Reconciliation of GAAP Financial Results to non-GAAP Financial Measures © 2015 Support.com, Inc. All Rights Reserved. * (in thousands, except per share amounts) (unaudited) (in thousands, except per share amounts) (unaudited) (in thousands, except per share amounts) (unaudited) (in thousands, except per share amounts) (unaudited) (in thousands, except per share amounts) (unaudited) (in thousands, except per share amounts) (unaudited) (in thousands, except per share amounts) (unaudited) (in thousands, except per share amounts) (unaudited) (in thousands, except per share amounts) (unaudited) (in thousands, except per share amounts) (unaudited) (in thousands, except per share amounts) (unaudited) 3 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 GAAP cost of revenue GAAP cost of revenue GAAP cost of revenue $14,485 $16,209 $48,964 $44,169 Stock-based compensation expense (Cost of revenue portion only) Stock-based compensation expense (Cost of revenue portion only) Stock-based compensation expense (Cost of revenue portion only) (64) (79) (195) (217) Other non-recurring items (Cost of revenue portion only) Other non-recurring items (Cost of revenue portion only) - - - (150) Non-GAAP cost of revenue Non-GAAP cost of revenue Non-GAAP cost of revenue $14,421 $16,130 $48,769 $43,802 GAAP operating expenses GAAP operating expenses GAAP operating expenses $7,299 $6,066 $35,961 $17,904 Stock-based compensation expense (Excl. cost of revenue portion) Stock-based compensation expense (Excl. cost of revenue portion) Stock-based compensation expense (Excl. cost of revenue portion) (671) (724) (2,034) (1,840) Amortization of intangible assets and other Amortization of intangible assets and other (267) (273) (802) (818) Restructuring and impairment charges Restructuring and impairment charges - - (14,240) - Non-GAAP operating expenses Non-GAAP operating expenses Non-GAAP operating expenses $6,361 $5,069 $18,885 $15,246 GAAP income tax provision (benefit) GAAP income tax provision (benefit) GAAP income tax provision (benefit) $60 $128 $(1,041) $385 Tax expense (benefit) associated with acquired goodwill Tax expense (benefit) associated with acquired goodwill - $ (77) 1,204 (219) Non-GAAP income tax provision Non-GAAP income tax provision Non-GAAP income tax provision $60 $51 $163 $166 GAAP loss from continuing operations, after income taxes GAAP loss from continuing operations, after income taxes GAAP loss from continuing operations, after income taxes $(3,866) $(95) $(21,943) $(1,220) Stock-based compensation expense Stock-based compensation expense 735 803 2,229 2,057 Amortization of intangible assets and other Amortization of intangible assets and other 267 273 802 818 Tax expense (benefit) associated with acquired goodwill Tax expense (benefit) associated with acquired goodwill - 77 (1,204) 219 Other non-recurring items Other non-recurring items - - - 150 Restructuring and impairment charges Restructuring and impairment charges - - 14,240 - Total impact of Non-GAAP exclusions Total impact of Non-GAAP exclusions Total impact of Non-GAAP exclusions 1,002 1,153 16,067 3,244 Non-GAAP income (loss) from continuing operations, after income taxes Non-GAAP income (loss) from continuing operations, after income taxes Non-GAAP income (loss) from continuing operations, after income taxes Non-GAAP income (loss) from continuing operations, after income taxes $(2,864) $1,058 $(5,876) $2,024 Loss from continuing operations, after income taxes Loss from continuing operations, after income taxes Loss from continuing operations, after income taxes Basic - GAAP Basic - GAAP $(0.07) $(0.00) $(0.40) $(0.02) Basic - Non-GAAP Basic - Non-GAAP $(0.05) $0.02 $(0.11) $0.04 Diluted - GAAP Diluted - GAAP $(0.07) $(0.00) $(0.40) $(0.02) Diluted - Non-GAAP Diluted - Non-GAAP $(0.05) $0.02 $(0.11) $0.04 Shares used in computing per share amounts (GAAP) Shares used in computing per share amounts (GAAP) Shares used in computing per share amounts (GAAP) Basic Basic 54,637 $54,028 54,465 53,716 Diluted Diluted 54,637 $54,028 54,465 53,716 Shares used in computing per share amounts (Non-GAAP) Shares used in computing per share amounts (Non-GAAP) Shares used in computing per share amounts (Non-GAAP) Basic Basic 54,637 $54,028 54,465 53,716 Diluted Diluted 54,637 $54,159 54,465 53,937 The adjustments above reconcile the Company’s GAAP financial results to the non-GAAP financial measures used by the Company. The Company’s non-GAAP financial measures exclude stock-based compensation expense, amortization of intangible assets and other, restructuring and impairment charges, acquisition expense, other non-recurring items and tax expense (benefit) associated with acquired goodwill. The Company believes that presentation of these non-GAAP items provides meaningful supplemental information to investors, when viewed in conjunction with, and not in lieu of, the Company’s GAAP results. However, the non-GAAP financial measures have not been prepared under a comprehensive set of accounting rules or principles. Non-GAAP information should not be considered in isolation from, or as a substitute for, information prepared in accordance with GAAP. Moreover, there are material limitations associated with the use of non-GAAP financial measures.
