Q2 FY23 Highlights and Guidance
Reconciliation of GAAP to Non-GAAP Data
Six Months Ended July 31, 2022
(in thousands, except percentages and per
share data)
GAAP
Costs and expenses:
Share-Based
Compensation
Expenses
Other Operating
Expenses²
Income Tax and
Non-GAAP
Dilution Effects³
Costs of subscription services
$
Costs of professional services
477,904 $
348,002
(51,320) $
(30,922)
$
(53,422)
(4,674)
Product development
1,089,344
(300,485)
(15,247)
Sales and marketing
888,002
(119,047)
(23,434)
General and administrative
274,124
(95,239)
(3,241)
| | | | |
395,662
289,906
773,612
745,521
175,644
Operating income (loss)
Operating margin
(106,921)
619,513
77,518
590,110
(3.6) %
20.9%
2.6%
%
19.9 %
Other income (expense), net
(52,952)
(52,952)
Income (loss) before provision for (benefit from)
income taxes
(159,873)
619,513
77,518
537,158
Provision for (benefit from) income taxes
6,458
95,601
102,059
Net income (loss)
$
Net income (loss) per share, basic¹
$
Net income (loss) per share, diluted¹
$
(166,331) $
(0.66) $
(0.66) $
2.45
619,513 $
2.45 $
$
77,518
$
(95,601) $
435,099
0.31 $
0.31 $
(0.38) $
1.72
(0.44) $
1.66
1.
2.
3.
GAAP net loss per share is calculated based upon 253,071 basic and diluted weighted-average shares of common stock. Non-GAAP net income per share is calculated
based upon 253,071 basic and 263,224 diluted weighted-average shares of common stock. The numerator used to compute non-GAAP diluted net income per share was
increased by $2.6 million for after-tax interest expense on our convertible senior notes in accordance with the if-converted method.
Other operating expenses include amortization of acquisition-related intangible assets of $43.1 million and employer payroll tax-related items on employee stock
transactions of $34.4 million.
We utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For
fiscal 2023, the non-GAAP tax rate is 19%. Included in the per share amount is a dilution impact of $0.06 from the conversion of GAAP diluted net loss per share to non-
GAAP diluted net income per share.View entire presentation