Well-Positioned to Drive Personalized Education
Non-GAAP Reconciliations
Adjusted Gross Profit
PowerSchool Holdings, Inc.
($ in thousands, except percentages)
Three Months Ended September 30,
Nine Months Ended September 30,
2021
2020
2021
2020
Gross Profit
Depreciation
Share-based compensation (1)
Restructuring (2)
Acquisition-related expense (3)
Amortization
Adjusted Gross Profit
% Gross Profit Margin (4)
% Adjusted Gross Profit Margin (5)
$ 85,620
$ 67,504
$ 237,486
$ 180,238
489
403
1,322
1,172
1,324
81
1,486
242
905
434
2,385
851
233
142
484
330
12,604
9,468
36,374
27,616
$ 101,175
$ 78,032
$ 279,537
57.5%
58.4%
57.6%
$ 210,449
56.5%
67.9%
67.5%
67.8%
66.0%
(1) Refers to expenses flowing through gross profit associated with unit-based compensation.
(2) Refers to expenses flowing through gross profit related to migration of customers from legacy to core products, and severance expense related to offshoring activities,
facility closures and executive departures.
(3) Refers to expenses flowing through gross profit incurred to execute and integrate acquisitions, including retention awards and severance for acquired employees.
(4) Represents gross profit as a percentage of revenue.
PowerSchool
(5) Represents Adjusted Gross Profit as a percentage of revenue.
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