The difference between GAAP and non-GAAP gross margin was 0.6% and 0.7%, or $0.5 million and $0.4 million, for the three months ended October 31, 2021 and October 31, 2020, respectively. The difference between GAAP and non-GAAP gross margin was 0.5% and 0.6%, or $1.2 million and $1.0 million, for the nine months ended October 31, 2021 and October 31, 2020, respectively. The differences were due to the effect of stock-based compensation and the amortization of acquisition-related costs.
| AMBARELLA, INC. | |||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS (LOSSES) PER SHARE | |||||||||||||||
| (in thousands, except share and per share data) | |||||||||||||||
| Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| (unaudited) | |||||||||||||||
| GAAP net income (loss) | $ | 756 | $ | (17,078 | ) | $ | (17,218 | ) | $ | (47,297 | ) | ||||
| Non-GAAP adjustments: | |||||||||||||||
| Stock-based compensation expense | 22,053 | 18,977 | 60,267 | 51,407 | |||||||||||
| Acquisition-related costs | 1,754 | — | 1,754 | — | |||||||||||
| Income tax effect | (2,357 | ) | 1,407 | (526 | ) | 2,605 | |||||||||
| Non-GAAP net income | $ | 22,206 | $ | 3,306 | $ | 44,277 | $ | 6,715 | |||||||
| GAAP - diluted weighted average shares | 39,046,274 | 34,819,880 | 36,391,676 | 34,460,172 | |||||||||||
| Non-GAAP - diluted weighted average shares | 39,046,274 | 35,801,017 | 38,390,832 | 35,469,263 | |||||||||||
| GAAP - diluted net income (loss) per share | $ | 0.02 | $ | (0.49 | ) | $ | (0.47 | ) | $ | (1.37 | ) | ||||
| Non-GAAP adjustments: | |||||||||||||||
| Stock-based compensation expense | 0.57 | 0.55 | 1.66 | 1.49 | |||||||||||
| Acquisition-related costs | 0.04 | — | 0.05 | — | |||||||||||
| Income tax effect | (0.06 | ) | 0.04 | (0.01 | ) | 0.08 | |||||||||
| Effect of Non-GAAP - diluted weighted average shares | — | (0.01 | ) | (0.08 | ) | (0.01 | ) | ||||||||
| Non-GAAP - diluted net income per share | $ | 0.57 | $ | 0.09 | $ | 1.15 | $ | 0.19 | |||||||
