My 2020 investor update (first $1m+ quarter)

Dear Lawtrades investors,

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Our growth and momentum across the business have continued, as we closed our first $1m+ sales quarter.

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As COVID continues to keep many of us away from the office, companies relied on our services even more to scale their legal operations while creating new jobs across the world on our platform.

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We are continuing to see significant momentum in our business across the mid-market and enterprise sector this year, both in the United States and abroad.

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Summary

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• Sales grew to $3.54 million in 2020 from $2.34 million in 2019.

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• Revenues grew to $2.65 million in 2020, from $1.40 million in 2019, up 90%.

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• Operating loss shrank by over 80% from $514k in 2019 to $98k in 2020.

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• Over 20,500 hours were logged on the platform, up from 11,000 in 2019, an 85% increase.

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• Almost $7 million was paid out to independent legal professionals to date.

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• In 2020, we created over 150 jobs to help legal professionals earn a living doing what they love, up from 40 in 2019

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Financial results

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Our operating results have continued to show significant improvement.

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In the fourth quarter of 2020, we generated sales of $1.1 million, up 90% year-over-year.

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The average revenue generated per customer through the last 12 months of 2020 was $31,570, up from $24,626

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International expansion

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Our expansion in a number of markets abroad continues, including in Europe.

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We now have active Lawtrades employment lawyers in Portugal, Spain and the Netherlands and Lawtrades commercial contract lawyers in London, Germany, Spain, Portugal.

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We believe that our market opportunity in Europe and the broader region will be significant over the long term.

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Our expansion in Europe builds on our already significant presence in all 50 states in North America.

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Product

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Lawtrades is a platform for economic opportunity that dramatically elevates a legal professionals potential and earning power.

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It is a step into the future of knowledge work--work that unlocks autonomy, an upward patch, and the wherewithal for consistent employment weaving in and out of the white-collar labor industries of their choosing.

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Companies that can develop, build and harness technologies in legal infrastructure will reap enormous economic rewards and lead the way for others to follow.

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From algorithms matching projects with an expansive talent network to streamlining the management of a liquid workforce--including onboarding, time sheet management, payments, and invoicing--it's legal infrastructure for the internet.

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Closing

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When I was in law school, I concluded that I should come up with a business idea that let lawyers deliver services on the internet and then let the internet grow around it and keep working to improve it.

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I wondered: "If software built a law firm today, what would it look like?"

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What if it didn't have the legal industry's century of precedent, the burden of the billable hour, or a partnership hierarchy where only a few people at the top got rich?

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These questions inspires us to make products people truly love, so the total economic pie gets bigger, instead of playing zero-sum corporate power games.

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The future is a decentralized work life--meaning that anyone, anywhere, of any background can simply collaborate with anyone else they want to.

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Wild and free of artificial hierarchal constraints.

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To realize this potential, we're doing the difficult-but-necessary work of creating an internet-first global workforce so companies can execute faster. We take pride in freeing up legal teams to work in the spotlight by solving complex legal issues through technology that would otherwise hold them back.

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In turn, Lawtraders get to escape the 9-5 desk job, not have to wear a suit and tie to work, and gain access to the world’s most innovative tech companies.

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2021 has a lot of unknowns. But what I do know is that we’re going to keep investing in and innovating on pioneering a new work model that helps professionals participate and thrive in the internet economy. I personally believe that technology can unlock progress and opportunity -- and that the full story of the Internet revolution has not yet been written.

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That's why I'm hopeful for the year ahead, and grateful that you're all on this journey with us.

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--

Raad Ahmed

Founder and Chief Executive Officer

Lawtrades, Inc

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