| (1) | The three months ended June 30, 2024, primarily includes $5.9 million of interest income. The three months ended June 30, 2023, includes $4.0 million of interest income, $1.3 million of currency gains on acquisition-related intercompany loans, and a $1.0 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition. The six months ended June 30, 2024, includes $11.6 million of interest income, $0.9 million of currency losses 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 six months ended June 30, 2023, includes an $8.0 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, $6.9 million of interest income, and $3.1 million 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) | ||||||||||||||||
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Three Months Ended
June 30, |
Six Months Ended
June 30, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net cash provided by operating activities | $ | 28,557 | $ | 30,030 | $ | 102,007 | $ | 89,229 | ||||||||
| Capital expenditures | (2,238 | ) | (4,457 | ) | (5,004 | ) | (6,184 | ) | ||||||||
| Free cash flow | $ | 26,319 | $ | 25,573 | $ | 97,003 | $ | 83,045 | ||||||||
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) | ||||||||||||||||
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Three Months Ended
June 30, |
Six Months Ended
June 30, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Gross profit | $ | 118,279 | $ | 110,364 | $ | 260,298 | $ | 243,663 | ||||||||
| Stock-based compensation expense | 2,097 | 2,572 | 4,099 | 5,324 | ||||||||||||
| Non-GAAP gross profit | $ | 120,376 | $ | 112,936 | $ | 264,397 | $ | 248,987 | ||||||||
| Gross profit margin | 79.5 | % | 78.2 | % | 80.9 | % | 79.3 | % | ||||||||
| Non-GAAP gross margin | 80.9 | % | 80.0 | % | 82.2 | % | 81.1 | % | ||||||||
The following table provides a reconciliation of Non-GAAP operating expense to Total operating expense, the most comparable GAAP financial measure:
