Get Cash Back and $0 Commissions + The Power of TradeStation
Tenable Announces Second Quarter 2024 Financial Results
Globe Newswire 31-Jul-2024 4:05 PM
Revenue of $221.2 million, up 13% year-over-year.
Calculated current billings of $221.1 million, up 10% year-over-year.
GAAP operating margin of (4)%; Non-GAAP operating margin of 19%.
Net cash provided by operating activities of $31.4 million; Unlevered free cash flow of $36.5 million.
COLUMBIA, Md., July 31, 2024 (GLOBE NEWSWIRE) -- Tenable Holdings, Inc. ("Tenable") (NASDAQ:TENB), the Exposure Management company, today announced financial results for the quarter ended June 30, 2024.
"We delivered better-than-expected revenue, operating income and unlevered cash flow in Q2," said Amit Yoran, Chairman and CEO of Tenable. "Despite lower-than-expected CCB, we saw tremendous momentum in our newer products, specifically Tenable Cloud Security and Tenable One. As we have expanded our offerings, Tenable has become a trusted source of truth for understanding and managing exposure and risk."
Second Quarter2024 Financial Highlights
Revenue was $221.2 million, a 13% increase year-over-year.
Calculated current billings was $221.1 million, a 10% increase year-over-year.
GAAP loss from operations was $8.8 million, compared to $10.7 million in the second quarter of 2023.
Non-GAAP income from operations was $42.8 million, compared to $30.2 million in the second quarter of 2023.
GAAP net loss was $14.6 million, compared to $16.0 million in the second quarter of 2023.
GAAP net loss per share was $0.12, compared to $0.14 in the second quarter of 2023.
Non-GAAP net income was $38.2 million, compared to $26.3 million in the second quarter of 2023.
Non-GAAP diluted earnings per share was $0.31, compared to $0.22 in the second quarter of 2023.
Cash and cash equivalents and short-term investments were $487.0 million at June 30, 2024, compared to $474.0 million at December 31, 2023.
Net cash provided by operating activities was $31.4 million, compared to $30.2 million in the second quarter of 2023.
Unlevered free cash flow was $36.5 million, compared to $39.8 million in the second quarter of 2023.
Repurchased 0.6 million shares of our common stock for $25.0 million.
Recent Business Highlights
Added 408 new enterprise platform customers and 76 net new six-figure customers.
Acquired Eureka Security, a provider of data security posture management (DSPM) for cloud environments, to provide a holistic view of an organization's cloud data security footprint, to fight policy drift and misconfigurations, and to continuously improve their security posture over time.
Formed a strategic alliance with Deloitte to enable customers to harness the power of proactive security and remove noise by delivering a unified view of their attack surfaces for both cloud and on-prem.
Expanded availability of Tenable Cloud Security and Tenable Vulnerability Management to Amazon Web Services in Abu Dhabi.
Recognized as an AI 100 company by CRN.
Financial Outlook
For the third quarter of 2024, we currently expect:
Revenue in the range of $222.0 million to $224.0 million.
Non-GAAP income from operations in the range of $42.0 million to $44.0 million.
Non-GAAP net income in the range of $35.0 million to $37.0 million, assuming interest expense of $8.3 million, interest income of $5.7 million and a provision for income taxes of $3.8 million.
Non-GAAP diluted earnings per share in the range of $0.28 to $0.30.
123.0 million diluted weighted average shares outstanding.
For the year ending December 31, 2024, we currently expect:
Calculated current billings in the range of $957.0 million to $967.0 million.
Revenue in the range of $889.0 million to $895.0 million.
Non-GAAP income from operations in the range of $167.0 million to $171.0 million.
Non-GAAP net income in the range of $143.0 million to $147.0 million, assuming interest expense of $32.7 million, interest income of $23.5 million and a provision for income taxes of $12.8 million.
Non-GAAP diluted earnings per share in the range of $1.16 to $1.19.
123.5 million diluted weighted average shares outstanding.
Unlevered free cash flow in the range of $225.0 million to $235.0 million.
Conference Call Information
Tenable will host a conference call on July 31, 2024 at 4:30 p.m. Eastern Time to discuss its financial results. The conference call can be accessed at 877-407-9716 (U.S.) and 201-493-6779 (international). A live webcast of the event will be available on the Tenable Investor Relations website at https://investors.tenable.com. An archived replay of the live broadcast will be available on the Investor Relations page of the website following the call.
About Tenable
Tenable® is the Exposure Management company. Approximately 44,000 organizations around the globe rely on Tenable to understand and reduce cyber risk. As the creator of Nessus®, Tenable extended its expertise in vulnerabilities to deliver the world's first platform to see and secure any digital asset on any computing platform. Tenable customers include approximately 65 percent of the Fortune 500, approximately 50 percent of the Global 2000, and large government agencies. Learn more at tenable.com.
This press release includes forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "will" and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. These risks and uncertainties are detailed in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023 as well as other filings that we make from time to time with the SEC, which are available on the SEC's website at sec.gov. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements subsequent to the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance the overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by management for financial and operational decision-making. We include these non-GAAP financial measures to present our financial performance using a management view and because we believe that these measures provide an additional comparison of our core financial performance over multiple periods with other companies in our industry.
Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.
Calculated Current Billings: We define calculated current billings, a non-GAAP financial measure, as total revenue recognized in a period plus the change in current deferred revenue in the corresponding period. We believe that calculated current billings is a key metric to measure our periodic performance. Given that most of our customers pay in advance (including multi-year contracts), but we generally recognize the related revenue ratably over time, we use calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. We believe that calculated current billings, which excludes deferred revenue for periods beyond twelve months in a customer's contractual term, more closely correlates with annual contract value and that the variability in total billings, depending on the timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort growth in one period over another.
Free Cash Flow and Unlevered Free Cash Flow: We define free cash flow, a non-GAAP financial measure, as net cash provided by operating activities less purchases of property and equipment and capitalized software development costs. We believe free cash flow is an important liquidity measure of the cash that is available (if any), after purchases of property and equipment and capitalized software development costs, for investment in our business and to make acquisitions. We believe that free cash flow is useful as a liquidity measure because it measures our ability to generate or use cash. We define unlevered free cash flow as free cash flow plus cash paid for interest and other financing costs. We believe unlevered free cash flow is useful as a liquidity measure as it measures the cash that is available to invest in our business and meet our current debt obligations and future financing needs. However, given our debt obligations, non-cancelable commitments and other contractual obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses.
Non-GAAP Income from Operations and Non-GAAP Operating Margin: We define these non-GAAP financial measures as their respective GAAP measures, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses, costs related to the intra-entity asset transfers resulting from the internal restructuring of legal entities, and amortization of acquired intangible assets. Acquisition-related expenses include transaction and integration expenses, as well as costs related to the intercompany transfer of acquired intellectual property. Restructuring expenses include non-ordinary course severance, employee related benefits, and other charges. We believe that the exclusion of these expenses provides for a useful comparison of our operating results to prior periods and to our peer companies, which commonly exclude restructuring expenses.
Non-GAAP Net Income and Non-GAAP Earnings Per Share: We define non-GAAP net income as GAAP net loss, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses and amortization of acquired intangible assets, including the applicable tax impacts. In addition, we exclude the tax impact and related costs of intra-entity asset transfers resulting from the internal restructuring of legal entities as well as deferred income tax benefits recognized in connection with acquisitions. We use non-GAAP net income to calculate non-GAAP earnings per share.
Non-GAAP Gross Profit and Non-GAAP Gross Margin: We define non-GAAP gross profit as GAAP gross profit, excluding the effect of stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.
Non-GAAP Sales and Marketing Expense, Non-GAAP Research and Development Expense and Non-GAAP General and Administrative Expense: We define these non-GAAP measures as their respective GAAP measures, excluding stock-based compensation, acquisition-related expenses and costs related to intra-entity asset transfers resulting from the internal restructuring of legal entities.
TENABLE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands, except per share data)
2024
2023
2024
2023
Revenue
$
221,241
$
195,036
$
437,202
$
383,875
Cost of revenue(1)
48,798
43,514
97,730
89,020
Gross profit
172,443
151,522
339,472
294,855
Operating expenses:
Sales and marketing(1)
101,129
97,800
200,954
194,991
Research and development(1)
45,149
37,845
88,876
76,028
General and administrative(1)
30,302
26,622
61,320
53,737
Restructuring
4,681
—
6,070
—
Total operating expenses
181,261
162,267
357,220
324,756
Loss from operations
(8,818
)
(10,745
)
(17,748
)
(29,901
)
Interest income
5,974
6,566
11,598
11,661
Interest expense
(8,073
)
(7,750
)
(16,185
)
(15,089
)
Other income (expense), net
93
(944
)
(1,217
)
(1,491
)
Loss before income taxes
(10,824
)
(12,873
)
(23,552
)
(34,820
)
Provision for income taxes
3,748
3,101
5,406
6,251
Net loss
$
(14,572
)
$
(15,974
)
$
(28,958
)
$
(41,071
)
Net loss per share, basic and diluted
$
(0.12
)
$
(0.14
)
$
(0.25
)
$
(0.36
)
Weighted-average shares used to compute net loss per share, basic and diluted
118,681
115,131
118,111
114,465
_______________
(1) Includes stock-based compensation as follows:
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Cost of revenue
$
3,288
$
2,906
$
6,270
$
5,531
Sales and marketing
16,276
16,423
31,576
30,817
Research and development
11,799
9,764
22,960
18,629
General and administrative
10,035
8,767
20,311
17,000
Total stock-based compensation
$
41,398
$
37,860
$
81,117
$
71,977
TENABLE HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS
June 30, 2024
December 31, 2023
(in thousands, except per share data)
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
233,467
$
237,132
Short-term investments
253,536
236,840
Accounts receivable (net of allowance for doubtful accounts of $456 and $470 at June 30, 2024 and December 31, 2023, respectively)
179,612
220,060
Deferred commissions
49,388
49,559
Prepaid expenses and other current assets
58,886
61,882
Total current assets
774,889
805,473
Property and equipment, net
41,448
45,436
Deferred commissions (net of current portion)
66,141
72,394
Operating lease right-of-use assets
33,315
34,835
Acquired intangible assets, net
104,488
107,017
Goodwill
541,292
518,539
Other assets
14,776
23,177
Total assets
$
1,576,349
$
1,606,871
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses
$
19,543
$
16,941
Accrued compensation
44,119
66,492
Deferred revenue
562,587
580,779
Operating lease liabilities
6,161
5,971
Other current liabilities
5,832
5,655
Total current liabilities
638,242
675,838
Deferred revenue (net of current portion)
163,211
169,718
Term loan, net of issuance costs (net of current portion)
357,969
359,281
Operating lease liabilities (net of current portion)
45,315
48,058
Other liabilities
8,051
7,632
Total liabilities
1,212,788
1,260,527
Stockholders' equity:
Common stock (par value: $0.01; 500,000 shares authorized; 120,461 and 117,504 shares issued at June 30, 2024 and December 31, 2023, respectively)
1,205
1,175
Additional paid-in capital
1,281,545
1,185,100
Treasury stock (at cost: 1,471 and 356 shares at June 30, 2024 and December 31, 2023, respectively)
(64,925
)
(14,934
)
Accumulated other comprehensive (loss) income
(271
)
38
Accumulated deficit
(853,993
)
(825,035
)
Total stockholders' equity
363,561
346,344
Total liabilities and stockholders' equity
$
1,576,349
$
1,606,871
TENABLE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Six Months Ended June 30,
(in thousands)
2024
2023
Cash flows from operating activities:
Net loss
$
(28,958
)
$
(41,071
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
15,864
12,624
Stock-based compensation
81,117
71,977
Net accretion of discounts and amortization of premiums on short-term investments
(4,378
)
(3,595
)
Amortization of debt issuance costs
662
618
Restructuring
4,528
—
Other
2,184
182
Changes in operating assets and liabilities:
Accounts receivable
40,462
33,997
Prepaid expenses and other assets
18,105
12,649
Accounts payable, accrued expenses and accrued compensation
(20,162
)
(1,276
)
Deferred revenue
(24,807
)
(14,408
)
Other current and noncurrent liabilities
(2,867
)
(2,758
)
Net cash provided by operating activities
81,750
68,939
Cash flows from investing activities:
Purchases of property and equipment
(1,191
)
(1,098
)
Capitalized software development costs
(4,767
)
(2,813
)
Purchases of short-term investments
(160,405
)
(147,434
)
Sales and maturities of short-term investments
147,778
148,760
Proceeds from other investments
3,512
—
Purchases of other investments
(250
)
—
Business combinations, net of cash acquired
(29,162
)
—
Net cash used in investing activities
(44,485
)
(2,585
)
Cash flows from financing activities:
Payments on term loan
(1,875
)
(1,875
)
Proceeds from loan agreement
—
424
Proceeds from stock issued in connection with the employee stock purchase plan
9,878
9,914
Proceeds from the exercise of stock options
4,135
1,537
Purchase of treasury stock
(49,991
)
—
Other financing activities
—
(129
)
Net cash (used in) provided by financing activities
(37,853
)
9,871
Effect of exchange rate changes on cash and cash equivalents and restricted cash
(3,077
)
(1,032
)
Net (decrease) increase in cash and cash equivalents and restricted cash
(3,665
)
75,193
Cash and cash equivalents and restricted cash at beginning of period
237,132
300,866
Cash and cash equivalents and restricted cash at end of period
$
233,467
$
376,059
TENABLE HOLDINGS, INC. REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)
Revenue
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2024
2023
2024
2023
Subscription revenue
$
202,538
$
176,767
$
400,173
$
347,865
Perpetual license and maintenance revenue
12,016
12,154
24,172
24,335
Professional services and other revenue
6,687
6,115
12,857
11,675
Revenue(1)
$
221,241
$
195,036
$
437,202
$
383,875
_______________
(1) Recurring revenue, which includes revenue from subscription arrangements for software (both recognized ratably over the subscription term and upon delivery) and cloud-based solutions and maintenance associated with perpetual licenses, represented 96% of revenue in the three and six months ended June 30, 2024 and 95% of revenue in the three and six months ended June 30, 2023.
Calculated Current Billings
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2024
2023
2024
2023
Revenue
$
221,241
$
195,036
$
437,202
$
383,875
Deferred revenue (current), end of period
562,587
495,199
562,587
495,199
Deferred revenue (current), beginning of period(1)
(562,683
)
(490,076
)
(580,887
)
(502,115
)
Calculated current billings
$
221,145
$
200,159
$
418,902
$
376,959
________________ (1) Deferred revenue (current), beginning of period for the three and six months ended June 30, 2024 includes $0.1 million related to acquired deferred revenue.
Remaining Performance Obligations
June 30,
(in thousands)
2024
2023
Remaining performance obligations, short-term
$
572,015
$
503,960
Remaining performance obligations, long-term
175,526
158,713
Remaining performance obligations
$
747,541
$
662,673
Free Cash Flow and Unlevered Free Cash Flow
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2024
2023
2024
2023
Net cash provided by operating activities
$
31,424
$
30,193
$
81,750
$
68,939
Purchases of property and equipment
(526
)
(711
)
(1,191
)
(1,098
)
Capitalized software development costs
(2,235
)
(1,790
)
(4,767
)
(2,813
)
Free cash flow(1)
28,663
27,692
75,792
65,028
Cash paid for interest and other financing costs
7,839
12,123
15,450
18,943
Unlevered free cash flow(1)
$
36,502
$
39,815
$
91,242
$
83,971
________________
(1) Free cash flow and unlevered free cash flow for the periods presented were impacted by:
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2024
2023
2024
2023
Employee stock purchase plan activity
$
3,702
$
4,419
$
(2,630
)
$
(271
)
Acquisition-related expenses
(197
)
(21
)
(663
)
(259
)
Restructuring
(1,597
)
—
(5,419
)
—
Non-GAAP Income from Operations and Non-GAAP Operating Margin
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2024
2023
2024
2023
Loss from operations
$
(8,818
)
$
(10,745
)
$
(17,748
)
$
(29,901
)
Stock-based compensation
41,398
37,860
81,117
71,977
Acquisition-related expenses
763
30
924
130
Restructuring
4,681
—
6,070
—
Amortization of acquired intangible assets
4,760
3,073
9,429
6,153
Non-GAAP income from operations
$
42,784
$
30,218
$
79,792
$
48,359
Operating margin
(4
)%
(6
)%
(4
)%
(8
)%
Non-GAAP operating margin
19
%
15
%
18
%
13
%
Non-GAAP Net Income and Non-GAAP Earnings Per Share
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands, except per share data)
2024
2023
2024
2023
Net loss
$
(14,572
)
$
(15,974
)
$
(28,958
)
$
(41,071
)
Stock-based compensation
41,398
37,860
81,117
71,977
Tax impact of stock-based compensation(1)
1,175
1,336
98
2,253
Acquisition-related expenses(2)
763
30
924
130
Restructuring(2)
4,681
—
6,070
—
Amortization of acquired intangible assets(3)
4,760
3,073
9,429
6,153
Tax impact of acquisitions
(43
)
(59
)
(78
)
(113
)
Non-GAAP net income
$
38,162
$
26,266
$
68,602
$
39,329
Net loss per share, diluted
$
(0.12
)
$
(0.14
)
$
(0.25
)
$
(0.36
)
Stock-based compensation
0.35
0.33
0.69
0.63
Tax impact of stock-based compensation(1)
0.01
0.01
—
0.02
Acquisition-related expenses(2)
—
—
0.01
—
Restructuring(2)
0.04
—
0.05
—
Amortization of acquired intangible assets(3)
0.04
0.03
0.08
0.05
Tax impact of acquisitions
—
—
—
—
Adjustment to diluted earnings per share(4)
(0.01
)
(0.01
)
(0.02
)
(0.01
)
Non-GAAP earnings per share, diluted
$
0.31
$
0.22
$
0.56
$
0.33
Weighted-average shares used to compute GAAP net loss per share, diluted
118,681
115,131
118,111
114,465
Weighted-average shares used to compute non-GAAP earnings per share, diluted
123,056
120,057
123,161
119,665
________________
(1) The tax impact of stock-based compensation is based on the tax treatment for the applicable tax jurisdictions. (2) The tax impact of acquisition-related expenses and restructuring are not material. (3) The tax impact of the amortization of acquired intangible assets is included in the tax impact of acquisitions. (4) An adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.
Non-GAAP Gross Profit and Non-GAAP Gross Margin
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2024
2023
2024
2023
Gross profit
$
172,443
$
151,522
$
339,472
$
294,855
Stock-based compensation
3,288
2,906
6,270
5,531
Amortization of acquired intangible assets
4,760
3,073
9,429
6,153
Non-GAAP gross profit
$
180,491
$
157,501
$
355,171
$
306,539
Gross margin
78
%
78
%
78
%
77
%
Non-GAAP gross margin
82
%
81
%
81
%
80
%
Non-GAAP Sales and Marketing Expense
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2024
2023
2024
2023
Sales and marketing expense
$
101,129
$
97,800
$
200,954
$
194,991
Less: Stock-based compensation
16,276
16,423
31,576
30,817
Less: Acquisition-related expenses
49
—
49
—
Non-GAAP sales and marketing expense
$
84,804
$
81,377
$
169,329
$
164,174
Non-GAAP sales and marketing expense % of revenue
38
%
42
%
39
%
43
%
Non-GAAP Research and Development Expense
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2024
2023
2024
2023
Research and development expense
$
45,149
$
37,845
$
88,876
$
76,028
Less: Stock-based compensation
11,799
9,764
22,960
18,629
Less: Acquisition-related expenses
—
—
(20
)
—
Non-GAAP research and development expense
$
33,350
$
28,081
$
65,936
$
57,399
Non-GAAP research and development expense % of revenue
15
%
14
%
15
%
15
%
Non-GAAP General and Administrative Expense
Three Months Ended June 30,
Six Months Ended June 30,
(dollars in thousands)
2024
2023
2024
2023
General and administrative expense
$
30,302
$
26,622
$
61,320
$
53,737
Less: Stock-based compensation
10,035
8,767
20,311
17,000
Less: Acquisition-related expenses
714
30
895
130
Non-GAAP general and administrative expense
$
19,553
$
17,825
$
40,114
$
36,607
Non-GAAP general and administrative expense % of revenue
9
%
9
%
9
%
10
%
The following adjustments to reconcile forecasted non-GAAP income from operations, non-GAAP net income, non-GAAP earnings per share, free cash flow and unlevered free cash flow are subject to a number of uncertainties and assumptions, each of which are inherently difficult to forecast. As a result, actual adjustments and GAAP results may differ materially.
Forecasted Non-GAAP Income from Operations
Three Months Ending September 30, 2024
Year Ending December 31, 2024
(in millions)
Low
High
Low
High
Forecasted loss from operations
$
(5.6
)
$
(3.6
)
$
(25.1
)
$
(21.1
)
Forecasted stock-based compensation
41.6
41.6
164.6
164.6
Forecasted acquisition-related expenses
1.0
1.0
1.9
1.9
Forecasted restructuring
—
—
6.1
6.1
Forecasted amortization of acquired intangible assets
5.0
5.0
19.5
19.5
Forecasted non-GAAP income from operations
$
42.0
$
44.0
$
167.0
$
171.0
Forecasted Non-GAAP Net Income and Non-GAAP Earnings Per Share
Three Months Ending September 30, 2024
Year Ending December 31, 2024
(in millions, except per share data)
Low
High
Low
High
Forecasted net loss(1)
$
(14.6
)
$
(12.6
)
$
(52.6
)
$
(48.6
)
Forecasted stock-based compensation
41.6
41.6
164.6
164.6
Forecasted tax impact of stock-based compensation
2.0
2.0
3.7
3.7
Forecasted acquisition-related expenses
1.0
1.0
1.9
1.9
Forecasted restructuring
—
—
6.1
6.1
Forecasted amortization of acquired intangible assets
5.0
5.0
19.5
19.5
Forecasted tax impact of acquisitions
—
—
(0.2
)
(0.2
)
Forecasted non-GAAP net income
$
35.0
$
37.0
$
143.0
$
147.0
Forecasted net loss per share, diluted(1)
$
(0.12
)
$
(0.11
)
$
(0.44
)
$
(0.41
)
Forecasted stock-based compensation
0.35
0.35
1.38
1.38
Forecasted tax impact of stock-based compensation
0.02
0.02
0.03
0.03
Forecasted acquisition-related expenses
0.01
0.01
0.02
0.02
Forecasted restructuring
—
—
0.05
0.05
Forecasted amortization of acquired intangible assets
0.04
0.04
0.16
0.16
Forecasted tax impact of acquisitions
—
—
—
—
Adjustment to diluted earnings per share(2)
(0.02
)
(0.01
)
(0.04
)
(0.04
)
Forecasted non-GAAP earnings per share, diluted
$
0.28
$
0.30
$
1.16
$
1.19
Forecasted weighted-average shares used to compute GAAP net loss per share, diluted
119.0
119.0
119.0
119.0
Forecasted weighted-average shares used to compute non-GAAP earnings per share, diluted
123.0
123.0
123.5
123.5
________________ (1) The forecasted GAAP net loss assumes income tax expense of $5.8 million and $16.3 million in the three months ending September 30, 2024 and year ending December 31, 2024, respectively.
(2) Adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.
Forecasted Free Cash Flow and Unlevered Free Cash Flow
Year Ending December 31, 2024
(in millions)
Low
High
Forecasted net cash provided by operating activities
$
206.2
$
216.2
Forecasted purchases of property and equipment
(6.0
)
(6.0
)
Forecasted capitalized software development costs
(6.5
)
(6.5
)
Forecasted free cash flow
193.7
203.7
Forecasted cash paid for interest and other financing costs
