Tenable Announces Second Quarter 2021 Financial Results

Columbia, Maryland, UNITED STATES


  • Added 399 new enterprise platform customers(1) and 67 net new six-figure customers
  • Revenue of $130.3 million, up 22% year-over-year
  • GAAP loss from operations of $11.9 million; Non-GAAP income from operations of $11.5 million
  • Net cash provided by operating activities of $16.5 million; Free cash flow of $15.0 million

COLUMBIA, Md., July 27, 2021 (GLOBE NEWSWIRE) -- Tenable (Nasdaq: TENB), the Cyber Exposure company, today announced financial results for the quarter ended June 30, 2021.

“We are pleased with results for the second quarter as calculated current billings and revenue growth accelerated from strong customer adds and large deals,” said Amit Yoran, Chairman and CEO of Tenable. “These results reflect the continued importance and growing demand for a holistic understanding of Cyber Exposure across the entire attack surface. Our recent acquisition of Alsid and the closing of our $425 million credit facility position us well for continued growth and success."

Second Quarter 2021 Financial Highlights

  • Revenue was $130.3 million, a 22% increase year-over-year.
  • Calculated current billings was $136.8 million, a 23% increase year-over-year.
  • GAAP loss from operations was $11.9 million, compared to a loss of $10.6 million in the second quarter of 2020.
  • Non-GAAP income from operations was $11.5 million, compared to $5.7 million in the second quarter of 2020.
  • GAAP net loss was $11.6 million, compared to a loss of $12.0 million in the second quarter of 2020.
  • GAAP net loss per share was $0.11, compared to a loss per share of $0.12 in the second quarter of 2020.
  • Non-GAAP net income was $10.2 million, compared to $4.7 million in the second quarter of 2020.
  • Non-GAAP diluted earnings per share was $0.09, compared to diluted earnings per share of $0.04 in the second quarter of 2020.
  • Cash and cash equivalents and short-term investments were $261.0 million at June 30, 2021, compared to $291.8 million at December 31, 2020.
  • Net cash provided by operating activities was $16.5 million, compared to $17.0 million in the second quarter of 2020.
  • Free cash flow was $15.0 million, compared to $6.6 million in the second quarter of 2020.

Recent Business Highlights

  • Added 399 new enterprise platform customers(1) and 67 net new six-figure customers.
  • Closed our new credit facility in July 2021 comprised of a $375 million senior secured term loan and a $50 million senior secured revolving credit facility that replaced our $45 million revolving credit facility.
  • Completed the acquisition of Alsid SAS ("Alsid") and launched Tenable.ad — a solution designed to secure Active Directory environments and disrupt one of the most common attack paths in both advanced persistent threats and common hacks.
  • Announced a strategic collaboration with Deloitte to accelerate and secure smart manufacturing in Fortune 500 environments with Tenable.ot, which will be showcased in Deloitte’s Smart Factory @ Wichita.
  • Celebrated recognition as a Top Workplace by The Washington Post for a third consecutive year based on ratings from Tenable employees.

Financial Outlook

For the third quarter of 2021, we currently expect:

  • Revenue in the range of $133.0 million to $135.0 million.
  • Non-GAAP income from operations in the range of $7.0 million to $8.0 million.
  • Non-GAAP net income in the range of $1.0 million to $3.0 million, assuming a provision for income taxes of $2.3 million.
  • Non-GAAP diluted earnings per share in the range of $0.01 to $0.03.
  • 115.0 million diluted weighted average shares outstanding.

For the year ending December 31, 2021, we currently expect:

  • Calculated current billings in the range of $590.0 million to $595.0 million.
  • Revenue in the range of $528.0 million to $531.0 million.
  • Non-GAAP income from operations in the range of $40.0 million to $44.0 million.
  • Non-GAAP net income in the range of $29.0 million to $33.0 million, assuming a provision for income taxes of $3.5 million.
  • Non-GAAP diluted earnings per share in the range of $0.25 to $0.29.
  • 115.0 million diluted weighted average shares outstanding.

(1)  We also added 91 new enterprise customers in connection with completing the acquisition of Alsid.

Conference Call Information

Tenable will host a conference call today, July 27, 2021, at 4:30 p.m. Eastern Time to discuss its financial results. The conference call can be accessed at 877-407-9716 (U.S.) and 201-493-6779 (international). A live webcast of the event will be available on the Tenable Investor Relations website at https://investors.tenable.com. An archived replay of the live broadcast will be available on the Investor Relations page of the website following the call.

About Tenable

Tenable® is the Cyber Exposure company. Over 30,000 organizations around the globe rely on Tenable to understand and reduce cyber risk. As the creator of Nessus®, Tenable extended its expertise in vulnerabilities to deliver the world’s first platform to see and secure any digital asset on any computing platform. Tenable customers include more than 50 percent of the Fortune 500, more than 30 percent of the Global 2000, and large government agencies. Learn more at tenable.com.

Contact Information

Investor Relations
investors@tenable.com

Media Relations
tenablepr@tenable.com

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words “anticipate,” believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. These risks and uncertainties are detailed in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2020, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 and other filings that we make from time to time with the SEC, which are available on the SEC's website at sec.gov. Such risks and uncertainties may be amplified by the COVID-19 pandemic and its potential impact on our business and the global economy. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements subsequent to the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Non-GAAP Financial Measures and Other Key Metrics

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by management for financial and operational decision-making. We present these non-GAAP financial measures to assist investors in seeing our financial performance using a management view and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.

Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.

Calculated Current Billings: We define calculated current billings, a non-GAAP financial measure, as total revenue recognized in a period plus the change in current deferred revenue in the corresponding period. We believe that calculated current billings is a key metric to measure our periodic performance. Given that most of our customers pay in advance (including multi-year contracts), but we generally recognize the related revenue ratably over time, we use calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. We believe that calculated current billings, which excludes deferred revenue for periods beyond twelve months in a customer’s contractual term, more closely correlates with annual contract value and that the variability in total billings, depending on the timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort growth in one period over another.

Free Cash Flow: We define free cash flow, a non-GAAP financial measure, as net cash provided by operating activities less purchases of property and equipment. We believe free cash flow is an important liquidity measure of the cash (if any) that is available, after purchases of property and equipment, for investment in our business and to make acquisitions. We believe that free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash.

Non-GAAP Income (Loss) from Operations and Non-GAAP Operating Margin: We define these non-GAAP financial measures as their respective GAAP measures, excluding the effect of stock-based compensation, acquisition-related expenses and amortization of acquired intangible assets. Acquisition-related expenses include transaction expenses and costs related to the transfer of acquired intellectual property.

Non-GAAP Net Income (Loss) and Non-GAAP Earnings (Loss) Per Share: We define non-GAAP net income (loss) as GAAP net loss, excluding the effect of stock-based compensation, acquisition-related expenses and amortization of acquired intangible assets, including the applicable tax impact. In addition, we exclude the tax impact of intra-entity asset transfers resulting from the internal restructuring of legal entities. We use non-GAAP net income (loss) to calculate non-GAAP earnings (loss) per share.

Non-GAAP Gross Profit and Non-GAAP Gross Margin: We define non-GAAP gross profit as GAAP gross profit, excluding the effect of stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.

Non-GAAP Sales and Marketing Expense, Non-GAAP Research and Development Expense and Non-GAAP General and Administrative Expense: We define these non-GAAP measures as their respective GAAP measures, excluding stock-based compensation and acquisition-related expenses.


TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

 Three Months Ended June 30, Six Months Ended June 30,
(in thousands, except per share data)2021 2020 2021 2020
Revenue$130,259   $107,209   $253,448   $209,857  
Cost of revenue(1)26,425   19,142   48,498   37,843  
Gross profit103,834   88,067   204,950   172,014  
Operating expenses:       
Sales and marketing(1)65,678   55,443   124,313   115,298  
Research and development(1)28,201   25,310   55,039   52,141  
General and administrative(1)21,836   17,879   43,281   36,812  
Total operating expenses115,715   98,632   222,633   204,251  
Loss from operations(11,881)  (10,565)  (17,683)  (32,237) 
Interest (expense) income, net(42)  455   (70)  1,189  
Other expense, net(471)  (298)  (537)  (1,258) 
Loss before income taxes(12,394)  (10,408)  (18,290)  (32,306) 
(Benefit) provision for income taxes(756)  1,552   1,096   2,631  
Net loss$(11,638)  $(11,960)  $(19,386)  $(34,937) 
        
Net loss per share, basic and diluted$(0.11)  $(0.12)  $(0.18)  $(0.35) 
Weighted-average shares used to compute net loss per share, basic and diluted105,869   100,209   105,203   99,532  
                
                

_______________

(1)Includes stock-based compensation as follows:


 Three Months Ended June 30, Six Months Ended June 30,
 2021 2020 2021 2020
Cost of revenue$1,202   $830   $2,139   $1,577  
Sales and marketing7,577   5,375   13,873   9,871  
Research and development5,176   3,893   9,332   6,841  
General and administrative6,514   5,568   12,077   10,412  
Total stock-based compensation$20,469   $15,666   $37,421   $28,701  
                    
                    


TENABLE HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

 June 30, 2021 December 31, 2020
(in thousands, except per share data)(unaudited)  
Assets    
Current assets:   
Cash and cash equivalents$135,927   $178,223  
Short-term investments125,111   113,623  
Accounts receivable (net of allowance for doubtful accounts of $240 and $261 at June 30, 2021 and December 31, 2020, respectively)100,483   115,342  
Deferred commissions32,686   32,143  
Prepaid expenses and other current assets42,255   44,462  
Total current assets436,462   483,793  
Property and equipment, net37,407   38,920  
Deferred commissions (net of current portion)45,811   46,733  
Operating lease right-of-use assets37,299   39,426  
Acquired intangible assets, net42,610   13,193  
Goodwill126,705   54,414  
Other assets18,473   14,110  
Total assets$744,767   $690,589  
    
Liabilities and Stockholders’ Equity   
Current liabilities:   
Accounts payable and accrued expenses$11,992   $5,731  
Accrued compensation35,901   35,509  
Deferred revenue334,106   328,819  
Operating lease liabilities5,355   3,815  
Other current liabilities274   1,028  
Total current liabilities387,628   374,902  
Deferred revenue (net of current portion)110,768   105,691  
Operating lease liabilities (net of current portion)52,028   54,529  
Other liabilities8,888   4,802  
Total liabilities559,312   539,924  
    
Stockholders’ equity:   
Common stock (par value: $0.01; 500,000 shares authorized; 106,510 and 103,715 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively)1,065   1,037  
Additional paid-in capital811,644   757,470  
Accumulated other comprehensive (loss) income(16)  10  
Accumulated deficit(627,238)  (607,852) 
Total stockholders’ equity185,455   150,665  
Total liabilities and stockholders’ equity$744,767   $690,589  
          
          


TENABLE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

 Six Months Ended June 30,
(in thousands)2021 2020
Cash flows from operating activities:   
Net loss$(19,386)  $(34,937) 
Adjustments to reconcile net loss to net cash provided by operating activities:  
Depreciation and amortization6,807   5,268  
Stock-based compensation37,421   28,701  
Other(268)  606  
Changes in operating assets and liabilities:   
Accounts receivable18,985   13,512  
Prepaid expenses and other assets5,077   7,173  
Accounts payable, accrued expenses and accrued compensation985   (8,297) 
Deferred revenue6,665   2,182  
Other current and noncurrent liabilities(1,126)  7,283  
Net cash provided by operating activities55,160   21,491  
    
Cash flows from investing activities:   
Purchases of property and equipment(2,595)  (11,004) 
Purchases of short-term investments(87,624)  (91,908) 
Sales and maturities of short-term investments76,000   124,675  
Business combination, net of cash acquired(98,489)    
Net cash (used in) provided by investing activities(112,708)  21,763  
    
Cash flows from financing activities:   
Proceeds from loan agreement   2,000  
Proceeds from stock issued in connection with the employee stock purchase plan8,046   7,307  
Proceeds from the exercise of stock options8,704   10,974  
Other financing activities(5)  (8) 
Net cash provided by financing activities16,745   20,273  
Effect of exchange rate changes on cash and cash equivalents and restricted cash(1,463)  (1,463) 
Net (decrease) increase in cash and cash equivalents and restricted cash(42,266)  62,064  
Cash and cash equivalents and restricted cash at beginning of period178,463   74,665  
Cash and cash equivalents and restricted cash at end of period$136,197   $136,729  
          
          


TENABLE HOLDINGS, INC.

REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)

RevenueThree Months Ended June 30, Six Months Ended June 30,
(in thousands)2021 2020 2021 2020
Subscription revenue$114,167    $92,010    $221,569    $178,400   
Perpetual license and maintenance revenue12,567    12,179    24,972    25,598   
Professional services and other revenue3,525    3,020    6,907    5,859   
Revenue(1)$130,259    $107,209    $253,448    $209,857   
                    
                    

_______________

(1)Recurring revenue, which includes revenue from subscription arrangements for software and cloud-based solutions and maintenance associated with perpetual licenses, represented 94% of revenue in the three and six months ended June 30, 2021 and 93% of revenue in the three and six months ended June 30, 2020.


Calculated Current BillingsThree Months Ended June 30, Six Months Ended June 30,
(in thousands)2021 2020 2021 2020
Revenue$130,259   $107,209   $253,448   $209,857  
Add: Deferred revenue (current), end of period334,106   274,953   334,106   274,953  
Less: Deferred revenue (current), beginning of period(1)(327,569)  (270,916)  (331,275)  (274,348) 
Calculated current billings$136,796   $111,246   $256,279   $210,462  
                    

_______________

(1)Deferred revenue (current), beginning of period for the three and six months ended June 30, 2021 includes $2.5 million related to Alsid's deferred revenue at the acquisition date, which is not included in the deferred revenue, current balance at March 31, 2021 or December 31, 2020.


Free Cash FlowThree Months Ended June 30, Six Months Ended June 30,
(in thousands)2021 2020 2021 2020
Net cash provided by operating activities$16,535   $16,999   $55,160   $21,491  
Purchases of property and equipment(1,534)  (10,390)  (2,595)  (11,004) 
Free cash flow(1)$15,001   $6,609   $52,565   $10,487  
                    

________________

(1)Free cash flow for the periods presented was impacted by:


 Three Months Ended June 30, Six Months Ended June 30,
(in millions)2021 2020 2021 2020
Employee stock purchase plan activity$3.1   $3.3   $(1.9)  $(0.4) 
Acquisition-related expenses(1.6)     (3.3)  (0.7) 
Tax payment on intra-entity asset transfer      2.8     
Proceeds from lease incentives   8.6      8.6  
Capital expenditures related to new headquarters(0.6)  (9.7)  (0.8)  (9.8) 

Free cash flow for the three and six months ended June 30, 2021 were benefited by approximately $5 million and $10 million, respectively, as a result of the accelerated timing of payments for insurance, professional fees and rent in the three months ended December 31, 2020.

Non-GAAP Income (Loss) from Operations and Non-GAAP Operating MarginThree Months Ended June 30, Six Months Ended June 30,
(dollars in thousands)2021 2020 2021 2020
Loss from operations$(11,881)  $(10,565)  $(17,683)  $(32,237) 
Stock-based compensation20,469    15,666    37,421    28,701   
Acquisition-related expenses1,542    —    3,700    339   
Amortization of acquired intangible assets1,404    578    1,983    1,157   
Non-GAAP income (loss) from operations$11,534    $5,679    $25,421    $(2,040) 
Operating margin(9)% (10)% (7)% (15)%
Non-GAAP operating margin %  % 10  % (1)%


Non-GAAP Net Income (Loss) and Non-GAAP Earnings (Loss) Per ShareThree Months Ended June 30, Six Months Ended June 30,
(in thousands, except for per share amounts)2021 2020 2021 2020
Net loss$(11,638)  $(11,960)  $(19,386)  $(34,937) 
Stock-based compensation20,469    15,666    37,421    28,701   
Tax impact of stock-based compensation(1)(480)  437    (484)  635   
Acquisition-related expenses(2)1,542    —    3,700    339   
Tax impact of acquisition(3)(1,137)  —    (1,137)  —   
Amortization of acquired intangible assets(2)1,404    578    1,983    1,157   
Tax impact of intra-entity asset transfer(4)—    —    2,808    —   
Non-GAAP net income (loss)$10,160    $4,721    $24,905    $(4,105) 
        
Net loss per share, diluted$(0.11)  $(0.12)  $(0.18)  $(0.35) 
Stock-based compensation0.19    0.16    0.36    0.29   
Tax impact of stock-based compensation(1)—    —    —    0.01   
Acquisition-related expenses(2)0.02    —    0.03    —   
Tax impact of acquisition(3)(0.01)  —    (0.01)  —   
Amortization of acquired intangible assets(2)0.01    0.01    0.02    0.01   
Tax impact of intra-entity asset transfer(4)—    —    0.02    —   
Adjustment to diluted earnings per share(5)(0.01)  (0.01)  (0.02)  —   
Non-GAAP earnings (loss) per share, diluted$0.09    $0.04    $0.22    $(0.04) 
        
Weighted-average shares used to compute GAAP net loss per share, diluted 105,869    100,209    105,203    99,532  
        
Weighted-average shares used to compute non-GAAP earnings (loss) per share, diluted(6) 113,869    108,587    113,905    99,532  

________________

(1)The tax impact of stock-based compensation is based on the tax treatment for the applicable tax jurisdictions.
(2)The tax impact of acquisition-related expenses and the amortization of acquired intangible assets is not material.
(3)The tax impact of the Alsid acquisition includes a $1.1 million deferred tax benefit.
(4)The tax impact of the intra-entity asset transfer is related to the internal restructuring of Indegy, resulting in a current tax payment based on the applicable Israeli tax rate.
(5)An adjustment may be necessary to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.
(6)In periods in which there is a non-GAAP net loss, basic and diluted weighted average shares outstanding are the same, as potentially dilutive shares would be antidilutive.


Non-GAAP Gross Profit and Non-GAAP Gross MarginThree Months Ended June 30, Six Months Ended June 30,
(dollars in thousands)2021 2020 2021 2020
Gross profit$103,834  $88,067  $204,950  $172,014 
Stock-based compensation1,202  830  2,139  1,577 
Amortization of acquired intangible assets1,404  578  1,983  1,157 
Non-GAAP gross profit$106,440  $89,475  $209,072  $174,748 
Gross margin80% 82% 81% 82%
Non-GAAP gross margin82% 83% 82% 83%


Non-GAAP Sales and Marketing ExpenseThree Months Ended June 30, Six Months Ended June 30,
(dollars in thousands)2021 2020 2021 2020
Sales and marketing expense$65,678  $55,443  $124,313  $115,298 
Less: Stock-based compensation7,577  5,375  13,873  9,871 
Non-GAAP sales and marketing expense$58,101  $50,068  $110,440  $105,427 
Non-GAAP sales and marketing expense as % of revenue45% 47% 44% 50%


Non-GAAP Research and Development ExpenseThree Months Ended June 30, Six Months Ended June 30,
(dollars in thousands)2021 2020 2021 2020
Research and development expense$28,201  $25,310  $55,039  $52,141 
Less: Stock-based compensation5,176  3,893  9,332  6,841 
Non-GAAP research and development expense$23,025  $21,417  $45,707  $45,300 
Non-GAAP research and development expense as % of revenue18% 20% 18% 22%


Non-GAAP General and Administrative ExpenseThree Months Ended June 30, Six Months Ended June 30,
(dollars in thousands)2021 2020 2021 2020
General and administrative expense$21,836  $17,879  $43,281  $36,812 
Less: Stock-based compensation6,514  5,568  12,077  10,412 
Less: Acquisition-related expenses1,542    3,700  339 
Non-GAAP general and administrative expense$13,780  $12,311  $27,504  $26,061 
Non-GAAP general and administrative expense as % of revenue11% 11% 11% 12%

The following adjustments to reconcile forecasted non-GAAP income from operations, non-GAAP net income and non-GAAP earnings per share are subject to a number of uncertainties and assumptions, each of which are inherently difficult to forecast. As a result, actual adjustments and GAAP results may differ materially.

Forecasted Non-GAAP Income from OperationsThree Months Ending September 30, 2021 Year Ending December 31, 2021
(in millions)Low High Low High
Forecasted loss from operations$(17.2) $(16.2) $(52.1) $(48.1)
Forecasted stock-based compensation22.0  22.0  82.5  82.5 
Forecasted acquisition-related expenses0.5  0.5  4.2  4.2 
Forecasted amortization of acquired intangible assets(1)1.7  1.7  5.4  5.4 
Forecasted non-GAAP income from operations$7.0  $8.0  $40.0  $44.0 
                


Forecasted Non-GAAP Net Income and Non-GAAP Earnings Per ShareThree Months Ending September 30, 2021 Year Ending December 31, 2021
(in millions, except per share data)Low High Low High
Forecasted net loss(1)$(21.8) $(19.8) $(62.4) $(58.4)
Forecasted stock-based compensation22.0  22.0  82.5  82.5 
Forecasted tax impact of stock-based compensation0.4  0.4  0.6  0.6 
Forecasted acquisition-related expenses0.5  0.5  4.2  4.2 
Forecasted tax impact of acquisition(1.8) (1.8) (4.1) (4.1)
Forecasted amortization of acquired intangible assets1.7  1.7  5.4  5.4 
Forecasted tax impact of intra-entity asset transfer    2.8  2.8 
Forecasted non-GAAP net income$1.0  $3.0  $29.0  $33.0 
        
Forecasted net loss per share, diluted(1)$(0.20) $(0.19) $(0.59) $(0.55)
Forecasted stock-based compensation0.22  0.22  0.77  0.77 
Forecasted tax impact of stock-based compensation    0.01  0.01 
Forecasted acquisition-related expenses    0.04  0.04 
Forecasted tax impact of acquisition(0.02) (0.02) (0.04) (0.04)
Forecasted amortization of acquired intangible assets0.02  0.02  0.05  0.05 
Forecasted tax impact of intra-entity asset transfer    0.03  0.03 
Adjustment to diluted earnings per share(2)(0.01)   (0.02) (0.02)
Forecasted non-GAAP earnings per share, diluted$0.01  $0.03  $0.25  $0.29 
        
Forecasted weighted-average shares used to compute net loss per share, diluted 107.0   107.0   106.5   106.5 
Forecasted weighted-average shares used to compute non-GAAP earnings per share, diluted 115.0   115.0   115.0   115.0 

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(1)The forecasted GAAP net loss assumes a provision for income taxes of $0.8 million and $2.8 million in the three months ended September 30, 2021 and year ending December 31, 2021, respectively.
(2)Adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.