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

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Monolithic Power Systems (MPWR) reported strong Q2 2024 financial results:

Revenue increased 15% year-over-year to $507.4 million
GAAP net income was $100.4 million or $2.05 per diluted share
Non-GAAP net income was $155.1 million or $3.17 per diluted share

Key highlights:

Gross margin declined slightly to 55.3% from 56.1% last year
Enterprise Data revenue grew significantly to $187.2 million from $48.0 million last year
Q3 2024 revenue guidance of $590-$610 million

CEO Michael Hsing noted the results reflect MPWR's successful long-term growth strategy and transformation to a full solutions provider.

Positive

Revenue increased 15% year-over-year to $507.4 million in Q2 2024
Non-GAAP net income grew to $155.1 million, up from $137.5 million last year
Enterprise Data revenue surged to $187.2 million from $48.0 million last year
Strong Q3 2024 revenue guidance of $590-$610 million

Negative

GAAP gross margin declined to 55.3% from 56.1% in Q2 2023
GAAP operating expenses increased to $164.0 million from $135.4 million last year
Revenue declines in Storage & Computing, Automotive, Communications, Consumer, and Industrial segments

Monolithic Power Systems (MPS) has delivered a solid Q2 2024 performance, demonstrating resilience in a challenging semiconductor market. The company reported revenue of $507.4 million, marking a 15.0% year-over-year increase. This growth is particularly impressive given the current industry headwinds.

A key highlight is the significant growth in the Enterprise Data segment, which saw revenue surge to $187.2 million from $48.0 million in the same quarter last year. This 290% year-over-year increase suggests MPS is successfully capitalizing on the growing demand for data center and cloud computing solutions.

However, it's worth noting that some segments experienced declines. The Consumer and Industrial segments saw notable decreases, which could be attributed to broader economic factors affecting consumer spending and industrial activity.

On profitability, MPS maintained a healthy gross margin of 55.3%, though slightly lower than the 56.1% in Q2 2023. The company's focus on operational efficiency is evident in its non-GAAP operating income, which increased to $171.0 million from $153.1 million year-over-year.

Looking ahead, MPS's Q3 2024 guidance suggests continued growth, with projected revenue between $590.0 million and $610.0 million. This outlook indicates management's confidence in the company's strategic direction and market position.

Overall, MPS's performance reflects its successful execution of a long-term growth strategy, transitioning from a chip supplier to a full solutions provider. This approach appears to be paying dividends, particularly in high-growth sectors like enterprise data.

Monolithic Power Systems' Q2 results offer intriguing insights into the evolving landscape of the semiconductor industry. The standout performer is undoubtedly the Enterprise Data segment, which has seen explosive growth. This surge aligns with the broader trend of increased investment in data center infrastructure and cloud computing capabilities.

The shift in MPS's revenue mix is particularly noteworthy. While traditional strongholds like Consumer and Industrial have seen declines, the company has adeptly pivoted towards high-growth areas. This agility is important in the fast-paced tech sector and speaks to MPS's adaptability.

It's important to highlight the company's transition from a chip supplier to a full solutions provider. This strategic shift allows MPS to capture more value in the supply chain and potentially insulate itself from some of the volatility inherent in the semiconductor market.

The Storage and Computing segment, while showing a slight year-over-year decline, remains a significant contributor at $115.0 million. This suggests MPS maintains a strong position in traditional computing markets while expanding into newer, high-growth areas.

Looking at the product mix, the dominance of DC to DC solutions ($501.3 million out of $507.4 million total revenue) underscores MPS's core strengths in power management. As devices across industries become more power-efficient, this expertise positions MPS well for future growth.

The guidance for Q3 2024 implies continued momentum, with potential revenue growth of up to 20% sequentially. This optimistic outlook, amidst global economic uncertainties, suggests MPS has a robust pipeline and strong customer demand for its solutions.

08/01/2024 - 04:01 PM

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