LegalZoom.com Results Presentation Deck
LegalZoom.com, Inc. Disclaimer (Continued)
About Non-GAAP Financial Measures
This presentation includes certain non-GAAP financial measures including Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP net income (loss), non-GAAP net income (loss)
margin, adjusted gross profit, adjusted gross profit margin, certain non-GAAP expenses (including non-GAAP cost of revenue, Non-GAAP sales and marketing, non-GAAP technology
and development, and non-GAAP general and administrative), free cash flow, free cash flow margin, unlevered free cash flow, and unlevered free cash flow margin. To supplement
our consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles, or GAAP, we use certain non-GAAP
financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different from similarly titled
measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and liquidity and should not be considered a substitute
for, or superior to, the financial information prepared and presented in accordance with GAAP. We believe that these non-GAAP financial measures provide useful information about
our financial performance and liquidity, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to
important measures used by our management for financial and operational decision-making. We are presenting these non-GAAP measures to assist investors in seeing our financial
performance using a management view and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over
multiple periods with other companies in our industry. The tables in the Appendix contain more details on the GAAP financial measures that are most directly comparable to non-
GAAP financial measures and the related reconciliations between these financial measures. In addition, please see our earnings release and our filings with the SEC for the definitions
of these non-GAAP financial measures and limitations on the use of such non-GAAP financial measures.
Revision and Restatement of Previously Issued Unaudited Condensed Consolidated Financial Statements
As disclosed in our Current Report on Form 8-K filed with the Securities and Exchange Commission on February 17, 2023, we concluded that the previously issued unaudited
condensed consolidated financial statements as of and for the quarter ended March 31, 2022 were materially misstated and, therefore, require restatement and should no longer be
relied upon. The restatement relates to an error within our income tax provision for the three months ended March 31, 2022 relating to the identification of named executive officers
subject to limitation on the deductibility of executive compensation under Internal Revenue Code Section 162(m). We will include restated financial information as of and for the
three months ended March 31, 2022 in our Annual Report on Form 10-K for the year ended December 31, 2022, or the "2022 Form 10-K." In connection with the restatement, we will
also revise our unaudited condensed consolidated financial statements for each of the three months ended March 31, 2022, June 30, 2022 and September 30, 2022 in the 2022 Form
10-K for other previously identified immaterial errors. The impacted operating metrics and financial measures included in this presentation for each of the quarters ended March 31,
2022, June 30, 2022 and September 30, 2022 reflect the foregoing restatement and revisions, as applicable. While you are encouraged read our February 17, 2023 Current Report on
Form 8-K for additional information regarding the foregoing, we strongly urge you to read our 2022 Form 10-K for a more complete description of the restatement and revisions as
soon as it is filed with the SEC. The information contained herein is preliminary pending completion of the audit performed by our independent registered public accounting firm and
the filing of our 2022 Form 10-K with the SEC.
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