The difference between GAAP and non-GAAP gross margin was 1.4% and 0.5%, or $1.1 million and $0.4 million, for the three months ended July 31, 2022 and July 31, 2021, respectively. The difference between GAAP and non-GAAP gross margin was 1.3% and 0.5%, or $2.2 million and $0.7 million, for the six months ended July 31, 2022 and July 31, 2021, respectively. The differences were due to the effect of stock-based compensation and the amortization of acquisition-related costs.
| AMBARELLA, INC. | |||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS (LOSSES) PER SHARE | |||||||||||||||
| (in thousands, except share and per share data) | |||||||||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| (unaudited) | |||||||||||||||
| GAAP net loss | $ | (23,650 | ) | $ | (7,156 | ) | $ | (34,472 | ) | $ | (17,974 | ) | |||
| Non-GAAP adjustments: | |||||||||||||||
| Stock-based compensation expense | 26,909 | 19,372 | 53,950 | 38,214 | |||||||||||
| Acquisition-related costs | 1,279 | — | 2,572 | — | |||||||||||
| Income tax effect | 3,075 | 932 | 2,629 | 1,831 | |||||||||||
| Non-GAAP net income | $ | 7,613 | $ | 13,148 | $ | 24,679 | $ | 22,071 | |||||||
| GAAP - diluted weighted average shares | 38,258,341 | 36,442,536 | 37,986,839 | 36,191,420 | |||||||||||
| Non-GAAP - diluted weighted average shares | 38,809,422 | 38,044,906 | 38,905,976 | 38,063,110 | |||||||||||
| GAAP - diluted net loss per share | $ | (0.62 | ) | $ | (0.20 | ) | $ | (0.91 | ) | $ | (0.50 | ) | |||
| Non-GAAP adjustments: | |||||||||||||||
| Stock-based compensation expense | 0.71 | 0.53 | 1.42 | 1.06 | |||||||||||
| Acquisition-related costs | 0.03 | — | 0.07 | — | |||||||||||
| Income tax effect | 0.08 | 0.03 | 0.07 | 0.05 | |||||||||||
| Effect of Non-GAAP - diluted weighted average shares | — | (0.01 | ) | (0.02 | ) | (0.03 | ) | ||||||||
| Non-GAAP - diluted net income per share | $ | 0.20 | $ | 0.35 | $ | 0.63 | $ | 0.58 | |||||||
