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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 Stock-based compensation expense Three Months Ended June 30, 2022 Amortization of intangibles from business combinations Employee severance Acquisition and disposition-related Security Incident- related costs, net of insurance (1) Impairment of capitalized software development costs Non-GAAP adjustments subtotal costs Non-GAAP Recurring One-time services and other Total revenue $ 252,507 $ 12,420 264,927 $ Cost of revenue Cost of recurring 114,487 Cost of one-time services and other 11,120 (2,888) (876) (12,059) (50) (345) (331) Total cost of revenue 125,607 (3,764) (12,404) (381) 139,320 3,764 12,404 381 Gross profit Recurring gross margin 54.7 % One-time services and other gross margin 10.5 % Total gross margin 52.6 % $ $ $ $ $ 252,507 12,420 264,927 (14,997) (1,552) (16,549) 99,490 9,568 109,058 16,549 155,869 5.9 % 60.6 % 12.5 % 23.0 % 6.2% 58.8 % Operating expenses Sales, marketing and customer success 52,737 Research and development 38,333 (5,293) (5,875) (5,293) 47,444 (5,875) 32,458 General and administrative 47,391 (12,922) (81) (2,292) (8,348) (2,263) (25,906) 21,485 Amortization 805 (805) Total operating expenses 139,266 (24,090) (805) (81) (2,292) (8,348) (2,263) (805) (37,879) 101,387 Income from operations 54 27,854 13,209 462 2,292 8,348 2,263 54,428 - % 54,482 20.6 % 20.6 % Total Operating Margin Net (loss) income $ Shares used in computing diluted (loss) earnings per share Diluted (loss) earnings per share $ (3,422) 51,661 (0.07) $ 38,911 51,986 $ 0.75 (1) 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 34 contingencies. Not included in this adjustment were costs associated with enhancements to our cybersecurity program. b➤
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