LegalZoom.com Investor Presentation Deck slide image

LegalZoom.com Investor Presentation Deck

Lz 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
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