Q2 FY23 Highlights and Guidance
Reconciliation of GAAP to Non-GAAP Data
Three Months Ended July 31, 2022
(in thousands, except percentages and per
share data)
GAAP
Share-Based
Compensation
Expenses
Other Operating
Expenses²
Income Tax and
Non-GAAP
Dilution Effects³
Costs and expenses:
Costs of subscription services
Costs of professional services
Product development
Sales and marketing
General and administrative
Operating income (loss)
$
244,982 $
(25,090) $
(14,596)
$
178,103
(25,838)
(775)
547,835
(147,181)
(2,236)
458,701
(59,878)
(9,388)
140,255
(50,020)
(628)
(34,078)
308,007
27,623
Operating margin
(2.2)%
20.1 %
1.7 %
Other income (expense), net
(32,789)
Income (loss) before provision for (benefit from)
income taxes
(66,867)
308,007
27,623
| | | | | │
$
205,296
151,490
398,418
%
389,435
89,607
301,552
19.6 %
(32,789)
268,763
Provision for (benefit from) income taxes
(2,709)
53,773
51,064
Net income (loss)
$
(64,158) $
308,007
Net income (loss) per share, basic¹
$
Net income (loss) per share, diluted¹
$
(0.25) $
(0.25) $
1.21
1.21 $
$
SSS
$
0.11
27,623
0.11 $
$
$
(53,773) $
217,699
(0.21) $
0.86
(0.24) $
0.83
1.
2.
3.
GAAP net loss per share is calculated based upon 254,355 basic and diluted weighted-average shares of common stock. Non-GAAP net income per share is calculated
based upon 254,355 basic and 262,931 diluted weighted-average shares of common stock. The numerator used to compute non-GAAP diluted net income per share was
increased by $1.3 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 $21.5 million and employer payroll tax-related items on employee stock
transactions of $6.1 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 is 19%. Included in the per share amount is a dilution impact of $0.03 from the conversion of GAAP diluted net loss per share to non-
GAAP diluted net income per share.View entire presentation