Digital Transformation and Cloud Migration
GAAP to Non-GAAP reconciliation
Operating expenses and operating profit ($000's)
FY18
FY19
Revenue
RESEARCH & DEVELOPMENT
GAAP R&D expense
$198,077
$362,780
FY20
$603,466
FY21
$1,028,784
FY22
$1,675,100
$55,176
$111,425
$210,626
GAAP R&D expense as a % of revenue
28%
31%
35%
$419,769
41%
$752,351
45%
FY23
$2,128,359
$962,447
45%
Less: Share-based compensation expense
1,641
7,972
38,008
101,942
Less: Employer payroll taxes on employee stock transactions
1,157
2,836
8,143
237,120
10,384
313,096
21,449
Add: Other Non-GAAP adj. (1)
(2,344)
(2,729)
Non-GAAP R&D expense
$53,535
$104,640
Non-GAAP R&D expense as a % of revenue
27%
29%
$172,511
29%
$309,684
30%
$504,847
30%
$627,902
30%
SALES & MARKETING
GAAP S&M expense
$88,849
$146,657
$213,660
$299,497
$495,288
GAAP S&M expense as a % of revenue
45%
40%
35%
29%
30%
$609,276
29%
Less: Share-based compensation expense
1,910
5,538
20,467
35,035
76,735
101,937
Less: Amortization of acquired intangibles
Less: Employer payroll taxes on employee stock transactions
284
3,756
600
6,349
825
2,766
825
5,917
Add: Other Non-GAAP adj.(1)
(397)
(449)
Non-GAAP S&M expense
$86,939
Non-GAAP S&M expense as a % of revenue
44%
$141,232
39%
$189,886
31%
$257,513
25%
$414,962
25%
$500,597
24%
GENERAL & ADMINISTRATIVE
GAAP G&A expense
$18,556
$35,889
$62,756
$94,429
GAAP G&A expense as a % of revenue
9%
10%
10%
9%
$139,413
8%
$180,192
8%
Less: Share-based compensation expense
1,406
4,942
14,105
Less: Employer payroll taxes on employee stock transactions
19
839
22,195
1,248
38,472
49,689
830
4,811
Add: Other Non-GAAP adj. (1)
Non-GAAP G&A expense
$17,150
(2,266)
$33,194
(2,383)
Non-GAAP G&A expense as a % of revenue
9%
9%
$50,195
8%
$70,986
7%
$100,111
6%
$125,692
6%
Reconciliation of operating loss and operating margin
GAAP operating loss
$(11,033)
Add: Stock-based compensation expense
5,244
$(20,140)
19,034
Add: Amortization of acquired intangibles
511
752
$(13,773)
74,374
943
$(19,156)
163,737
Add: Employer payroll taxes on employee stock transactions
1,460
7,618
4,392
16,085
14,246
$(58,695)
363,154
7,575
$(33,464)
482,300
8,866
32,541
Less: Other Non-GAAP adj. (1)
(5,007)
(5,561)
Non-GAAP operating (loss) income
$(5,278)
$(3,901)
$63,601
$165,058
$326.280
$490,243
GAAP operating margin
(6)%
(6)%
(2)%
(2)%
(4)%
Non-GAAP operating margin
(3)%
(1)%
11%
16%
19%
(2)%
23%
(1) Non-cash benefit related to the release of a non-income tax liability
DATADOG
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