Why do companies report both GAAP and non-GAAP (pro forma) earnings?
- Non-GAAP is audited and GAAP is not
- Non-GAAP excludes items management deems non-core to show ongoing performance, though it can also inflate results
- Non-GAAP figures are set by the SEC
- GAAP is optional and non-GAAP is the only required version
- Non-GAAP figures reflect true financial results; GAAP is only reported for regulatory reasons
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