Investor Presentaiton
APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS
GoPro
non-GAAP net income (loss) excludes acquisition-related costs including the amortization of acquired intangible assets (primarily consisting of
acquired technology), the impairment of acquired intangible assets (if applicable), as well as third-party transaction costs incurred for legal and
other professional services. These costs are not factored into our evaluation of potential acquisitions, or of our performance after completion of the
acquisitions, because these costs are not related to our core operating performance or reflective of ongoing operating results in the period, and the
frequency and amount of such costs vary significantly based on the timing and magnitude of our acquisition transactions and the maturities of the
businesses being acquired. Although we exclude the amortization of acquired intangible assets from our non-GAAP net income (loss),
management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and
contribute to revenue generation;
non-GAAP net income (loss) excludes non-cash interest expense. In connection with the issuance of the Convertible Senior Notes in April 2017
and November 2020, we are required to recognize non-cash interest expense, such as the amortization of debt discounts, in accordance with the
authoritative accounting guidance for convertible debt that may be settled in cash;
non-GAAP net income (loss) includes income tax adjustments. We utilize a cash-based non-GAAP tax expense approach (based upon expected
annual cash payments for income taxes) for evaluating operating performance as well as for planning and forecasting purposes. This non-GAAP
tax approach eliminates the effects of period specific items, which can vary in size and frequency and does not necessarily reflect our long-term
operations. Historically, we computed a non-GAAP tax rate based on non-GAAP pre-tax income on a quarterly basis, which considered the income
tax effects of the adjustments above; and
other companies may calculate these non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures.
Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
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