EFFICIENT CAC PAYBACK = MORE FOUNDER OWNERSHIP ResulKng P&L for 3 companies growing at 50% new bookings with different CAC paybacks 1 Yr CAC Payback 1.5 Yr CAC Payback 2 Yr CAC Payback Total cash burn: $0M Total cash burn: $53M Total cash burn: $106M New Bookings S&M Costs Cash Flows (Gross Profit – S&M) $51 $51 $34 $51 $23 $34 $23 $34 $10 $15 $10 $15 $10 $15 $23 ($8) ($12) ($4) ($6) ($9) ($8) ($12) ($18) ($12) ($18) ($14) ($20) ($16) ($24) ($18) ($27) ($27) ($27) ($36) ($41) ($41) ($41) ($54) ($61) ($81) Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 20 Note: Assumed 50% growth in new bookings every year, 80% gross margin, and other expenses equal 80% of prior year’s bookings. 20