Q2 FY23 Highlights and Guidance slide image

Q2 FY23 Highlights and Guidance

Reconciliation of GAAP to Non-GAAP Data Three Months Ended July 31, 2021 (in thousands, except percentages and per share data) GAAP Share-Based Compensation Expenses Other Operating Expenses² Income Tax Effects³ Non-GAAP Costs and expenses: Costs of subscription services Costs of professional services Product development Sales and marketing General and administrative $ 192,738 $ 152,783 (20,421) $ (13,132) $ (26,534) (1,215) 444,251 (129,892) (3,161) 358,157 (52,168) (9,764) 113,552 (35,704) (933) | | | | | $ 159,185 125,034 311,198 Operating income (loss) (1,120) 264,719 28,205 296,225 76,915 291,804 Operating margin (0.1)% 21.0 % 2.3 % ― % 23.2% Other income (expense), net 102,985 102,985 Income (loss) before provision for (benefit from) income taxes 101,865 264,719 28,205 394,789 Provision for (benefit from) income taxes Net income (loss) $ Net income (loss) per share, basic¹ $ Net income (loss) per share, diluted¹ $ 555 0.41 (3,871) 105,736 $ 0.43 $ $ 264,719 $ 1. 2. 3. 1.29 1.23 GAAP and non-GAAP net income per share are both calculated based upon 246,943 basic and 260,016 diluted weighted-average shares of common stock. The numerator used to compute GAAP and non-GAAP diluted net income per share was increased by $1.6 million and $1.3 million, respectively, 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 $19.8 million and employer payroll tax-related items on employee stock transactions of $8.4 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 2022, the non-GAAP tax rate was 19%. 1.02 1.07 $ $ SASS 28,205 $ 0.11 $ 0.11 $ 78,881 (78,881) (0.32) $ 75,010 $ 319,779 SA (0.31) $
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