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Investor Presentaiton

Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations (Unaudited) (in thousands, except per share amounts) Revenue GAAP Three Months Ended June 30, 2023 Stock-based compensation expense Amortization of intangibles from business combinations Employee Acquisition and disposition-related severance Security Incident- related costs, net of insurance (1) Non-GAAP adjustments subtotal costs Non-GAAP Recurring One-time services and other Total revenue $ 262,390 $ 8,652 271,042 $ $ Cost of revenue Cost of recurring 113,926 Cost of one-time services and other 7,549 (3,559) (584) (12,790) (22) (346) (32) Total cost of revenue 121,475 (4,143) (13,136) (54) Gross profit 149,567 $ $ $ $ 262,390 8,652 271,042 (16,371) (962) 97,555 6,587 (17,333) 104,142 4,143 13,136 54 17,333 166,900 Recurring gross margin 56.6 % One-time services and other gross margin 12.7 % Total gross margin 55.2 % 6.2% 62.8 % 11.2 % 23.9 % 6.4 % 61.6 % Operating expenses Sales, marketing and customer success 53,191 (7,193) Research and development 36,146 (7,605) General and administrative 59,148 (14,423) | | | (453) (7,646) 45,545 (2) (7,607) 28,539 (123) 849 (26,777) (40,474) 18,674 Amortization 788 (788) - (788) Total operating expenses 149,273 (29,221) (788) (578) 849 (26,777) (56,515) 92,758 Income from operations 294 33,364 13,924 632 (849) 26,777 73,848 74,142 Total operating margin 0.1 % 27.3 % 27.4 % Net Income $ Shares used in computing diluted earnings per share Diluted earnings per share $ 2,105 53,643 0.04 $ 52,602 53,643 $ 0.98 32 b➤ (1) Includes Security Incident-related costs incurred, net of insurance recoveries. Recorded expenses consisted primarily of payments to third-party service providers and consultants, including legal fees, as well as settlements of customer claims and accruals for certain loss contingencies. Not included in this adjustment were costs associated with enhancements to our cybersecurity program.
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