PowerSchool Investor Presentation Deck slide image

PowerSchool Investor Presentation Deck

Non-GAAP Reconciliations Adjusted EBITDA PowerSchool ($ in thousands, except percentages) Net (loss) income Add: Amortization Depreciation Net interest expense (¹) Loss on extinguishment of debt Income tax benefit Share-based compensation Management fees(2) Restructuring (3) Acquisition-related expense (4) Adjusted EBITDA Adjusted EBITDA Margin(5) Three Months Ended September 30, 2020 2021 $ (25,128) PowerSchool Holdings, Inc. 27,530 1,667 12,857 12,905 (2,685) 10,719 424 839 923 $ 40,051 26.9% $ 427 21,573 1,838 15,796 106 1,398 307 882 551 $ 42,878 37.1% Nine Months Ended September 30, 2021 2020 $ (27,190) (1) Interest expense, net of interest income. (2) Refers to expense associated with collaboration with our principal stockholders and their internal consulting groups. 79,562 4,950 51,409 12,905 (20,035) 13,455 615 3,576 8,662 $ 127,909 31.0% $ (28,844) 64,434 5,712 52,655 64 4,220 803 1,670 2,890 $ 103,604 32.5% (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. 28
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