{ "docId": "019de515-040e-7299-86d9-e85f57d9ef09", "docSlug": "51dc607e43fcad8e4d093ccfd4470e61", "documentTitle": "LegalZoom.com | Results Presentation Deck | 28 slides", "authorId": "legalzoom-com", "authorName": "LegalZoom", "documentKindSlug": "conference-presentation", "documentKindLabel": "Conference presentation", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": "2023-02-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 25, "pageCount": 28, "prevPage": 24, "nextPage": 26, "slideType": "revenue_buildup", "function": "decompose_segments", "density": "dense", "nDataPoints": 300, "notes": null, "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de515-040e-7299-86d9-e85f57d9ef09/25", "deckHref": "/decks/019de515-040e-7299-86d9-e85f57d9ef09", "deckJsonHref": "/decks/019de515-040e-7299-86d9-e85f57d9ef09.json", "deckAnchorHref": "/decks/019de515-040e-7299-86d9-e85f57d9ef09#slide-25", "components": [ { "bbox": { "h": 0.25, "w": 0.899, "x": 0.075, "y": 0.713 }, "kind": "source-note", "text": "(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\nfair 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, which were part of our\noverall reset of business strategy during 2019 and 2020. Such expenses are not expected to recur in the near or longer term. Due to continued decline in the business performance of Beaumont, our conveyancing business in the United Kingdom, we\nconducted a phased restructuring during 2019. In the fourth quarter of 2019, we restructured our United Kingdom Research and Development team, as part of the reset of our product strategy. In the first half of 2020, we restructured our United Kingdom\nbusiness, 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\nseverance 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. (4) Legal reserves and settlements include costs accrued or paid for potential\nlitigation settlements, and are net of insurance recoveries, if any. (5) IPO-related costs and other transaction-related expenses includes certain non-recurring expenses, which occurred in connection with our IPO in 2021. (6) In the second quarter of 2020,\nwe incurred a loss on sale from the disposal of Beaumont of $1.8 million. In 2021, we incurred expenses related to early termination of our U.K. lease agreement. In the third quarter of 2022, $0.4 million of compensation expense was recorded in sales\nand marketing expenses related to the departure of a member of management. (7) Adjusted EBITDA, a primary performance measure used by management and board of directors to understand and evaluate financial performance, operating trends\nincluding period-to-period comparisons, prepare and approve of our annual budget, develop short- and long-term operational plans and determine appropriate compensation plans for our employees. Limitations to this non-GAAP financial measure\ninclude, among other things, the following: a) does not reflect interest expense, or the cash requirements necessary to service interest or principal payments, which reduces cash available to us; b) does not reflect provision for income taxes that may result\nin payments that reduce cash available to us; c) excludes depreciation and amortization and, although these are non-cash expenses, the assets being depreciated may be replaced in the future; d) does not reflect foreign currency exchange or other gains\nor losses, which are included in other income, net; e) excludes stock-based compensation expense, which has been, and will continue to be, a significant recurring expense for our business and an important part of our compensation strategy; f) excludes\nlosses from impairments of goodwill, long-lived and other assets and available-for-sale debt securities; g) excludes acquisition related expenses, which reduce cash available to us; h) excludes restructuring expenses, which reduce cash available to us; and\ni) does not reflect certain other non-recurring expenses that are not considered representative of our underlying performance, which reduce cash available to us. We define Adjusted EBITDA as net income adjusted to exclude interest expense, net,\nprovision for income taxes, depreciation and amortization, other income, net, stock-based compensation, losses from impairments of goodwill, long-lived and other assets, impairments of available-for-sale debt securities, acquisition related expenses,\nrestructuring expenses, legal reserves and settlements, and certain other non-recurring expenses. (8) We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of revenue.", "attrs": {}, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d36aff58-d551-4a47-a150-746cbd1fe765", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.52, "w": 0.899, "x": 0.075, "y": 0.16 }, "kind": "table", "text": "FYE Dec 31, $K\nNet income (loss)\nInterest expense (income), net\nProvision for (benefit from) income taxes\nDepreciation and amortization\nOther (income) expense, net\nStock-based compensation (1)\nLoss on debt extinguishment\nImpairment of goodwill, long-lived & other assets\nImpairment of available-for-sale debt securities\nImpairment of other equity security(2)\nAcquisition-related expenses\nRestructuring expenses (3)\nLegal reserves and settlements (4)\nIPO-related costs &\nother transaction-related expenses (5)\nCertain other non-recurring expenses (6)\nAdjusted EBITDA(7)\nRevenue\nAdjusted EBITDA margin(8)\n2020\n$9,896\n35,504\n2,429\n20,097\n(3,713)\n12,894\n1,105\n4,818\n132\n2,524\n525\n1,764\n$87,975\n470,636\n19%\n2021\n($108,664)\n27,984\n(10,951)\n16,686\n(1,193)\n112,596\n7,748\n924\n1,356\n852\n369\n$47,707\n575,080\n8%\n2022\n($48,733)\n(1,543)\n1,060\n21,745\n4,477\n80,469\n237\n3,000\n758\n1,795\n40\n400\n$63,705\n619,979\n10%\nQ1'21\n($9,823)\n8,654\n(2,936)\n4,166\n(248)\n3,786\n379\nQ2'21\n($38,395)\n9,312\n1,995\n3,663\n(420)\n44,798\n493\nQ3'21\n($39,675)\n9,957\n(5,908)\n3,775\n368\n38,141\n1,356\n635\n217\n$15,121\n147,879\n10%\nQ4'21\n($20,771)\n61\n(4,102)\n5,082\n(893)\n25,871\n52\n364\n$7,020\n142,137\n5%\nQ1'22\n($25,753)\n53\n(920)\n5,394\n1,544\n21,865\n30\n40\n400\n$2,253\n155,427\n1%\nQ2'22\n($12,743)\n(29)\n(639)\n5,539\n2,022\n22,847\n92\n991\n$18,080\n162,649\n11%\nQ3'22\n($11,981)\n(535)\n(223)\n5,254\n2,536\n19,778\n636\n804\n$16,906\n155,277\n11%\nQ4'22\n$1,744\n(1,032)\n2,842\n5,558\n(1,625)\n15,979\n3,000\n$26,466\n146,626\n18%", "attrs": {}, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e2e9cde8-345e-4795-9107-a0f268cf0316", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.026, "w": 0.853, "x": 0.075, "y": 0.09 }, "kind": "title", "text": "Reconciliation from Net Income (Loss) to Adjusted EBITDA", "attrs": {}, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f3f1a05c-7454-4db3-a3f6-b9a99b96d839", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }