The difference between GAAP and non-GAAP gross margin was 3.9% and 1.3%, or $3.3 million and $1.2 million, for the three months ending January 31, 2023 and 2022, respectively. The difference between GAAP and non-GAAP gross margin was 2.0% and 0.7%, or $6.6 million and $2.4 million, for the fiscal years ending January 31, 2023 and 2022, 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 January 31, | Twelve Months Ended January 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| (unaudited) | |||||||||||||||
| GAAP net loss | $ | (11,105 | ) | $ | (9,193 | ) | $ | (65,386 | ) | $ | (26,411 | ) | |||
| Non-GAAP adjustments: | |||||||||||||||
| Stock-based compensation expense | 29,107 | 27,534 | 111,158 | 87,801 | |||||||||||
| Acquisition-related costs | 1,245 | 2,978 | 5,094 | 4,732 | |||||||||||
| Income tax effect | (10,310 | ) | (3,445 | ) | (7,785 | ) | (3,971 | ) | |||||||
| Non-GAAP net income | $ | 8,937 | $ | 17,874 | $ | 43,081 | $ | 62,151 | |||||||
| GAAP - diluted weighted average shares | 38,898,290 | 37,133,454 | 38,363,638 | 36,577,120 | |||||||||||
| Non-GAAP - diluted weighted average shares | 39,639,253 | 39,655,416 | 39,135,313 | 38,706,977 | |||||||||||
| GAAP - diluted net loss per share | $ | (0.29 | ) | $ | (0.25 | ) | $ | (1.70 | ) | $ | (0.72 | ) | |||
| Non-GAAP adjustments: | |||||||||||||||
| Stock-based compensation expense | 0.75 | 0.74 | 2.90 | 2.40 | |||||||||||
| Acquisition-related costs | 0.03 | 0.08 | 0.13 | 0.13 | |||||||||||
| Income tax effect | (0.27 | ) | (0.09 | ) | (0.20 | ) | (0.11 | ) | |||||||
| Effect of Non-GAAP - diluted weighted average shares | 0.01 | (0.03 | ) | (0.03 | ) | (0.09 | ) | ||||||||
| Non-GAAP - diluted net income per share | $ | 0.23 | $ | 0.45 | $ | 1.10 | $ | 1.61 | |||||||
