| (1) | The Company uses a non-GAAP effective tax rate of 26%. |
| (2) | The three months ended September 30, 2023, includes a $3.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition and $2.8 million of currency losses on acquisition-related intercompany loans. The three months ended September 30, 2022, includes $6.8 million of currency losses on acquisition-related intercompany loans, and a $2.2 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition. The nine months ended September 30, 2023, includes a $4.5 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition and $0.3 million of currency gains on acquisition-related intercompany loans. The nine months ended September 30, 2022, includes $16.6 million expense on repurchase of convertible senior notes, $13.7 million currency losses on acquisition-related intercompany loans and a $7.5 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
September 30, |
Nine Months Ended
September 30, | ||||||||||||||
| (in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Net loss | $ | (4,362 | ) | $ | (33,248 | ) | $ | (28,601 | ) | $ | (55,494 | ) | |||
| Income tax (benefit) expense | (6,541 | ) | 4,579 | 11,369 | 15,008 | ||||||||||
| Stock-based compensation expense | 20,526 | 22,710 | 66,423 | 62,524 | |||||||||||
| Interest expense | 1,529 | 1,566 | 4,583 | 2,851 | |||||||||||
| Depreciation and amortization | 9,783 | 8,273 | 29,271 | 24,092 | |||||||||||
| Special adjustments, interest income and other(1) | (5,481 | ) | 2,949 | (7,480 | ) | 20,878 | |||||||||
| Adjusted EBITDA | $ | 15,454 | $ | 6,829 | $ | 75,565 | $ | 69,859 | |||||||
