LegalZoom.com Investor Presentation Deck slide image

LegalZoom.com Investor Presentation Deck

Lz 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
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