Company: LAWIL
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000750004-25-000016
Chunk: 67

Company: Light & Wonder, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 67
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 increased average revenue per daily active user, partially offset by average monthly paying users decreasing slightly. Average revenue per daily active user grew 11% to $1.04, and average monthly revenue per paying user increased 10% in 2024.

iGaming revenue increased by $24 million, or 9%, primarily due to growth in both the North American and European markets, driven by the strength of our original content and growth in our partner network, while the prior year benefited from $6 million in certain termination fees.

Our 2024 consolidated revenues were impacted by $3 million of favorable foreign currency exchange impact compared to $9 million of unfavorable impact in the prior year.

53

Operating Expenses

Year Ended December 31,Variance($ in millions)202420232024 vs. 2023Operating expenses:  Cost of services(1)$448 $445 $3 1 %  Cost of products(1)483 427 56 13 %SG&A872 808 64 8 %R&D262 228 34 15 %D&A361 384 (23)(6)%Restructuring and other94 92 2 2 %Total operating expenses$2,520 $2,384 $136 6 %(1) Excludes D&A.

Cost of Revenue

Cost of revenue for the year ended December 31, 2024 increased as a direct result of higher revenue as described above, driven by $56 million in higher cost of products primarily associated with higher gaming machine sales, while cost of services remained relatively flat, primarily due to favorable margins on SciPlay direct-to-consumer revenue.  

SG&A

SG&A increased primarily due to higher salaries and benefits, excluding stock-based compensation, of $42 million, which increased as a result of changes in headcount and merit increases, and higher marketing expenses of $21 million, partially offset by a $7 million decrease in stock-based compensation.

R&D

R&D increased primarily due to higher salaries and benefits of $31 million, mostly in our Gaming and SciPlay segments.

D&A

D&A decreased primarily due to fully depreciated assets and amortized intangible assets related to certain of our legacy trade names as well as past acquisitions associated with our Gaming and iGaming segments, as well as a prior year impairment charge of $5 million related to SciPlay restructuring of a certain foreign studio. Accelerated amortization related to the legacy trade names totaled