#1Q2 2023 Investor Presentation August 8, 2023 LEGALZOOM#2N Lz LegalZoom.com, Inc. Disclaimer Forward-Looking Statements This presentation contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward- looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. Forward-looking statements contained in this presentation include, but are not limited to, statements regarding our annual and quarterly guidance and other long-term targets. The forward-looking statements in this presentation are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the following: the risk that our recent growth may not be indicative of our future growth; our dependence on business formations and fluctuations or declines in the number of business formations; the impact of macroeconomic challenges on our business, including as a result of inflation, global conflict, supply chain issues and recessionary concerns; our ability to provide high-quality services, customer care and customer experience; our ability to sustain our revenue growth rate and remain profitable in the future; our ability to continue to innovate and provide a platform that is useful to our customers and that meets our customers' expectations; our ability to attract and retain customers and, specifically, our ability to maintain subscribers and convert our transactional customers to subscribers; our ability to drive additional purchases and cross-sell to paying customers; our ability to maintain and expand strategic relationships with third parties; our anticipation of increasing expenses in the future; the competitive legal solutions market; our ability to hire and retain top talent and motivate our employees; risks and costs associated with complex and evolving laws and regulations; the risk that the recent restatement of certain of our unaudited condensed consolidated financial statements may affect investor confidence and raise reputational issues and may subject us to additional risks and uncertainties; our ability to remediate material weaknesses in our internal control over financial reporting; and other factors discussed in the section titled "Risk Factors" included in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, as well as those in our subsequent filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based upon information available to us as of the date of this presentation, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. You should read this presentation with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this presentation, whether as a result of any new information, future events or otherwise. 2#3Lz N LegalZoom.com, Inc. Disclaimer (Continued) About Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures including Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP net income (loss), non-GAAP net income (loss) margin, adjusted gross profit, adjusted gross profit margin, certain non-GAAP expenses (including non-GAAP cost of revenue, non-GAAP sales and marketing, non-GAAP technology and development, and non-GAAP general and administrative), free cash flow and free cash flow margin. To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles, or GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different from similarly titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and liquidity and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We believe that these non-GAAP financial measures provide useful information about our financial performance and liquidity, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important measures used by our management for financial and operational decision-making. We are presenting these non-GAAP measures to assist investors in seeing our financial performance using a management view and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. The tables in the Appendix contain more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. In addition, please see our earnings release and our filings with the SEC for the definitions of these non-GAAP financial measures and limitations on the use of such non-GAAP financial measures. 3#4¹z Our mission is to unleash entrepreneurship B#5Lz We protect businesses, their ideas, and the families that create them BUSINESS FORMATION | COMPLIANCE | INTELLECTUAL PROPERTY Key Pain Points Legal matters are difficult to navigate on your own Expertise is expensive and difficult to find ||||'* Remaining compliant is a complex, evergreen problem 5#6Lz N LegalZoom The easiest way to form, protect and keep your business compliant Formation Solutions Formation Package (LLC, INC, Non-Profit) • DBAs and EINS • Annual Reports, Operating Agreement ● 3.9M Businesses formed since inception (2003) Compliance Solutions Registered Agent / Virtual Mail Legal Expertise / Legal Forms & e-Signature Tax Expertise / Accounting Compliance Expertise ● ● ● 1.6M Active subscribers of compliance & legal solutions at 6/30/23 Intellectual Property • Trademarks Copyrights Patents 391K Trademarks filed since inception (2003) 6#7N Lz Strategic Pillars ● ● ● Scale the Business Improve marketing efficiency Reimagine current offerings and launch new products Enhance fulfillment and cross- sell of additional services ● ● Build the Ecosystem Build core offerings Expand partner channels Drive greater customer engagement ● Integrate Experts Assisted tax services Assisted legal services Enhance service delivery 7#8N Lz Recent Launch: LZ Books Building the ecosystem of offerings to help small businesses succeed LEGALZOOM Sunny Sample Co. Invoice #01 UNPAID Invoice for $1,000.00 Due: November 5, 2023 Pay now SERVICE NYC Marath NOTES: Thank you f Invoice #01 Lz n • 6 676 4 m Books > Transactions Total expenses $11,568.91 Top spending categories $2,780.45 Rent: Building All time DATE 07/17/ 07/10/1 07/10/ 07/05/ 07/04/ Home Lz Sunny Sample Co. SUBSCRIBED Compliance. Legal $2,000.00 Travel Documents 07/01/ Taxes Books Projects Invoices Clients Services Transactions Virtual mail. 6 NEW A Business toolkit Terms Privacy choices © 2000-2023 LegalZoom.com, Inc. This month $1,543.21 Insurance Books SUBSCRIBED Available money 2023 $13,500 As of August 3, 2023 For you 3 = Recent Send invoice reminders You have 2 overdue invoices. F Invoice #08 Insights Projects 4 Connected accounts Active Chase Checking (1122) $22,781.15 Send reminder This month 48 transactions JAN $1,500 PAID 1 Complete 71 AmEx (1234) FEB MAY $2,000 $2,500 $2,300 $2,650 $22,781.15 32 transactions Invoices Invoice #13 Paid Open a business bank account Separate your personal and business finances with Bank of America. Learn more JUN OVERDUE This month New ✓ $11,568 $1,920 Unpaid JUL $1,600 2 7 * AUG SEP $2,800 $0 OCT $0 View project You have a new active project! Oscar Gast approved Marathon Training, Personal training Transactions 85 Downloaded $0 New This month SENT DEC $0 13 Uncategorized 7 A simple accounting solution designed for solopreneurs. Capabilities include: • Customized proposals and invoices • Payments Automated income and expense categorization Seamless integration with LZ Tax ● ● Reaches across all strategic pillars New product and customer entry point Promotes ongoing customer engagement and cross-selling opportunities Cohesive integration with expert offerings ● ● ● 8#9N Lz Our management team Our team is experienced in small business and consumer innovation at scale Dan Wernikoff Chief Executive Officer intuit charles SCHWAB Nicole Miller General Counsel HONEST Cooley GIBSON DUNN Noel Watson Chief Financial Officer TrueCar a Tripadvisor Sheily Chhabria Panchal Chief People Officer Google Service Titan ACTIVISION BIZZARD Rich Preece Chief Operations & Product Officer intuit Kathy Tsitovich Chief Partnerships Officer intuit Shrisha Radhakrishna Chief Technology Officer intuit COVAD Daniel Lysaught Chief Marketing Officer good eggs 88⁹ TrueCar 9#10Financial Update LEGALZOOM#11Lz Quarterly Q2 2023 Snapshot $169M total revenue +4% yoy 161K business formations +42% yoy $109M adjusted gross profit(¹) 65% margin(1) 283К transaction units +26% yoy (1) This is a non-GAAP financial measure. Refer to the Appendix for a reconciliation of this measure to the most directly comparable GAAP measure. $30M adjusted ebitda (¹) 18% margin(1) 1,553K subscription units +11% yoy 11#12N Lz Key Metrics Business Formations (1) 114K (10%) Q3'21 YOY Growth % 103K 12% Q4'21 129K (2%) Q1'22 113K (16%) Q2'22 117K 115K 3% Q3'22 12% Q4'22 170K 32% Q1'23 161K 42% Q2'23 GAAP Revenue $148M 12% YOY Growth % Q3'21 $155M $142M 16% 15% Q4'21 Q1'22 $163M 8% Q2'22 $155M 15% Q3'22 $147M 3% Q4'22 $166M 7% $169M Q1'23 4% Q2'23 Adjusted EBITDA (²) $15M % of Revenue(2) 10% $7M Q3'21 5% $2M 1% Q4'21 Q1'22 $18M 11% Q2'22 $17M 11% Q3'22 $26M 18% Q4'22 $22M 13% Q1'23 $30M 18% Q2'23 (1) We define the number of business formations in a given period as the number of LLC, incorporation, not-for-profit and DBA orders placed through our platform in such period, excluding such orders from our operations in the United Kingdom. (2) This is a non-GAAP measure. Refer to the Appendix for a reconciliation of this measure to the most directly comparable GAAP measure. 12#13N Lz Transaction Revenue Details $67M Q3'21 Transaction Revenue 5% $57M Q4'21 8% $65M $65M Q1'22 Q2'22 6% $58M Q3'22 $51M Year-over-year Growth % (11%) (13%) Q4'22 $62M Q1'23 (10%) (5%) $60M Q2'23 (7%) 229K AOV $291 Q3'21 Trx Units Transaction Units(1) AOV(2) 211K $267 Q4'21 (10%) 16% 267K $245 8% 0% Q1'22 225K $290 Q2'22 226K 10% $258 Q3'22 211K $241 Year-over-year Growth % Q4'22 (3%) (13%) (1%) 0% 308K $202 Q1'23 15% 283K $214 Q2'23 (1) We define the number of transaction units in a given period as gross transaction order volume, prior to refunds, on our platform during such period. Refunds, or partial refunds, may be issued under certain circumstances, pursuant to the terms of our customer satisfaction guarantee. (2) We define average order value for a given period as total transaction revenue divided by total number of transactions in such period. 26% 3% (11%) (10%) (18%) (26%) 13#14Lz Subscription Revenue Details $73M Q3'21 Subscription Revenue 24% $81M Q4'21 29% $84M Q1'22 $91M $91M 29% Q2'22 Q3'22 Year-over-year Growth % 32% $91M 25% Q4'22 13% $97M Q1'23 15% $102M Q2'23 12% 1,264K $231 Q3'21 Sub Units ARPU Subscription Units(1) ARPU (2) 1,329K $236 Q4'21 21% 5% 1,362K 1,394K $244 Q1'22 22% 6% 19% 1,415K Q2'22 8% $252 $259 $258 $259 $259 Year-over-year Growth % 15% 1,441K Q3'22 10% 12% 12% Q4'22 8% 1,501K 9% Q1'23 10% 1,553K 6% Q2'23 11% 3% (1) We define the number of subscription units in a given period as the paid subscriptions that remain active at the end of such period, including those that are not yet 60 days past their subscription order dates, excluding subscriptions from our employer group legal plan and small business concierge subscription service, for which we ceased acquiring new subscribers in October 2020. Refunds, or partial refunds, may be issued under certain circumstances pursuant to the terms of our customer satisfaction guarantee. (2) We define average revenue per subscription unit, or ARPU, as of a given date as subscription revenue for the 12-month period ended on such date, or LTM, divided by the average number of subscription units at the beginning and end of the LTM period, excluding revenue and subscription units from our employer group legal plan and small business concierge subscription services, for which we ceased acquiring new subscribers in October 2020. 14#15Lz Non-GAAP Expenses(¹) $M by Spend Category $133M 11 12 65 45 Cost of Revenue Sales & Marketing Q3'21 $135M 14 11 64 46 Q4'21 $153M 15 13 72 54 Q1'22 $145M 13 11 66 54 Q2'22 Technology & Development General & Administrative $138M 15 13 62 48 Q3'22 $120M 16 14 46 44 Q4'22 $144M 15 15 57 57 Q1'23 $139M 15 14 51 60 Q2'23 % of Revenue by Spend Category 90% 7% 8% 44% 30% Q3'21 (1) These are non-GAAP financial measures. Refer to the Appendix for a reconciliation of these measures to the most directly comparable GAAP measures. 95% 10% 8% 45% 32% Q4'21 99% 9% 8% 46% 35% Q1'22 89% 8% 7% 41% 33% Q2'22 89% 10% 8% 40% 31% Q3'22 82% 11% 9% 31% 30% Q4'22 87% 9% 9% 35% 34% Q1'23 82% 9% 8% 30% 35% Q2'23 15#16N Lz Non-GAAP Sales & Marketing Detail(¹) $M by Spend Category $65M $64M 50 15 Customer Acquisition Media "CAM" Other Sales & Marketing Q3'21 47 17 Q4'21 $72M 54 18 Q1'22 $66M 44 22 Q2'22 $62M 45 17 Q3'22 $46M 32 14 Q4'22 $57M 41 17 Q1'23 $51M 36 15 Q2'23 % YoY Growth by Spend Category 46% 33% Q3'21 (1) These are non-GAAP financial measures. Refer to the Appendix for a reconciliation of these measures to the most directly comparable GAAP measures. 73% 46% Q4'21 13% 0% Q1'22 53% (1%) Q2'22 16% (10%) Q3'22 (16%) (33%) Q4'22 (8%) (24%) Q1'23 (18%) (34%) Q2'23 16#17¹²Profitability Metrics Adjusted EBITDA(1) $15M 10% % of Revenue(1) Q3'21 $7M 5% Q4'21 $2M 1% Q1'22 $18M 11% Q2'22 $17M -11% Q3'22 $26M 18% Q4'22 $22M 13% Q1'23 $30M 18% Q2'23 Free Cash Flow (1) $17M 11% % of Revenue(¹) Q3'21 (1) These are non-GAAP financial measures. Refer to the Appendix for a reconciliation of these measures to the most directly comparable GAAP measures. (7%) ($9M) Q4'21 $9M 6% Q1'22 $6M 3% Q2'22 $21M 14% Q3'22 $16M 11% Q4'22 $22M -13% Q1'23 $37M 22% Q2'23 17#18Lz N Q3 and FY23 Guidance Commentary Total Revenue Adj. EBITDA(1) Total Revenue Adj. EBITDA (1) Q3 2023 FY 2023 $159M - $161M $26M - $28M $642M $652M - $105M - $110M ● ● Commentary Remain confident in growing market share by 15% in FY 2023 Continued improvement in FY 2023 Adjusted EBITDA margin to 17% at the midpoint (vs. 16% previously) (1) This is a non-GAAP financial measure. The company has not reconciled this non-GAAP measure to the most comparable GAAP measure because we are unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking GAAP financial measure that have not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. 18#19Lz N GAAP and Non-GAAP Long-term Financial Goals GAAP and Non-GAAP Measures Revenue Growth Gross Margin (GAAP) Customer Acquisition Marketing "CAM" OpEx (exc. CAM)(¹) Adj. EBITDA Margin(¹) FCF Margin(1) '20A 15% 67% 25% 25% 19% 18% '21A 22% 67% 34% 26% 8% 7% '22A 8% 66% 28% 29% 10% 8% Long-Term Targets (2) 24% + 71-73% 18-22% 21-23% 30% + 25% + (1) This is a non-GAAP financial measure. Refer to the Appendix for a reconciliation of this measure to the most directly comparable GAAP measure for the historical periods provided above. The company has not reconciled this non-GAAP measure to the most comparable GAAP measure because we are unable to provide a meaningful calculation or estimation of reconciling items and the information not available without unreasonable effort. This due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking GAAP financial measure that have not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. (2) These are not projections; they are goals and are forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the company and its management, and are based upon assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. Please see the LegalZoom.com, Inc. Disclaimer slide at the beginning of this presentation. Nothing in this presentation should be regarded as a representation by any person that these goals will be achieved and the company undertakes no duty to update its goals. 19#20Appendix LEGALZOOM#21Lz Reconciliation of GAAP Expenses to Non-GAAP Expenses FYE Dec 31, $K Cost of revenue Stock-based compensation (¹) Depreciation and amortization Other non-recurring items (2) Non-GAAP cost of revenue Sales and marketing Stock-based compensation (¹) Depreciation and amortization Other non-recurring items(2) Non-GAAP sales and marketing Customer Acquisition Marketing (3) Technology and development Stock-based compensation(¹) Depreciation and amortization Other non-recurring items (2) Non-GAAP technology and development General and administrative Stock-based compensation (¹) Depreciation and amortization Other non-recurring items(2) Non-GAAP general and administrative 2022 Q3'21 Q4'21 Q1'23 2020 2021 Q1'22 Q2'22 Q3'22 Q4'22 Q2'23 $154,563 $189,364 $211,095 $47,267 $48,278 $56,182 $57,151 $50,314 $47,448 $60,395 $63,749 108 1,662 1,105 2,931 8,581 1,331 2,184 8,324 6,430 3,011 146,131 171,390 923 6,913 263,884 10,144 7,014 400 163,554 257,543 246,326 181,272 41,863 2,450 2,800 36,613 279,281 15,721 6,017 84,003 38,726 2,361 199,583 45,085 42,916 779 1,403 51,026 72,572 6,364 1,401 51,017 106,584 116,057 9,413 2,060 3,181 36,363 70,434 26,865 16,574 14,459 2,834 538 148 1,951 64,807 64,059 11,868 46,179 28,192 56,487 50,820 16,539 1,878 3,316 433 2,577 2,593 222 45,642 59,328 10,998 69,917 4,040 1,818 119,226 195,383 174,636 49,739 47,495 53,769 44,137 44,755 277 2,070 18,213 6,205 652 53,835 53,636 76,874 3,125 1,875 71,874 17,959 4,298 726 71,721 3,536 1,879 11,356 12,935 597 1,966 67,369 47,920 2,972 511 1,754 1,506 400 66,306 62,243 45,903 16,197 4,148 692 11,357 47,751 44,361 56,899 726 2,361 17,457 3,857 694 12,906 874 2,622 13,828 60,150 1,532 1,257 31,975 40,745 31,382 29,488 28,969 30,103 27,497 15,478 14,165 13,832 12,352 10,471 661 723 784 840 969 1,720 70 1,083 1,440 13,523 14,530 13,270 15,471 16,057 57,361 18,821 19,683 4,271 4,320 722 858 14,505 26,504 9,741 832 628 15,303 59,633 53,525 1,447 1,354 50,724 36,021 19,900 4,875 841 14,185 26,936 11,530 632 107 14,667 (1) Stock-based compensation expense excludes amounts paid in cash to certain employees as part of a buyback program that concluded in 2022. (2) Includes acquisition-related expenses, restructuring expenses, legal reserves and settlements, and IPO- related costs and other transaction related expenses, as detailed in Reconciliation of Net Income (Loss) to Non-GAAP Net Income (Loss) below. (3) Customer Acquisition Marketing is a component of both GAAP and Non-GAAP sales and marketing expense. 21#22Lz Reconciliation of GAAP Expenses to Non-GAAP Expenses on a % of Revenue Basis Q1'22 Q2'22 Q3'22 FYE Dec 31, $K Cost of revenue 2020 33% 0% 36% 35% 32% 0% 1% 0% 2% 1% 1% 1% Stock-based compensation (¹) Depreciation and amortization Other non-recurring items (2) Non-GAAP cost of revenue Sales and marketing Stock-based compensation (¹) Depreciation and amortization Other non-recurring items(2) Non-GAAP sales and marketing Customer Acquisition Marketing (3) Technology and development Stock-based compensation(¹) Depreciation and amortization Other non-recurring items (2) Non-GAAP technology and development General and administrative Stock-based compensation (¹) Depreciation and amortization Other non-recurring items(2) Non-GAAP general and administrative 31% 36% 0% 1% 35% 25% 9% 1% 1% 8% 11% 2% 0% 1% 8% 2021 33% 0% 1% 32% 49% 3% 1% 45% 34% 15% 7% 0% 7% 19% 10% 0% 0% 8% 2022 34% 0% 1% 32% 43% 2% 1% 0% 40% 28% 11% 3% 0% 8% 19% 8% 1% 0% 10% Q3'21 32% 1% 1% 30% 49% 4% 1% 44% 34% 18% 10% 0% 8% 19% 11% 0% 0% 7% Q4'21 34% 0% 1% 32% 49% 3% 1% 45% 33% 13% 4% 0% - 8% 22% 11% 0% 1% 10% 35% 49% 2% 1% 46% 35% 12% 3% 0% - 8% 19% 9% 0% 0% 9% 33% 44% 2% 1% 41% 27% 10% 3% 0% - 7% 18% 9% 0% 1% 8% 31% 43% 2% 1% 0% 40% 29% 11% 2% 0% 8% 19% 8% 1% 1% 10% Q4'22 32% 0% 2% 30% 33% 0% 1% 31% 22% 13% 3% 0% 9% 19% 7% 1% 11% Q1'23 36% 1% 2% 34% 36% 1% 1% 35% 25% 12% 3% 1% 9% 16% 6% 1% 0% 9% Q2'23 38% 1% 2% 35% 32% 1% 1% 30% (1) Stock-based compensation expense excludes amounts paid in cash to certain employees as part of a buyback program that concluded in 2022. (2) Includes acquisition-related expenses, restructuring expenses, legal reserves and settlements, and IPO- related costs and other transaction related expenses, as detailed in Reconciliation of Net Income (Loss) to Non-GAAP Net Income (Loss) below. (3) Customer Acquisition Marketing is a component of both GAAP and Non-GAAP sales and marketing expense. 21% 12% 3% 0% 8% 16% 7% 0% 0% 9% 22#23Lz Reconciliation of GAAP Expenses to Non-GAAP Expenses on a Year-over-Year % Basis FYE Dec 31, $K Cost of revenue 2020 13% (7%) Q3'22 Q4'22 Q1'23 6% (2%) 7% (23%) 391% 216% 40% 21% 27% 23% Stock-based compensation (¹) Depreciation and amortization Other non-recurring items (2) Non-GAAP cost of revenue Sales and marketing Stock-based compensation (¹) Depreciation and amortization Other non-recurring items(2) Non-GAAP sales and marketing Customer Acquisition Marketing (3) Technology and development Stock-based compensation(¹) Depreciation and amortization Other non-recurring items (2) Non-GAAP technology and development General and administrative Stock-based compensation (¹) Depreciation and amortization Other non-recurring items(2) Non-GAAP general and administrative 12% 48% 38% 7% 50% 77% 13% 232% 165% 3% (12%) 158% (2%) (79%) (2%) 2021 23% 1,439% (23%) 24% 63% 1,603% (13%) 57% 64% 101% 1,481% (16%) 17% 109% 500% (9%) (19%) 26% 2022 Q3'21 Q4'21 11% 8% 21% 76% 2,497% 429% 33% (26%) (23%) 10% (6%) (35%) 17% (4%) (11%) 19% 8% 9% (10%) 77% 1% 30% 55% 5,434% 2% 43% (16%) 146% (57%) 2,633% 20% (18%) 46% 22% 170% 712% (9%) (69%) 53% 24% 71% 2,786% (6%) 65% 73% 78% 1,066% (21%) 28% 105% 572% 1% (16%) 31% Q1'22 Q2'22 28% 889% 23% 15% 88% 56% 27% 8% 1783% 27% 3% 0% 71% 767% 24% 37% 124% 358% 70% 0% 51% 12% 10% (31%) 42% 12% (1%) 6% 11% (7%) (53%) 25% (4%) (43%) (35%) (76%) (73%) 18% 29% (4%) 9% (10%) (33%) 2 (22%) (25%) (31%) (87%) (17%) (59%) (51%) (33%) (28%) (28%) (20%) 3% (31%) 11% 22% 6% (14%) 7% (35%) (25%) (32%) 119% 94% 47% 71% 549% (100%) 41% 19% 16% (24%) 10% 1% 18% 12% Q2'23 12% (17%) 38% (12%) (10%) (31%) 15% 797% 5% 11% (24%) (18%) (1) Stock-based compensation expense excludes amounts paid in cash to certain employees as part of a buyback program that concluded in 2022. (2) Includes acquisition-related expenses, restructuring expenses, legal reserves and settlements, and IPO- related costs and other transaction related expenses, as detailed in Reconciliation of Net Income (Loss) to Non-GAAP Net Income (Loss) below. (3) Customer Acquisition Marketing is a component of both GAAP and Non-GAAP sales and marketing expense. 23% 18% 22% 25% (7%) (17%) (19%) (90%) 11% 23#24Lz Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit FYE Dec 31, $K Gross profit Cost of revenue stock-based compensation (1) Cost of revenue depreciation & amortization Cost of revenue other non-recurring items(²) Non-GAAP gross profit(3) Gross profit margin(³) Non-GAAP gross profit margin(3) 2020 $316,073 108 8,324 $324,505 67% 69% 2021 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 $385,716 $408,884 $100,612 $93,859 $99,245 $105,498 $104,963 $ 99,178 $105,541 $105,106 2022 Q3'21 Q4'21 726 2,361 1,662 6,430 $393,808 67% 68% 2,931 8,581 779 1,403 66% 68% 148 1,951 277 2,070 1,331 2,184 597 1,966 874 2,622 $420,396 $102,794 $95,958 $101,592 $109,013 $107,526 $102,265 $109,037 $109,222 68% 64% 68% 70% 66% 68% 64% 65% 65% 67% 62% 65% 69% 66% 68% 70% 1,105 3,011 (1) Stock-based compensation expense excludes amounts paid in cash to certain employees as part of a buyback program that concludes in 2022. (2) Includes acquisition-related expenses, restructuring expenses, legal reserves and settlements, and IPO- related costs and other transaction related expenses, as detailed in Reconciliation of Net Income (Loss) to Non-GAAP Net Income (Loss) below. (3) We define non-GAAP gross profit as gross profit adjusted to exclude amortization of acquired intangible assets from our business combinations, non-cash stock-based compensation expense, losses from impairments of goodwill, long-lived and other assets, and other non-recurring expenses associated with our cost of revenue. Our non-GAAP gross profit financial measure differs from GAAP in that it excludes certain items of income and expense. We define gross profit margin as gross profit as a percentage of revenue. We define non-GAAP gross profit margin as non-GAAP gross profit as a percentage of revenue. 24#25Lz Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA FYE Dec 31, $K Net income (loss) Interest expense (income), net Provision for (benefit from) income taxes Depreciation and amortization Other (income) expense, net Stock-based compensation (¹) Loss on debt extinguishment Impairment of goodwill, long-lived & other assets Impairment of available-for-sale debt securities Impairment of other equity security (2) Acquisition or transaction related expenses Restructuring costs(³) Legal reserves and settlements (4) IPO-related costs(5) Certain other non-recurring expenses(6) Adjusted EBITDA Revenue Adjusted EBITDA margin 2,429 6,127 2020 2021 2022 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 $9,896 ($108,664) ($48,733) ($39,675) ($20,771) ($25,753) ($12,743) ($11,981) $1,744 ($2,358) 35,504 27,984 (1,543) 9,957 61 53 (29) (535) (1,032) (1,581) (10,951) 1,060 (5,908) (4,102) (920) (639) (223) 2,842 3,837 21,745 3,775 5,082 5,394 5,539 5,254 5,558 5,569 368 (893) 1,544 2,022 2,536 (1,625) (694) (625) 38,141 25,871 21,865 22,847 19,778 15,979 16,467 18,956 7,748 493 20,097 16,686 5,837 (3,713) (1,193) 4,477 12,894 112,596 80,469 1,105 4,818 132 2,524 525 1,764 $87,975 470,636 19% 7,748 924 1,356 237 3,000 758 1,795 40 852 369 400 $47,707 $63,705 575,080 619,979 8% 10% 52 1,356 6 | | | 30 364 40 92 991 237 636 804 3,000 ||| 628 || Q2'23 $1,395 (2,152) 107 400 217 5 $15,121 $7,020 $2,253 $18,080 $16,906 $26,466 $21,868 $29,645 147,879 142,137 155,427 162,649 155,277 146,626 165,936 168,854 10% 5% 1% 11% 18% 11% 18% 13% (1) Stock-based compensation expense excludes amounts paid in cash to certain employees as part of a buyback program that concluded in 2022. (2) In December 2022, we fully impaired our investment in Mylo and incurred a loss of $3.0 million as the fair value of our investment was determined to be zero based upon an observable sale of their common equity. (3) Restructuring expenses relate to certain one-time severance events for different components of our business. Such expenses are not expected to recur in the near or longer term. In the first half of 2020, we restructured our United Kingdom business, mainly in our leadership and technology team. In the fourth quarter of 2020, we incurred $2.0 million in severance costs related to a reduction in headcount in our U.S. workforce. In the second quarter of 2022, we incurred $1.0 million in severance costs related to a reduction in our U.S. workforce. the third quarter of 2022, we incurred $0.8 million in severance costs related to a reduction in our U.S. workforce. For 2023, restructuring expenses related to the reduction of our U.K. headcount, which is expected to be substantially complete by December 31, 2023. (4) Legal reserves and settlements include costs accrued or paid for potential litigation settlements, and are net of insurance recoveries, if any. (5) IPO-related costs include certain non-recurring expenses which occurred in connection with our IPO in 2021. (6) In 2020, certain other non-recurring expenses consisted of a loss on sale from the disposal of Beaumont. In 2021, certain other non-recurring expenses consisted of the early termination of our U.K. lease agreement. In 2022, certain other non-recurring expenses consisted of compensation expense was recorded in sales and marketing expenses related to the departure of a member of management. 25#26Lz Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) FYE Dec 31, $K Net income (loss) Amortization of acquired intangible assets Stock-based compensation (¹) Loss on debt extinguishment Impairment of goodwill, long-lived & other assets Impairment of available-for-sale debt securities Impairment of other equity security (2) Acquisition or transaction related expenses Restructuring costs (³) Legal reserves and settlements (4) IPO-related costs(5) Certain other non-recurring expenses(6) Income tax effects Non-GAAP net income (loss) Net income (loss) margin Non-GAAP net income (loss) margin 2020 2022 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 $9,896 ($108,664) ($48,733) ($39,675) ($20,771) ($25,753) ($12,743) ($11,981) 2,826 52 662 670 790 12,894 38,141 25,871 21,865 22,847 7,748 3,532 80,469 493 1,105 4,818 132 2,524 525 1,764 (4,148) $32,336 2% 7% 2021 1,039 112,596 7,748 924 1,356 852 369 (10,519) $5,701 (19%) 1% 237 3,000 758 1,795 40 | | | 52 I | | | 1,356 I | 181811 30 40 T T 92 991 217 364 400 5 (10,243) (4,399) (2,575) (2,277) (2,406) $31,255 $2,582 $4,959 ($5,425) $9,571 (8%) (27%) (15%) (17%) (8%) 5% 2% 4% (3%) 6% Q1'23 Q2'23 $1,744 ($2,358) $1,395 781 1,291 1,291 1,291 19,778 15,979 16,467 18,956 237 I 636 804 T I 3,000 81111 I T 628 I T T (1) Stock-based compensation expense excludes amounts paid in cash to certain employees as part of a buyback program that concluded in 2022. (2) In December 2022, we fully impaired our investment in Mylo and incurred a loss of $3.0 million as the fair value of our investment was determined to be zero based upon an observable sale of their common equity. (3) Restructuring expenses relate to certain one-time severance events for different components of our business. Such expenses are not expected to recur in the near or longer term. In the first half of 2020, we restructured our United Kingdom business, mainly in our leadership and technology team. In the fourth quarter of 2020, we incurred $2.0 million in severance costs related to a reduction in headcount in our U.S. workforce. In the second quarter of 2022, we incurred $1.0 million in severance costs related to a reduction in our U.S. workforce. the third quarter of 2022, we incurred $0.8 million in severance costs related to a reduction in our U.S. workforce. For 2023, restructuring expenses related to the reduction of our U.K. headcount, which is expected to be substantially complete by December 31, 2023. (4) Legal reserves and settlements include costs accrued or paid for potential litigation settlements, and are net of insurance recoveries, if any. (5) IPO-related costs include certain non-recurring expenses which occurred in connection with our IPO in 2021. (6) In 2020, certain other non-recurring expenses consisted of a loss on sale from the disposal of Beaumont. In 2021, certain other non-recurring expenses consisted of the early termination of our U.K. lease agreement. In 2022, certain other non-recurring expenses consisted of compensation expense was recorded in sales and marketing expenses related to the departure of a member of management. T 107 400 (2,550) (3,010) (2,030) (2,714) $8,105 $19,004 $13,998 $19,035 (8%) 1% (1%) 1% 13% 8% 5% 11% 26#27Lz Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow FYE Dec 31, $K Net cash provided by (used in) operating activities Purchase of property and equipment Free cash flow (1) Operating cash flow margin(2) Free cash flow margin(2) 2020 2021 $93,049 $54,152 (10,587) (11,740) 42,412 82,462 20% 18% 9% 7% Q2'22 Q3'22 Q4'22 2022 Q3'21 Q4'21 Q1'22 Q1'23 Q2'23 $73,837 $19,460 ($6,004) $13,737 $11,020 $27,258 $21,822 $29,208 $45,165 (22,098) (4,911) (5,468) (6,062) (5,657) (7,428) (7,799) 51,739 8,826 5,552 21,196 16,165 21,780 $37,366 18% 15% 18% 27% 14% 11% (2,496) (3,240) 16,964 (9,244) 13% 11% (4%) 12% 8% 9% 6% 7% 3% (7%) 13% 22% (1) We define free cash flow as cash generated by operations after purchases of property and equipment including capitalized internal-use software. (2) We define operating cash flow margin as net cash provided by operating activities as a percentage of revenue. We define free cash flow margin as free cash flow as a percentage of revenue. We define unlevered free cash flow margin as unlevered free cash flow as a percentage of revenue. 27#28LEGALZOOM