Revenue and Financial Overview
GAAP to Non-GAAP Reconciliations (Continued)
($ in millions)
GAAP product gross profit
Stock-based compensation
Amortization of acquired intangible assets
Non-GAAP product gross profit
Q4'21
$232.4 $210.0
Q1'22
Q2'22
Q3'22
Q4'22
Q1'23
Q2'23
$245.5 $283.5
$350.2
$307.1
0.4
0.4
0.4
0.5
0.4
0.4
0.5
0.4
Q3'23 Q4'23
$298.1 $267.6 $290.9
0.5
2.4
2.4
Non-GAAP product gross margin
$235.2
62.1%
2.1
$212.8 $248.0 $285.7 $352.2
57.4% 61.9% 61.0% 65.2%
1.7
1.6
1.8
1.7
1.6
2.0
$309.3 $300.3 $269.6 $293.4
61.8% 63.5% 57.9% 60.1%
GAAP service gross profit
$502.9
$491.0 $533.8
$583.0
$635.5
$647.4
$698.9 $749.3 $808.3
Stock-based compensation
4.3
4.5
4.7
4.8
4.8
5.1
6.0
6.1
6.1
Amortization of acquired intangible assets
2.0
1.9
2.0
2.0
3.5
1.8
1.8
1.8
2.4
Non-GAAP service gross profit
$509.2
$497.4 $540.5
Non-GAAP service gross margin
87.1%
85.2% 85.9%
$589.8 $643.8 $654.3 $706.7 $757.2 $816.8
86.6% 86.7% 85.9% 86.2% 87.2% 88.1%
GAAP total gross profit
$735.3
$701.0 $779.3
Stock-based compensation
4.7
4.9
5.1
$866.5 $985.7 $954.5
5.3
5.2
$997.0 $1,016.9 $1,099.2
5.5
6.5
6.5
6.6
Amortization of acquired intangible assets
4.4
4.3
4.1
3.7
5.1
3.6
3.5
3.4
4.4
Non-GAAP total gross profit
$744.4
Non-GAAP gross margin
$710.2
77.3% 74.4% 76.5%
$788.5
$875.5
$996.0
$963.6
76.2%
77.6%
$1,007.0 $1,026.8 $1,110.2
76.3% 77.9% 76.9% 78.5%
GAAP research and development expense
Stock-based compensation
(14.7)
Non-GAAP research and development expense
$97.9
Non-GAAP research and development expense as a percentage of revenue
10.2%
$112.6 $124.9 $124.3 $134.3
(15.1) (16.1) (16.7) (16.3)
$109.8 $108.2 $117.6 $112.6
11.5% 10.5% 10.2% 8.8%
$128.9
$151.1 $153.3 $156.9
(17.0) (20.0) (20.0)
$134.1 $133.3 $136.9
10.6% 10.3% 10.3%
$152.5
(19.8)
$132.7
9.4%
GAAP sales and marketing expense
$367.7
$387.6
$415.5
$427.1
$455.9
Stock-based compensation
(27.9)
(26.7)
(26.4)
(25.9)
(26.0)
$478.3
(26.3)
$515.9 $504.4 $507.4
(29.3) (28.5) (27.7)
Amortization of acquired intangible assets
(2.4)
(2.1)
(1.9)
(1.5)
(0.6)
Non-GAAP sales and marketing expense
$337.4
$358.8
Non-GAAP sales and marketing expense as a percentage of revenue
35.0% 37.6%
$387.2
37.6%
$399.7 $429.3
34.8% 33.5%
(1.1) (1.0) (1.0) (0.9)
$450.9 $485.6 $474.9 $478.8
35.7% 37.6% 35.6% 33.8%
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