Paycor Investor Presentation Deck
Non-GAAP Financial Measures
Adjusted Gross Profit and Adjusted Gross Profit Margin: We define Adjusted Gross Profit as gross profit before amortization of
intangible assets, stock-based compensation expense, and other certain corporate expenses, in each case that are included in costs of
recurring revenues. We define Adjusted Gross Profit Margin as Adjusted Gross Profit divided by total revenues.
Adjusted Gross Profit Excluding D&A and Adjusted Gross Profit Margin Excluding D&A: We define Adjusted Gross Profit
Excluding D&A as gross profit before amortization of intangible assets, stock-based compensation expense, other certain corporate
expenses and depreciation and amortization, in each case that are included in costs of revenues. We define Adjusted Gross Profit Margin
Excluding D&A as Adjusted Gross Profit Excluding D&A divided by total revenues.
Adjusted Operating Income and Adjusted Operating Income Margin: We define Adjusted Operating Income as loss from operations.
before amortization of acquired intangible assets and naming rights, stock-based compensation expense, exit cost due to exiting leases
of certain facilities, and other certain corporate expenses. We define Adjusted Operating Income Margin as Adjusted Operating Income
divided by total revenues.
Adjusted Operating Expenses: We define Adjusted Sales and Marketing expense as sales and marketing expenses before
amortization of naming rights, stock-based compensation expense, and other certain corporate expenses. We define Adjusted General
and Administrative expense as general and administrative expenses before amortization of acquired intangible assets, stock-based
compensation expense, exit cost due to exiting leases of certain facilities and other certain corporate expenses. We define Adjusted
Research and Development expense as research and development expenses before stock-based compensation expense and other
certain corporate expenses.
Adjusted Free Cash Flow: We define Adjusted Free Cash Flow as cash provided (used) by operating activities less the purchase of
property and equipment and internally developed software costs, excluding other certain corporate expenses, which are included in cash
provided (used) by operating activities.
Note: Other certain corporate expenses presented include one-time costs related to acquisitions, including the Apax acquisition, restructuring costs, professional, consulting and other costs, secondary offering costs, transition of
the new executive leadership team, closure of a standalone facility, costs associated with becoming a public company, implementation of a new enterprise-resource planning system, and implementing certain expense saving
initiatives as a result of the COVID-19 pandemic.
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