The following table presents details of stock-based compensation expense included in each functional line item in the condensed consolidated statements of operations above:

	Three Months Ended October 31,						Nine Months Ended October 31,
		2020			2019			2020			2019
	(unaudited, in thousands)
Stock-based compensation:
Cost of revenue	$	368		$	335		$	981		$	922
Research and development		11,496			10,601			31,402			31,306
Selling, general and administrative		7,113			6,372			19,024			17,740
Total stock-based compensation	$	18,977		$	17,308		$	51,407		$	49,968

The difference between GAAP and non-GAAP gross margin was 0.7% and 0.5%, or $368,000 and $335,000, for the three months ended October 31, 2020 and 2019, respectively. The difference between GAAP and non-GAAP gross margin was 0.6% and 0.6%, or $981,000 and $922,000, for the nine months ended October 31, 2020 and 2019, respectively. The differences were due to the effect of stock-based compensation.

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,
		2020				2019				2020				2019
	(unaudited)
GAAP net loss	$	(17,078	)		$	(4,309	)		$	(47,297	)		$	(31,811	)
Non-GAAP adjustments:
Stock-based compensation expense		18,977				17,308				51,407				49,968
Income tax effect		1,407				(1,737	)			2,605				634
Non-GAAP net income	$	3,306			$	11,262			$	6,715			$	18,791
GAAP - diluted weighted average shares		34,819,880				33,304,171				34,460,172				32,885,729
Non-GAAP - diluted weighted average shares		35,801,017				34,789,673				35,469,263				34,052,772
GAAP - diluted net loss per share	$	(0.49	)		$	(0.13	)		$	(1.37	)		$	(0.97	)
Non-GAAP adjustments:
Stock-based compensation expense		0.55				0.52				1.49				1.52
Income tax effect		0.04				(0.05	)			0.08				0.02
Effect of Non-GAAP - diluted weighted average shares		(0.01	)			(0.02	)			(0.01	)			(0.02	)
Non-GAAP - diluted net income per share	$	0.09			$	0.32			$	0.19			$	0.55

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