Business Formation and Growth - In 2023, the number of business formations increased by 23% to 581,000 compared to 474,000 in 2022, driven by the rollout of free LLC formations[245]. - The exit from certain channel partnerships in 2023 is expected to negatively impact business formations and subscription unit growth in the first half of 2024[220]. - The number of transactions increased by 12% from 929,000 in 2022 to 1,043,000 in 2023, primarily due to a rise in business formations and compliance-related transactions[248]. Revenue and Profitability - Total revenue increased by 7% from $619,979,000 in 2022 to $660,727,000 in 2023, with subscription revenue accounting for 62% of total revenue in 2023[262][263]. - Subscription revenue rose by 15% from $359,198,000 in 2022 to $412,947,000 in 2023, driven by both an increase in subscription units and ARPU[265]. - Gross profit increased by 3% from $408,884,000 in 2022 to $421,464,000 in 2023, driven by a $40.7 million increase in revenue[268]. - The net income for 2023 was $13.9 million, compared to a net loss of $48.7 million in 2022, resulting in a net income margin of 2%[307]. Subscription Metrics - The number of subscription units grew by 7% from 1,441,000 in 2022 to 1,545,000 in 2023, supported by a 4% increase in registered agent and compliance subscriptions[253]. - Average revenue per subscription unit (ARPU) increased by 7% from $259 in 2022 to $277 in 2023, attributed to a shift towards higher-priced subscription offerings[256]. - The annual small business retention rate was approximately 63% as of December 31, 2023, reflecting the effectiveness of the company's subscription strategy[257]. Expenses and Investments - Sales and marketing expenses are projected to remain the largest operating expense category as the company continues to invest in customer acquisition[233]. - The company plans to continue investing in technology and development to enhance customer experience and product offerings, with expenses expected to increase in absolute dollars[235]. - Technology and development expenses for 2023 were $70,434,000, a decrease of $12,747,000 or 18% from $83,181,000 in 2022, primarily due to increased payroll and related benefits from higher headcount[270]. Cash Flow and Financial Position - Cash and cash equivalents increased by $36,637,000 to $225,700,000 as of December 31, 2023, primarily due to cash provided by operating activities[280]. - Net cash provided by operating activities was $124,308,000 in 2023, up from $73,837,000 in 2022, resulting from a net income of $14,000,000[293]. - Free cash flow for 2023 was $92.7 million, an increase of $41.0 million from $51.7 million in 2022, driven by a $50.5 million increase in net cash provided by operating activities[310]. Market and Economic Conditions - The company does not believe that inflation has had a material effect on its business or financial condition to date[355]. - There is a risk that significant inflationary pressures could lead to higher costs that may not be fully offset by price increases[355]. - Sustained inflationary pressures could adversely impact the success of existing small businesses and the formation of new small businesses, potentially harming the company's future prospects[355]. Tax and Interest - The provision for income taxes was $16,481,000 in 2023, an increase of $1,060,000 or 1555% compared to $17,541,000 in 2022, driven by higher taxable income[278]. - Interest expense increased by $233,000 or 90% to $493,000 in 2023, primarily due to amortization of debt issuance costs related to the 2021 Revolving Facility[273]. - Interest income rose significantly by $7,504,000 or 416% to $9,307,000 in 2023, primarily from dividend income generated from money market investments[274]. Stock and Debt Management - The 2022 stock repurchase program was exhausted in September 2023, and a new program was approved in October 2023, allowing for repurchases of up to $100,000,000[283]. - The company had no borrowings outstanding under the 2021 Revolving Facility as of December 31, 2023, with $150,000,000 available for use[286]. - The company has non-cancelable agreements with vendors requiring $46.5 million in payments over four years, with $32.8 million remaining as of December 31, 2023[302]. Accounting and Valuation - The company recognizes subscription revenue ratably over the subscription term, which generally ranges from thirty days to one year[314]. - Revenue recognition for subscription-based services is generally on a straight-line basis over the subscription term, while transaction-based services recognize revenue at the point of delivery[325]. - The company has performed valuations of assets acquired in business combinations, requiring significant judgment and estimates, particularly for intangible assets[332].

LegalZoom.com, Inc. (NASDAQ:LZ) Q4 2023 Earnings Conference Call February 22, 2024 4:30 PM ET Company Participants Madeleine Crane - Investor Relations Daniel Wernikoff - Chief Executive Officer Noel Watson - Chief Financial Officer Conference Call Participants Jake W - Citi Andrew Boone - JMP Securities Matthew Pfau - William Blair John Byun - Jefferies Elizabeth Porter - Morgan Stanley Eleanor Smith - JPMC Operator Good day, and welcome to the LegalZoom Fourth Quarter and Full Year 2023 Earnings Conferenc ...

"I'm excited with the progress we made this quarter, including the rollout of our new Business License and Beneficial Ownership Information Report services. We are entering 2024 with a strong foundation to drive growth. Our investments in technology, a much broader ecosystem of services and an expanding base of more • Revenue of $158.7 million for the quarter, an increase of 8% year-over-year; and $660.7 million for the year, up 7% year-over- year • Subscription revenue of $106.7 million for the quarter, an ...

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LegalZoom.com, Inc. (NASDAQ:LZ) Q3 2023 Earnings Conference Call November 7, 2023 4:30 PM ET Company Participants Madeleine Crane – Investor Relations Dan Wernikoff – Chief Executive Officer Noel Watson – Chief Financial Officer Conference Call Participants Matthew Pfau – William Blair Andrew Boone – JMP Securities John Byun – Jefferies Fiona Hynes – Morgan Stanley Operator Good day and thank you for standing by. Welcome to the LegalZoom's Third Quarter 2023 Earnings Conference Call. At this time all partic ...

Washington, D.C. 20549 ___________________________________ (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the three months ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35618 LegalZoom.com, Inc. (Exact name of registrant as specified in its charter) _____ ...

LegalZoom.com, Inc. (NASDAQ:LZ) Q2 2023 Earnings Conference Call August 8, 2023 4:30 PM ET Company Participants Madeleine Crane - Investor Relations Dan Wernikoff - Chief Executive Officer Noel Watson - Chief Financial Officer Conference Call Participants Andrew Boone - JMP Securities Ron Josey - Citi Matt Pfau - William Blair Jackson Ader - MoffettNathanson Jack Butler - Barclays Sang-Jin Byun - Jefferies Operator Good day and thank you for standing by. Welcome to the LegalZoom Second Quarter 2023 Earnings ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the three months ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35618 LegalZoom.com, Inc. (Exact name of registrant as specified in its charter) __________ ...

LegalZoom.com, Inc. (NASDAQ:LZ) Q1 2023 Results Conference Call May 9, 2023 4:30 PM ET Company Participants Sarah Bland - Securities Counsel Dan Wernikoff - CEO Noel Watson - CFO Conference Call Participants Andrew Boone - JMP Securities Matthew Pfau - William Blair Jack Butler - Barclays Ron Josey - Citi Sang-Jin Byun - Jefferies Jackson Ader - SVB MoffetNathanson Elizabeth Porter - Morgan Stanley Operator Good day, and thank you for standing by. Welcome to LegalZoom's First Quarter 2023 Earnings Conferenc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the three months ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 101 North Brand Boulevard, 11 Floor, Glendale, California 91203 th (Address of Principal Executive Offices, including Zip code) For the trans ...