Investor Presentaiton
Disclaimer
Fathom Holdings, Inc.
Note About Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. Generally Accepted
Accounting Principles ("GAAP"), the Company uses Adjusted EBITDA, a non-GAAP financial measure, to understand and evaluate its
core operating performance. This non-GAAP financial measure, which may be different than similarly titled measures used by other
companies, is presented to enhance investors' overall understanding of the Company's financial performance and should not be
considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Fathom defines Adjusted EBITDA as net loss, excluding other (income) expense, net, income tax expense, depreciation and
amortization, and share-based compensation expense.
Fathom believes that Adjusted EBITDA provides useful information about the Company's financial performance, enhances the overall
understanding of our past performance and future prospects, and allows for greater transparency with respect to a key metric used
by management for financial and operational decision-making. The Company believes that Adjusted EBITDA helps identify underlying
trends in its business that otherwise could be masked by the effect of the expenses excluded in Adjusted EBITDA. In particular,
Fathom believes the exclusion of share-based compensation expense related to restricted stock and restricted stock unit awards
provides a useful supplemental measure in evaluating the performance of its operations and provides better transparency into its
results of operations.
Adjusted EBITDA is being presented to assist investors in seeing the Company's financial performance through the eyes of
management, and because it believes this measure provides an additional tool for investors to use in comparing Fathom's core
financial performance over multiple periods with other companies in its industry.
Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with
GAAP. There are a number of limitations related to the use of Adjusted EBITDA compared to net loss, the closest comparable GAAP
measure, including: Adjusted EBITDA excludes share-based compensation expense related to restricted stock and restricted stock
unit awards, which have been, and will continue to be for the foreseeable future, significant recurring expenses in the Company's
business and an important part of its compensation strategy; and Adjusted EBITDA excludes certain recurring, non-cash charges such
as depreciation and amortization of property and equipment and acquired and internally developed intangible assets, although these
are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future.
Fathom Holdings | Company Presentation
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