Get Cash Back and $0 Commissions + The Power of TradeStation
HealthEquity Reports Third Quarter Ended October 31, 2024 Financial Results
Globe Newswire 9-Dec-2024 4:01 PM
Highlights of the third quarter include:
Revenue of $300.4 million, an increase of 21% compared to $249.2 million in Q3 FY24.
Net income of $5.7 million, compared to $14.7 million in Q3 FY24, with non-GAAP net income of $69.4 million, an increase of 33% compared to $52.2 million in Q3 FY24.
Net income per diluted share of $0.06, compared to $0.17 in Q3 FY24, with non-GAAP net income per diluted share of $0.78, compared to $0.60 in Q3 FY24.
Adjusted EBITDA of $118.2 million, an increase of 24% compared to $95.6 million in Q3 FY24.
9.5 million HSAs, an increase of 15% compared to Q3 FY24.
Total HSA Assets of $30.0 billion, an increase of 33% compared to Q3 FY24.
16.5 million Total Accounts, including both HSAs and complementary CDBs, an increase of 8% compared to Q3 FY24.
The Company repurchased 0.7 million shares of its common stock for $60.0 million.
DRAPER, Utah, Dec. 09, 2024 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (NASDAQ:HQY) ("HealthEquity" or the "Company"), the nation's largest health savings account ("HSA") custodian, today announced financial results for its third quarter ended October 31, 2024.
"Strong third quarter results delivered by Team Purple helped drive HSAs to 9.5 million, HSA Assets to $30 billion, Total Accounts to 16.5 million and quarterly revenue to over $300 million, all quarterly records," said Jon Kessler, President and CEO of HealthEquity. "Year to date, we have generated $264 million of cash from operations. This momentum has enabled us to return $60 million of capital to our shareholders via share repurchases, accelerate platform investments, raise our fiscal 2025 guidance, and provide a healthy initial outlook for fiscal year 2026."
Third quarter financial results
Revenue for the third quarter ended October 31, 2024 was $300.4 million, an increase of 21% compared to $249.2 million for the third quarter ended October 31, 2023. Revenue this quarter included: service revenue of $119.2 million, custodial revenue of $141.0 million, and interchange revenue of $40.3 million.
HealthEquity reported net income of $5.7 million, or $0.06 per diluted share, and non-GAAP net income of $69.4 million, or $0.78 per diluted share, for the third quarter ended October 31, 2024. The Company reported net income of $14.7 million, or $0.17 per diluted share, and non-GAAP net income of $52.2 million, or $0.60 per diluted share, for the third quarter ended October 31, 2023.
Adjusted EBITDA was $118.2 million for the third quarter ended October 31, 2024, an increase of 24% compared to the third quarter ended October 31, 2023. Adjusted EBITDA was 39% of revenue, compared to 38% for the third quarter ended October 31, 2023.
Account and asset metrics
HSAs as of October 31, 2024 were 9.5 million, an increase of 15% year over year, including 717,000 HSAs with investments, an increase of 21% year over year. Total Accounts as of October 31, 2024 were 16.5 million, including 7.0 million other consumer-directed benefits ("CDBs").
Total HSA Assets as of October 31, 2024 were $30.0 billion, an increase of 33% year over year. Total HSA Assets included $16.4 billion of HSA cash and $13.6 billion of HSA investments. Client-held funds, which are deposits held on behalf of our Clients to facilitate administration of our CDBs, and from which we generate custodial revenue, were $0.7 billion as of October 31, 2024.
Stock repurchase program
The Company repurchased 0.7 million shares of its common stock for $60.0 million during the third quarter ended October 31, 2024. As of October 31, 2024, $240.0 million of common stock remained authorized for repurchase under the Company's stock repurchase program.
Business outlook
For the fiscal year ending January 31, 2025, management expects revenue of $1.185 billion to $1.195 billion. Its outlook for net income is between $88 million and $96 million, resulting in net income of $0.99 to $1.08 per diluted share. Its outlook for non-GAAP net income, calculated using the method described below, is between $274 million and $281 million, resulting in non-GAAP net income per diluted share of $3.08 to $3.16 (based on an estimated 89 million diluted weighted-average shares outstanding). Management expects Adjusted EBITDA of $470 million to $480 million.
For the fiscal year ending January 31, 2026, management expects revenue of approximately $1.275 billion to $1.295 billion and Adjusted EBITDA of approximately 41.5% to 42.5% of revenue. These amounts assume an average annualized yield on HSA cash of approximately 3.4% to 3.5%.
See "Non-GAAP financial information" below for definitions of our Adjusted EBITDA and non-GAAP net income. A reconciliation of the non-GAAP financial measures used throughout this release (other than with respect to our Adjusted EBITDA outlook for the fiscal year ending January 31, 2026) to the most comparable GAAP financial measures is included with the financial tables at the end of this release. A reconciliation of our Adjusted EBITDA outlook for the fiscal year ending January 31, 2026 to net income, its most directly comparable GAAP measure, is not included, because our net income outlook for this future period is not available without unreasonable efforts as we are unable to predict certain significant items excluded from this non-GAAP measure, such as stock-based compensation expense and income tax provision.
Conference call
HealthEquity management will host a conference call at 4:30 pm (Eastern Time) on Monday, December 9, 2024 to discuss the fiscal 2025 third quarter financial results. The conference call will be accessible by dialing 1-833-630-1956, or 1-412-317-1837 for international callers, and referencing conference ID "HealthEquity." A live audio webcast of the call will be available on the investor relations section of our website at http://ir.healthequity.com.
Non-GAAP financial information
To supplement our financial information presented on a GAAP basis, we disclose non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share.
Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, amortization of incremental costs to obtain a contract, costs associated with unused office space, and certain other non-operating items.
Non-GAAP net income is calculated by adding back to GAAP net income before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and losses on extinguishment of debt, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.
Non-GAAP net income per diluted share is calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.
Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company cautions investors that non-GAAP financial information, by its nature, departs from GAAP; accordingly, its use can make it difficult to compare current results with results from other reporting periods and with the results of other companies. In addition, while amortization of acquired intangible assets is being excluded from non-GAAP net income, the revenue generated from those acquired intangible assets is not excluded. Whenever we use these non-GAAP financial measures, we provide a reconciliation of the applicable non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed in the tables below.
About HealthEquity
HealthEquity and its subsidiaries administer HSAs and various other consumer-directed benefits for over 16 million accounts, working in close partnership with employers, benefits advisors, and health and retirement plan providers who share our unwavering commitment to our mission to save and improve lives by empowering healthcare consumers. Through cutting-edge solutions, innovation, and a relentless focus on improving health outcomes, we empower individuals to take control of their healthcare journey while ultimately enhancing their overall well-being. Learn more about our "Purple" service and approach at www.healthequity.com.
Forward-looking statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our industry, business strategy, plans, goals and expectations concerning our markets and market position, product expansion, future operations, expenses and other results of operations, revenue, margins, profitability, acquisition synergies, future efficiencies, tax rates, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words "may," "believes," "intends," "seeks," "aims," "anticipates," "plans," "estimates," "expects," "should," "assumes," "continues," "could," "will," "future" and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release.
Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to be correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, risks related to the following:
our ability to adequately place and safeguard our custodial assets, or the failure of any of our depository or insurance company partners;
our ability to compete effectively in a rapidly evolving healthcare and benefits administration industry;
our dependence on the continued availability and benefits of tax-advantaged HSAs and other CDBs;
risks relating to our upcoming CEO transition;
our ability to successfully identify, acquire and integrate additional portfolio purchases or acquisition targets;
the significant competition we face and may face in the future, including from those with greater resources than us;
our reliance on the availability and performance of our technology and communications systems;
recent and potential future cybersecurity breaches of our technology and communications systems and other data interruptions, including resulting costs and liabilities, reputational damage and loss of business;
the current uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations;
our ability to comply with current and future privacy, healthcare, tax, ERISA, investment adviser and other laws applicable to our business;
our reliance on partners and third-party vendors for distribution and important services;
our ability to develop and implement updated features for our technology platforms and communications systems; and
our reliance on our management team and key team members.
For a detailed discussion of these and other risk factors, please refer to the risks detailed in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 and subsequent periodic and current reports. Past performance is not necessarily indicative of future results. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Investor Relations Contact Richard Putnam 801-727-1000 rputnam@healthequity.com
HealthEquity, Inc. and subsidiaries Condensed consolidated balance sheets
(in thousands, except par value)
October 31, 2024
January 31, 2024
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
322,163
$
403,979
Accounts receivable, net of allowance for doubtful accounts of $2,516 and $3,947 as of October 31, 2024 and January 31, 2024, respectively
106,712
104,893
Other current assets
66,371
48,564
Total current assets
495,246
557,436
Property and equipment, net
3,890
6,013
Operating lease right-of-use assets
44,845
48,380
Intangible assets, net
1,228,476
835,948
Goodwill
1,648,145
1,648,145
Other assets
67,745
67,868
Total assets
$
3,488,347
$
3,163,790
Liabilities and stockholders' equity
Current liabilities
Accounts payable
$
10,352
$
12,041
Accrued compensation
47,514
49,608
Accrued liabilities
86,725
46,038
Operating lease liabilities
9,948
9,404
Total current liabilities
154,539
117,091
Long-term liabilities
Long-term debt, net of issuance costs
1,081,039
874,972
Operating lease liabilities, non-current
44,202
48,766
Other long-term liabilities
25,275
19,270
Deferred tax liability
58,605
68,670
Total long-term liabilities
1,209,121
1,011,678
Total liabilities
1,363,660
1,128,769
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.0001 par value, 100,000 shares authorized, no shares issued and outstanding as of October 31, 2024 and January 31, 2024, respectively
—
—
Common stock, $0.0001 par value, 900,000 shares authorized, 86,823 and 86,127 shares issued and outstanding as of October 31, 2024 and January 31, 2024, respectively
9
9
Additional paid-in capital
1,893,088
1,829,384
Accumulated earnings
231,590
205,628
Total stockholders' equity
2,124,687
2,035,021
Total liabilities and stockholders' equity
$
3,488,347
$
3,163,790
HealthEquity, Inc. and subsidiaries Condensed consolidated statements of operations and comprehensive income (unaudited)
Three months ended October 31,
Nine months ended October 31,
(in thousands, except per share data)
2024
2023
2024
2023
Revenue
Service revenue
$
119,174
$
114,082
$
354,108
$
337,115
Custodial revenue
140,953
100,005
401,281
281,161
Interchange revenue
40,305
35,132
132,568
118,924
Total revenue
300,432
249,219
887,957
737,200
Cost of revenue
Service costs
86,860
75,721
246,122
233,498
Custodial costs
10,241
8,029
29,406
24,104
Interchange costs
6,305
6,287
24,213
20,281
Total cost of revenue
103,406
90,037
299,741
277,883
Gross profit
197,026
159,182
588,216
459,317
Operating expenses
Sales and marketing
22,636
19,656
67,655
58,714
Technology and development
60,189
55,614
174,859
163,573
General and administrative
31,789
27,153
102,285
80,516
Amortization of acquired intangible assets
28,350
23,213
84,876
69,545
Merger integration
34,437
2,655
38,357
8,157
Total operating expenses
177,401
128,291
468,032
380,505
Income from operations
19,625
30,891
120,184
78,812
Other expense
Interest expense
(18,155
)
(13,545
)
(45,377
)
(41,814
)
Other income, net
4,748
3,741
11,266
8,325
Total other expense
(13,407
)
(9,804
)
(34,111
)
(33,489
)
Income before income taxes
6,218
21,087
86,073
45,323
Income tax provision
515
6,414
15,735
15,975
Net income and comprehensive income
$
5,703
$
14,673
$
70,338
$
29,348
Net income per share:
Basic
$
0.07
$
0.17
$
0.81
$
0.34
Diluted
$
0.06
$
0.17
$
0.79
$
0.34
Weighted-average number of shares used in computing net income per share:
Basic
87,193
85,697
86,935
85,424
Diluted
88,634
87,122
88,699
86,707
HealthEquity, Inc. and subsidiaries Condensed consolidated statements of cash flows (unaudited)
Nine months ended October 31,
(in thousands)
2024
2023
Cash flows from operating activities:
Net income
$
70,338
$
29,348
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
123,269
115,167
Stock-based compensation
74,717
59,939
Amortization of debt discount and issuance costs
1,805
2,150
Loss on extinguishment of debt
1,576
1,157
Deferred taxes
(10,065
)
(15,928
)
Changes in operating assets and liabilities:
Accounts receivable, net
(1,819
)
654
Other assets
(11,672
)
(12,820
)
Operating lease right-of-use assets
5,004
8,241
Accrued compensation
(3,161
)
(14,829
)
Accounts payable, accrued liabilities, and other current liabilities
24,757
(2,363
)
Operating lease liabilities, non-current
(5,796
)
(9,966
)
Other long-term liabilities
(4,845
)
5,003
Net cash provided by operating activities
264,108
165,753
Cash flows from investing activities:
Purchases of software and capitalized software development costs
(37,900
)
(30,413
)
Purchases of property and equipment
(1,756
)
(1,134
)
Acquisitions of HSA portfolios
(452,241
)
(3,257
)
Net cash used in investing activities
(491,897
)
(34,804
)
Cash flows from financing activities:
Proceeds from long-term debt
736,875
—
Principal payments on long-term debt
(536,875
)
(54,375
)
Payment of debt issuance costs
(3,748
)
—
Repurchases of common stock
(58,513
)
—
Settlement of client-held funds obligation, net
3,188
(183
)
Proceeds from exercise of common stock options
5,046
3,404
Net cash provided by (used in) financing activities
145,973
(51,154
)
Increase (decrease) in cash and cash equivalents
(81,816
)
79,795
Beginning cash and cash equivalents
403,979
254,266
Ending cash and cash equivalents
$
322,163
$
334,061
HealthEquity, Inc. and subsidiaries Condensed consolidated statements of cash flows (unaudited) (continued)
Nine months ended October 31,
(in thousands)
2024
2023
Supplemental cash flow data:
Interest expense paid in cash
$
50,203
$
44,194
Income tax payments, net
23,817
24,777
Supplemental disclosures of non-cash investing and financing activities:
Purchases of software and capitalized software development costs included in accounts payable, accrued liabilities, or accrued compensation
4,754
2,882
Purchases of property and equipment included in accounts payable or accrued liabilities
106
98
Repurchases of common stock included in accrued liabilities
1,500
—
Non-cash purchase consideration related to acquisitions of HSA portfolios
20,325
—
Exercise of common stock options receivable
7
19
Stock-based compensation expense (unaudited)
Total stock-based compensation expense included in the condensed consolidated statements of operations and comprehensive income is as follows:
Three months ended October 31,
Nine months ended October 31,
(in thousands)
2024
2023
2024
2023
Cost of revenue
$
3,751
$
4,343
$
11,210
$
12,342
Sales and marketing
3,700
3,506
11,873
9,763
Technology and development
6,353
5,923
18,747
15,098
General and administrative
7,319
7,890
32,887
22,736
Total stock-based compensation expense
$
21,123
$
21,662
$
74,717
$
59,939
Total Accounts (unaudited)
(in thousands, except percentages)
October 31, 2024
October 31, 2023
% Change
January 31, 2024
HSAs
9,508
8,295
15
%
8,692
New HSAs from sales - Quarter-to-date
186
163
14
%
497
New HSAs from sales - Year-to-date
568
453
25
%
949
New HSAs from acquisitions - Year-to-date
616
—
*
—
HSAs with investments
717
592
21
%
610
CDBs
6,955
6,984
0
%
7,006
Total Accounts
16,463
15,279
8
%
15,698
Average Total Accounts - Quarter-to-date
16,400
15,167
8
%
15,318
Average Total Accounts - Year-to-date
16,177
15,034
8
%
15,105
* Not meaningful
HSA Assets (unaudited)
(in millions, except percentages)
October 31, 2024
October 31, 2023
% Change
January 31, 2024
HSA cash
$
16,386
$
13,971
17
%
$
15,006
HSA investments
13,601
8,597
58
%
10,208
Total HSA Assets
29,987
22,568
33
%
25,214
Average daily HSA cash - Quarter-to-date
16,441
13,977
18
%
14,210
Average daily HSA cash - Year-to-date
16,064
14,024
15
%
14,071
Client-held funds (unaudited)
(in millions, except percentages)
October 31, 2024
October 31, 2023
% Change
January 31, 2024
Client-held funds
$
748
$
761
(2
)
%
$
842
Average daily Client-held funds - Quarter-to-date
770
794
(3
)
%
791
Average daily Client-held funds - Year-to-date
823
862
(5
)
%
845
Reconciliation of net income to Adjusted EBITDA (unaudited)
Three months ended October 31,
Nine months ended October 31,
(in thousands)
2024
2023
2024
2023
Net income
$
5,703
$
14,673
$
70,338
$
29,348
Interest income
(3,897
)
(3,713
)
(10,881
)
(7,795
)
Interest expense
18,155
13,545
45,377
41,814
Income tax provision
515
6,414
15,735
15,975
Depreciation and amortization
12,371
14,567
38,393
45,622
Amortization of acquired intangible assets
28,350
23,213
84,876
69,545
Stock-based compensation expense
21,123
21,662
74,717
59,939
Merger integration expenses
34,437
2,655
38,357
8,157
Amortization of incremental costs to obtain a contract
1,702
1,379
5,015
4,033
Costs associated with unused office space
812
950
2,408
3,252
Other
(1,026
)
301
(368
)
454
Adjusted EBITDA
$
118,245
$
95,646
$
363,967
$
270,344
Reconciliation of net income outlook to Adjusted EBITDA outlook (unaudited)
Outlook for the year ending
(in millions)
January 31, 2025
Net income
$88 - 96
Interest income
(13
)
Interest expense
60
Income tax provision
22 - 24
Depreciation and amortization
51
Amortization of acquired intangible assets
112
Stock-based compensation expense
98
Merger integration expenses
42
Amortization of incremental costs to obtain a contract
7
Costs associated with unused office space
3
Other expense
0
Adjusted EBITDA
$470 - 480
Reconciliation of net income to non-GAAP net income (unaudited)
Three months ended October 31,
Nine months ended October 31,
(in thousands, except per share data)
2024
2023
2024
2023
Net income
$
5,703
$
14,673
$
70,338
$
29,348
Income tax provision
515
6,414
15,735
15,975
Income before income taxes - GAAP
6,218
21,087
86,073
45,323
Non-GAAP adjustments:
Amortization of acquired intangible assets
28,350
23,213
84,876
69,545
Stock-based compensation expense
21,123
21,662
74,717
59,939
Merger integration expenses
34,437
2,655
38,357
8,157
Costs associated with unused office space
812
950
2,408
3,252
Loss on extinguishment of debt
1,576
—
1,576
1,157
Total adjustments to income before income taxes - GAAP
86,298
48,480
201,934
142,050
Income before income taxes - Non-GAAP
92,516
69,567
288,007
187,373
Income tax provision - Non-GAAP (1)
23,129
17,391
72,002
46,843
Non-GAAP net income
69,387
52,176
216,005
140,530
Diluted weighted-average shares
88,634
87,122
88,699
86,707
GAAP net income per diluted share
$
0.06
$
0.17
$
0.79
$
0.34
Non-GAAP net income per diluted share
$
0.78
$
0.60
$
2.44
$
1.62
(1)
The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company's longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occurring that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.
Reconciliation of net income outlook to non-GAAP net income outlook (unaudited)
Outlook for the year ending
(in millions, except per share data)
January 31, 2025
Net income
$88 - 96
Income tax provision
22 - 24
Income before income taxes - GAAP
110 - 120
Non-GAAP adjustments:
Amortization of acquired intangible assets
112
Stock-based compensation expense
98
Merger integration expenses
42
Costs associated with unused office space
3
Total adjustments to income before income taxes - GAAP
255
Income before income taxes - Non-GAAP
365 - 375
Income tax provision - Non-GAAP (1)
91 - 94
Non-GAAP net income
$274 - 281
Diluted weighted-average shares
89
GAAP net income per diluted share (2)
$0.99 - 1.08
Non-GAAP net income per diluted share (2)
$3.08 - 3.16
(1)
The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company's longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occurring that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.
(2)
GAAP and non-GAAP net income per diluted share may not calculate due to rounding.
Certain terms
Term
Definition
HSA
A financial account through which consumers spend and save long-term for healthcare on a tax-advantaged basis.
CDB
Consumer-directed benefits offered by employers, including flexible spending and health reimbursement arrangements ("FSAs" and "HRAs"), Consolidated Omnibus Budget Reconciliation Act ("COBRA") administration, commuter and other benefits.
HSA member
Consumers with HSAs that we serve.
Total HSA Assets
HSA members' custodial cash assets held by our federally insured depository partners and our insurance company partners. Total HSA Assets also includes HSA members' investments in mutual funds through our custodial investment fund partner.
Client
Our employer clients.
Total Accounts
The sum of HSAs and CDBs on our platforms.
Client-held funds
Deposits held on behalf of our Clients to facilitate administration of our CDBs.
Network Partner
Our health plan partners, benefits administrators, and retirement plan recordkeepers.
Adjusted EBITDA
Earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, amortization of incremental costs to obtain a contract, costs associated with unused office space, and certain other non-operating items.
Non-GAAP net income
Calculated by adding back to GAAP net income before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and losses on extinguishment of debt, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.
Non-GAAP net income per diluted share
Calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.
