Doximity Announces Fiscal 2025 Second Quarter Financial Results

Total revenues of $136.8 million, up 20% year-over-year Net income growth of 44% and adjusted EBITDA growth of 41% year-over-year

Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results of its fiscal 2025 second quarter ended September 30, 2024.

“Our clinical workflow tools saw record use in Q2 with over 600,000 unique active prescribers,” said Jeff Tangney, co-founder and CEO of Doximity. “We’re proud to help physicians save time, so they can provide better care for their patients.”

Fiscal 2025 Second Quarter Financial Highlights

All comparisons, unless otherwise noted, are to the three months ended September 30, 2023.

• Revenue: Revenue of $136.8 million, versus $113.6 million, an increase of 20% year-over-year.
• Net income and non-GAAP net income: Net income of $44.2 million, versus $30.6 million, representing a margin of 32.3%, versus 26.9%. Non-GAAP net income of $61.1 million, versus $45.6 million, representing a margin of 44.7%, versus 40.1%.
• Adjusted EBITDA: Adjusted EBITDA of $76.1 million, versus $54.2 million, an increase of 41% year-over-year, representing adjusted EBITDA margins of 55.7%, versus 47.7%.
• Diluted net income per share and non-GAAP diluted net income per share: Diluted net income per share was $0.22, versus $0.15, while non-GAAP diluted net income per share was $0.30, versus $0.22.
• Operating cash flow and free cash flow: Operating cash flow of $68.3 million, versus $12.9 million, an increase of 430% year-over-year, and free cash flow of $66.8 million, versus $11.6 million, an increase of 475% year-over-year.

Financial Outlook

Doximity is providing guidance for its fiscal third quarter ending December 31, 2024 as follows:

• Revenue between $152 million and $153 million.
• Adjusted EBITDA between $83 million and $84 million.

Doximity is updating guidance for its fiscal year ending March 31, 2025 as follows:

• Revenue between $535 million and $540 million.
• Adjusted EBITDA between $274 million and $279 million.

Conference Call Information

Doximity posted prepared remarks on its investor relations website at https://investors.doximity.com. Doximity will host a webcast today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss these financial results. To listen to a live audio webcast, please visit the Company’s Investor Relations page at https://investors.doximity.com. The archived webcast will be available on the Company’s Investor Relations page shortly after the call.

About Doximity

Founded in 2010, Doximity is the leading digital platform for U.S. medical professionals. The company's network members include more than 80% of U.S. physicians across all specialties and practice areas. Doximity provides its verified clinical membership with digital tools built for medicine, enabling them to collaborate with colleagues, stay up to date with the latest medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits. Doximity's mission is to help doctors be more productive so they can provide better care for their patients.

Forward-Looking Statements

Statements we make in this press release may include statements which are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations, or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors including (i) the timing and scope of anticipated stock repurchases; (ii) the impact of uncertainty in the current economic environment and macroeconomic uncertainty; (iii) our ability to retain existing members or add new members to our platform and maintain or grow their engagement with our platform; (iv) our ability to attract new customers or retain existing customers; (v) the impact of our prioritization of our members’ interests; (vi) breaches in our security measures or unauthorized access to members’ data; (vii) our ability to maintain or manage our growth, and other risks and factors that are beyond our control including, without limitation, those set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024 and as may be updated in any subsequent Quarterly Reports on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements. The forward-looking statements made in this press release relate only to management’s beliefs and assumptions as of this date. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

DOXIMITY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

September 30, 2024

 

March 31, 2024

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

184,248

 

$

96,785

 

Marketable securities

 

621,310

 

 

666,115

 

Accounts receivable, net

 

124,793

 

 

101,332

 

Prepaid expenses and other current assets

 

27,361

 

 

48,709

 

Total current assets

 

957,712

 

 

912,941

 

Property and equipment, net

 

12,818

 

 

12,318

 

Deferred income tax assets

 

43,761

 

 

45,068

 

Operating lease right-of-use assets

 

9,774

 

 

12,332

 

Intangible assets, net

 

25,195

 

 

27,317

 

Goodwill

 

67,940

 

 

67,940

 

Other assets

 

1,316

 

 

1,458

 

Total assets

$

1,118,516

 

$

1,079,374

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

2,770

 

$

2,253

 

Accrued expenses and other current liabilities

 

33,540

 

 

43,703

 

Deferred revenue, current

 

93,751

 

 

99,145

 

Operating lease liabilities, current

 

2,222

 

 

2,149

 

Total current liabilities

 

132,283

 

 

147,250

 

Deferred revenue, non-current

 

148

 

 

211

 

Operating lease liabilities, non-current

 

11,269

 

 

12,397

 

Contingent earn-out consideration liability, non-current

 

5,469

 

 

10,895

 

Other liabilities, non-current

 

8,151

 

 

7,224

 

Total liabilities

 

157,320

 

 

177,977

 

Stockholders' Equity

 

 

 

Preferred stock

 

—

 

 

—

 

Common stock

 

187

 

 

187

 

Additional paid-in capital

 

863,113

 

 

823,885

 

Accumulated other comprehensive income (loss)

 

2,676

 

 

(2,664

)

Retained earnings

 

95,220

 

 

79,989

 

Total stockholders’ equity

 

961,196

 

 

901,397

 

Total liabilities and stockholders’ equity

$

1,118,516

 

$

1,079,374

 

DOXIMITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

Revenue

$

136,832

 

$

113,612

 

$

263,508

 

$

222,081

Cost of revenue(1)

 

13,676

 

 

12,759

 

 

27,226

 

 

25,912

Gross profit

 

123,156

 

 

100,853

 

 

236,282

 

 

196,169

Operating expenses(1):

 

 

 

 

 

 

 

Research and development

 

23,240

 

 

19,958

 

 

45,814

 

 

41,889

Sales and marketing

 

34,367

 

 

30,201

 

 

69,611

 

 

64,656

General and administrative

 

10,103

 

 

8,966

 

 

19,358

 

 

18,213

Restructuring and impairment charge

 

2,304

 

 

7,936

 

 

2,304

 

 

7,936

Total operating expenses

 

70,014

 

 

67,061

 

 

137,087

 

 

132,694

Income from operations

 

53,142

 

 

33,792

 

 

99,195

 

 

63,475

Other income, net

 

9,029

 

 

5,903

 

 

16,145

 

 

10,742

Income before income taxes

 

62,171

 

 

39,695

 

 

115,340

 

 

74,217

Provision for income taxes

 

18,017

 

 

9,093

 

 

29,809

 

 

15,209

Net income

$

44,154

 

$

30,602

 

$

85,531

 

$

59,008

Net income per share attributable to Class A and Class B common stockholders:

 

 

 

 

 

 

 

Basic

$

0.24

 

$

0.16

 

$

0.46

 

$

0.30

Diluted

$

0.22

 

$

0.15

 

$

0.43

 

$

0.28

Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:

 

 

 

 

 

 

 

Basic

 

186,252

 

 

193,112

 

 

185,933

 

 

193,813

Diluted

 

200,407

 

 

209,014

 

 

199,818

 

 

210,681

(1) Costs and expenses include stock-based compensation expense as follows (in thousands):

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

Cost of revenue

$

2,661

 

$

2,278

 

$

5,555

 

$

4,739

Research and development

 

5,447

 

 

2,538

 

 

10,131

 

 

5,794

Sales and marketing

 

6,808

 

 

2,697

 

 

13,394

 

 

8,692

General and administrative

 

2,952

 

 

2,288

 

 

5,878

 

 

4,577

Restructuring

 

—

 

 

3,646

 

 

—

 

 

3,646

Total stock-based compensation expense

$

17,868

 

$

13,447

 

$

34,958

 

$

27,448

DOXIMITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

Cash flows from operating activities

 

 

 

 

 

 

 

Net income

$

44,154

 

 

$

30,602

 

 

$

85,531

 

 

$

59,008

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

2,613

 

 

 

2,604

 

 

 

5,175

 

 

 

5,208

 

Deferred income taxes

 

204

 

 

 

—

 

 

 

204

 

 

 

—

 

Stock-based compensation, net of amounts capitalized

 

17,868

 

 

 

13,447

 

 

 

34,958

 

 

 

27,448

 

Non-cash lease expense

 

470

 

 

 

540

 

 

 

951

 

 

 

1,077

 

Accretion of discount on marketable securities, net

 

(3,008

)

 

 

(1,495

)

 

 

(5,368

)

 

 

(1,794

)

Amortization of deferred contract costs

 

2,033

 

 

 

2,063

 

 

 

4,759

 

 

 

4,730

 

Impairment of long-lived assets

 

2,304

 

 

 

—

 

 

 

2,304

 

 

 

—

 

Other

 

414

 

 

 

6

 

 

 

(122

)

 

 

127

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(4,106

)

 

 

(4,388

)

 

 

(23,478

)

 

 

9,644

 

Prepaid expenses and other assets

 

9,488

 

 

 

(13,093

)

 

 

19,948

 

 

 

(10,504

)

Deferred contract costs

 

(1,785

)

 

 

(1,238

)

 

 

(3,216

)

 

 

(2,448

)

Accounts payable, accrued expenses and other liabilities

 

7,396

 

 

 

(8,740

)

 

 

(5,546

)

 

 

(8,063

)

Deferred revenue

 

(9,161

)

 

 

(6,831

)

 

 

(5,457

)

 

 

(13,753

)

Operating lease liabilities

 

(538

)

 

 

(579

)

 

 

(1,054

)

 

 

(582

)

Net cash provided by operating activities

 

68,346

 

 

 

12,898

 

 

 

109,589

 

 

 

70,098

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchases of property and equipment

 

—

 

 

 

(41

)

 

 

—

 

 

 

(111

)

Internal-use software development costs

 

(1,543

)

 

 

(1,238

)

 

 

(3,247

)

 

 

(2,732

)

Purchases of marketable securities

 

(197,395

)

 

 

(144,942

)

 

 

(367,808

)

 

 

(180,226

)

Maturities of marketable securities

 

215,855

 

 

 

96,119

 

 

 

417,913

 

 

 

212,768

 

Sales of marketable securities

 

7,241

 

 

 

—

 

 

 

7,241

 

 

 

37,525

 

Net cash provided by (used in) investing activities

 

24,158

 

 

 

(50,102

)

 

 

54,099

 

 

 

67,224

 

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from issuance of common stock upon exercise of stock options and common stock warrants

 

7,692

 

 

 

3,933

 

 

 

10,243

 

 

 

7,218

 

Proceeds from issuance of common stock in connection with the employee stock purchase plan

 

1,422

 

 

 

1,494

 

 

 

1,422

 

 

 

1,494

 

Taxes paid related to net share settlement of equity awards

 

(5,828

)

 

 

(2,120

)

 

 

(8,222

)

 

 

(4,084

)

Repurchase of common stock

 

(22,984

)

 

 

(164,429

)

 

 

(74,198

)

 

 

(186,184

)

Payment of contingent consideration related to a business combination

 

—

 

 

 

—

 

 

 

(5,470

)

 

 

(5,390

)

Net cash used in financing activities

 

(19,698

)

 

 

(161,122

)

 

 

(76,225

)

 

 

(186,946

)

Net increase (decrease) in cash and cash equivalents

 

72,806

 

 

 

(198,326

)

 

 

87,463

 

 

 

(49,624

)

Cash and cash equivalents, beginning of period

 

111,442

 

 

 

306,729

 

 

 

96,785

 

 

 

158,027

 

Cash and cash equivalents, end of period

$

184,248

 

 

$

108,403

 

 

$

184,248

 

 

$

108,403

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

Cash paid for taxes, net of refunds

$

9,078

 

 

$

29,438

 

 

$

21,985

 

 

$

29,438

 

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company uses the following non-GAAP measures of financial performance:

• Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP net income, non-GAAP net income margin, and non-GAAP basic and diluted net income per common share: We exclude the effect of stock-based compensation expense, amortization of acquired intangible assets, change in fair value of contingent earn-out consideration liability, and restructuring and impairment charge from non-GAAP gross profit, non-GAAP gross margin and non-GAAP operating income. Non-GAAP net income and non-GAAP net income margin are further adjusted for estimated income tax on such adjustments. We calculate income taxes on the adjustments by applying an estimated annual effective tax rate to the adjustments. Non-GAAP basic and diluted net income per common share is non-GAAP net income attributable to common stockholders divided by the weighted average number of shares. For both basic and diluted non-GAAP net income per share, the weighted average shares we use in computing non-GAAP net income per share is equal to our GAAP weighted average shares. Non-GAAP gross margin represents non-GAAP gross profit as a percentage of revenue and non-GAAP net income margin represents non-GAAP net income as a percentage of revenue.

• Adjusted EBITDA and adjusted EBITDA margin: We define adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization, and as further adjusted for stock-based compensation expense, change in fair value of contingent earn-out consideration liability, restructuring and impairment charge, and other income, net. Net income margin represents net income as a percentage of revenue and adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.

• Free cash flow: We calculate free cash flow as cash flow from operating activities less purchases of property and equipment and internal-use software development costs.

We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results.

Key Business Metrics

• Net revenue retention rate: Net revenue retention rate is calculated by taking the trailing 12-month (“TTM”) subscription-based revenue from our customers that had revenue in the prior TTM period and dividing that by the total subscription-based revenue for the prior TTM period. For the purposes of this calculation, subscription revenue excludes subscriptions for individuals and small practices and other non-recurring items. Our net revenue retention rate compares our subscription revenue from the same set of customers across comparable periods, and reflects customer renewals, expansion, contraction, and churn. Our net revenue retention rate is directly tied to our revenue growth rate and thus fluctuates as that growth rate fluctuates.

• Customers with trailing 12-month subscription revenue greater than $500,000: The number of customers with TTM subscription revenue greater than $500,000 is a key indicator of the scale of our business, and is calculated by counting the number of customers that contributed more than $500,000 in subscription revenue in the TTM period. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity, and we present our total customer count for historical periods reflecting these adjustments.

Reconciliation of GAAP to Non-GAAP Financial Measures

The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

 

(unaudited)

 

(in thousands, except percentages)

Net income

$

44,154

 

 

$

30,602

 

 

$

85,531

 

 

$

59,008

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation

 

17,868

 

 

 

9,801

 

 

 

34,958

 

 

 

23,802

 

Depreciation and amortization

 

2,613

 

 

 

2,604

 

 

 

5,175

 

 

 

5,208

 

Provision for income taxes

 

18,017

 

 

 

9,093

 

 

 

29,809

 

 

 

15,209

 

Restructuring and impairment charge

 

2,304

 

 

 

7,936

 

 

 

2,304

 

 

 

7,936

 

Change in fair value of contingent earn-out consideration liability

 

221

 

 

 

47

 

 

 

423

 

 

 

316

 

Other income, net

 

(9,029

)

 

 

(5,903

)

 

 

(16,145

)

 

 

(10,742

)

Adjusted EBITDA

$

76,148

 

 

$

54,180

 

 

$

142,055

 

 

$

100,737

 

 

 

 

 

 

 

 

 

Revenue

$

136,832

 

 

$

113,612

 

 

$

263,508

 

 

$

222,081

 

Net income margin

 

32.3

%

 

 

26.9

%

 

 

32.5

%

 

 

26.6

%

Adjusted EBITDA margin

 

55.7

%

 

 

47.7

%

 

 

53.9

%

 

 

45.4

%

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

 

(unaudited)

 

(in thousands)

Net cash provided by operating activities

$

68,346

 

 

$

12,898

 

 

$

109,589

 

 

$

70,098

 

Purchases of property and equipment

 

—

 

 

 

(41

)

 

 

—

 

 

 

(111

)

Internal-use software development costs

 

(1,543

)

 

 

(1,238

)

 

 

(3,247

)

 

 

(2,732

)

Free cash flow

$

66,803

 

 

$

11,619

 

 

$

106,342

 

 

$

67,255

 

Other cash flow components:

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

$

24,158

 

 

$

(50,102

)

 

$

54,099

 

 

$

67,224

 

Net cash used in financing activities

$

(19,698

)

 

$

(161,122

)

 

$

(76,225

)

 

$

(186,946

)

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

 

(unaudited)

 

(in thousands, except per share data and percentages)

GAAP cost of revenue

$

13,676

 

 

$

12,759

 

 

$

27,226

 

 

$

25,912

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation

 

(2,661

)

 

 

(2,278

)

 

 

(5,555

)

 

 

(4,739

)

Amortization of acquired intangibles

 

—

 

 

 

(137

)

 

 

—

 

 

 

(274

)

Non-GAAP cost of revenue

$

11,015

 

 

$

10,344

 

 

$

21,671

 

 

$

20,899

 

 

 

 

 

 

 

 

 

GAAP gross profit

$

123,156

 

 

$

100,853

 

 

$

236,282

 

 

$

196,169

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation

 

2,661

 

 

 

2,278

 

 

 

5,555

 

 

 

4,739

 

Amortization of acquired intangibles

 

—

 

 

 

137

 

 

 

—

 

 

 

274

 

Non-GAAP gross profit

$

125,817

 

 

$

103,268

 

 

$

241,837

 

 

$

201,182

 

 

 

 

 

 

 

 

 

GAAP gross margin

 

90.0

%

 

 

88.8

%

 

 

89.7

%

 

 

88.3

%

Non-GAAP gross margin

 

91.9

%

 

 

90.9

%

 

 

91.8

%

 

 

90.6

%

 

 

 

 

 

 

 

 

GAAP research and development expense

$

23,240

 

 

$

19,958

 

 

$

45,814

 

 

$

41,889

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation

 

(5,447

)

 

 

(2,538

)

 

 

(10,131

)

 

 

(5,794

)

Non-GAAP research and development expense

$

17,793

 

 

$

17,420

 

 

$

35,683

 

 

$

36,095

 

 

 

 

 

 

 

 

 

GAAP sales and marketing expense

$

34,367

 

 

$

30,201

 

 

$

69,611

 

 

$

64,656

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation

 

(6,808

)

 

 

(2,697

)

 

 

(13,394

)

 

 

(8,692

)

Amortization of acquired intangibles

 

(1,061

)

 

 

(1,061

)

 

 

(2,122

)

 

 

(2,122

)

Change in fair value of contingent earn-out consideration liability

 

(221

)

 

 

(47

)

 

 

(423

)

 

 

(316

)

Non-GAAP sales and marketing expense

$

26,277

 

 

$

26,396

 

 

$

53,672

 

 

$

53,526

 

 

 

 

 

 

 

 

 

GAAP general and administrative expense

$

10,103

 

 

$

8,966

 

 

$

19,358

 

 

$

18,213

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation

 

(2,952

)

 

 

(2,288

)

 

 

(5,878

)

 

 

(4,577

)

Non-GAAP general and administrative expense

$

7,151

 

 

$

6,678

 

 

$

13,480

 

 

$

13,636

 

 

 

 

 

 

 

 

 

GAAP operating expense

$

70,014

 

 

$

67,061

 

 

$

137,087

 

 

$

132,694

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation

 

(15,207

)

 

 

(7,523

)

 

 

(29,403

)

 

 

(19,063

)

Amortization of acquired intangibles

 

(1,061

)

 

 

(1,061

)

 

 

(2,122

)

 

 

(2,122

)

Change in fair value of contingent earn-out consideration liability

 

(221

)

 

 

(47

)

 

 

(423

)

 

 

(316

)

Restructuring and impairment charge

 

(2,304

)

 

 

(7,936

)

 

 

(2,304

)

 

 

(7,936

)

Non-GAAP operating expense

$

51,221

 

 

$

50,494

 

 

$

102,835

 

 

$

103,257

 

 

 

 

 

 

 

 

 

GAAP operating income

$

53,142

 

 

$

33,792

 

 

$

99,195

 

 

$

63,475

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation

 

17,868

 

 

 

9,801

 

 

 

34,958

 

 

 

23,802

 

Amortization of acquired intangibles

 

1,061

 

 

 

1,198

 

 

 

2,122

 

 

 

2,396

 

Change in fair value of contingent earn-out consideration liability

 

221

 

 

 

47

 

 

 

423

 

 

 

316

 

Restructuring and impairment charge

 

2,304

 

 

 

7,936

 

 

 

2,304

 

 

 

7,936

 

Non-GAAP operating income

$

74,596

 

 

$

52,774

 

 

$

139,002

 

 

$

97,925

 

 

 

 

 

 

 

 

 

GAAP net income

$

44,154

 

 

$

30,602

 

 

$

85,531

 

 

$

59,008

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Stock-based compensation

 

17,868

 

 

 

9,801

 

 

 

34,958

 

 

 

23,802

 

Amortization of acquired intangibles

 

1,061

 

 

 

1,198

 

 

 

2,122

 

 

 

2,396

 

Change in fair value of contingent earn-out consideration liability

 

221

 

 

 

47

 

 

 

423

 

 

 

316

 

Restructuring and impairment charge

 

2,304

 

 

 

7,936

 

 

 

2,304

 

 

 

7,936

 

Income tax effect of non-GAAP adjustments (1)

 

(4,505

)

 

 

(3,986

)

 

 

(8,359

)

 

 

(7,235

)

Non-GAAP net income

$

61,103

 

 

$

45,598

 

 

$

116,979

 

 

$

86,223

 

Non-GAAP net income margin

 

44.7

%

 

 

40.1

%

 

 

44.4

%

 

 

38.8

%

 

 

 

 

 

 

 

 

Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders:

 

 

 

 

 

 

 

Basic

 

186,252

 

 

 

193,112

 

 

 

185,933

 

 

 

193,813

 

Diluted

 

200,407

 

 

 

209,014

 

 

 

199,818

 

 

 

210,681

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share attributable to Class A and Class B stockholders:

 

 

 

 

 

 

 

Basic

$

0.33

 

 

$

0.24

 

 

$

0.63

 

 

$

0.44

 

Diluted

$

0.30

 

 

$

0.22

 

 

$

0.59

 

 

$

0.41

 

(1) For the three and six months ended September 30, 2024 and 2023, management used an estimated annual effective non-GAAP tax rate of 21.0%.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107362244/en/

Investor Relations Contact: Perry Gold [e-mail]

Media Contact: Amanda Cox [e-mail]