Maplebear Inc

Previous wording

Our business, financial condition, and key business metrics have been, and are expected to continue to be impacted by recent macroeconomic trends affecting our markets and industry such as higher inflation, rising interest rates, the effects of supply chain challenges, cessation of government aid programs, geopolitical conflicts, uncertainty regarding an economic recession and associated decreases in consumer discretionary income, changing consumer preferences, and the effects of severe weather patterns. For example, decreases in consumer discretionary income due to inflationary or recessionary economic pressures and rising interest rates, as well as cessation of government aid, have adversely impacted and continue to adversely impact order volumes, customer acquisition and retention, and demand for premium or discretionary grocery purchases.

Current wording

Our business, financial condition, and key business metrics have been, and are expected to continue to be impacted by recent macroeconomic trends affecting our markets and industry such as higher inflation, elevated interest rates, the effects of supply chain challenges, cessation of government aid programs, geopolitical conflicts, uncertainty regarding an economic recession and associated decreases in consumer discretionary income, changing consumer preferences, and the effects of severe weather patterns. For example, decreases in consumer discretionary income due to inflationary or recessionary economic pressures and elevated interest rates, as well as cessation of government aid, have adversely impacted and continue to adversely impact order volumes, customer acquisition and retention, and demand for premium or discretionary grocery purchases.

Previous wording

On February 9, 2024, we announced a restructuring plan, including a reduction of approximately 250 employees, most of which was completed during the first quarter of 2024. As a result of our restructuring plan, we expect to generate cost savings within operating expenses for fiscal year 2024, compared to fiscal year 2023, which we expect to reinvest into the business to drive profitable growth. See further details in Note 15 — Restructuring included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

On February 9, 2024, we announced a restructuring plan, including a reduction of approximately 250 employees, most of which was completed during the first quarter of 2024. As a result of our restructuring plan, we have generated cost savings within operating expenses during fiscal year 2024, compared to fiscal year 2023, which we are reinvesting into the business to drive profitable growth. See further details in Note 15 — Restructuring included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

In the second quarter of 2024, orders increased to 70.8 million, or 7% growth, compared to the same quarter of 2023, which was driven primarily by new customers and increased engagement of existing customers.

Current wording

In the third quarter of 2024, orders increased to 72.9 million, or 10% growth, compared to the same quarter of 2023, which was driven primarily by new customers and increased engagement of existing customers.

Previous wording

In the second quarter of 2024, GTV increased to $8,194 million, or 10% growth compared to the same quarter of 2023, driven primarily by the increase in orders and, to a lesser extent, higher average order value.

Current wording

In the third quarter of 2024, GTV increased to $8,303 million, or 11% growth compared to the same quarter of 2023, driven primarily by the increase in orders and, to a lesser extent, higher average order value.

Previous wording

In the second quarter of 2024, gross profit increased to$623 million, or 18% growth, compared to the same quarter of 2023, and gross margin increased from 74% in second quarter of 2023 to 76% in the second quarter of 2024, primarily due totransaction revenue increasing at a faster pace than cost of revenue.

Current wording

In the third quarter of 2024, gross profit increased to$641 million, or 14% growth, compared to the same quarter of 2023, and gross margin increased from 73% in the third quarter of 2023 to 75% in the third quarter of 2024, primarily due to a decrease in stock-based compensation expense associated with the vesting of RSUs in connection with our IPO in the prior period, in addition totransaction revenue increasing at a faster pace than cost of revenue.

Previous wording

We define Adjusted EBITDA as net income, adjusted to exclude (i) provision for income taxes, (ii) interest income, (iii) other income (expense), net, (iv) depreciation and amortization expense, (v) stock-based compensation expense, (vi) payroll taxes related to stock-based compensation expense, (vii) certain legal and regulatory accruals and settlements, net, (viii) reserves for sales and other indirect taxes, (ix) acquisition-related expenses, and (x) restructuring charges. We define Adjusted EBITDA margin as Adjusted EBITDA as a percent of revenue. For more information about how we use these non-GAAP financial measures in our business, the limitations of these measures, and reconciliations of these measures to the most directly comparable GAAP financial measures, see the section titled “—Non-GAAP Financial Measures.”

Current wording

We define Adjusted EBITDA as net income (loss), adjusted to exclude (i) provision for (benefit from) income taxes, (ii) interest income, (iii) other expense, net, (iv) depreciation and amortization expense, (v) stock-based compensation expense, (vi) payroll taxes related to stock-based compensation expense, (vii) certain legal and regulatory accruals and settlements, net, (viii) reserves for sales and other indirect taxes, (ix) acquisition-related expenses, (x) restructuring charges, and (xi) issuance costs related to the issuance of our Series A Preferred Stock. We define Adjusted EBITDA margin as Adjusted EBITDA as a percent of revenue. For more information about how we use these non-GAAP financial measures in our business, the limitations of these measures, and reconciliations of these measures to the most directly comparable GAAP financial measures, see the section titled “—Non-GAAP Financial Measures.”

Previous wording

In the second quarter of 2024, Adjusted EBITDA increased to$208 million, or 89% growth compared to the same quarter of 2023, primarily driven by revenue growth and efficiencies within adjusted total operating expenses. Our Adjusted EBITDA, Adjusted EBITDA as a percent of GTV, and Adjusted EBITDA margin can vary significantly as we continue to make substantial investments to fuel our growth and scale our business.

Current wording

In the third quarter of 2024, Adjusted EBITDA increased to $227 million, or 39% growth compared to the same quarter of 2023, primarily driven by revenue growth and efficiencies within adjusted total operating expenses. Our Adjusted EBITDA, Adjusted EBITDA as a percent of GTV, and Adjusted EBITDA margin can vary significantly as we continue to make substantial investments to fuel our growth and scale our business.

Previous wording

Advertising revenue is recognized upon delivery of clicks for Sponsored Product ads, upon delivery of impressions or over the contract term on a fixed fee basis for display ads, or upon redemptions of coupons. Advertising and other revenue has historically been, and is expected to continue to be, seasonally high in the fourth quarter and seasonally low in the first quarter in a given year as a result of how advertisers deploy their budgets. In addition, we expect our advertising and other revenue growth rate and advertising and other investment rate(which we define as advertising and other revenue in a given period divided by GTV in such period) to continue to fluctuate, particularly during periods of acceleration or decreases in our GTV growth or periods in which we may generate more GTV growth from sources where we historically do not provide advertising. We expect our advertising and other revenue growth to fluctuate in the near term due to changes in brand partner spend, including as a result of the macroeconomic factors described above and in response to our GTV growth trends, which may occur on a delayed basis.

Current wording

Advertising revenue is recognized upon delivery of clicks for Sponsored Product ads, upon delivery of impressions or over the contract term on a fixed fee basis for display ads, or upon redemptions of coupons. Advertising and other revenue has historically been, and is expected to continue to be, seasonally high in the fourth quarter and seasonally low in the first quarter in a given year as a result of how advertisers deploy their budgets. In addition, we expect our advertising and other revenue growth rate and advertising and other investment rate(which we define as advertising and other revenue in a given period divided by GTV in such period) to continue to fluctuate, particularly during periods of acceleration or decreases in our GTV growth. We also expect advertising and other investment rate to fluctuate during periods in which we generate more GTV from sources where we do not provide advertising or where we have recently enabled advertising, such as from certain new offerings or use cases and from retailers’ owned and operated online storefronts including those utilizing Instacart API that do not partner with Carrot Ads. We also expect our advertising and other revenue growth to fluctuate in the near term due to changes in brand partner spend, including as a result of the macroeconomic factors described above and in response to our GTV growth trends, which may occur on a delayed basis.

Previous wording

In April 2023 and 2024, certain employees elected to receive cash in lieu of a portion of certain future equity awards to be granted by our board of directors, and as a result, cash compensation expense and stock-based compensation expense within operations and support, research and development, sales and marketing, and general and administrative expense fluctuated through the second quarter of 2024 and are expected to continue to fluctuate over the near term.

Current wording

In April 2023 and 2024, certain employees elected to receive cash in lieu of a portion of certain future equity awards to be granted by our board of directors, and as a result, cash compensation expense and stock-based compensation expense within operations and support, research and development, sales and marketing, and general and administrative expenses have fluctuated and are expected to continue to fluctuate over the near term.

Previous wording

Other income (expense), net primarily consists of gains and losses from transactions denominated in a currency other than the functional currency.

Current wording

Other expense, net primarily consists of gains and losses from transactions denominated in a currency other than the functional currency.

Previous wording

The provision for income taxes consists primarily of income taxes in certain federal, state, local, and foreign jurisdictions in which we conduct business. Our provision for income taxes differs from the U.S. federal statutory income tax rate primarily due to the tax effects of stock-based compensation recognized, U.S. research and development credits generated, and the income taxes generated in U.S. states and foreign jurisdictions. Our future effective income tax rate depends on various factors, such as changes in tax laws, regulations, accounting principles, or interpretations thereof, and the geographic composition of our pre-tax income. We carefully monitor these factors and adjust our effective income tax rate accordingly.

Current wording

The provision for (benefit from) income taxes consists primarily of income taxes in certain federal, state, local, and foreign jurisdictions in which we conduct business. Our provision for (benefit from) income taxes differs from the U.S. federal statutory income tax rate primarily due to the tax effects of stock-based compensation recognized, U.S. research and development credits generated, and the income taxes generated in U.S. states and foreign jurisdictions. Our future effective income tax rate depends on various factors, such as changes in tax laws, regulations, accounting principles, or interpretations thereof, and the geographic composition of our pre-tax income. We carefully monitor these factors and adjust our effective income tax rate accordingly.

Previous wording

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

Current wording

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

Previous wording

The increase in transaction revenue during the second quarter of 2024, compared to the same quarter of 2023, was primarily driven by growth in GTV, which grew 10%, increased fulfillment efficiencies, and the lapping of one-time retailer credits and concessions in the prior year, partially offset by increased investments in consumer incentives in the second quarter of 2024.

Current wording

The increase in transaction revenue during the third quarter of 2024, compared to the same quarter of 2023, was primarily driven by growth in GTV, which grew 11%, and increased fulfillment efficiencies, partially offset by increased investments in affordability initiatives and consumer incentives in the third quarter of 2024.

Previous wording

The increase in transaction revenue during the first six months of 2024, compared to the same period of 2023 was primarily driven by growth in GTV, which grew 11%, increased fulfillment efficiencies, and the lapping of one-time retailer credits and concessions in the prior year, partially offset by increased investments in consumer incentives in the first six months of 2024.

Current wording

The increase in transaction revenue during the first nine months of 2024, compared to the same period of 2023 was primarily driven by growth in GTV, which grew 11%, and increased fulfillment efficiencies, partially offset by increased investments in consumer incentives in the first nine months of 2024.

Previous wording

The increase in advertising and other revenue during the first six months of 2024, compared to the same period of 2023, was primarily driven by an increase in advertising volume, partially offset by changes in spend by certain of our brand partners in response to macroeconomic uncertainty and changes in our brand partners’ businesses and performance.

Current wording

The increase in advertising and other revenue during the third quarter of 2024, compared to the same quarter of 2023, was primarily driven by an increase in advertising volume. Strength in emerging brand spend was also partially offset by a decrease in spend by certain of our large brand partners in response to macroeconomic uncertainty and changes in our brand partners’ businesses and performance. Advertising and other investment rate of 3.0% during the third quarter of 2024 remained flat compared to the same period of 2023.

Previous wording

The increase in advertising and other revenue during the second quarter of 2024, compared to the same quarter of 2023, was primarily driven by an increase in advertising volume, partially offset by changes in spend by certain of our brand partners in response to macroeconomic uncertainty and changes in our brand partners’ businesses and performance. Advertising and other investment rate of 2.8% during the second quarter of 2024 remained flat compared to the same period of 2023.

Current wording

The increase in advertising and other revenue during the first nine months of 2024, compared to the same period of 2023, was primarily driven by an increase in advertising volume, partially offset by changes in spend by certain of our brand partners in response to macroeconomic uncertainty and changes in our brand partners’ businesses and performance. Advertising and other investment rate of 2.8% remained flat during the first nine months of 2024, compared to the same period of 2023.

Previous wording

The increase in gross profit during the second quarter of 2024, compared to the same quarter of 2023, was primarily driven by the increase in transaction revenue due to the factors described above. The increase in gross margin during the second quarter of 2024, compared to the same period of 2023, was primarily primarily due totransaction revenue increasing at a faster pace than cost of revenue.

Current wording

The increase in gross profit during the third quarter of 2024, compared to the same quarter of 2023, was primarily driven by the increase in revenue due to the factors described above. The increase in gross margin during the third quarter of 2024, compared to the same period of 2023, was primarily due to a decrease in stock-based compensation expense associated with the vesting of RSUs in connection with our IPO in the prior period in addition totransaction revenue increasing at a faster pace than cost of revenue.

Previous wording

The increase in gross profit during the first six months of 2024, compared to the same period of 2023, was primarily driven by the increase in transaction revenue due to the factors described above. Gross margin during the first six months of 2024, compared to the same period of 2023, remained flat.

Current wording

The increase in gross profit during the first nine months of 2024, compared to the same period of 2023, was primarily driven by the increase in revenue due to the factors described above. Gross margin during the first nine months of 2024, compared to the same period of 2023, remained flat.

Previous wording

The increase in operations and support expense during the first six months of 2024, compared to the same period of 2023, was primarily due to an increase of $6 million in costs for subscriptions and software and $5 million in compensation costs, primarily driven by an increase in stock-based compensation expense and restructuring charges including severance and other benefits.

Current wording

The decrease in operations and support expense during the first nine months of 2024, compared to the same period of 2023, was primarily due to a decrease of $81 million in compensation costs, primarily driven by a decrease in stock-based compensation expense resulting from RSUs with a liquidity event-based vesting condition that was satisfied in connection with our IPO in the prior period, partially offset by an increase of $8 million in subscriptions and software costs.

Previous wording

The increase in research and development expense during the second quarter of 2024, compared to the same quarter in 2023, was primarily due to a net increase of $61 million in total compensation costs, partially offset by an increase of $6 million in capitalized software development costs. The net increase in total compensation cost was primarily driven by an increase of stock-based compensation expense, partially offset by a decrease in cash compensation expense related to changes in the mix of our employee cash and equity compensation and reduced headcount following our restructuring plan.

Current wording

The decrease in research and development expense during the third quarter of 2024, compared to the same quarter in 2023, was primarily due to a net decrease of $1,730 million in total compensation costs, partially offset by a decrease of $30 million in capitalized software development costs. The net decrease in total compensation cost was primarily driven by a decrease in stock-based compensation expense and related payroll taxes resulting from RSUs with a liquidity event-based vesting condition that was satisfied in connection with our IPO in the prior period and a decrease in cash compensation expense related to changes in the mix of our employee cash and equity compensation and reduced headcount following our restructuring plan.

Previous wording

The increase in research and development expense during the first six months of 2024, compared to the same period of 2023, was primarily due to a net increase of $57 million in total compensation costs partially offset by an increase of $20 million in capitalized software development costs. The net increase in total compensation cost was primarily driven by an increase in stock-based compensation expense, inclusive of an offsetting benefit of $79 million related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for executive departures in the first quarter of 2024 and for terminated employees in connection with the restructuring plan, and was partially offset by a decrease in cash compensation expense related to reduced headcount following our restructuring plan and changes in the mix of our employee cash and equity compensation.

Current wording

The decrease in research and development expense during the first nine months of 2024, compared to the same period of 2023, was primarily due to a net decrease of $1,672 million in total compensation costs partially offset by a decrease of $10 million in capitalized software development costs. The net decrease in total compensation cost was primarily driven by a decrease in stock-based compensation expense and related payroll taxes resulting from RSUs with a liquidity event-based vesting condition that was satisfied in connection with our IPO in the prior period, a decrease in cash compensation expense related to changes in the mix of our employee cash and equity compensation, and reduced headcount following our restructuring plan, and a $79 million benefit related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for executive departures and for terminated employees in connection with the restructuring plan in the first quarter of 2024.

Previous wording

The increase in sales and marketing expense during the second quarter of 2024, compared to the same quarter in 2023, was primarily due to an increase of $21 million in compensation costs, primarily driven by an increase in stock-based compensation expense, and an increase of $7 million in marketing costs.

Current wording

The decrease in sales and marketing expense during the third quarter of 2024, compared to the same quarter in 2023, was primarily due to a decrease of $281 million in compensation costs, primarily driven by a decrease in stock-based compensation expense resulting from RSUs with a liquidity event-based vesting condition that was satisfied in connection with our IPO in the prior period, partially offset by an increase of $34 million in marketing costs.

Previous wording

The increase in sales and marketing expense during the first six months of 2024, compared to the same period of 2023, was primarily due to an increase of $37 million in compensation costs, primarily driven by an increase in stock-based compensation expense, inclusive of an offsetting benefit of $8 million related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for terminated employees in connection with the restructuring, and an increase of $14 million in marketing costs.

Current wording

The decrease in sales and marketing expense during the first nine months of 2024, compared to the same period of 2023, was primarily due to a decrease of $245 million in compensation costs, primarily driven by a decrease in stock-based compensation expense resulting from RSUs with a liquidity event-based vesting condition that was satisfied in connection with our IPO in the prior period, partially offset by an increase of $47 million in marketing costs and an increase of $7 million of consulting costs.

Previous wording

The increase in general and administrative expense during the second quarter of 2024, compared to the same quarter of 2023, was primarily due to an increase of $31 million in accruals for sales and indirect taxes and legal matters and settlements and a net increase of $23 million in total compensation costs, primarily driven by an increase in stock-based compensation expense, partially offset by a decrease in cash compensation expense related to the mix of our employee cash and equity compensation and reduced headcount following our restructuring plan.

Current wording

The decrease in general and administrative expense during the third quarter of 2024, compared to the same quarter of 2023, was primarily due to a net decrease of $506 million in total compensation costs, primarily driven by a decrease in stock-based compensation expense resulting from RSUs with a liquidity event-based vesting condition that was satisfied in connection with our IPO in the prior period, partially offset by an increase of $14 million in accruals for sales and indirect taxes and legal matters and settlements.

Previous wording

The increase in general and administrative expense during the first six months of 2024, compared to the same period of 2023, was primarily due to a net increase of $42 million in total compensation costs and increase of $27 million in accruals for sales and indirect taxes and legal matters and settlements. The net increase in total compensation costs was primarily driven by an increase in stock-based compensation expense, inclusive of an offsetting benefit of $4 million related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for terminated employees in connection with the restructuring, partially offset by a decrease in cash compensation expense related to changes in the mix of our employee cash and equity compensation and reduced headcount following our restructuring plan.

Current wording

The decrease in general and administrative expense during the first nine months of 2024, compared to the same period of 2023, was primarily due to a net decrease of $464 million in total compensation costs, partially offset by an increase of $41 million in accruals for sales and indirect taxes and legal matters and settlements and an increase of $10 million in professional fees. The net decrease in total compensation costs was primarily driven by a decrease in stock-based compensation expense resulting from RSUs with a liquidity event-based vesting condition that was satisfied in connection with our IPO in the prior period.

Previous wording

The increase in interest income during the first six months of 2024, compared to the same period of 2023, was primarily due to higher average interest rates earned on our cash and cash equivalents, restricted cash and cash equivalents, and short-term investments.

Current wording

The decrease in interest income during the third quarter of 2024, compared to the same quarter of 2023, was primarily due to a decrease in cash and cash equivalents and short-term marketable securities.

Previous wording

The decrease in interest income during the second quarter of 2024, compared to the same quarter of 2023, was immaterial.

Current wording

The decrease in interest income during the first nine months of 2024, compared to the same period of 2023, was immaterial.

Previous wording

We define Adjusted EBITDA as net income, adjusted to exclude (i) provision for income taxes, (ii) interest income, (iii) other income (expense), net, (iv) depreciation and amortization expense, (v) stock-based compensation expense, (vi) payroll taxes related to stock-based compensation expense, (vii) certain legal and regulatory accruals and settlements, net, (viii) reserves for sales and other indirect taxes, (ix) acquisition-related expenses, and (x) restructuring charges. We define Adjusted EBITDA margin as Adjusted EBITDA as a percent of revenue.

Current wording

We define Adjusted EBITDA as net income, adjusted to exclude (i) provision for (benefit from) income taxes, (ii) interest income, (iii) other expense, net, (iv) depreciation and amortization expense, (v) stock-based compensation expense, (vi) payroll taxes related to stock-based compensation expense, (vii) certain legal and regulatory accruals and settlements, net, (viii) reserves for sales and other indirect taxes, (ix) acquisition-related expenses, (x) restructuring charges, and (xi) issuance costs related to the issuance of our Series A Preferred Stock. We define Adjusted EBITDA margin as Adjusted EBITDA as a percent of revenue.

Previous wording

The following table presents a reconciliation of Adjusted EBITDA to net income, the most directly comparable financial measure calculated in accordance with GAAP:

Current wording

The following table presents a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable financial measure calculated in accordance with GAAP:

Previous wording

(1) The six months ended June 30, 2024 includes an aggregate $95 million benefit related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for executive departures in the first quarter of 2024 and for terminated employees in connection with the restructuring plan.

Current wording

(1) The nine months ended September 30, 2024 includes an aggregate $95 million benefit related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for executive departures in the first quarter of 2024 and for terminated employees in connection with the restructuring plan.

Previous wording

(1) Stock-based compensation expense for the six months ended June 30, 2024 was offset by a $4 million benefit related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for terminated employees in connection with the restructuring plan.

Current wording

(1) Stock-based compensation expense for the nine months ended September 30, 2024 was offset by a $4 million benefit related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for terminated employees in connection with the restructuring plan.

Previous wording

(1) The six months ended June 30, 2024 includes a $79 million benefit related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for executive departures in the first quarter of 2024, and for terminated employees in connection with the restructuring plan.

Current wording

(1) The nine months September 30, 2024 includes a $79 million benefit related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for executive departures in the first quarter of 2024, and for terminated employees in connection with the restructuring plan.

Previous wording

(1) The six months ended June 30, 2024 includes an $8 million benefit related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for terminated employees in connection with the restructuring plan.

Current wording

(1) The nine months ended September 30, 2024 includes an $8 million benefit related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for terminated employees in connection with the restructuring plan.

Previous wording

We define adjusted general and administrative expense as general and administrative expense excluding depreciation and amortization expense, stock-based compensation expense, payroll taxes related to stock-based compensation, certain legal and regulatory accruals and settlements, net, reserves for sales and other indirect taxes, and restructuring charges. We exclude depreciation and amortization expense and stock-based compensation expense as these are non-cash in nature. We exclude payroll taxes related to the vesting and settlement of certain equity awards, certain legal and regulatory accruals and settlements, net, reserves for sales and other indirect taxes, and restructuring charges as these are not indicative of our operating performance.

Current wording

We define adjusted general and administrative expense as general and administrative expense excluding depreciation and amortization expense, stock-based compensation expense, payroll taxes related to stock-based compensation, certain legal and regulatory accruals and settlements, net, reserves for sales and other indirect taxes, acquisition-related expenses, restructuring charges, and issuance costs related to the issuance of the Series A Preferred Stock. We exclude depreciation and amortization expense and stock-based compensation expense as these are non-cash in nature. We exclude payroll taxes related to the vesting and settlement of certain equity awards, certain legal and regulatory accruals and settlements, net, reserves for sales and other indirect taxes, acquisition-related expenses, restructuring charges, and issuance costs related to the issuance of the Series A Preferred Stock as these are not indicative of our operating performance.

Previous wording

(1) The six months ended June 30, 2024 includes a $4 million benefit related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for terminated employees in connection with the restructuring plan.

Current wording

(1) The nine months ended September 30, 2024 includes a $4 million benefit related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for terminated employees in connection with the restructuring plan.

Previous wording

We define adjusted total operating expenses as the sum of adjusted operations and support expense, adjusted research and development expense, adjusted sales and marketing expense, and adjusted general and administrative expense. We exclude depreciation and amortization expense and stock-based compensation expense as these are non-cash in nature. We exclude payroll taxes related to the vesting and settlement of certain equity awards, certain legal and regulatory accruals and settlements, net, reserves for sales and other indirect taxes, acquisition-related expenses, and restructuring charges as these are not indicative of our operating performance.

Current wording

We define adjusted total operating expenses as the sum of adjusted operations and support expense, adjusted research and development expense, adjusted sales and marketing expense, and adjusted general and administrative expense. We exclude depreciation and amortization expense and stock-based compensation expense as these are non-cash in nature. We exclude payroll taxes related to the vesting and settlement of certain equity awards, certain legal and regulatory accruals and settlements, net, reserves for sales and other indirect taxes, acquisition-related expenses, restructuring charges, and issuance costs related to the issuance of the Series A Preferred Stock as these are not indicative of our operating performance.

Previous wording

(1) The six months ended June 30, 2024 includes an aggregate $95 million benefit related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for executive departures in the first quarter of 2024 and for terminated employees in connection with the restructuring plan.

Current wording

(1) The nine months ended September 30, 2024 includes an aggregate $95 million benefit related to the reversal of previously recognized stock-based compensation expense for unvested equity awards for executive departures in the first quarter of 2024 and for terminated employees in connection with the restructuring plan.

Previous wording

Since our founding, we have financed our operations primarily through the net proceeds we have received from the issuance of equity securities and through fees received from retailers, customers, and brands. As of June 30, 2024, we had cash and cash equivalents of $1.4 billion and marketable securities of $9 million which were primarily held for working capital purposes.

Current wording

Since our founding, we have financed our operations primarily through the net proceeds we have received from the issuance of equity securities and through fees received from retailers, customers, and brands. As of September 30, 2024, we had cash and cash equivalents of $1.3 billion and marketable securities of $20 million which were primarily held for working capital purposes.

Previous wording

Since our founding, we have primarily generated losses from our operations as reflected in our accumulated deficit of $3.5 billion as of June 30, 2024. While we generated positive cash flows from operating activities during the year ended December 31, 2022 and 2023 and during the six months ended June 30, 2024, our future cash flows from operating activities may fluctuate as a result of investments we continue to make across our organization. As a result, we may require additional capital resources to execute strategic initiatives to grow our business.

Current wording

Since our founding, we have primarily generated losses from our operations as reflected in our accumulated deficit of $3.7 billion as of September 30, 2024. While we generated positive cash flows from operating activities during the year ended December 31, 2022 and 2023 and during the nine months ended September 30, 2024, our future cash flows from operating activities may fluctuate as a result of investments we continue to make across our organization. As a result, we may require additional capital resources to execute strategic initiatives to grow our business.

Previous wording

In November 2023, our board of directors authorized a share repurchase program to purchase up to an aggregate of $500 million of our common stock, which was subsequently increased to $1 billion in February 2024. In June 2024, our board of directors authorized a new share repurchase program to purchase up to an aggregate of $500 million of our common stock. At the time of authorization, no capacity remained under the previous share repurchase program. During the six months ended June 30, 2024, we repurchased and subsequently retired 35 million shares of our common stock for an aggregate purchase price of $1,040 million under the share repurchase programs. The amount of shares repurchased and retired included 14 million shares repurchased in privately negotiated transactions with three shareholders in February 2024 for an aggregate amount of $390 million, with the remaining shares purchased in the open market.

Current wording

In November 2023, our board of directors authorized a share repurchase program to purchase up to an aggregate of $500 million of our common stock, which was subsequently increased to $1 billion in February 2024. In June 2024, our board of directors authorized a new share repurchase program to purchase up to an aggregate of $500 million of our common stock, which was subsequently increased to $750 million in November 2024. At the time of authorization, no capacity remained under the previous share repurchase program. During the nine months ended September 30, 2024, we repurchased and subsequently retired 46 million shares of our common stock for an aggregate purchase price of $1,402 million, including broker commissions, fees, and excise taxes, under the share repurchase programs. The amount of shares repurchased and retired included 14 million shares repurchased from three shareholders in February 2024 for an aggregate amount of $390 million and 3.7 million shares repurchased from a shareholder in August 2024 for $117 million in privately negotiated transactions, with the remaining shares purchased in the open market.