Well-Positioned to Drive Personalized Education
Non-GAAP Reconciliations
Adjusted EBITDA
PowerSchool Holdings, Inc.
($ in thousands, except percentages)
2021
Three Months Ended September 30,
2020
Nine Months Ended September 30,
2021
2020
$ (25,128)
$ 427
$ (27,190)
$ (28,844)
Net (loss) income
Add:
Amortization
27,530
21,573
79,562
64,434
Depreciation
1,667
1,838
4,950
Net interest expense (1)
12,857
15,796
51,409
5,712
52,655
Loss on extinguishment of debt
12,905
Income tax benefit
(2,685)
106
12,905
(20,035)
64
Share-based compensation
10,719
1,398
13,455
4,220
Management fees (2)
424
307
615
803
Restructuring (3)
839
882
Acquisition-related expense (4)
923
551
3,576
8,662
1,670
2,890
Adjusted EBITDA
$ 40,051
$ 42,878
$127,909
$ 103,604
Adjusted EBITDA Margin (5)
26.9%
37.1%
31.0%
32.5%
(1) Interest expense, net of interest income.
PowerSchool
(2) Refers to expense associated with collaboration with our principal stockholders and their internal consulting groups.
(3) Refers to costs incurred related to migration of customers from legacy to core products, remaining lease obligations for abandoned facilities, severance
expense related to offshoring activities, facility closures, and executive departures, and event cancellation fees related to COVID-19.
(4) Refers to direct transaction and debt-related fees reflected in our acquisition costs line item of our income statement and incremental acquisition-related
costs that are incurred to perform diligence, execute and integrate acquisitions, including retention awards and severance for acquired employees, and other
transaction and integration expenses. These incremental costs are embedded in our research and development, selling, general and administrative and cost of
revenue line items.
(5) Represents Adjusted EBITDA as a percentage of revenue.
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