| (1) | The Company uses a non-GAAP effective tax rate of 26%. |
| (2) | 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 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 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 Adjusted EBITDA to net loss, the most comparable GAAP financial measure:
| (Unaudited) | |||||||||||||||
|
Three Months Ended
June 30, |
Six Months Ended
June 30, | ||||||||||||||
| (in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Net loss | $ | (22,280 | ) | $ | (33,774 | ) | $ | (24,239 | ) | $ | (22,246 | ) | |||
| Income tax expense | 8,678 | 3,899 | 17,910 | 10,429 | |||||||||||
| Stock-based compensation expense | 23,736 | 21,200 | 45,897 | 39,814 | |||||||||||
| Interest expense | 1,528 | 700 | 3,054 | 1,285 | |||||||||||
| Depreciation and amortization | 9,738 | 8,133 | 19,488 | 15,819 | |||||||||||
| Special adjustments, interest income and other(1) | (4,344 | ) | 16,282 | (1,999 | ) | 17,929 | |||||||||
| Adjusted EBITDA | $ | 17,056 | $ | 16,440 | $ | 60,111 | $ | 63,030 | |||||||
