Financial 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) $
(53,422)
(30,922) $
(4,674)
Product development
1,089,344
(300,485)
(15,247)
Sales and marketing
888,002
(119,047)
(23,434)
General and administrative
Operating income (loss)
Operating margin
Other income (expense), net
274,124
(95,239)
(3,241)
| | | | |
$
395,662
289,906
773,612
745,521
175,644
(106,921)
619,513
77,518
(3.6)%
20.9 %
2.6 %
(52,952)
Income (loss) before provision for (benefit from)
income taxes
(159,873)
619,513
77,518
Provision for (benefit from) income taxes
Net income (loss)
Net income (loss) per share, basic¹
6969
$
6,458
(166,331) $
619,513
Net income (loss) per share, diluted¹
$
$
(0.66) $
(0.66) $
2.45
2.45
69 67 6
590,110
%
19.9 %
(52,952)
537,158
95,601
102,059
$
$
$
0.31
77,518 $
0.31 $
$
(0.38)
(95,601) $
$
435,099
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 was 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