Why did Artiva's operating expenses surge in Q4 2024?

Artiva Biotherapeutics's operating expenses surged in Q4 2024 due to several significant factors:

1. **Increased Demand for Digital Services**: The revenue from the Digital Audio Group increased by $21.2 million, or 6.7% year-over-year, primarily driven by digital advertising. This growth was partially offset by a decrease in broadcast advertising revenue.
2. **Cost of Debt Exchange and Cost Efficiency Actions**: Artiva completed a debt exchange transaction, exchanging approximately $4.8 billion of existing debt. This transaction extended maturities by three years and kept consolidated annual cash interest essentially flat, providing debt reduction and resulting in the lowest Net Debt in the history of the Company. The cost of this transaction was approximately $89 million, which impacted the Free Cash Flow.
3. **Political Revenue Contribution**: Revenue from Audio & Media Services Group increased by $28.1 million, or 45.3% year-over-year, primarily due to higher political revenue as 2024 is a presidential election year.

In summary, the surge in operating expenses in Q4 2024 was primarily due to increased demand for digital services, cost of debt exchange and cost efficiency actions, and political revenue contribution.