LOGM 2017 Annual Report

Years Ended December 31, 2015 2016 2017 (In thousands, except per share data) GAAP Net income (loss) from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,049 $ 4,413 $ (11,817) Add Back: Effect of acquisition accounting on fair value of acquired deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 34,314 Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,499 38,350 67,292 Acquisition related costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,345 25,063 59,802 Litigation related expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,963 148 2,348 Amortization of acquired intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,871 10,061 183,018 Effect of acquisition accounting on internally capitalized software development costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (20,092) Non-GAAP Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,727 78,035 314,865 Interest and other expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,469 (1,205) (160) Non-GAAP Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,196 76,830 314,705 Non-GAAP Provision for income taxes (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,528) (23,825) (95,513) Non-GAAP Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42,668 $ 53,005 $219,192 Non-GAAP Net income per diluted share . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.66 $ 2.03 $ 4.26 Diluted weighted average shares outstanding used in computing per share amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,780 26,164 51,463 Years Ended December 31, 2015 2016 2017 (in thousands) GAAP Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,558 $ 2,638 $ 99,523 Add Back: Interest and other expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,469) 1,205 160 Income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,960 570 (111,500) Amortization of acquired intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,871 10,061 183,018 Depreciation and amortization expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,827 11,444 38,303 EBITDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,747 25,918 209,504 Add Back: Effect of acquisition accounting on fair value of acquired deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 34,314 Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,499 38,350 67,292 Acquisition related costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,345 25,063 59,802 Litigation related expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,963 148 2,348 Adjusted EBITDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $67,554 $89,479 $ 373,260 EBITDA Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.0% 7.7% 21.2% Adjusted EBITDA Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.9% 26.6% 36.4% 50