2 unchanged sentences
Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates.
−Removed: Our market risk exposure is primarily the result of fluctuations in interest rates and, to a lesser extent, foreign currency rates and inflation.
+Added: Our market risk exposure is primarily the result of fluctuations in interest rates and foreign currency exchange rates.
Interest Rate Risk
Our primary exposure to market risk relates to interest rate changes.
−Removed: We had cash and cash equivalents of $331.5 million as of December 31, 2021, which were held for working capital purposes.
+Added: We had cash and cash equivalents of $114 million and marketable securities of $71 million as of December 31, 2022, which were held for working capital purposes.
Our cash and cash equivalents are comprised primarily of interest bearing checking and direct deposit accounts, and money market accounts.
+Added: Marketable securities consist of corporate debt securities, U.S.
+Added: treasury securities, and commercial paper not otherwise classified as cash equivalents.
Such interest-earning instruments carry a degree of interest rate risk.
3 unchanged sentences
Due to the short‑term nature of our investments, we have not been exposed to, nor do we anticipate being exposed to, material risks due to changes in interest rates.
+Added: A hypothetical 10% change in interest rates would not have had a material impact on our financial results included elsewhere in this Annual Report on Form 10-K.
+Added: On June 6, 2022, we entered into the Credit Agreement, which provides for a $50 million Credit Facility.
+Added: Interest on borrowings accrues at an annual rate tied to a base rate or the Secured Overnight Financing Rate (“SOFR”), at our election.
+Added: Loans based on SOFR bear interest at a rate equal to SOFR plus an applicable margin between 1.50% and 2.00% depending upon our consolidated adjusted quick ratio for the immediately preceding quarter and loans based on the base rate bear interest at a rate equal to the base rate plus an applicable margin between 0.50% and 1.00% depending upon our consolidated adjusted quick ratio for the immediately preceding quarter.
+Added: As a result, we are exposed to interest rate risk as we make draws on the Credit Facility.
+Added: As of December 31, 2022, there were no outstanding borrowings.
In February 2020 and March 2021, we issued $400 million and $250 million aggregate principal amount of the 2026 Convertible Notes and the 2028 Convertible Notes, respectively.
+Added: On November 2, 2022, we repurchased $160 million of our 2026 Convertible Notes as further described in Note 8, “Debt,” to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
As the Convertible Notes have a fixed annual interest rate, we have no financial or economic interest exposure associated with changes in interest rates.
4 unchanged sentences
The functional currencies of our foreign subsidiaries are the respective local currencies of the jurisdictions in which they operate, which are primarily the Euro and the British Pound.
−Removed: Approximately 12% of our total revenue for the year ended December 31, 2021 was generated outside the United States.
+Added: Approximately 10% of our total revenue was generated outside the United States for the year ended December 31, 2022.
The majority of our revenues and operating expenses are denominated in U.S.
2 unchanged sentences
Revenue and expense accounts are remeasured at the average exchange rate in effect during the year.
−Removed: If there is a change in foreign currency exchange rates, the conversion of our foreign subsidiaries’ financial statements into U.S.
−Removed: dollars would result in a realized gain or loss, which is recorded in other expense, net in our consolidated statements of operations.
+Added: Foreign currency translation adjustments are accounted for as a component of accumulated other comprehensive loss within stockholders’ equity.
+Added: Gains or losses due to transactions in foreign currencies are included in other income (expense), net in our consolidated statements of operations.
We do not currently engage in any hedging activity to reduce our potential exposure to currency fluctuations, although we may choose to do so in the future.
4 unchanged sentences
dollar strengthens against foreign currencies.
−Removed: We do not believe inflation has had a material effect on our business, financial condition or results of operations.
−Removed: We continue to monitor the impact of inflation in order to minimize its effects through pricing strategies, productivity improvements and cost reductions.
−Removed: If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases.
−Removed: Our inability or failure to do so could harm our business, financial condition and results of operations.
+Added: A hypothetical 10% adverse change in foreign currency exchange rates would have adversely impacted our net income for the year ended December 31, 2022 by approximately $2.4 million.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.