LegalZoom.com Investor Presentation Deck
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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.
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