 million of depreciation and amortization expense, partially offset by $4.9 million of accretion on investments. The net cash outflows from changes in operating assets and liabilities were primarily due to an $8.9 million decrease in accrued expenses and other liabilities, a $6.4 million increase in prepaid expenses and other assets, a $4.9 million decrease in operating lease liabilities due to lease payments, a $3.4 million increase in accounts receivable, and a $1.7 million decrease in accounts payable. These amounts were partially offset by a $3.1 million decrease in operating lease right-of-use assets due to normal amortization.

Previous wording

Cash used in operating activities during the six months ended June 30, 2023 was $26.0 million which resulted from a net loss of $69.1 million, adjusted for non-cash charges of $35.7 million and net cash inflows of $7.4 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $37.4 million of stock-based compensation expense and $2.9 million of depreciation and amortization expense. The net cash inflows from changes in operating assets and liabilities were primarily due to a $3.4 million increase in accrued expenses and other liabilities, a $2.4 million decrease in operating lease right-of-use assets due to normal amortization, a $1.7 million decrease in prepaid expenses and other assets, a $1.4 million decrease in accounts receivable, and a $1.4 million increase in accounts payable. These amounts were partially offset by a $2.8 million decrease in operating lease liabilities due to lease payments.

Current wording

Cash used in operating activities during the nine months ended September 30, 2023 was $44.3 million which resulted from a net loss of $107.2 million, adjusted for non-cash charges of $58.9 million and net cash inflows of $4.0 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $60.7 million of stock-based compensation expense and $4.4 million of depreciation and amortization expense, partially offset by $6.5 million of accretion on investments. The net cash inflows from changes in operating assets and liabilities were primarily due to a $3.5 million decrease in operating lease right-of-use assets due to normal amortization, a $3.4 million increase in accrued expenses and other liabilities, and a $2.8 million decrease in prepaid expenses and other assets. These amounts were partially offset by a $4.2 million decrease in operating lease liabilities due to lease payments, a $1.2 million decrease in accounts payable, and a $0.3 million increase in accounts receivable.

Previous wording

Cash provided by investing activities for the six months ended June 30, 2024 was $61.4 million, which consisted of proceeds from maturities of marketable securities of $106.1 million and proceeds from sales of marketable securities of $91.2 million. This was partially offset by purchases of marketable securities of $128.3 million and a loan to Opportunity Finance Network of $7.5 million.

Current wording

Cash provided by investing activities for the nine months ended September 30, 2024 was $93.4 million, which consisted of proceeds from maturities of marketable securities of $158.4 million and proceeds from sales of marketable securities of $138.4 million. This was partially offset by purchases of marketable securities of $195.6 million and a loan to Opportunity Finance Network of $7.5 million.

Previous wording

Cash provided by investing activities for the six months ended June 30, 2023 was $52.6 million, which consisted of proceeds from maturities of marketable securities of $306.8 million and proceeds from sales of marketable securities of $51.6 million. This was partially offset by purchases of marketable securities of $303.2 million and a loan to Opportunity Finance Network of $2.5 million.

Current wording

Cash provided by investing activities for the nine months ended September 30, 2023 was $40.2 million, which consisted of proceeds from maturities of marketable securities of $416.6 million and proceeds from sales of marketable securities of $81.3 million. This was partially offset by purchases of marketable securities of $454.9 million and a loan to Opportunity Finance Network of $2.5 million.

Previous wording

Cash used in financing activities for the six months ended June 30, 2024 was $49.7 million, which consisted of repurchases of common stock of $53.5 million and tax withholdings on release of restricted stock units (“RSUs”) of $5.7 million. This was partially offset by proceeds from the exercise of stock options of $8.8 million and proceeds from the issuance of common stock under the employee stock purchase plan of $0.6 million.

Current wording

Cash used in financing activities for the nine months ended September 30, 2024 was $72.1 million, which consisted of repurchases of common stock of $73.3 million and tax withholdings on release of restricted stock units of $11.4 million. This was partially offset by proceeds from the exercise of stock options of $11.5 million and proceeds from the issuance of common stock under the employee stock purchase plan of $1.1 million.

Previous wording

Cash provided by financing activities for the six months ended June 30, 2023 was $3.6 million, which consisted of $2.6 million of proceeds from the exercise of stock options and $1.1 million of proceeds from the issuance of common stock under the employee stock purchase plan.

Current wording

Cash provided by financing activities for the nine months ended September 30, 2023 was $8.5 million, which consisted of $6.7 million of proceeds from the exercise of stock options and $2.0 million of proceeds from the issuance of common stock under the employee stock purchase plan. This was partially offset by tax withholdings on release of restricted stock units of $0.2 million.