LegalZoom.com Investor Presentation Deck
Lz 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%
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