Effective in the first quarter of 2024, the Company changed the presentation of revenue and cost of revenue in its Consolidated Statements of Operations to combine the financial statement line items (“FSLIs”) labeled “Software related services”, “Client engineering services” and “Other” into one FSLI labeled “Engineering services and other”. The change in presentation has been applied retrospectively and does not affect the software revenue, total revenue, software cost of revenue or total cost of revenue amounts previously reported or have any effect on segment reporting.
Financial Results
The following table provides a reconciliation of Non-GAAP net income and Non-GAAP net income per share – diluted, to net income (loss) and net income (loss) per share – diluted, the most comparable GAAP financial measures:
| (Unaudited) | |||||||||||||||||
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, | ||||||||||||||||
| (in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) | $ | 1,779 | $ | (4,362 | ) | $ | 13,179 | $ | (28,601 | ) | |||||||
| Stock-based compensation expense | 17,356 | 20,526 | 50,710 | 66,423 | |||||||||||||
| Amortization of intangible assets | 9,246 | 7,704 | 24,313 | 23,143 | |||||||||||||
| Non-cash interest expense | 310 | 469 | 1,204 | 1,399 | |||||||||||||
| Impact of non-GAAP tax rate (1) | (3,721 | ) | (10,997 | ) | (14,564 | ) | (8,897 | ) | |||||||||
| Special adjustments and other (2) | (3,756 | ) | (658 | ) | (2,622 | ) | 4,212 | ||||||||||
| Non-GAAP net income | $ | 21,214 | $ | 12,682 | $ | 72,220 | $ | 57,679 | |||||||||
| Net income (loss) per share, diluted | $ | 0.02 | $ | (0.05 | ) | $ | 0.15 | $ | (0.36 | ) | |||||||
| Non-GAAP net income per share, diluted | $ | 0.24 | $ | 0.15 | $ | 0.82 | $ | 0.68 | |||||||||
| GAAP diluted shares outstanding | 88,425 | 80,431 | 87,854 | 80,204 | |||||||||||||
| Non-GAAP diluted shares outstanding | 88,425 | 85,347 | 87,854 | 84,857 | |||||||||||||
| (1) | For the three and nine months ended September 30, 2024, the Company used a non-GAAP effective tax rate of 25%. For the three and nine months ended September 30, 2023, the Company used a non-GAAP effective tax rate of 26%. | ||||||||||||||||
| (2) | The three months ended September 30, 2024, includes $3.8 million of currency gains on acquisition-related intercompany loans. The three months ended September 30, 2023, includes a $3.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition and $2.8 million of currency losses on acquisition-related intercompany loans. The nine months ended September 30, 2024, includes $2.8 million of currency gains on acquisition-related intercompany loans, and a $0.2 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition. The nine months ended September 30, 2023, includes a $4.5 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition and $0.3 million of currency gains on acquisition-related intercompany loans. | ||||||||||||||||
