#1Investor Presentation November 2023 LEGALZOOM#2Lz Forward-looking statements disclaimer 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 products and 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 prior quarterly 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 most recently filed Quarterly Report on Form 10-Q 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 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#4Lz Our Mission: Unleash entrepreneurship B#5Lz SMB legal, compliance, and financial is a big opportunity And we are well-positioned to realize it Our Market Our Leadership $49B SAM (1) 1.6M The Largest Digital Player Active subscribers legal & compliance solutions 4.0M Businesses formed Little product innovation 25 since inception Offline Attorney NPS (2) $620M 2022 Revenue Low tech adoption ~4% legal services delivered online in the US(³) Advantaged NPS (5) 48 NPS for DIY Formation Brand Advantage (5) 68% 65% of lawyers cite as largest marketing expense(4) Aided Brand Online lead gen Awareness Efficient Payback (6) < 1 year Gross profit positive Unless otherwise noted, all information is as of September 30, 2023. (1) Total SAM as of June 2021. U.S. Census Bureau; Kantar Consulting (2019); Magid (2021); internal company estimates. (2) Net promoter score (NPS) in 2018, according to Clio Legal Trends Report. (3) In 2022, according to IBISWorld. (4) In 2014, according to Martindale Nolo. (5) As of June 30, 2023. (6) Customer Lifetime Value (LTV) to Customer Acquisition Cost (CAC) ratio for 2022 customer cohort. 01 5#6Lz Our business has changed since 2020 Evolving the focus toward tech-enabled efficiency and product-driven growth Mission People Technology Business Model Ecosystem Experts Old LZ Democratize Law Deep Domain Expertise On Prem, Old Stack, Manual Processes Brand spend and premium pricing Set and forget compliance and low value partnerships Non-integrated attorney services New LZ Unleash Entrepreneurship Scaled Software Development Cloud, Modern Stack/Tools, Automation leveraging AI/ML Performance marketing against low-cost transactional model (freemium) to drive higher subscription LTV Focus on an integrated post-formations experience, consumed subscriptions and top-tier partnerships Experts infused into the platform to drive higher-value services 6#7Lz Our management team 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 Tripadvisor Sheily Chhabria Panchal Chief People Officer Google Service Titan ACTIVISION BIZZARD Rich Preece Chief Operations Officer intuit Kathy Tsitovich Chief Partnerships Officer intuit. Shrisha Radhakrishna Chief Technology & Product Officer intuit COVAD Daniel Lysaught Chief Marketing Officer good eggs 88⁹ TrueCar 7#8Lz Large SAM, significant opportunity, early innings Progress made scaling formations; build out of ecosystem opens new SAM; early in our journey of expert services, which is the largest opportunity(¹) Small Business / Solopreneurs Opportunity Business Formation $6B The largest digital player, with only 10% market share(2), the main alternative being self directed Entity Creation Entity Compliance Business Address - Virtual Mail* Formation Ecosystem $10B During and post-formation, we offer a set of important services to operate a business Bookkeeping Insurance* Banking* Websites* Integrate Experts $24B Post-formation, we offer access to attorneys and CPAS to help handle the most complex matters • Tax Filing Intellectual Property Contracts/Forms Legal Advisory And Families Family $9B Creating a business is a life event for a family which warrants updates to an estate Estate Planning Wills & Trusts Power of Attorney Real Estate Transactions *Not included in SAM. (1) Total SAM as of June 2021. U.S. Census Bureau; Kantar Consulting (2019); Magid (2021); internal company estimates. (2) For the three months ended September 30, 2023. Market share reflects number of LegalZoom business formations versus U.S. Census non-seasonally adjusted business formations over the same period. 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. 8#9Our customer, product, and growth strategy LEGALZOOM#10Lz We solve three important problems for new businesses With a focus on solopreneurs, an often-overlooked segment of customers Forming and maintaining a business entity is a confusing process Entity creation and SMB compliance is complicated, time-consuming and expensive to navigate on your own 44% Of small businesses spend >40 hours each year dealing with regulations (1) 10% Of small businesses are fined for regulatory noncompliance (¹) There are many services required to operate a business once formed ... Right while launching a SMB, a business needs to find the right solutions to operate and grow 94% Don't have a bookkeeping solution at formation (2) (1) 2017 NSBA Small Business Regulations Survey. (2) LegalZoom Magid customer study as of July 2023. 84% Don't have a website at formation (2) Businesses often navigate choices without expert advice due to costs ... SMBs have a fear of navigating complex, oft-changing regulatory and tax matters, but the cost of experts isn't accessible 96% Haven't consulted an attorney at formation (2) 92% Haven't consulted a tax professional at formation (2) 10#11Lz LegalZoom makes starting a business simple Eliminating the friction of countless gov't agencies and disparate service providers A Typical SMB use case* ? Forming w/ Secretary of State (¹) ? Establish a business address ? Assign a Registered Agent ? Obtain an EIN through the IRS (¹) ? Open business bank account(2) ? Create bylaws / Operating Agreement ? File annual reports Get business licenses and permits (1,2) ? ? ? An attorney must certify your incorporation application Review / Sign legal forms/documents Bookkeeping / Accounting(2) Tax advice, tax elections (2) Apply for business insurance(2) File business / employer tax return(1,2) ? Sales tax registration (1) 15 Hours spent researching formation (3) ? ? ? ? ? POS / Ecommerce solution (2) ? Payroll, payments, capital(2) ? Create business email(2) ? Website, online presence (2) ? Consider updating your Estate Plan ? Protect IP: Trademark / Patents (¹) Starting a business is complex 5+ Separate Government agency requirements 10 Relevant company start up services *For illustrative purposes only. (1) Represents separate government agency. (2) Represents company start up service. (3) LegalZoom Magid Customer Study as of March 2021. (4) For U.S. based businesses, Trademarkia. (5) For the last twelve months ended June 30, 2023. (6) As of June 30, 2023. LegalZoom makes it easy, at scale A single interface to 3,000 counties, 50 states, and various federal agencies #1 formations and trademark(4) filer in the U.S. A single authoritative business profile leveraged across all filings ML/AI leveraged to automate filings and speed up turn around times ~3 million annual care/sales contacts, 100,000+ annual attorney/CPA consultations (5) 20+ transaction types often unique to different federal, state, and county agencies 160+ customizable templates and legal forms LegalZoom makes it easy by leveraging technology ... Defensible through a mix of AI/ML, people, & physical assets ... Government APIs requires ML/Al at scale to navigate ever changing regulations > 1,000 Customer facing agents to support SMBS and interface with gov't agencies (6) 95 Staffed locations in all states per required Registered Agent regulations 11#12Lz Three key strategic pillars With clear priorities designed to drive long-term growth Scale the Business Capture share by reducing transactional pricing to form a business ● ● Utilize technology to drive efficiencies in the formation process Leverage freemium messaging to drive marketing efficiencies Build the Ecosystem Build core offerings to help keep business compliant, protected and financially organized ● ● ● Drive ongoing usage, engagement and extend LTV Curate complementary third-party solutions Integrate Experts Provide first-level insights by leveraging Al ● Manage complex legal matters while decreasing the cost to access an attorney Deliver meaningful tax advice and remove the fear of filing 12#13Lz Scale the Business: Formations are resilient And there are tailwinds to drive further acceleration Stable macro, strong relative performance 83% Years with positive US small business formations growth(¹) 35% 25% 15% 5% (5%) (15%) (25%) Small businesses are resilient (4% 18-year small business formation CAGR(1)) 2006 US Business Formations Growth Rate Great Recession 2008-2009 LZ Revenue Growth 10% 2008 2010 2012 2014 2016 2018 Source: U.S. Census Bureau business formation statistics seasonally adjusted business application units. (1) Timeframe represents 2006 - 2023 year-to-date (January through September 2023). (2) LegalZoom Magid customer study as of July 2023. Covid-19 2020-2022 LZ formations grew 34% faster than the Macro 2020 2022 Tailwinds Work From Home More flexibility to form a business while employed - more than half of LegalZoom customers have another job(2) Digital Enablement Tools An idea can become a digital business in days with minimal upfront capital required and gig platforms and SMB tools Post-Covid Economy Businesses are emerging and evolving to adjust to the new economy, onshoring, and industries that didn't exist before like NIL (name, image, likeness), Influencers, freelancing roles 13#14Lz Scale the Business: Freemium Driving share of formations through the conversion of non-consumption LEGALZOOM Business → Personal Business Business formation LLC Includes: Start your business with confidence KV Whether you're ready to form an LLC on your own-or want advice every step of the way-we've got your back. Starts at $0+ filing fees. Learn more ✰✰✰✰✰ 4.5 stars (52,469) Basic $0+ state filing fees I only need what it takes to make my business official I can do most of the work myself Form my LLC for free • Articles of organization, the document needed to officially register your LLC with the state For attorneys • Name check service, to confirm that your preferred business name is available • Digital welcome packet, which includes a step- by-step checklist to follow after your LLC is officially registered Resources Support → Talk to sales: (800) 811-3016 → Pro $249+ state filing fees I need all the essentials to help me operate in a compliant way Form my LLC Includes Basic package, plus: • An operating agreement, which helps you set entity guidelines and settle disputes • An EIN, which is used to file taxes, open bank accounts, and build your staff A comprehensive guide to business licenses for your location and industry • Initial phone consultations with specialists about business insurance and taxes "LegalZoom was an incredible partner. My business feels so sound that I can't wait to hire more people... and have LegalZoom there with me as I grow." Shannon Greevy LLC Customer I want advice from experienced attorneys Premium $299+ state filing fees I want an experienced attorney to ensure I form my business right Form my LLC Includes Pro package, plus: • Hands-on guidance from an experienced business attorney that you choose based on state, years of experience, and rating • One year access to our suite of attorney- written and approved documents complete with streamlined e-signature workflows. Unlimited 30-minute attorney consultations about new legal topics related to your business (first 90 days of subscription included) Any changes to your LLC formation documents within the first 90 days Business Formations (1) YOY Growth % 103K 12% Q4'21 129K |(2%) Q1'22 Freemium Testing 113K (16%) Q2'22 117K 3% Q3'22 Freemium Rollout 115K 12% Q4'22 170K 32% Q1'23 161K 42% 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) Represents LegalZoom branded LLC formations. 137K 17% 30%+ YoY growth in LZ LLC (2) Q3'23 14#15Lz Scale the Business: Drive marketing efficiencies Leveraging freemium messaging to drive efficient CAM spend $M by Spend Category(¹) Customer Acquisition Media "CAM" Other Sales & Marketing $64M 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 $48M 35 13 Q3'23 % YoY Growth by Spend Category 73% 46% Q4'21 (1) These are non-GAAP financial measures. Refer to the Appendix for a reconciliation of these measures to the most directly comparable GAAP measures. 13% -0% Q1'22 53% (1%) Q2'22 16% (10%) Q3'22 (16%) (33%) Q4'22 (8%) (24%) Q1'23 (18%) (34%) Q2'23 (21%) (28%) Q3'23 15#16¹z Build the Ecosystem: A powerful channel With a new opportunity, post-formation Attached w/ formation Formations LLC Incorporations DBA Non-Profits Registered Agent Entity Compliance Tax ID / EIN Operating Agreement Business Licenses Formation-related transactions Technical sales / support available along the way Attached within 30 days of formation Virtual Mail Bookkeeping CHASE O Banking Insurance Formation-related subscriptions WIX Websites NEXT Forms eSignature Partnership solutions Bulk of attach occurring up front today In the future Attached post-formation Legal Advice Tax Services Trademark Post-formation expert services & subscriptions Early innings of post- formation opportunity 16#17Lz Build the Ecosystem: Rapidly launching new offerings Five new services integrated in three years Home ● Compliance Documents & Legal Books Taxes Virtual Mall Business toolkit LZ TAX July 2021 Tax prep software with integrated expert assistance Taxes Tax prepNDARD TAI NETURN TAADISORY PLAN Tax year 2023 Your tax deadline has passed but we can still file your 2022 retum. Submit your questionnaire and docs by August 15. Tax year questionnaire Ontharing O Tax return prep How to complete your questionnaire Set aside about an hour to get it done. Complete your tax year questionnaire Your answers will help us determine the documents we need to do your taxes. We take your pracy seriously and protect the info you share with us Your tax expert will follow u Progress auto-save as you Home ● Compliance Documents LZ VIRTUAL MAIL Taxes Virtual Mail Business toolkit Virtual mailbox solution for small businesses Virtual Mail T For you 2 October 2022 SENDER Kate Kettlebells 9450 SW Gemini Dr PMD 44725 Beaverton, Oregon 97008-7105 US View items Michigan Department of State STAR Labs .- Your mail-a-lance 1minsan que 5 Checkble for deposit 5 checks available for deposit You've got checks in your ma that we can deposit for you! 05/01/23 View items REOPENT Kate Kettlebells S 42 Rems in storage Lg Kate Kelebells • Compliance Documents Signature 5 Shipment scheduled SCAR Legal Tes Virtual mal Manate all mail ( Lz eSIGNATURE April 2023 eSignature services designed to simplify document signing Documents signature Alles 8 Pending signatures Independent contractor agreement Security agreement Kitchen contract Photography proposal 2022 les Sed Security STATUS SENT DRAFT DECLINED Draft CLIENT EL EL EL EL Home lg kate Kemebels s ● Compliance & Documents Books Invoices Clients Service Declined Business to Create folder 06/01/23 Available money 2023 $13,500 LZ BOOKS " Send Invoice reminders You have overwoes Invoice 08 Insights Projects August 2023 Easy-to-use accounting software for SMBs 4 1 * Open a business bank account Separate your personal and business frances Invoice #13 OVERDUE $11,568 $1,920 Paid LZ BUSINESS LICENSES Transactions Oscar Gast approved Marathon Training Personal training 85 LEGALZOOM View project Personalized licenses service to help businesses operate legally 13 November 2023 Here's what you may need We've analyzed over 2,000 licenses and, based on your activities in photography and address at 101 M. Brand Dive, Glendale, CA 9203, you may need the following licenses, permits, and registrations View your report to learn more and apply. We've emailed it for your records and you can access it anytime in your account. Federal (1) Ented substances Registration 20 or face ding with controlled substances must obtain a controlled substance ( Def an of Tax and of license or permit scription lorem um dolor sit amet consectetur Vitae phase dam vulputate facilis odio posuere View details View details View details (800) 920-20s 17#18Lz Build the Ecosystem: Bringing it together with My LZ Focused on creating a unified experience and application E LEGALZOOM K Kate Kettlebells Exercise Academy Home ● Compliance Documents Legal Books I Taxes Virtual mail û NEW V Business toolkit. Tax & Legal advice Terms Privacy choices © 2000-2023 LegalZoom.com, Inc. Hi, Kate Order received LLC 0000 > Congrats! Your LLC is official. Your final documents are available to view online now. We're also shipping a printed version to your mailing address. View documents For you 13 Create your operating agreement Protect your business and maintain your entity status by establishing ground rules. Create now Activity feed 1 JUL w LegalZoom processing Today Jul 1, 2023 State processing 4 (1) For the twelve months ended September 30, 2023. Lz Your final LLC documents are ready to view Finalizing paperwork Get your Federal Tax ID Number (EIN) Often required for business banking and taxes, and helps protect against identity theft. Get my EIN LLC complete Find your required business licenses Get a custom report of the licenses and permits you need to run your business legally. Get my report View docs i A new unified experience and a history of higher subscription Subscription Revenue (% of Total Revenue) $206M 51% 2019 $230M 149% 2020 $289M 50% 2021 $358M 58% 2022 $395M 61% 2023 LTM (1) 18#19Lz Build the Ecosystem: LZ Books Our simple accounting solution designed for the solopreneur 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 * 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 Capabilities Automated income and expense categorization Customized proposals and invoices ● Payments Mileage tracking, receipt capture, bulk expense classification Seamless integration with LZ Tax Opportunity New product and customer entry point Promotes ongoing customer engagement and cross-selling opportunities Cohesive integration with expert offerings 19#20Lz Build the Ecosystem: Business Licenses Rounding out our compliance ecosystem ELEGALZOOM Kate Kettlebells Exercise Academy Home ● Compliance Documents Legal Books Taxes ✔Virtual mail NE Business toolkit Tax & Legal ach Terms Privacy choices © 2000-2023 Legazoom.co Compliance Know your compliance benefits Stay informed about how we help you maintain good standing. A x Business licenses & permits INCLUDED Easily secure the licenses you need to run your business legally Start your business license report to help ensure your business is compliant with federal, state, and local regulations. Get my report P Personalized re A personalized s state, and local li registrations requ Do I need lice It's highly like requirement: When should You should g you could far for your reco Who issues t Business lice applications LEGALZOOM Here's what you may need We've analyzed over 2,000 licenses and, based on your activities in photography and address at 101 N. Brand Blvd, Glendale, CA 91203, you may need the following licenses, permits, and registrations.* View your report to learn more and apply. We've emailed it for your records and you can access it anytime in your account. Federal (1) Controlled Substances Registration Individuals or facilities dealing with controlled substances must obtain a controlled substance registration (CSR). ft U.S. Department of Justice. State (2) Sales & Use Permit For retailers engaged in business in California. fit Department of Tax and Fee Administration + New Name of license or permit Short description lorem ipsum dolor sit amet consectetur. Vitae phasellus diam vulputate facilisis odio posuere. ft Agency name County (2) View details View details View details (800) 920-2065 Capabilities Personalized summary of required licenses, permits and registrations Direct access to applications Proprietary nationwide database kept up-to-date down to local level requirements Opportunity Essential need for our customer base, with the typical small business requiring a combination of licenses and permits from federal and state agencies Integrated offering and owned commercialization strategy drives future growth opportunities 20#21Lz Integrate Experts: ARPU opportunity By evolving into a platform that enables access to experts at an accessible price Attorney Led Trademarks O Trademark registration LegalZoom Guarantee $599+ federal fees Register a trademark Set up your mark for success. With attorney help, you have a 94% chance of registering a trademark. If your first mark gets rejected, we'll cover our $599 fee to register a different mark Have peace of mind knowing your attorney will research your mark, file for you, and deal with minor roadblocks Get a free trademark search for a second mark if your attorney thinks there's an issue with your first choice Business Advisory Plan Get legal help from experienced business attorneys Select your state Get valuable legal services with unlimited 30-minute calls on new small business legal topics, such as company setup, contract review, hiring, and compliance for a monthly cost less than an hour with a traditional attorney. Excellent ★★★★★ Start your plan Attorneys are an independent network of advisors. (1) Transactional Net Promotor Score (tNPS) data reflects January 1, 2023 to June 30, 2023. ★ Trustpilot Lz GUARANTEE Learn more LZ Tax O Most popular Standard Tax Return + Tax Advisory Best for solo owners Prep and filing of personal and self-employed tax returns. Unlimited expert advice. Plus free LZ Books. Monthly $99/mo Annual plan billed monthly Yearly (Save $360) Select plan Strong attorney network 1,000+ attorneys Coverage in all 50 states ● Our own law firm Alternative Business Structure in Arizona ("ABS") Ability to co-counsel on all matters Expanding tax practice In-house CPAS and outsourced CPAS/EAS, covering all 50 states Demonstrated ability to expand capacity in tax season ● Superior Customer Experience (¹) ● Attorney Led Trademarks tNPS: 88 Business Advisory Plan tNPS: 76 LZ Tax TNPS: 84 21#22Lz Integrate Experts: Doc Assist Targeting non-consumption with Al-driven lead gen model Lz Independent contractor agreement Independent contractor agreement This Independent Contractor Agreement (this "Agreement") is made as of this 18 day of July, 2023, (the "Effective Date") by and between Eric Smith located at 283 Dusterberry Way, Fremont, CA 94536 ("Client") and John Doe located at 1431 Streambed Bvld, Dublin, CA 98452 ("Independent Contractor"). Client and Independent Contractor may each be referred to in this Agreement as a "Party" and collectively as the "Parties." 1. Services. Independent Contractor shall provide the following services to Client (the "Services"): Kitchen and Bathroom remodelling. In addition, Independent Contractor shall perform such other duties and tasks, or changes to the Services, as may be agreed upon by the Parties. 2. Term and Termination. Independent Contractor's engagement with Client under this Agreement shall commence on July 18, 2023. The Parties agree and acknowledge that this Agreement and Independent Contractor's engagement with Client under this Agreement shall terminate upon the completion by Independent Contractor of the Services. At the time of termination, Independent Contractor agrees to return all Client property used in performance of the Services, including but not limited to computers, cell phones, keys, reports and other equipment and documents. Independent Contractor shall reimburse Client for any Client property lost or damaged in an amount equal to the market price of such property. Either the Independent Contractor or Client may freely terminate this contract at any time regardless of the work or projects currently in progress, but they must do so with no less than 15 days' notice. 3. Compensation. Inconsideration for Independent Contractor's performance of the Services, Client shall pay Independent Contractor $150.00 per hour. Independent Contractor will be paid on Saturday of every week. 4. Expenses. All costs and expenses incurred by Independent Contractor in connection with the performance of the Services shall be the sole responsibility of and paid by Independent Contractor. 5. Independent Contractor. The Parties agree and acknowledge that Independent. Contractor is an independent contractor and is not, for any purpose, an employee of Client. Independent Contractor does not have any authority to enter into agreements or contracts on behalf of Client, and shall not represent that it possesses any such authority. Independent Contractor shall not be entitled to any of Client's benefits, Summary Clause (6) PRODUCT Recitals Get legal help This clause identifies the Client, Eric Smith, and the Independent Contractor, John Doe. It also states that the effective date is July 18, 2023. → Q&A (9) PRODUCT Provision of Services This clause states that the primary services to be completed are kitchen and bathroom remodeling. PRODUCT Termination This clause establishes the start date of the agreement as July 18, 2023, and states that the agreement will terminate upon the completion of the services by the independent contractor. It is important to note that either the independent contractor or the client retains the right to terminate the contract at any time, regardless of ongoing work or projects; however, such termination requires a notice period of no less than 15 days. This appears to a shorter notice period than most other agreements of this type. You may want to discuss this clause with your attorney. Need help? Comment to ask an attorney questions and get a response within 3 hrs. PRODUCT Ask question to an attorney Looking for some extra help? Subscribe to Legal to discuss and ask questions with an attorney Subscribe to legal Miscellaneous urred lient Capabilities ● ● Free document summarization product erages Al technology and 20+ years experience in legal forms space ● Distills clauses and prompts questions tailored by document type Promotes access to our attorney network Opportunity Drives traffic Cross-sell of higher-value expert offerings Competitive Positioning Accuracy and unauthorized practice of law regulations create roadblocks for standalone GenAl use Need for GenAl to be coupled with credentialed experts Brand / Channel enables data lead relative to competition 22#23Lz Integrate Experts: Legal Forms library Another gateway to grow our expert offerings LEGALZOOM Business Personal Home Templates Create documents with free templates, drafted by attorneys. Search templates Popular Amendment of Agreement, Employment Agreement, Bill of Sale - Automobile, NDA 00 Select from 150+ attorney-drafted form. templates Fill quickly and reduce errors with guided questions Legal help v Resources Support Talk to LegalZoom: (855) 692-0800 (Q Excellent ✰✰✰✰✰ ★ Trustpilot Featured Templates Customize to meet your needs with a rich editor Amendment of Agreement Arbitration Agreement Lz Sign and manage your documents online securely in one place Learn more Bill of Sale- Automobile Job A x Mutual non-disclosure agreement 19. EFFECTIVENESS. This agreement will become effective when all parties have signed it. The date this agreement is signed by the last party to sign it (as indicated by the date associated with that party's signature) will be deer x Mutual non-disclosure agreement ● PURCHASED the date o 20. NECES Each party to be take actions ne agreement contempla [SIGNATUR Each party Sign in Kate V Sender Sig Get legal help ✔Edit Signature block Enter signer details below and drag the signature block onto the document. Signer 1 20. NECESSARY ACTS; FURTHER ASSURANCES. ✓ Sign Kata Willams (Wal Download 19. EFFECTIVENESS. This agreement will become effective when all parties have signed it. The date this agreement is signed Kate Willams Get legal help Sender Signature X by the last party to sign it (as indicated by the date associated with that party's signature) will be deemed the date of this agreement. Each party and its officers and directors shall use all reasonable efforts take, or cause to be taken, all actions necessary or desirable to consummate and make effective the transactions this agreement contemplates to evidence or carry out the intent and purposes of this agreement. [SIGNATURE PAGE FOLLOWS] Each party signing this agreement on the date stated opposite that party's signature. Eric Smith Client Signature *** 6 Signature N Activities Edit ✓ Sign Download l Signature N Activities Infor Capabilities Free access to 160+ attorney certified forms Forms editor provides ability to customize, sign/send for eSignature, track document status and store documents securely for a fee Promotes access to our attorney network ● ● Opportunity Drives traffic Cross-sell of higher-value expert offerings • Cross-sell of eSignature tool ● ● 23#24Lz Investment highlights The largest digital player in a large and fragmented formations market Ability to operate at scale in a complex, highly regulated industry with low technology adoption Leading brand and powerful customer acquisition channel with significant greenfield opportunity Attractive and efficient business model, shifting to subscriptions Building an engaging ecosystem of post-formation subscription solutions Building an efficient integration of higher value expert services into our platform ● ● Leadership team focused on growth and profitability Opportunities to gain share, develop the digital space and integrate high-value expert offerings Highly efficient business model driving growth in Adjusted EBITDA and free cash flow conversion ● 24#25Financial update LEGALZOOM#26Lz Quarterly Q3 2023 snapshot $167M total revenue +8% yoy 137K business formations +17% yoy $112M adjusted gross profit(¹) 67% margin (1) 237K transaction units +5% 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. $34M adjusted ebitda (¹) 20% margin (¹) 1,568K subscription units +11% yoy 26#27Lz Balanced focus on top and bottom-line growth Improving profitability; high conversion of Adjusted EBITDA into Free Cash Flow Adjusted EBITDA (¹) Free Cash Flow (1) GAAP Revenue $155M $142M Q4'21 Q1'22 $163M Q2'22 $155M Q3'22 $147M Q4'22 $166M $169M Q1'23 Q2'23 $167M Q3'23 Year-over-year Growth % 16% 15% 8% 5% 3% 7% 4% 8% $7M Q4'21 5% $2M Q1'22 1% $18M Q2'22 $17M Q3'22 $26M Q4'22 $22M (1) This is a non-GAAP measure. Refer to the Appendix for a reconciliation of this measure to the most directly comparable GAAP measure. Q1'23 $30M Q2'23 % of Revenue (1) 11% 11% 18% 13% 18% $34M Q3'23 20% ($9M) Q4'21 $9M Q1'22 (7%) 6% $6M Q2'22 $21M Q3'22 $16M Q4'22 $22M Q1'23 $37M Q2'23 $19M Q3'23 % of Revenue (1) 3% 14% 11% 13% 22% 12% 27#28LZ Transactions - shift to Freemium Focus on share and subscription growth, trading off transactional AOV/Revenue Business Formations (1) Transaction Revenue 103K Q4'21 129K Q1'22 113K Q2'22 117K 115K Q3'22 Q4'22 170K Q1'23 161K Q2'23 137K Q3'23 Year-over-year Growth % 12% (2%) (16%) 3% 12% 32% 42% 17% Units AOV Transaction Units (2) 211K $267 Q4'21 8% AOV(3) 267K $245 Q1'22 225K 226K $290 Q2'22 $258 Q3'22 211K $241 Q4'22 308K $202 Q1'23 283K $214 Q2'23 237K $242 Q3'23 Year-over-year Growth % (3%) (13%) (1%) 0% 15% 26% 0% 10% 3% (11%) (10%) (18%) (26%) (6%) 5% $57M Q4'21 8% $65M $65M Q1'22 Q2'22 $58M Q3'22 $51M Q4'22 $62M Q1'23 $60M Q2'23 $57M Q3'23 Year-over-year Growth % 6% (11%) (13%) (10%) (5%) (7%) (2%) (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) 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. (3) We define average order value for a given period as total transaction revenue divided by total number of transactions in such period. 28#29Lz Subscription mix increasing Unit growth accelerates post-freemium launch Subscription Revenue $81M Q4'21 29% $84M Q1'22 29% $91M $91M $91M Q2'22 Q3'22 32% Q4'22 $97M Year-over-year Growth % 25% 13% Q1'23 15% $102M Q2'23 12% $104M Q3'23 14% Sub Units ARPU Subscription Units (¹) 1,329K $236 Q4'21 22% ARPU (2) 6% 1,362K $244 Q1'22 19% 8% 1,394K Q2'22 $259 $252 1,415K 15% 10% Q3'22 1,441K Year-over-year Growth % 8% 12% 12% $258 Q4'22 9% 1,501K $259 Q1'23 10% 6% 1,553K $259 Q2'23 11% 3% 1,568K $265 Q3'23 11% 2% (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. 29#30LzQ4 and FY23 guidance commentary Total Revenue Q4 2023 Adjusted EBITDA(1) Total Revenue FY 2023 Adjusted EBITDA(1) $155M - $157M $28M $30M - $657M - $659M $114M $116M - Raising & Narrowing Full Year Guidance Revenue growth of 6% year-over-year at the midpoint Previous revenue guide(2) of $642M - $652M or 4% year-over-year growth at the midpoint Adjusted EBTIDA margin of 17% at the midpoint Previous Adjusted EBITDA guide(2) of $105M - $110M (1) This is a non-GAAP financial measure. The Company has not reconciled this forward-looking non-GAAP measure to the most comparable GAAP measure because it is 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. (2) Reflects guidance provided on August 8, 2023 as part of the Company's second quarter 2023 earnings release. 30#31Lz GAAP and non-GAAP long-term financial targets GAAP and Non-GAAP Measures Revenue Growth Gross Margin (GAAP) Customer Acquisition Marketing "CAM" OpEx (exc. CAM)(¹) Adjusted 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 forward-looking non-GAAP measure to the most comparable GAAP measure because it is 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. (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 Forward-looking statements 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. 31#32Appendix LEGALZOOM#33Lz Non-GAAP expenses(¹) $M by Spend Category 64 $135M 14 11 46 Cost of Revenue Q4'21 Sales & Marketing $153M 15 13 72 54 Q1'22 $145M 13 11 66 54 Q2'22 $138M 15 13 62 48 Q3'22 Technology & Development General & Administrative $120M 16 14 46 44 Q4'22 $144M 15 15 57 57 Q1'23 $139M 15 14 51 60 Q2'23 $134M 15 16 48 55 Q3'23 % of Revenue by Spend Category 95% 10% 8% 45% 32% Q4'21 99% 9% 8% (1) These are non-GAAP financial measures. Refer to the Appendix for a reconciliation of these measures to the most directly comparable GAAP measures. 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 80% 9% 9% 29% 33% Q3'23 33#34Lz 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 2020 2021 $154,563 $189,364 108 1,662 6,430 8,324 146,131 171,390 923 6,913 41,863 2,450 2,800 36,613 279,281 263,884 15,721 10,144 6,017 7,014 400 163,554 257,543 246,326 64,059 71,874 119,226 195,383 174,636 2022 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 $211,095 $48,278 $56,182 $57,151 $50,314 $47,448 $60,395 $63,749 $59,123 1,331 2,184 9,413 2,060 3,181 36,363 2,931 8,581 84,003 38,726 2,361 181,272 199,583 46,179 53,835 42,916 148 1,951 277 2,070 51,026 69,917 76,874 4,040 3,125 1,818 1,875 47,495 53,769 70,434 18,213 17,959 16,574 6,205 4,298 652 726 2,834 11,356 51,017 106,584 116,057 31,382 56,487 50,820 1,878 29,488 15,478 14,165 661 723 2,593 1,720 70 59,328 13,523 14,530 3,316 2,577 45,642 53,636 71,721 3,536 1,879 44,137 597 1,966 67,369 47,920 2,972 511 1,506 1,754 400 66,306 62,243 45,903 16,197 4,148 692 726 2,361 47,751 44,361 12,935 11,357 12,906 874 2,622 13,828 56,899 59,633 60,150 1,532 1,257 17,457 18,821 19,683 3,857 4,271 4,320 694 722 858 28,969 30,103 13,832 12,352 784 840 1,083 1,440 13,270 15,471 16,057 44,755 31,975 40,745 36,021 1,105 3,011 57,361 50,724 53,525 1,447 1,354 14,505 19,900 4,875 841 14,185 7,497 26,504 26,936 10,471 9,741 11,530 969 832 628 15,303 632 107 14,667 1,115 3,307 54,791 51,071 1,623 1,400 48,048 35,411 21,491 4,706 1,168 15,617 25,243 8,138 780 1,247 15,078 (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. 34#35Lz Reconciliation of GAAP expenses to non-GAAP expenses on a % of revenue basis 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 2020 33% 0% 2% 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% Q4'21 34% 0% 1% 32% 49% 3% 1% 45% 33% 13% 4% 0% 8% 22% 11% 0% 1% 10% Q1'22 Q2'22 Q3'22 Q4'22 36% 35% 32% 32% 0% 1% 0% 0% 1% 1% 1% 2% 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% 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% 6% 1% 0% 9% Q2'23 38% 1% 2% 35% 32% 1% 1% 30% 21% 12% 3% 0% 8% 16% 7% 0% 0% 9% Q3'23 35% 1% 2% 33% 31% 1% 1% 29% 21% 13% 3% 1% (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. 9% 5% 0% 1% 9% 35#36Lz Reconciliation of GAAP expenses to non-GAAP expenses on a year-over-year % basis 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 2020 13% (7%) 23% 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 11% 76% 33% 10% (4%) (6%) 71% (35%) 2,786% 17% (6%) (11%) Q4'21 21% 429% (23%) 19% 24% 9% (10%) 77% 1% 30% 65% (16%) 78% (57%) 1,066% 20% (21%) 73% 28% 105% 572% 1% (16%) 31% Q1'22 Q2'22 Q3'22 Q4'22 28% 6% 889% 23% 15% 88% (2%) 391% 56% 21% 27% 8% 1783% 27% 3% 0% 71% 767% 24% 37% 358% 70% 0% 51% 12% 10% (31%) 42% 12% (1%) (23%) 40% 11% (4%) (7%) (31%) (53%) (87%) 25% (17%) 6% (4%) (10%) (43%) (35%) (76%) (73%) 18% 29% 9% (14%) 7% (35%) (25%) 119% 71% 94% 549% 41% 16% 20 (28%) (33%) 3% (31%) 11% 22% (32%) 47% (100%) 19% Q1'23 7% 216% 27% 6% (22%) (51%) (33%) (20%) 10% 1% 18% 12% Q2'23 12% (17%) 38% (24%) (18%) (10%) (31%) 15% 797% 5% 11% (25%) (24%) (59%) (45%) (28%) (20%) (100%) (24%) (23%) 23% 18% 22% 25% Q3'23 18% 87% 68% (7%) (17%) (19%) (90%) 11% 15% (21%) 23% 22% 68% 21% (16%) (34%) (7%) (13%) (2%) (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. 36#37Lz 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 Non-GAAP gross profit(2) Gross profit margin(2) Non-GAAP gross profit margin(2) 2020 $316,073 108 8,324 $324,505 67% 69% 2021 $385,716 1,662 6,430 $393,808 $420,396 2022 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 $408,884 $93,859 $99,245 $105,498 $104,963 $ 99,178 $105,541 $105,106 $108,061 2,931 148 277 1,331 597 726 874 1,105 1,115 8,581 1,951 2,070 2,184 1,966 2,361 2,622 3,011 3,307 $95,958 $101,592 $109,013 $107,526 $102,265 $109,037 $109,222 $112,483 64% 66% 68% 64% 65% 65% 67% 68% 69% 68% 70% 62% 65% 65% 67% 66% 67% 68% 66% 68% (1) Stock-based compensation expense excludes amounts paid in cash to certain employees as part of a buyback program that concludes in 2022. (2) 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. 37#38Lz 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 2020 2021 2022 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 $9,896 ($108,664) ($48,733) ($20,771) ($25,753) ($12,743) ($11,981) $1,744 ($2,358) $1,395 $7,534 35,504 27,984 (1,543) 61 53 (29) (535) (1,032) (1,581) (2,152) (2,623) 2,429 (10,951) 1,060 (4,102) (920) (639) (223) 2,842 3,837 6,127 4,463 16,686 21,745 5,082 5,394 5,539 5,254 5,558 5,569 5,837 (1,193) 4,477 (893) 1,544 2,022 2,536 (1,625) (694) (625) 112,596 80,469 25,871 21,865 22,847 19,778 15,979 16,467 18,956 6,655 20,097 (3,713) 882 12,894 15,582 7,748 924 1,105 4,818 132 2,524 525 1,764 $87,975 470,636 19% 1,356 237 3,000 758 1,795 40 400 852 369 $47,707 $63,705 575,080 619,979 8% 10% 52 । । 1,356 I 30 40 92 991 237 636 804 I 3,000 628 107 68 364 400 1,179 $7,020 $2,253 $18,080 $16,906 $26,466 $21,868 $29,645 $33,740 142,137 155,427 162,649 155,277 146,626 165,936 168,854 167,274 5% 1% 11% 11% 18% 13% 18% 20% Mylo and incurred a loss of $3.0 million as the fair (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 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. In 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. In 2023, certain other non-recurring expenses restructuring expenses included costs incurred by the Company in conjunction with the secondary offering of 16,100,000 shares of its common stock by a selling stockholder during the three months ended September 30, 2023. 38#39Lz 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 $9,896 ($108,664) 2,826 1,039 12,894 112,596 7,748 924 1,105 4,818 132 2,524 525 1,764 (4,148) $32,336 2% 7% 2021 1,356 852 369 (10,519) $5,701 (19%) 1% 2022 Q4'21 Q1'22 Q2'22 Q3'22 ($48,733) ($20,771) ($25,753) ($12,743) ($11,981) 3,532 662 670 790 781 80,469 25,871 21,865 22,847 19,778 237 3,000 758 1,795 40 400 (10,243) $31,255 (8%) 5% 52 1,356 | T T 18181 30 40 I I 92 991 364 (2,575) (2,277) (2,406) $4,959 ($5,425) $9,571 (15%) (17%) (8%) 4% (3%) 6% 237 | 636 804 Q4'22 Q1'23 Q2'23 $1,744 ($2,358) $1,395 1,291 1,291 15,979 16,467 1,291 1,292 18,956 15,582 |81||||| 3,000 T 628 | | T 107 Q3'23 $7,534 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. In 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. In 2023, certain other non-recurring expenses restructuring expenses included costs incurred by the Company in conjunction with the secondary offering of 16,100,000 shares of its common stock by a selling stockholder during the three months ended September 30, 2023. | | | 68 400 1,179 (2,550) (3,010) (2,030) (2,714) (2,347) $8,105 $19,004 $13,998 $19,035 $23,308 (8%) 1% (1%) 1% 5% 5% 13% 8% 11% 14% 39#40Lz 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 $93,049 (10,587) 82,462 20% 18% 2021 2022 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 $54,152 $73,837 ($6,004) $13,737 $11,020 $27,258 $21,822 $29,208 $45,165 $27,441 (11,740) (22,098) (3,240) (4,911) (5,468) (6,062) (5,657) (7,428) (7,799) (7,993) 42,412 51,739 (9,244) 8,826 5,552 21,196 16,165 21,780 37,366 19,448 12% (4%) 9% 7% 18% 15% 18% 8% (7%) 6% 3% 14% 11% 13% 9% 7% 27% 22% 16% 12% (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. 40#41LEGALZOOM