The following table provides a reconciliation of Non-GAAP gross profit to gross profit, the most comparable GAAP financial measure, and a comparison of Non-GAAP gross margin (Non-GAAP gross profit as a percentage of total revenue) to gross margin (gross profit as a percentage of total revenue), the most comparable GAAP financial measure:
| (Unaudited) | ||||||||
|
Three Months Ended
March 31, | ||||||||
| (in thousands) | 2023 | 2022 | ||||||
| Gross profit | $ | 133,299 | $ | 128,178 | ||||
| Stock-based compensation expense | 2,752 | 1,903 | ||||||
| Non-GAAP gross profit | $ | 136,051 | $ | 130,081 | ||||
| Gross profit margin | 80.3 | % | 80.2 | % | ||||
| Non-GAAP gross margin | 81.9 | % | 81.4 | % | ||||
The following table provides a reconciliation of Non-GAAP operating expense to Total operating expense, the most comparable GAAP financial measure:
| (Unaudited) | ||||||||
|
Three Months Ended
March 31, | ||||||||
| (in thousands) | 2023 | 2022 | ||||||
| Total operating expense | $ | 128,113 | $ | 107,467 | ||||
| Stock-based compensation expense | (19,409 | ) | (16,711 | ) | ||||
| Amortization | (7,814 | ) | (5,903 | ) | ||||
| Loss on mark-to-market adjustment of contingent consideration | (7,006 | ) | — | |||||
| Non-GAAP operating expense | $ | 93,884 | $ | 84,853 | ||||
The following table provides a reconciliation of Billings to revenue, the most comparable GAAP financial measure:
