Non-GAAP Operating Expenses UNAUDITED In thousands THREE MONTHS ENDED Mar 31, 2018 Mar 31, 2017 Operating expenses $ (276,162) $ (187,513) Share-based compensation 46,793 31,670 Depreciation and amortization 8,580 7,531 Litigation settlement expense — — Gain on sale of property and equipment (98) — Non-GAAP operating expenses $ (220,887) $ (148,312) Product development $ (105,095) $ (68,582) Share-based compensation 30,482 19,356 Depreciation and amortization 5,473 3,712 Non-GAAP product development $ (69,140) $ (45,514) Sales and marketing $ (77,266) $ (49,900) Share-based compensation 4,961 3,935 Depreciation and amortization 609 77 Gain on sale of property equipment 4 58 Non-GAAP sales and marketing $ (71,692) $ (45,830) General and administrative $ (75,501) $ (56,935) Share-based compensation 11,350 8,379 Depreciation and amortization 2,229 3,537 Gain on sale of property and equipment (102) (58) Non-GAAP general and administrative $ (62,024) $ (45,077) Depreciation and Amortization by Function UNAUDITED In thousands THREE MONTHS ENDED Mar 31, 2018 Mar 31, 2017 Cost of revenue $ 1,580 $ 1,906 Product Development 5,473 3,712 Sales and Marketing 609 77 General and Administrative 2,229 3,537 Amortization of acquired customer assets 269 205 Total depreciation and amortization $ 10,160 $ 9,437 21