Thoughtworks Results Presentation Deck slide image

Thoughtworks Results Presentation Deck

Reconciliation of Non-GAAP financial measures (in thousands, except percentages, number of shares and earnings per share) Net (loss) income Income tax expense Interest expense Other (income)/expense, net Unrealized foreign exchange (gains) losses Stock-based compensation Depreciation and amortization Acquisition costs (a) Certain professional fees (b) Non-recurring tender offer compensation expense (c) Business rationalization (d) IPO-related costs (e) Employer payroll tax on employee equity incentive plans (f) Adjusted EBITDA Net (loss) income margin Adjusted EBITDA Margin 2022 Thoughtworks Three Months Ended March 31, 2021 Year Ended December 31, 2021 (59,904) $ 18,585 $ (23,623) $ 301 4,623 10,148 4,647 6,194 25,456 (88) (61) 1,671 (5,847) 3,929 5,024 120,736 1,874 157,946 11 8,582 6,884 29,528 20 6,403 8,524 803 1,648 1,991 2,714 2,715 1,043 2,713 1,154 53,836 $ 223,247 72,872 $ (18.7)% 7.8 % 22.7% 22.7% $ $ 2022 3,622 (2.2)% 20.9 % 2020 79,283 23,164 25,767 (185) (5,351) 1,667 26,528 633 56 - 1,316 315 153,193 9.9 % 19.1 % (a) Reflects costs for certain professional fees and retention wage expenses related to certain acquisitions. (b) Adjusts for certain transaction expenses, non-recurring legal expenses, and one-time professional fees. (c) Adjusts for the additional compensation expense related to the tender offer completed in the first quarter of 2021. (d) Adjusts for business rationalization revenues and costs related to closing Thoughtworks Studios, which ceased operations as of December 31, 2020. (e) Adjusts for IPO-readiness costs and expenses that do not qualify as equity issuance costs. (f) We exclude employer payroll tax expense on equity incentive plans as these expenses are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise. As a result, these taxes may vary in any particular period independent of the financial and operating performance of our business. 28
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