| Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||
| (unaudited, in thousands) | |||||||||||
| Restructuring expense: | |||||||||||
| Cost of revenue | $ | 66 | $ | — | $ | 66 | $ | — | |||
| Research and development | 672 | — | 672 | — | |||||||
| Selling, general and administrative | 114 | — | 114 | — | |||||||
| Total restructuring expense | $ | 852 | $ | — | $ | 852 | $ | — | |||
The difference between GAAP and non-GAAP gross margin was 3.3% and 1.3%, or $1.7 million and $1.1 million, for the three months ended October 31, 2023 and October 31, 2022, respectively. The difference between GAAP and non-GAAP gross margin was 2.9% and 1.4%, or $5.0 million and $3.3 million, for the nine months ended October 31, 2023 and October 31, 2022, respectively. The differences were due to the effect of stock-based compensation, amortization of acquisition-related costs and restructuring expense.
| AMBARELLA, INC. | |||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS (LOSSES) PER SHARE | |||||||||||||||
| (in thousands, except share and per share data) | |||||||||||||||
| Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| (unaudited) | |||||||||||||||
| GAAP net loss | $ | (41,710 | ) | $ | (19,809 | ) | $ | (108,810 | ) | $ | (54,281 | ) | |||
| Non-GAAP adjustments: | |||||||||||||||
| Stock-based compensation expense | 27,409 | 28,101 | 82,796 | 82,051 | |||||||||||
| Acquisition-related costs | 1,277 | 1,277 | 3,831 | 3,849 | |||||||||||
| Restructuring expense | 852 | — | 852 | — | |||||||||||
| Income tax effect | 994 | (104 | ) | (1,910 | ) | 2,525 | |||||||||
| Non-GAAP net income (loss) | $ | (11,178 | ) | $ | 9,465 | $ | (23,241 | ) | $ | 34,144 | |||||
| GAAP - diluted weighted average shares | 40,053,251 | 38,582,584 | 39,710,248 | 38,185,421 | |||||||||||
| Non-GAAP - diluted weighted average shares | 40,053,251 | 39,090,050 | 39,710,248 | 38,967,335 | |||||||||||
| GAAP - diluted net loss per share | $ | (1.04 | ) | $ | (0.51 | ) | $ | (2.74 | ) | $ | (1.42 | ) | |||
| Non-GAAP adjustments: | |||||||||||||||
| Stock-based compensation expense | 0.68 | 0.73 | 2.08 | 2.15 | |||||||||||
| Acquisition-related costs | 0.03 | 0.03 | 0.10 | 0.10 | |||||||||||
| Restructuring expense | 0.02 | — | 0.02 | — | |||||||||||
| Income tax effect | 0.03 | — | (0.05 | ) | 0.07 | ||||||||||
| Effect of Non-GAAP - diluted weighted average shares | — | (0.01 | ) | — | (0.02 | ) | |||||||||
| Non-GAAP - diluted net income (loss) per share | $ | (0.28 | ) | $ | 0.24 | $ | (0.59 | ) | $ | 0.88 | |||||
