| Three Months Ended April 30, | |||||||
| 2021 | 2020 | ||||||
| (unaudited, in thousands) | |||||||
| Stock-based compensation: | |||||||
| Cost of revenue | $ | 323 | $ | 297 | |||
| Research and development | 11,194 | 9,896 | |||||
| Selling, general and administrative | 7,325 | 5,843 | |||||
| Total stock-based compensation | $ | 18,842 | $ | 16,036 | |||
The difference between GAAP and non-GAAP gross margin was 0.5% and 0.5%, or $0.3 million and $0.3 million, for the three months ended April 30, 2021 and April 30, 2020, respectively. The differences were due to the effect of stock-based compensation.
| AMBARELLA, INC. | |||||||
| RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS PER SHARE | |||||||
| (in thousands, except share and per share data) | |||||||
| Three Months Ended April 30, | |||||||
| 2021 | 2020 | ||||||
| (unaudited) | |||||||
| GAAP net loss | $ | (10,818 | ) | $ | (15,463 | ) | |
| Non-GAAP adjustments: | |||||||
| Stock-based compensation expense | 18,842 | 16,036 | |||||
| Income tax effect | 899 | 748 | |||||
| Non-GAAP net income | $ | 8,923 | $ | 1,321 | |||
| GAAP - diluted weighted average shares | 35,940,304 | 34,080,330 | |||||
| Non-GAAP - diluted weighted average shares | 38,081,315 | 35,174,372 | |||||
| GAAP - diluted net loss per share | $ | (0.30 | ) | $ | (0.45 | ) | |
| Non-GAAP adjustments: | |||||||
| Stock-based compensation expense | 0.52 | 0.47 | |||||
| Income tax effect | 0.03 | 0.02 | |||||
| Effect of Non-GAAP - diluted weighted average shares | (0.02 | ) | — | ||||
| Non-GAAP - diluted net income per share | $ | 0.23 | $ | 0.04 | |||
