LOGM 2017 Annual Report

• Acquisition accounting on internally capitalized software development relates to the amortization of acquired company internally developed capitalized software development costs that were adjusted in acquisition accounting with the recording of a completed technology intangible asset. • Depreciation and amortization expense relates to costs associated with the depreciation and amortization of fixed and intangible assets. • Interest and other income (expense), net relates to the interest earned (incurred) on outstanding cash balances and marketable securities, interest expense primarily related to our credit facility, as well as real- ized and unrealized foreign currency gains and losses resulting from multi-currency settlements occurring during the period and period end translation adjustments. • Income tax provision (benefit) relates to GAAP income tax provision (benefit) during the period. We consider our non-GAAP financial measures and these certain financial and operating metrics important to understanding our historical results, improving our business, benchmarking our performance against peer companies, and identifying current and future trends impacting our business. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in future pre- sentations of our non-GAAP financial measures. We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant elements that are required to be recorded in our financial statements pursuant to GAAP. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents our non-GAAP financial measures in connection with our GAAP results. We urge investors to review the reconcilia- tion of our non-GAAP financial measures to the comparable GAAP financial measures, which we have included in this Form 10-K and in our press releases announcing our quarterly financial results, and not to rely on any single financial measure to evaluate our business. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP measures are pre- sented as follows (in thousands, except per share data): Years Ended December 31, 2015 2016 2017 (in thousands) GAAP Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $271,600 $336,068 $ 989,786 Add Back: Effect of acquisition accounting on fair value of acquired deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 34,314 Non-GAAP Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $271,600 $336,068 $1,024,100 49