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
December 31, |
Twelve Months Ended
December 31, | |||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net cash provided by operating activities(1) | $ | 13,036 | $ | 6,029 | $ | 39,570 | $ | 61,623 | ||||||||
| Capital expenditures | (2,927 | ) | (1,038 | ) | (9,648 | ) | (7,849 | ) | ||||||||
| Free Cash Flow(1) | $ | 10,109 | $ | 4,991 | $ | 29,922 | $ | 53,774 | ||||||||
(1) The twelve months ended December 31, 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 profit margin (gross profit as a percentage of total revenue) the most comparable GAAP financial measure:
| (Unaudited) | ||||||||||||||||
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, | |||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Gross profit | $ | 126,579 | $ | 108,000 | $ | 449,332 | $ | 402,513 | ||||||||
| Stock-based compensation expense | 2,086 | 1,828 | 8,351 | 5,619 | ||||||||||||
| Restructuring expense | — | 99 | — | 1,025 | ||||||||||||
| Non-GAAP gross profit | $ | 128,665 | $ | 109,927 | $ | 457,683 | $ | 409,157 | ||||||||
| Gross profit margin | 78.9 | % | 76.7 | % | 78.5 | % | 75.6 | % | ||||||||
| Non-GAAP gross margin | 80.2 | % | 78.1 | % | 80.0 | % | 76.9 | % | ||||||||
The following table provides a reconciliation of Non-GAAP operating expense to Total operating expense, the most comparable GAAP financial measure:
