Investor Presentaiton
APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS
GoPro
adjusted EBITDA excludes the amortization of point of purchase (POP) display assets because it is a non-cash charge, and is treated similarly to
depreciation of property and equipment and amortization of acquired intangible assets;
adjusted EBITDA and non-GAAP net income (loss) exclude restructuring and other related costs which primarily include severance-related costs,
stock-based compensation expenses and facilities consolidation charges recorded in connection with restructuring actions announced in the fourth
quarter of 2016, first quarter of 2017, first quarter of 2018 and second quarter of 2020, including right-of-use asset impairment charges, and the
related ongoing operating lease cost of those facilities recorded under Accounting Standards Codification 842, Leases. These expenses do not
reflect expected future operating expenses and do not contribute to a meaningful evaluation of current operating performance or comparisons to
the operating performance in other periods;
adjusted EBITDA and non-GAAP net income (loss) exclude stock-based compensation expense related to equity awards granted primarily to our
workforce. We exclude stock-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide
meaningful supplemental information regarding operational performance. In particular, we note that companies calculate stock-based
compensation expense for the variety of award types that they employ using different valuation methodologies and subjective assumptions. These
non-cash charges are not factored into our internal evaluation of net income (loss) as we believe their inclusion would hinder our ability to assess
core operational performance;
adjusted EBITDA and non-GAAP net income (loss) exclude the loss on extinguishment of debt because it is not reflective of ongoing operating
results in the period, and such losses vary in the frequency and amount;
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