Investor Presentaiton
Historical Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited)
(in thousands, except share and per share amounts)
GAAP Revenue
GAAP gross profit
GAAP gross margin
Non-GAAP adjustments:
Add: Stock-based compensation expense
Add: Amortization of intangibles from business combinations
Q1 2022
Q2 2022
Q3 2022
$
257,124
$
264,927
$
261,297
$
Q4 2022
274,757
$
FY 2022 (1)
1,058,105
Q1 2023
Q2 2023
$
261,753
$
271,042
$
133,762 $
52.0%
139,320
52.6 %
$
140,360 $
53.7 %
139,274
50.7 %
$
552,716
52.2 %
$
138,641 $
53.0 %
149,567
55.2%
4,149
12,489
3,764
3,414
3,109
14,436
3,954
4,143
12,404
11,913
11,686
48,492
13,111
13,136
Add: Employee severance
Subtotal
Non-GAAP gross profit
381
16,638
$
150,400
$
Non-GAAP gross margin
GAAP (loss) income from operations
58.5%
16,549
155,869 $
58.8 %
(33)
15,294
1,787
2,135
16,582
65,063
743
17,808
54
17,333
155,654 $
59.6%
155,856 $
56.7%
617,779 $
58.4 %
156,449 $
166,900
59.8 %
61.6 %
$
(5,979) $
GAAP operating margin
Add: Stock-based compensation expense
(2.3)%
54 $
- %
(7,012) $
(2.7)%
(15,548) $
(5.7)%
(28,485)
(2.7)%
$
(9,947) $
294
(3.8)%
0.1 %
Non-GAAP adjustments:
Add: Amortization of intangibles from business combinations
27,860
13,300
27,854
27,945
26,635
110,294
29,925
33,364
13,209
12,560
12,348
51,417
13,885
13,924
Add: Employee severance
Add: Acquisition and disposition-related costs
Add: Restructuring and other real estate activities
Add: Security Incident-related costs, net of insurance
Add: Impairment of capitalized software development costs
Subtotal
462
232
4,470
5,164
4,322
632
957
2,292
2,456
430
6,135
619
(849)
71
71
7,201
8,348
13,658
26,516
2,263
49,389
54,428
56,851
Non-GAAP income from operations
Non-GAAP operating margin
$
43,410 $
54,482
$
49,839
$
16.9 %
20.6 %
19.1 %
70,399
54,851 $
20.0 %
55,723
2,263
231,067
202,582 $
19.1 %
17,783
26,777
66,534
73,848
56,587 $
74,142
21.6 %
27.4 %
GAAP loss before benefit for income taxes
$
(12,457) $
(5,789) $
GAAP net (loss) income
$
(10,407) $
(3,422) $
(11,895) $
(10,319) $
(25,434) $
(21,259) $
(55,575) $
(45,407) $
(18,602) $
(14,701)
$
(8,095)
2,105
Shares used in computing GAAP diluted (loss) earnings per share
GAAP diluted (loss) earnings per share
51,199,717
51,660,739
51,692,152
51,716,948
51,569,148
52,132,999
53,643,124
$
(0.20) $
(0.07) $
(0.20) $
(0.41)
$
(0.88)
$
(0.28)
$
0.04
Non-GAAP adjustments:
Less: GAAP income tax benefit
Add: Total Non-GAAP adjustments affecting income from operations
Non-GAAP income before provision for income taxes
(2,050)
(2,367)
(1,576)
(4,175)
(10,168)
(3,901)
(10,200)
49,389
54,428
56,851
70,399
231,067
66,534
73,848
36,932
48,639
44,956
44,965
175,492
47,932
65,753
Assumed non-GAAP income tax provision (3)
Non-GAAP net income
7,386
9,728
8,991
$
29,546 $
38,911 $
35,965 $
8,993
35,972
$
35,098
140,394
$
9,586
38,346
13,151
$
52,602
Shares used in computing Non-GAAP diluted earnings per share
Non-GAAP diluted earnings per share
52,076,858
51,985,530
52,362,781
52,923,158
52,207,573
53,171,410
53,643,124
$
0.57
$
0.75
$
0.69
$
0.68
$
2.69 $
0.72
$
0.98
(1) The individual amounts for each quarter may not sum to full year totals due to rounding.
(2) Includes Security Incident-related costs incurred, net of probable 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.
(3) We apply a non-GAAP effective tax rate of 20.0% when calculating non-GAAP net income and non-GAAP diluted earnings per share.
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