| (1) | The three months ended June 30, 2023, includes $1.0 million loss from a mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, $4.0 million of interest income, and $1.3 million currency gains on acquisition-related intercompany loans. The three months ended June 30, 2022, includes $16.6 million expense on repurchase of convertible senior notes, $5.4 million currency losses on acquisition-related intercompany loans, and a $5.3 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition. The six months ended June 30, 2023, includes $8.0 million loss from a 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 six months ended June 30, 2022, includes $16.6 million expense on repurchase of convertible senior notes, $6.9 million currency losses on acquisition-related intercompany loans and a $5.3 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition. |
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
June 30, |
Six Months Ended
June 30, | ||||||||||||||
| (in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Net cash provided by operating activities(1) | $ | 30,030 | $ | 12,255 | $ | 89,229 | $ | 18,041 | |||||||
| Capital expenditures | (4,457 | ) | (1,267 | ) | (6,184 | ) | (3,457 | ) | |||||||
| Free cash flow(1) | $ | 25,573 | $ | 10,988 | $ | 83,045 | $ | 14,584 | |||||||
| (1) | The six months ended June 30, 2022, includes a $65.9 million payment in January 2022 for a damages judgement assumed as part of an acquisition in December 2021. |
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
June 30, |
Six Months Ended
June 30, | ||||||||||||||
| (in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Gross profit | $ | 110,364 | $ | 103,133 | $ | 243,663 | $ | 231,311 | |||||||
| Stock-based compensation expense | 2,572 | 2,030 | 5,324 | 3,933 | |||||||||||
| Non-GAAP gross profit | $ | 112,936 | $ | 105,163 | $ | 248,987 | $ | 235,244 | |||||||
| Gross profit margin | 78.2 | % | 77.7 | % | 79.3 | % | 79.1 | % | |||||||
| Non-GAAP gross margin | 80.0 | % | 79.3 | % | 81.1 | % | 80.4 | % | |||||||
