• Monolithic Power Systems Announces Results for the Second Quarter Ended June 30, 2024

    Источник: Nasdaq GlobeNewswire / 01 авг 2024 16:01:05   America/New_York

    KIRKLAND, Wash., Aug. 01, 2024 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (“MPS”) (Nasdaq: MPWR), a fabless global company that provides high-performance, semiconductor-based power electronics solutions, today announced financial results for the quarter ended June 30, 2024.

    The financial results for the quarter ended June 30, 2024 were as follows:

    • Revenue was $507.4 million for the quarter ended June 30, 2024, a 10.8% increase from $457.9 million for the quarter ended March 31, 2024 and a 15.0% increase from $441.1 million for the quarter ended June 30, 2023.
    • GAAP gross margin was 55.3% for the quarter ended June 30, 2024, compared with 56.1% for the quarter ended June 30, 2023.
    • Non-GAAP gross margin (1) was 55.7% for the quarter ended June 30, 2024, excluding the impact of $1.6 million for stock-based compensation and related expenses, $0.3 million for amortization of acquisition-related intangible assets and $0.1 million for deferred compensation plan expense, compared with 56.5% for the quarter ended June 30, 2023, excluding the impact of $1.2 million for stock-based compensation expense and $0.3 million for deferred compensation plan expense.
    • GAAP operating expenses were $164.0 million for the quarter ended June 30, 2024, compared with $135.4 million for the quarter ended June 30, 2023.
    • Non-GAAP operating expenses (1) were $111.7 million for the quarter ended June 30, 2024, excluding $51.1 million for stock-based compensation and related expenses and $1.3 million for deferred compensation plan expense, compared with $96.0 million for the quarter ended June 30, 2023, excluding $36.8 million for stock-based compensation expense and $2.5 million for deferred compensation plan expense.
    • GAAP operating income was $116.5 million for the quarter ended June 30, 2024, compared with $112.3 million for the quarter ended June 30, 2023.
    • Non-GAAP operating income (1) was $171.0 million for the quarter ended June 30, 2024, excluding $52.7 million for stock-based compensation and related expenses, $1.4 million for deferred compensation plan expense and $0.4 million for amortization of acquisition-related intangible assets, compared with $153.1 million for the quarter ended June 30, 2023, excluding $38.0 million for stock-based compensation expense and $2.7 million for deferred compensation plan expense.
    • GAAP other income, net was $7.5 million for the quarter ended June 30, 2024, compared with $6.5 million for the quarter ended June 30, 2023.
    • Non-GAAP other income, net (1) was $6.2 million for the quarter ended June 30, 2024, excluding $1.3 million for deferred compensation plan income, compared with $4.1 million for the quarter ended June 30, 2023, excluding $2.5 million for deferred compensation plan income.
    • GAAP income before income taxes was $124.0 million for the quarter ended June 30, 2024, compared with $118.9 million for the quarter ended June 30, 2023.
    • Non-GAAP income before income taxes (1) was $177.2 million for the quarter ended June 30, 2024, excluding $52.7 million for stock-based compensation and related expenses, $0.4 million for amortization of acquisition-related intangible assets and $0.1 million for net deferred compensation plan expense, compared with $157.2 million for the quarter ended June 30, 2023, excluding $38.0 million for stock-based compensation expense and $0.3 million for net deferred compensation plan expense.
    • GAAP net income was $100.4 million and $2.05 per diluted share for the quarter ended June 30, 2024. Comparatively, GAAP net income was $99.5 million and $2.04 per diluted share for the quarter ended June 30, 2023.
    • Non-GAAP net income (1) was $155.1 million and $3.17 per diluted share for the quarter ended June 30, 2024, excluding $52.7 million for stock-based compensation and related expenses, $0.4 million for amortization of acquisition-related intangible assets, $0.1 million for net deferred compensation plan expense and $1.5 million for related tax effects, compared with $137.5 million and $2.82 per diluted share for the quarter ended June 30, 2023, excluding $38.0 million for stock-based compensation expense, $0.3 million for net deferred compensation plan expense and $0.3 million for related tax effects.

    The financial results for the six months ended June 30, 2024 were as follows:

    • Revenue was $965.3 million for the six months ended June 30, 2024, an 8.2% increase from $892.2 million for the six months ended June 30, 2023.
    • GAAP gross margin was 55.2% for the six months ended June 30, 2024, compared with 56.8% for the six months ended June 30, 2023.
    • Non-GAAP gross margin (1) was 55.7% for the six months ended June 30, 2024, excluding the impact of $3.5 million for stock-based compensation and related expenses, $0.6 million for amortization of acquisition-related intangible assets and $0.5 million for deferred compensation plan expense, compared with 57.1% for the six months ended June 30, 2023, excluding the impact of $2.3 million for stock-based compensation expense and $0.5 million for deferred compensation plan expense.
    • GAAP operating expenses were $321.0 million for the six months ended June 30, 2024, compared with $269.9 million for the six months ended June 30, 2023.
    • Non-GAAP operating expenses (1) were $215.1 million for the six months ended June 30, 2024, excluding $100.9 million for stock-based compensation and related expenses, $4.9 million for deferred compensation plan expense and $0.1 million for amortization of acquisition-related intangible assets, compared with $192.0 million for the six months ended June 30, 2023, excluding $72.7 million for stock-based compensation expense, $5.1 million for deferred compensation plan expense and $0.1 million for amortization of acquisition-related intangible assets.
    • GAAP operating income was $212.0 million for the six months ended June 30, 2024, compared with $236.6 million for the six months ended June 30, 2023.
    • Non-GAAP operating income (1) was $322.6 million for the six months ended June 30, 2024, excluding $104.5 million for stock-based compensation and related expenses, $5.4 million for deferred compensation plan expense and $0.7 million for amortization of acquisition-related intangible assets, compared with $317.2 million for the six months ended June 30, 2023, excluding $75.0 million for stock-based compensation expense, $5.5 million for deferred compensation plan expense and $0.1 million for amortization of acquisition-related intangible assets.
    • GAAP other income, net was $17.1 million for the six months ended June 30, 2024, compared with $11.8 million for the six months ended June 30, 2023.
    • Non-GAAP other income, net (1) was $11.8 million for the six months ended June 30, 2024, excluding $5.3 million for deferred compensation plan income, compared with $6.8 million for the six months ended June 30, 2023, excluding $5.0 million for deferred compensation plan income.
    • GAAP income before income taxes was $229.1 million for the six months ended June 30, 2024, compared with $248.4 million for the six months ended June 30, 2023.
    • Non-GAAP income before income taxes (1) was $334.4 million for the six months ended June 30, 2024, excluding $104.5 million for stock-based compensation and related expenses, $0.7 million for amortization of acquisition-related intangible assets and $0.2 million for net deferred compensation plan expense, compared with $324.0 million for the six months ended June 30, 2023, excluding $75.0 million for stock-based compensation expense, $0.5 million for net deferred compensation plan expense and $0.1 million for amortization of acquisition-related intangible assets.
    • GAAP net income was $192.9 million and $3.94 per diluted share for the six months ended June 30, 2024. Comparatively, GAAP net income was $209.3 million and $4.30 per diluted share for the six months ended June 30, 2023.
    • Non-GAAP net income (1) was $292.6 million and $5.98 per diluted share for the six months ended June 30, 2024, excluding $104.5 million for stock-based compensation and related expenses, $0.7 million for amortization of acquisition-related intangible assets, $0.2 million for net deferred compensation plan expense and $5.6 million for related tax effects, compared with $283.5 million and $5.82 per diluted share for the six months ended June 30, 2023, excluding $75.0 million for stock-based compensation expense, $0.5 million for net deferred compensation plan expense, $0.1 million for amortization of acquisition-related intangible assets and $1.4 million for related tax effects.

    The following is a summary of revenue by end market (in thousands):

      Three Months Ended
    June 30,
      Six Months Ended
    June 30,
     
    End Market 2024  2023  2024  2023 
    Enterprise Data $187,211  $47,982  $336,938  $95,145 
    Storage and Computing  114,955   124,543   221,076   244,365 
    Automotive  87,193   104,394   174,285   209,736 
    Communications  43,566   49,293   90,211   117,199 
    Consumer  42,229   65,187   80,303   128,550 
    Industrial  32,277   49,729   62,503   97,198 
    Total $507,431  $441,128  $965,316  $892,193 

    In the second quarter of 2024, the Company reorganized its product family and the amounts for the first quarter of 2024 have been restated to conform with the updates. No other prior-period amounts have been restated due to immateriality.

    The following is a summary of revenue by product family (in thousands):

      Three Months Ended
    June 30,
      Six Months Ended
    June 30,
     
    Product Family 2024  2023  2024  2023 
    Direct Current (“DC”) to DC $501,302  $418,175  $947,367  $843,356 
    Lighting Control  6,129   22,953   17,949   48,837 
    Total $507,431  $441,128  $965,316  $892,193 

    “As we have emphasized for many years, our results reflect the continued success of our proven, long-term growth strategy and our transformation from being only a chip supplier to a full solutions provider,” said Michael Hsing, CEO and founder of MPS.

    Business Outlook

    The following are MPS’s financial targets for the third quarter ending September 30, 2024:

    • Revenue in the range of $590.0 million to $610.0 million.
    • GAAP gross margin between 55.2% and 55.8%. Non-GAAP gross margin (1) between 55.5% and 56.1%, which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.
    • GAAP operating expenses between $160.1 million and $164.1 million. Non-GAAP operating expenses (1) between $118.3 million and $120.3 million, which excludes estimated stock-based compensation and related expenses in the range of $41.8 million to $43.8 million.
    • Total stock-based compensation and related expenses of $51.7 million to $53.7 million including approximately $1.6 million that would be charged to cost of goods sold.
    • Interest and other income in the range of $6.1 million to $6.5 million before foreign exchange gains or losses.
    • Non-GAAP tax rate of 12.5% for 2024.
    • Fully diluted shares outstanding between 48.8 million and 49.2 million.

    (1) Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income, net, non-GAAP operating income and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, other income, net, operating income and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense, amortization of acquisition-related intangible assets and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP other income, net excludes the effect of deferred compensation plan income. Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS.

    Earnings Commentary
    Earnings commentary on the results of operations for the quarter ended June 30, 2024 is available under the Investor Relations page on the MPS website.

    Earnings Webinar
    MPS plans to host a question-and-answer conference call covering its financial results at 2:00 p.m. PT / 5:00 p.m. ET, August 1, 2024. The live event will be held via a Zoom webcast, which can be accessed at: https://mpsic.zoom.us/j/97644523160. The Zoom webcast can also be accessed live over the phone by dialing (669) 444-9171; the webcast ID is 97644523160. A replay of the event will be archived and available for replay for one year under the Investor Relations page on the MPS website.

    Safe Harbor Statement
    This press release contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the “Business Outlook” section and the quote from our CEO herein, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the third quarter of fiscal year 2024 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the softening in our business, our industry and the global economic environment, revenue growth in certain of our market segments, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry segment trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued downturn in the global economy, including due to the Russia-Ukraine and Middle East conflicts, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Middle East conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy and geopolitical uncertainties, including the collapse of certain banks in the U.S. and elsewhere and the Russia-Ukraine and Middle East conflicts; our ability to adequately remediate our material weakness; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on February 29, 2024. MPS assumes no obligation to update the information in this press release or in the accompanying webinar.

    About Monolithic Power Systems
    Monolithic Power Systems, Inc. (“MPS”) is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

    Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries. 

    Contact:
    Bernie Blegen
    Executive Vice President and Chief Financial Officer
    Monolithic Power Systems, Inc.
    408-826-0777
    MPSInvestor.Relations@monolithicpower.com


    Monolithic Power Systems, Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited, in thousands, except par value) 

     
      June 30,  December 31, 
      2024  2023 
    ASSETS        
    Current assets:        
    Cash and cash equivalents $550,475  $527,843 
    Short-term investments  756,770   580,633 
    Accounts receivable, net  157,890   179,858 
    Inventories  426,751   383,702 
    Other current assets  105,547   147,463 
    Total current assets  1,997,433   1,819,499 
    Property and equipment, net  400,534   368,952 
    Acquisition-related intangible assets, net  10,512   - 
    Goodwill  26,080   6,571 
    Deferred tax assets, net  29,707   28,054 
    Other long-term assets  183,866   211,277 
    Total assets $2,648,132  $2,434,353 
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Current liabilities:        
    Accounts payable $99,894  $62,958 
    Accrued compensation and related benefits  63,917   56,286 
    Other accrued liabilities  131,348   115,791 
    Total current liabilities  295,159   235,035 
    Income tax liabilities  60,440   60,724 
    Other long-term liabilities  96,675   88,655 
    Total liabilities  452,274   384,414 
    Commitments and contingencies        
    Stockholders’ equity:        
    Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 48,698 and 48,028, respectively  1,224,144   1,129,937 
    Retained earnings  1,016,208   947,064 
    Accumulated other comprehensive loss  (44,494)  (27,062)
    Total stockholders’ equity  2,195,858   2,049,939 
    Total liabilities and stockholders’ equity $2,648,132  $2,434,353 


    Monolithic Power Systems, Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited, in thousands, except per share amounts)

     
      Three Months Ended
    June 30,
      Six Months Ended
    June 30,
     
      2024  2023  2024  2023 
    Revenue $507,431  $441,128  $965,316  $892,193 
    Cost of revenue  226,853   193,453   432,297   385,738 
    Gross profit  280,578   247,675   533,019   506,455 
    Operating expenses:                
    Research and development  77,945   63,688   153,935   127,397 
    Selling, general and administrative  86,097   71,662   167,061   142,457 
    Total operating expenses  164,042   135,350   320,996   269,854 
    Operating income  116,536   112,325   212,023   236,601 
    Other income, net  7,512   6,543   17,052   11,840 
    Income before income taxes  124,048   118,868   229,075   248,441 
    Income tax expense  23,682   19,364   36,168   39,135 
    Net income $100,366  $99,504  $192,907  $209,306 
                     
    Net income per share:                
    Basic $2.06  $2.10  $3.96  $4.42 
    Diluted $2.05  $2.04  $3.94  $4.30 
    Weighted-average shares outstanding:                
    Basic  48,687   47,489   48,660   47,361 
    Diluted  48,945   48,756   48,935   48,705 


    SUPPLEMENTAL FINANCIAL INFORMATION
    STOCK-BASED COMPENSATION EXPENSE
    (Unaudited, in thousands)

     
      Three Months Ended
    June 30,
      Six Months Ended
    June 30,
     
      2024  2023  2024  2023 
    Cost of revenue $1,611  $1,150  $3,009  $2,297 
    Research and development  11,682   9,313   22,129   17,927 
    Selling, general and administrative  39,013   27,529   73,094   54,777 
    Total stock-based compensation expense $52,306  $37,992  $98,232  $75,001 


    RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
    (Unaudited, in thousands, except per share amounts)

     
      Three Months Ended
    June 30,
      Six Months Ended
    June 30,
     
      2024  2023  2024  2023 
    Net income $100,366  $99,504  $192,907  $209,306 
                     
    Adjustments to reconcile net income to non-GAAP net income:                
    Stock-based compensation and related expenses*  52,704   37,992   104,473   75,001 
    Amortization of acquisition-related intangible assets  372   33   663   66 
    Deferred compensation plan expense, net  106   260   153   511 
    Tax effect  1,528   (280)  (5,628)  (1,367)
    Non-GAAP net income $155,076  $137,509  $292,568  $283,517 
                     
    Non-GAAP net income per share:                
    Basic $3.19  $2.90  $6.01  $5.99 
    Diluted $3.17  $2.82  $5.98  $5.82 
                     
    Shares used in the calculation of non-GAAP net income per share:                
    Basic  48,687   47,489   48,660   47,361 
    Diluted  48,945   48,756   48,935   48,705 

    *Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.

    RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
    (Unaudited, in thousands)

     
      Three Months Ended
    June 30,
      Six Months Ended
    June 30,
     
      2024  2023  2024  2023 
    Gross profit $280,578  $247,675  $533,019  $506,455 
    Gross margin  55.3%  56.1%  55.2%  56.8%
                     
    Adjustments to reconcile gross profit to non-GAAP gross profit:                
    Stock-based compensation and related expenses*  1,635   1,150   3,535   2,297 
    Amortization of acquisition-related intangible assets  339   -   597   - 
    Deferred compensation plan expense  100   280   540   460 
    Non-GAAP gross profit $282,652  $249,105  $537,691  $509,212 
    Non-GAAP gross margin  55.7%  56.5%  55.7%  57.1%

    *Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.


    RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
    (Unaudited, in thousands)

     
      Three Months Ended
    June 30,
      Six Months Ended
    June 30,
     
      2024  2023  2024  2023 
    Total operating expenses $164,042  $135,350  $320,996  $269,854 
                     
    Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:                
    Stock-based compensation and related expenses*  (51,069)  (36,842)  (100,938)  (72,704)
    Amortization of acquisition-related intangible assets  (33)  (33)  (66)  (66)
    Deferred compensation plan expense  (1,273)  (2,469)  (4,899)  (5,073)
    Non-GAAP operating expenses $111,667  $96,006  $215,093  $192,011 

    *Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.

    RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
    (Unaudited, in thousands)

     
      Three Months Ended
    June 30,
      Six Months Ended
    June 30,
     
      2024  2023  2024  2023 
    Total operating income $116,536  $112,325  $212,023  $236,601 
                     
    Adjustments to reconcile total operating income to non-GAAP total operating income:                
    Stock-based compensation and related expenses*  52,704   37,992   104,473   75,001 
    Amortization of acquisition-related intangible assets  372   33   663   66 
    Deferred compensation plan expense  1,373   2,748   5,439   5,533 
    Non-GAAP operating income $170,985  $153,098  $322,598  $317,201 

    *Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.

    RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET
    (Unaudited, in thousands)

     
      Three Months Ended June 30,  Six Months Ended June 30, 
      2024  2023  2024  2023 
    Total other income, net $7,512  $6,543  $17,052  $11,840 
                     
    Adjustments to reconcile other income, net to non-GAAP other income, net:                
    Deferred compensation plan income  (1,266)  (2,488)  (5,285)  (5,022)
    Non-GAAP other income, net $6,246  $4,055  $11,767  $6,818 


    RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES
    (Unaudited, in thousands)

     
      Three Months Ended
    June 30,
      Six Months Ended
    June 30,
     
      2024  2023  2024  2023 
    Total income before income taxes $124,048  $118,868  $229,075  $248,441 
                     
    Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:                
    Stock-based compensation and related expenses*  52,704   37,992   104,473   75,001 
    Amortization of acquisition-related intangible assets  372   33   663   66 
    Deferred compensation plan expense, net  106   260   153   511 
    Non-GAAP income before income taxes $177,230  $157,153  $334,364  $324,019 

    *Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.

    2024 THIRD QUARTER OUTLOOK
    RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
    (Unaudited)

     
      Three Months Ending 
      September 30, 2024 
      Low  High 
    Gross margin  55.2%  55.8%
    Adjustment to reconcile gross margin to non-GAAP gross margin:        
    Stock-based compensation and other expenses  0.3%  0.3%
    Non-GAAP gross margin  55.5%  56.1%


    RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
    (Unaudited, in thousands)

     
      Three Months Ending 
      September 30, 2024 
      Low  High 
    Operating expenses $160,100  $164,100 
    Adjustments to reconcile operating expenses to non-GAAP operating expenses:        
    Stock-based compensation and other expenses  (41,800)  (43,800)
    Non-GAAP operating expenses $118,300  $120,300 

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