Help me out, I’m not sure I’m doing this correctly because I don’t always understand the titles of certain lines on financial reports.
The way I read it VRNS posted (in 1,000s):
Non-GAAP operating income (loss) $11,697
Then, reconciling GAAP to non-GAAP they posted:
Stock-based compensation expense $5,390
So stock based comp was about 42% of the non-GAAP income, yes?
GAAP income was posted as:
GAAP operating income (loss) $6,023
So it appears to me that the non-GAAP income is very much inflated by the stock based compensation.
OK, I know, it’s not like stock based comp is money out the door, but this looks kind of extreme to me. IMO the stock based comp badly distorts the non-GAAP income.
Does anyone else see it that way? Is this level of stock based comp unusual? I’ve not read enough reports to know.