As you note, unallocated corporate expenses increased by 18.2% and 13.0%, respectively, in 2024 and 2023 compared to the prior-year period, increasing as a percentage of revenue from 7.3% in 2022 to 7.5% in 2023 and 8.0% in 2024.

In 2023, the primary drivers of the increase included higher compensation costs compared to the prior-year period (including the impact of an increase in bonus expense), and higher marketing costs due in part to increased expenditures related to brand investment.

In 2024, the increase in unallocated corporate expenses compared to the prior-year period was driven in part by the increase in stock-based compensation expense related to the treatment of our former CFO’s equity awards; increased bonus expense also contributed, reflecting strong company performance compared to plan targets. Excluding these two items, unallocated corporate expenses as a percentage of revenue were only slightly higher than in 2023. Higher marketing expenses (including from brand-related activities), and increased professional fees also contributed to higher unallocated corporate expenses in 2024.

Different competitors take different approaches to allocations, so it is difficult to point to a clear benchmark. Our approach reflects the way we evaluate the business and view costs internally. Unallocated corporate expenses include cost pools that we deem to be largely outside of the control or discretion of our segment leaders. Expenses in this bucket include finance, human resources, legal, and other management and shareholder-related costs that are not considered when segment performance is evaluated. We remain focused on driving efficiency and scale in our unallocated corporate expenses and reducing these costs as a percentage of revenue over time.