GAAP refers to the standard accounting rules, while Non-GAAP metrics (like "Adjusted EBITDA" or "Billings") are custom measures companies use to show the underlying health of their business.
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Why should investors look at both?
Non-GAAP metrics often strip out "extraordinary" costs like stock-based compensation. While useful for seeing operational trends, they can sometimes be used to hide real losses, making GAAP metrics the necessary "anchor" for truth.
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