| (1) | The Company uses a non-GAAP effective tax rate of 26%. |
| (2) | The year ending December 31, 2023, includes $4.5 million loss from a mark-to-market adjustment of contingent consideration associated with the World Programming acquisition and $0.3 million currency gains on acquisition-related intercompany loans. |
The following table provides a reconciliation of projected Adjusted EBITDA to projected net income (loss), the most comparable GAAP financial measure:
| (Unaudited) | |||||||||||||||
|
Three Months Ending
December 31, 2023 |
Year Ending
December 31, 2023 | ||||||||||||||
| (in thousands) | Low | High | Low | High | |||||||||||
| Net income (loss) | $ | 15,500 | $ | 21,300 | $ | (12,600 | ) | $ | (6,800 | ) | |||||
| Income tax expense | 4,900 | 5,100 | 16,300 | 16,500 | |||||||||||
| Stock-based compensation expense | 17,100 | 17,100 | 83,500 | 83,500 | |||||||||||
| Interest (income) expense | (3,000 | ) | (3,000 | ) | (10,100 | ) | (10,100 | ) | |||||||
| Depreciation and amortization | 9,500 | 9,500 | 38,700 | 38,700 | |||||||||||
| Special adjustments and other(1) | — | — | 4,200 | 4,200 | |||||||||||
| Adjusted EBITDA | $ | 44,000 | $ | 50,000 | $ | 120,000 | $ | 126,000 | |||||||
