Pursuing Profitable Growth slide image

Pursuing Profitable Growth

($ IN MILLIONS) Net Loss APPENDIX: RECONCILIATION TO NON-GAAP ITEMS 2021 % OF REVENUE 2020 % OF REVENUE 2019 % OF REVENUE ($181.4) (47.2%) ($145.5) (63.2%) ($23.6) (19.7%) Interest Expense, net 1.2 0.3% 1.3 0.6% 2.5 2.1% Change in fair value of common stock warrants liabilities (87.9) (22.9%) 23.0 10.0% Stock-based Compensation 60.3 15.7% 23.8 10.3% 1.2 1.0% Provision for Income Taxes (19.0) (4.9%) 0.1 0.0% Depreciation and Amortization 11.1 2.9% 1.6 0.7% 0.7 0.6% Other non-operating costs (income) 00 0.0 0.0% 21.4 9.3% (3.6) (3.0%) Impairment charge 3.4 1.5% Acquisition related expenses 8.0 2.1% Loss contingency accrual 11.6 3.0% One-time non recurring expenses 14.6 3.8% 4.7 2.0% Adjusted EBITDA ($181.5) (47.3%) ($66.1) (28.7%) ($22.8) (19.0%) 53 Note: The Company defines and calculates Adjusted EBITDA as net income (loss) before interest, other non-operating expense or income, (benefit) provision for income taxes, and depreciation and amortization, and further adjusted for stock-based compensation and other special items determined by management, including, but not limited to, fair value adjustments for certain financial liabilities (including derivatives) associated with debt and equity transactions, impairment charges, acquisition related expenses for transaction costs and certain loss contingency accruals. The Company's management believes Adjusted EBITDA is useful in evaluating its operating performance and is a similar measure reported by publicly-listed U.S. competitors, and regularly used by security analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. skillz
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