Investor Presentaiton
Profitable Business Model
Rationalized cost structure
Leverage in sales & marketing enables investment in product development to drive growth
2013-2018
2019-2020
2021-2022
2023
Expenses as % of revenue¹
Growth driven by
sales headcount
Business transformation
accelerated by pandemic
Growth driven by
product innovation
Cost of revenue
6-9%
6-7%
8-9%
9%
Sales & marketing
51-57%
49-50%
43-44%
42%
Product development
16-23%
23-27%
26-27%
25%
G&A
13-18%
13-15%
13-14%
16%³
D&A
5%
5-6%
4-5%
3%
Adjusted EBITDA Margin²
13-19%
16-21%
23-24%
25%
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Note: Percentage ranges reflect high and low values for each period, and do not necessarily correspond to the first and last year in date range. 1 Calculated in accordance with GAAP, including stock-based compensation
expense 2See Appendix for reconciliation of GAAP Net income (loss) margin to Adjusted EBITDA margin for the periods presented and for information about the limitations of adjusted EBITDA as an analytical tool. Net
income (loss) margin ranged from (6%) -18% in 2013-2018, from (2%) -4% in 2019-2020, from 3%-4% in 2021-2022 and was 7% in 2023.3 Includes impairment charge of $23.6m and one-time litigation settlement expense of
$11.0m; excluding the impairment charge and litigation settlement expense, G&A expense was 13% of $1.34 billion of FY 2023 GAAP net revenue.
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