Investor Presentaiton
Reconciliations of Non-GAAP Organic Revenue Growth and Rule of 40 (Unaudited)
(dollars in thousands)
Three months ended
06/30/2023
Six months ended
06/30/2022
06/30/2023
06/30/2022
$
2,105 $
(3,422)
$
(12,596) $
(13,829)
GAAP net income
Non-GAAP adjustments:
Add: Interest, net
Less: GAAP income tax benefit
Add: Depreciation
Add: Amortization of intangibles from business combinations
Add: Amortization of software and content development costs(1)
Subtotal
Non-GAAP EBITDA
Non-GAAP EBITDA margin
Non-GAAP adjustments:
Add: Stock-based compensation expense
Add: Employee severance
Add: Acquisition and disposition-related costs
Add: Restructuring and other real estate activities
Add: Security Incident-related costs, net of insurance (2)
Add: Impairment of capitalized software development costs
Subtotal
Non-GAAP adjusted EBITDA
Non-GAAP adjusted EBITDA margin
Rule of 40(3)
Non-GAAP adjusted EBITDA
Foreign currency impact on Non-GAAP adjusted EBITDA (4)
Non-GAAP adjusted EBITDA on constant currency basis (4)
Non-GAAP adjusted EBITDA margin on constant currency basis
Rule of 40 on constant currency basis (5)
8,859
8,862
18,285
16,338
(10,200)
(2,367)
(14,101)
(4,417)
3,272
3,585
6,608
7,123
13,924
13,209
27,809
26,509
10,934
9,488
21,540
18,733
26,789
32,777
60,141
64,286
$
28,894
$
29,355
$
47,545 $
50,457
10.7 %
8.9%
-
33,364
27,854
63,289
55,714
632
(849)
462
4,954
462
2,292
(230)
3,249
71
26,777
8,348
44,560
15,549
2,263
2,263
59,924
41,219
112,573
77,308
$
88,818
$
70,574
$ 160,118 $
127,765
32.8 %
30.1 %
35.6 %
32.7%
$
88,818
574
89,392 $
32.9 %
70,574
160,118
1,651
1,871
127,765
2,152
72,225
$
161,989
30.2 %
$
129,917
36.1 %
33.5 %
(1) Includes amortization expense related to software and content development costs and amortization expense from capitalized cloud computing implementation costs.
(2) Includes Security Incident-related costs incurred, net of probable insurance recoveries. Recorded expenses consisted primarily of payments to third-party service providers and consultants, including legal fees, as well as settlements of customer claims and accruals for certain loss contingencies. Not included in this
adjustment were costs associated with enhancements to our cybersecurity program.
(3) Measured by non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. See Non-GAAP organic revenue growth table on prior slide.
(4) To determine non-GAAP adjusted EBITDA on a constant currency basis, non-GAAP adjusted EBITDA from entities reporting in foreign currencies were translated to U.S. Dollars using the comparable prior period's quarterly weighted average foreign currency exchange rates. The primary foreign currencies creating
the impact are the Australian Dollar, British Pound, Canadian Dollar and EURO.
(5) Measured by non-GAAP organic revenue growth on constant currency basis plus non-GAAP adjusted EBITDA margin on constant currency basis. See Non-GAAP organic revenue growth table on prior slide.
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