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GAAP vs non-GAAP explained in 60 seconds, with a Broadcom example

Explain the difference between GAAP and non-GAAP profit in sixty seconds, using one real company's reported figures as the example.

GAAP vs non-GAAP explained in 60 seconds, with a Broadcom example 1:00

$ cat guide.md

  1. The same quarter can produce two different profit numbers, and the difference comes from how each one is defined.
  2. GAAP follows the accounting standard. Non-GAAP leaves out items management considers non-operational, most often stock-based compensation and acquisition effects.
  3. Broadcom's reported figures show how large the gap is, which is clearer than describing it in the abstract.
  4. The video runs sixty seconds, because once both numbers are on screen together the concept needs no more time.