Tenable Announces Third Quarter 2021 Financial Results

Columbia, Maryland, UNITED STATES


  • Added 499 new enterprise platform customers and 62 net new six-figure customers
  • Revenue of $138.7 million, up 23% year-over-year
  • GAAP loss from operations of $11.2 million; Non-GAAP income from operations of $13.7 million
  • Net cash provided by operating activities of $19.6 million; Free cash flow of $18.5 million

COLUMBIA, Md., Oct. 26, 2021 (GLOBE NEWSWIRE) -- Tenable (Nasdaq: TENB), the Cyber Exposure company, today announced financial results for the quarter ended September 30, 2021.

"We delivered outstanding top- and bottom-line results driven by unprecedented demand for our enterprise offerings, as we added a record number of new enterprise platform customers in the quarter," said Amit Yoran, Chairman and CEO of Tenable. "As the ongoing shift to the cloud and understanding cyber risk more broadly continue to be top priorities for enterprises, so does demand for our security solutions. Our recent acquisition of Accurics, coupled with our existing capabilities around cloud, Active Directory and operational technologies provide our customers with a holistic view of risk across their attack surface."

Third Quarter 2021 Financial Highlights

  • Revenue was $138.7 million, a 23% increase year-over-year.
  • Calculated current billings was $166.9 million, a 25% increase year-over-year.
  • GAAP loss from operations was $11.2 million, compared to a loss of $3.5 million in the third quarter of 2020.
  • Non-GAAP income from operations was $13.7 million, compared to $12.4 million in the third quarter of 2020.
  • GAAP net loss was $16.2 million, compared to a loss of $5.9 million in the third quarter of 2020.
  • GAAP net loss per share was $0.15, compared to a loss per share of $0.06 in the third quarter of 2020.
  • Non-GAAP net income was $8.1 million, compared to $10.5 million in the third quarter of 2020.
  • Non-GAAP diluted earnings per share was $0.07, compared to $0.09 in the third quarter of 2020.
  • Cash and cash equivalents and short-term investments were $651.9 million at September 30, 2021, which included $365.7 million of net proceeds from our credit facility, compared to $291.8 million at December 31, 2020.
  • Net cash provided by operating activities was $19.6 million, compared to $24.8 million in the third quarter of 2020.
  • Free cash flow was $18.5 million, compared to $16.7 million in the third quarter of 2020.

Recent Business Highlights

  • Added 499 new enterprise platform customers and 62 net new six-figure customers.
  • Achieved FedRAMP authorization for Tenable.io® and Tenable.io Web App Scanning, allowing the U.S. federal government to deploy both products across various departments and agencies.
  • Completed the acquisition of cloud-native security company Accurics, Inc. in October to introduce a complete lifecycle approach to modern risk management, leveraging Infrastructure as Code (IaC) to fix problems for any cloud environment.
  • Launched 10 foundational configuration checks within Tenable’s solutions to help customers detect commonly exploited weaknesses in Active Directory, protecting credentials and preventing privilege escalation.
  • Expanded our global strategic partnership with Splunk Inc. to secure Active Directory and converged operational technology (OT) environments.

Financial Outlook

For the fourth quarter of 2021, we currently expect:

  • Revenue in the range of $143.0 million to $145.0 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 $2.0 million to $3.0 million, assuming a provision for income taxes of $1.9 million.
  • Non-GAAP diluted earnings per share in the range of $0.02 to $0.03.
  • 116.5 million diluted weighted average shares outstanding.

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

  • Calculated current billings in the range of $602.0 million to $605.0 million.
  • Revenue in the range of $535.1 million to $537.1 million.
  • Non-GAAP income from operations in the range of $46.1 million to $47.1 million.
  • Non-GAAP net income in the range of $35.0 million to $36.0 million, assuming a provision for income taxes of $3.1 million.
  • Non-GAAP diluted earnings per share in the range of $0.30 to $0.31.
  • 115.0 million diluted weighted average shares outstanding.

Conference Call Information

Tenable will host a conference call today, October 26, 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 June 30, 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 and Unlevered 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. We define unlevered free cash flow as free cash flow plus cash paid for interest and other financing costs. We believe unlevered free cash flow is useful as a liquidity measure as it measures the cash that is available to invest in our business and meet our current and future financing needs.

Non-GAAP Income 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 and Non-GAAP Earnings Per Share: We define non-GAAP net income 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 to calculate non-GAAP earnings 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
September 30,
 Nine Months Ended
September 30,
(in thousands, except per share data)2021 2020 2021 2020
Revenue$138,664   $112,282   $392,112   $322,139  
Cost of revenue(1)27,062   19,394   75,560   57,237  
Gross profit111,602   92,888   316,552   264,902  
Operating expenses:       
Sales and marketing(1)68,360   53,045   192,673   168,343  
Research and development(1)30,675   25,128   85,714   77,269  
General and administrative(1)23,785   18,180   67,066   54,992  
Total operating expenses122,820   96,353   345,453   300,604  
Loss from operations(11,218)  (3,465)  (28,901)  (35,702) 
Interest (expense) income, net(3,479)  (12)  (3,549)  1,177  
Other expense, net(823)  (561)  (1,360)  (1,819) 
Loss before income taxes(15,520)  (4,038)  (33,810)  (36,344) 
Provision for income taxes726   1,820   1,822   4,451  
Net loss$(16,246)  $(5,858)  $(35,632)  $(40,795) 
        
Net loss per share, basic and diluted$(0.15)  $(0.06)  $(0.34)  $(0.41) 
Weighted-average shares used to compute net loss per share, basic and diluted106,869   101,736   105,765   100,272  


(1) Includes stock-based compensation as follows:

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
 2021 2020 2021 2020
Cost of revenue$1,197  $826  $3,336  $2,403 
Sales and marketing7,629  4,806  21,502  14,677 
Research and development5,587  3,953  14,919  10,794 
General and administrative6,499  5,715  18,576  16,127 
Total stock-based compensation$20,912  $15,300  $58,333  $44,001 


TENABLE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS

 September 30,
2021
 December 31,
2020
(in thousands, except per share data)(unaudited)  
Assets    
Current assets:   
Cash and cash equivalents$435,854   $178,223  
Short-term investments216,041   113,623  
Accounts receivable (net of allowance for doubtful accounts of $293 and $261 at September 30, 2021 and December 31, 2020, respectively)115,421   115,342  
Deferred commissions34,248   32,143  
Prepaid expenses and other current assets45,194   44,462  
Total current assets846,758   483,793  
Property and equipment, net36,055   38,920  
Deferred commissions (net of current portion)46,990   46,733  
Operating lease right-of-use assets38,694   39,426  
Acquired intangible assets, net40,889   13,193  
Goodwill126,705   54,414  
Other assets22,399   14,110  
Total assets$1,158,490   $690,589  
    
Liabilities and Stockholders’ Equity   
Current liabilities:   
Accounts payable and accrued expenses$16,011   $5,731  
Accrued compensation33,299   35,509  
Deferred revenue362,308   328,819  
Operating lease liabilities6,857   3,815  
Other current liabilities1,883   1,028  
Total current liabilities420,358   374,902  
Deferred revenue (net of current portion)114,649   105,691  
Term loan, net of issuance costs (net of current portion)365,387     
Operating lease liabilities (net of current portion)52,881   54,529  
Other liabilities7,158   4,802  
Total liabilities960,433   539,924  
    
Stockholders’ equity:   
Common stock (par value: $0.01; 500,000 shares authorized; 107,360 and 103,715 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively)1,074   1,037  
Additional paid-in capital840,482   757,470  
Accumulated other comprehensive (loss) income(15)  10  
Accumulated deficit(643,484)  (607,852) 
Total stockholders’ equity198,057   150,665  
Total liabilities and stockholders’ equity$1,158,490   $690,589  


TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

 Nine Months Ended September 30,
(in thousands)2021 2020
Cash flows from operating activities:   
Net loss$(35,632)  $(40,795) 
Adjustments to reconcile net loss to net cash provided by operating activities:  
Depreciation and amortization11,123   7,980  
Stock-based compensation58,333   44,001  
Other832   1,009  
Changes in operating assets and liabilities:   
Accounts receivable3,993   7,774  
Prepaid expenses and other assets(5,284)  (1,386) 
Accounts payable, accrued expenses and accrued compensation4,023   (12,263) 
Deferred revenue38,747   27,075  
Other current and noncurrent liabilities(1,342)  12,903  
Net cash provided by operating activities74,793   46,298  
    
Cash flows from investing activities:   
Purchases of property and equipment(3,769)  (19,073) 
Purchases of short-term investments(211,755)  (157,557) 
Sales and maturities of short-term investments109,000   168,175  
Business combination, net of cash acquired(98,489)    
Net cash used in investing activities(205,013)  (8,455) 
    
Cash flows from financing activities:   
Proceeds from term loan375,000     
Credit facility issuance costs(9,348)  (333) 
Proceeds from loan agreement   2,000  
Proceeds from stock issued in connection with the employee stock purchase plan13,736   13,040  
Proceeds from the exercise of stock options10,919   15,782  
Other financing activities(8)  (11) 
Net cash provided by financing activities390,299   30,478  
Effect of exchange rate changes on cash and cash equivalents and restricted cash(2,418)  (1,359) 
Net increase in cash and cash equivalents and restricted cash257,661   66,962  
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$436,124   $141,627  


TENABLE HOLDINGS, INC.
REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)

RevenueThree Months Ended
September 30,
 Nine Months Ended
September 30,
(in thousands)2021 2020 2021 2020
Subscription revenue$122,156  $96,792  $343,725  $275,192 
Perpetual license and maintenance revenue12,749  12,448  37,721  38,046 
Professional services and other revenue3,759  3,042  10,666  8,901 
Revenue(1)$138,664  $112,282  $392,112  $322,139 

(1) Recurring revenue, which includes revenue from subscription arrangements for software and cloud-based solutions and maintenance associated with perpetual licenses, represented 95%, 94%, 94% and 93% of revenue in the three months ended September 30, 2021 and 2020 and the nine months ended September 30, 2021 and 2020, respectively.


Calculated Current BillingsThree Months Ended
September 30,
 Nine Months Ended
September 30,
(in thousands)2021 2020 2021 2020
Revenue$138,664   $112,282   $392,112   $322,139  
Add: Deferred revenue (current), end of period362,308   296,360   362,308   296,360  
Less: Deferred revenue (current), beginning of period(1)(334,106)  (274,953)  (331,275)  (274,348) 
Calculated current billings$166,866   $133,689   $423,145   $344,151  

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


Free Cash Flow and Unlevered Free Cash FlowThree Months Ended
September 30,
 Nine Months Ended
September 30,
(in thousands)2021 2020 2021 2020
Net cash provided by operating activities$19,633   $24,807   $74,793   $46,298  
Purchases of property and equipment(1,174)  (8,069)  (3,769)  (19,073) 
Free cash flow(1)18,459   16,738   71,024   27,225  
Cash paid for interest and other1,614   239   1,764   254  
Unlevered free cash flow(1)$20,073   $16,977   $72,788   $27,479  


(1) Free cash flow and unlevered free cash flow for the periods presented were impacted by:

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
(in millions)2021 2020 2021 2020
Employee stock purchase plan activity$(2.8)  $(2.3)  $(4.7)  $(2.7) 
Acquisition-related expenses(0.3)  —    (3.6)  (0.7) 
Tax payment on intra-entity asset transfer—    —    2.8    —   
Proceeds from lease incentives—    5.6    —    14.2   
Capital expenditures related to new headquarters(0.1)  (6.8)  (0.9)  (16.6) 

Free cash flow and unlevered free cash flow for the three and nine months ended September 30, 2021 were benefited by approximately $1 million and $11 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 from Operations and Non-GAAP Operating MarginThree Months Ended
September 30,
 Nine Months Ended
September 30,
(dollars in thousands)2021 2020 2021 2020
Loss from operations$(11,218)  $(3,465)  $(28,901)  $(35,702) 
Stock-based compensation20,912   15,300   58,333   44,001  
Acquisition-related expenses2,270      5,970   339  
Amortization of acquired intangible assets1,721   579   3,704   1,736  
Non-GAAP income from operations$13,685   $12,414   $39,106   $10,374  
Operating margin(8)% (3)% (7)% (11)%
Non-GAAP operating margin10 % 11 % 10 % 3 %


Non-GAAP Net Income and Non-GAAP Earnings Per ShareThree Months Ended
September 30,
 Nine Months Ended
September 30,
(in thousands, except for per share amounts)2021 2020 2021 2020
Net loss$(16,246)  $(5,858)  $(35,632)  $(40,795) 
Stock-based compensation20,912   15,300   58,333   44,001  
Tax impact of stock-based compensation(1)(15)  497   (499)  1,132  
Acquisition-related expenses(2)2,270      5,970   339  
Tax impact of acquisition(3)(546)     (1,683)    
Amortization of acquired intangible assets(2)1,721   579   3,704   1,736  
Tax impact of intra-entity asset transfer(4)      2,808     
Non-GAAP net income$8,096   $10,518   $33,001   $6,413  
        
Net loss per share, diluted$(0.15)  $(0.06)  $(0.34)  $(0.41) 
Stock-based compensation0.20   0.15   0.55   0.44  
Tax impact of stock-based compensation(1)         0.01  
Acquisition-related expenses(2)0.02      0.06     
Tax impact of acquisition(3)(0.01)     (0.02)    
Amortization of acquired intangible assets(2)0.02   0.01   0.04   0.02  
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 per share, diluted$0.07   $0.09   $0.29   $0.06  
        
Weighted-average shares used to compute GAAP net loss per share, diluted106,869 101,736 105,765 100,272
        
Weighted-average shares used to compute non-GAAP earnings per share, diluted114,983 111,224 114,271 109,046

(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 $0.5 million and $1.7 million of deferred tax benefits in the three and nine months ended September 30, 2021, respectively.

(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.


Non-GAAP Gross Profit and Non-GAAP Gross MarginThree Months Ended
September 30,
 Nine Months Ended
September 30,
(dollars in thousands)2021 2020 2021 2020
Gross profit$111,602   $92,888   $316,552   $264,902  
Stock-based compensation1,197   826   3,336   2,403  
Amortization of acquired intangible assets1,721   579   3,704   1,736  
Non-GAAP gross profit$114,520   $94,293   $323,592   $269,041  
Gross margin80 % 83 % 81 % 82 %
Non-GAAP gross margin83 % 84 % 83 % 84 %


Non-GAAP Sales and Marketing ExpenseThree Months Ended
September 30,
 Nine Months Ended
September 30,
(dollars in thousands)2021 2020 2021 2020
Sales and marketing expense$68,360  $53,045  $192,673  $168,343 
Less: Stock-based compensation7,629  4,806  21,502  14,677 
Non-GAAP sales and marketing expense$60,731  $48,239  $171,171  $153,666 
Non-GAAP sales and marketing expense as % of revenue44% 43% 44% 48%


Non-GAAP Research and Development ExpenseThree Months Ended
September 30,
 Nine Months Ended
September 30,
(dollars in thousands)2021 2020 2021 2020
Research and development expense$30,675   $25,128   $85,714   $77,269  
Less: Stock-based compensation5,587   3,953   14,919   10,794  
Non-GAAP research and development expense$25,088   $21,175   $70,795   $66,475  
Non-GAAP research and development expense as % of revenue18 % 19 % 18 % 21 %


Non-GAAP General and Administrative ExpenseThree Months Ended
September 30,
 Nine Months Ended
September 30,
(dollars in thousands)2021 2020 2021 2020
General and administrative expense$23,785   $18,180   $67,066   $54,992  
Less: Stock-based compensation6,499   5,715   18,576   16,127  
Less: Acquisition-related expenses2,270   —   5,970   339  
Non-GAAP general and administrative expense$15,016   $12,465   $42,520   $38,526  
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
December 31, 2021
 Year Ending
December 31, 2021
(in millions)Low High Low High
Forecasted loss from operations$(18.8)  $(17.8)  $(47.7)  $(46.7) 
Forecasted stock-based compensation21.9   21.9   80.2   80.2  
Forecasted acquisition-related expenses1.0   1.0   7.0   7.0  
Forecasted amortization of acquired intangible assets(1)2.9   2.9   6.6   6.6  
Forecasted non-GAAP income from operations$7.0   $8.0   $46.1   $47.1  

(1) The forecasted amortization of acquired intangible assets assumes $32 million of acquired intangible assets from Accurics that is estimated to be amortized over seven years. These assumptions are preliminary, as the purchase accounting for Accurics is not complete. Any changes to the valuation of intangible assets would impact the forecasted amortization of acquired intangible assets.


Forecasted Non-GAAP Net Income and Non-GAAP Earnings Per ShareThree Months Ending
December 31, 2021
 Year Ending
December 31, 2021
(in millions, except per share data)Low High Low High
Forecasted net loss(1)$(15.1)  $(14.1)  $(50.7)  $(49.7) 
Forecasted stock-based compensation21.9   21.9   80.2   80.2  
Forecasted tax impact of stock-based compensation1.4   1.4   0.9   0.9  
Forecasted acquisition-related expenses1.0   1.0   7.0   7.0  
Forecasted tax impact of acquisition(10.1)  (10.1)  (11.8)  (11.8) 
Forecasted amortization of acquired intangible assets(2)2.9   2.9   6.6   6.6  
Forecasted tax impact of intra-entity asset transfer      2.8   2.8  
Forecasted non-GAAP net income$2.0   $3.0   $35.0   $36.0  
        
Forecasted net loss per share, diluted(1)$(0.14)  $(0.13)  $(0.48)  $(0.47) 
Forecasted stock-based compensation0.20   0.20   0.75   0.75  
Forecasted tax impact of stock-based compensation0.01   0.01   0.01   0.01  
Forecasted acquisition-related expenses0.01   0.01   0.07   0.07  
Forecasted tax impact of acquisition(0.09)  (0.09)  (0.11)  (0.11) 
Forecasted amortization of acquired intangible assets(2)0.03   0.03   0.06   0.06  
Forecasted tax impact of intra-entity asset transfer      0.03   0.03  
Adjustment to diluted earnings per share(3)      (0.03)  (0.03) 
Forecasted non-GAAP earnings per share, diluted$0.02   $0.03   $0.30   $0.31  
        
Forecasted weighted-average shares used to compute net loss per share, diluted108.0 108.0 106.5 106.5
Forecasted weighted-average shares used to compute non-GAAP earnings per share, diluted116.5 116.5 115.0 115.0

(1) The forecasted GAAP net loss assumes an income tax benefit of $6.8 million and $5.0 million in the three months and year ending December 31, 2021, respectively.

(2) The forecasted amortization of acquired intangible assets assumes $32 million of acquired intangible assets from Accurics that is estimated to be amortized over seven years. These assumptions are preliminary, as the purchase accounting for Accurics is not complete. Any changes to the valuation of intangible assets would impact the forecasted amortization of acquired intangible assets and the tax impact of acquisitions.

(3) Adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.