Non-GAAP Financial Measure
In addition to our results determined in accordance with GAAP, we believe Adjusted EBITDA, a non-GAAP financial performance
measure, is useful information to help investors evaluate our operating performance because it: enables investors to compare
this measure and component adjustments to similar information provided by peer companies and our past financial performance;
provides additional company-specific adjustments for certain items that may be included in income from operations but that we do
not consider to be normal, recurring, operating expenses (or income) necessary to operate our business given our operations,
revenue generating activities, business strategy, industry, and regulatory environment; and provides investors with visibility to a
measure management uses to evaluate our ongoing operations and for internal planning and forecasting purposes. For example:
•We believe it is useful to exclude certain non-cash expenses, such as depreciation and amortization and stock-based
compensation, from Adjusted EBITDA because the amounts of such expenses can vary significantly from period to
period and may not directly correlate to the underlying performance of our business operations.
•We believe it is useful to exclude certain items that we do not consider to be normal, recurring, cash operating expenses
and therefore, not reflective of our ongoing business operations. For example, we exclude: (i) other (income) expense,
net, as the income and expenses recognized in this line item are not part of our core operating activities and are
considered non-operating activities under GAAP, (ii) gains and losses on crypto assets held for investment (post-
adoption of ASU No. 2023-08) because such investments are considered long-term holdings, we do not plan on
engaging in regular trading of crypto assets, and, as an operating company, our investing activities in crypto are not part
of our revenue generating activities, which are based on transactions on our platform and the sales of subscriptions and
services, and (iii) the impact of our restructurings in 2022 and 2023, which are not related to our normal business
operations.
•We believe Adjusted EBITDA is useful to measure a company’s operating performance without regard to items such as
stock-based compensation expense, depreciation and amortization expense, interest expense, other (income) expense,
net, restructurings, and benefit from or provision for income taxes that can vary substantially from company to company
depending upon their financing, capital structures, and the method by which assets were acquired.
Limitations of Adjusted EBITDA
We believe that Adjusted EBITDA may be helpful to investors for the reasons noted above. However, Adjusted EBITDA is
presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in
isolation or as a substitute for financial information presented in accordance with GAAP. There are a number of limitations related
to Adjusted EBITDA rather than net (loss) income, which is the nearest GAAP equivalent of Adjusted EBITDA. Some of these
limitations are that Adjusted EBITDA excludes:
•provision for (benefit from) income taxes;
•interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which
reduces cash available to us;
•depreciation and intangible assets amortization expense and, although these are non-cash expenses, the assets being
depreciated and amortized may have to be replaced in the future;
•stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant
recurring expense for our business and an important part of our compensation strategy;
•net gains or losses on our crypto assets held for investment, net, after the adoption of ASU 2023-08;
•other (income) expense, net, which represents foreign exchange gains or losses, gains or losses on strategic
investments, net gains on the repurchase of certain of our long-term debt and other non-operating income and expense
activity;