Q2 FY23 Highlights and Guidance
Reconciliation of GAAP to Non-GAAP Data
Six Months Ended July 31, 2021
(in thousands, except percentages and per
share data)
GAAP
Costs and expenses:
Share-Based
Compensation
Expenses
Other Operating
Expenses²
Income Tax and
Dilution Effects³
Non-GAAP
Costs of subscription services
$
374,946 $
(41,138)
$
(27,336) $
$
306,472
Costs of professional services
303,628
(54,226)
(8,168)
241,234
Product development
885,867
(259,754)
(22,703)
603,410
Sales and marketing
684,651
(102,476)
(26,870)
555,305
General and administrative
225,735
(71,760)
(5,319)
148,656
Operating income (loss)
(39,433)
529,354
90,396
580,317
Operating margin
(1.6)%
21.7 %
3.7 %
%
23.8 %
Other income (expense), net
93,934
93,934
Income (loss) before provision for (benefit from)
54,501
529,354
90,396
674,251
income taxes
Provision for (benefit from) income taxes
(4,713)
132,821
128,108
Net income (loss)
$
59,214 $
529,354
Net income (loss) per share, basic¹
$
0.24 $
2.16
Net income (loss) per share, diluted¹
$
0.23
$
2.09
SSS
$
$
$
0.36
90,396 $
0.37 $
$
(132,821) $
546,143
(0.54) $
2.23
(0.58) $
2.10
1.
2.
3.
GAAP net income per share is calculated based upon 245,308 basic and 252,900 diluted weighted-average shares of common stock. Non-GAAP net income per share
is calculated based upon 245,308 basic and 260,718 diluted weighted-average shares of common stock. The numerator used to compute non-GAAP diluted net income
per share was increased by $2.6 million for after-tax interest expense on our convertible senior notes in accordance with the if-converted method.
Other operating expenses include employer payroll tax-related items on employee stock transactions of $52.7 million and amortization of acquisition-related intangible
assets of $37.7 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%. Included in the per share amount is a dilution impact of $0.05 from the conversion of GAAP diluted net income per share to
non-GAAP diluted net income per share.View entire presentation