What are GAAP and non-GAAP?

GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards) are the standards that companies must follow when preparing their financial statements. However, these standards include one-off, irregular, or non-cash items in the reported profit and revenue.

Companies often supplement their standard reporting with non-GAAP metrics to provide a clearer picture of their ongoing business performance. These metrics are adjusted by excluding the impact of unusual or non-recurring items, offering a more normalized view of the company's core operations.

On our platform, the main financial statements are provided by GAAP standards. However, we also offer non-GAAP data and forecasts for earnings and revenue.

Sources of non-GAAP data

We obtain non-GAAP data from a financial data provider exclusively for earnings and revenue metrics. There are two main sources for non-GAAP data:

• Information disclosed by companies themselves in their earnings releases. Specialized news services like PR Newswire and Business Wire collect and disseminate these announcements from companies worldwide.
• If a company doesn't report a specific non-GAAP metric, it can be calculated by taking the median of estimates provided by market experts. Such consensus forecasts may be updated after the actual results are out.