| (1) | For the three months ended March 31, 2024 and 2023, the Company used a non-GAAP effective tax rate of 25% and 26%, respectively. |
| (2) | The three months ended March 31, 2024, includes a $0.1 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $0.9 million of currency losses on acquisition-related intercompany loans. The three months ended March 31, 2023, includes a $7.0 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $1.8 million of currency gains on acquisition-related intercompany loans. |
The following table provides a reconciliation of Adjusted EBITDA to net income (loss), the most comparable GAAP financial measure:
| (Unaudited) | ||||||||
|
Three Months Ended
March 31, | ||||||||
| (in thousands) | 2024 | 2023 | ||||||
| Net income (loss) | $ | 16,547 | $ | (1,959 | ) | |||
| Income tax expense | 6,769 | 9,232 | ||||||
| Stock-based compensation expense | 15,999 | 22,161 | ||||||
| Interest expense | 1,576 | 1,526 | ||||||
| Depreciation and amortization | 9,619 | 9,750 | ||||||
| Special adjustments, interest income and other (1) | (4,692 | ) | 2,345 | |||||
| Adjusted EBITDA | $ | 45,818 | $ | 43,055 | ||||
| (1) | The three months ended March 31, 2024, primarily includes $5.7 million of interest income and $0.9 million of currency losses on acquisition-related intercompany loans. The three months ended March 31, 2023, includes a $7.0 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, $2.9 million of interest income, and $1.8 million of currency gains on acquisition-related intercompany loans. |
The following table provides a reconciliation of Free Cash Flow to net cash provided by operating activities, the most comparable GAAP financial measure:
| (Unaudited) | ||||||||
|
Three Months Ended
March 31, | ||||||||
| (in thousands) | 2024 | 2023 | ||||||
| Net cash provided by operating activities | $ | 73,450 | $ | 59,199 | ||||
| Capital expenditures | (2,766 | ) | (1,727 | ) | ||||
| Free cash flow | $ | 70,684 | $ | 57,472 | ||||
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:
