Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $177 million, representing a 5% year-over-year increase, exceeding the top end of the outlook due to higher-than-expected fulfillment [29] - Subscription revenue increased by 6% to $109 million, driven by a rise in both subscription units and average revenue per user (ARPU) [32] - Gross margin improved to 68% from 65% year-over-year, attributed to lower filing fees and operational improvements [33] - Free cash flow decreased to $17 million from $37 million year-over-year, impacted by increased cash tax payments and working capital changes [35] Business Line Data and Key Metrics Changes - Business formations declined by 17% year-over-year, with 134,000 formations completed in Q2 2024 [30] - Transaction revenue was $69 million, up 4%, driven by a 3% increase in transaction units [31] - Subscription units reached over 1.6 million, a 4% increase year-over-year, with growth in form-duty signature and virtual mail subscriptions [32] Market Data and Key Metrics Changes - The macro environment showed a decline in Census EIN applications by 6% year-over-year, indicating a softer market for business formations [30] - LegalZoom's market share of business formations relative to Census EIN data was 10% for the quarter [31] Company Strategy and Development Direction - The company aims to optimize its subscription business, reorient its go-to-market strategy, and leverage AI to enhance customer expertise [11][24] - A restructuring plan was announced, including a 15% reduction in global workforce to drive operational efficiencies and align with new execution priorities [12] - The focus will shift from transactional revenue to recurring services, emphasizing long-term customer relationships and subscription offerings [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that current revenue growth is unacceptable and emphasized the need to improve subscription revenue growth [28] - The company expects continued challenges in the macroeconomic environment, impacting both transaction and subscription revenue [39][54] - Future guidance remains cautious, with expectations for revenue growth in the range of $675 million to $685 million for the full year [39] Other Important Information - The company announced an increase in its share repurchase authorization from $100 million to $175 million, repurchasing 13.9 million shares for a total of $125 million [36] - The company has returned close to $300 million to shareholders through share repurchases since the program began in Q1 2022 [37] Q&A Session Summary Question: What is the defensible strategy for the business formation and SMB services segment? - Management believes they created the category and need to build the best products while aligning with customer needs to regain market ownership [42][44] Question: Can you clarify the strategy regarding premium products and subscriptions? - The company plans to test and learn about customer needs, focusing on bringing the right customers into their ecosystem and ensuring they receive value [45][46] Question: What are the key segments for better marketing and targeting? - Historical focus has been on formation; now the company will segment customers based on their business lifecycle and specific needs [48][49] Question: Can you provide details on headcount reductions? - Reductions were broadly dispersed, with a heavier focus on cost of sales due to lower volume expectations [51] Question: Will there be an updated long-term guidance framework? - Management is focused on moving quickly and will provide updates as visibility improves, but long-term guidance is not yet available [52][54]

LegalZoom (LZ) reported $177.36 million in revenue for the quarter ended June 2024, representing a year-overyear increase of 5%. EPS of $0.10 for the same period compares to $0.10 a year ago. The reported revenue represents a surprise of +2.90% over the Zacks Consensus Estimate of $172.36 million. With the consensus EPS estimate being $0.09, the EPS surprise was +11.11%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine the ...

LegalZoom (LZ) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 11.11%. A quarter ago, it was expected that this online platform for legal services would post earnings of $0.10 per share when it actually produced earnings of $0.09, delivering a surprise of -10%. Over the last four quar ...

Investor Presentation August 2024 Forward-looking statements disclaimer 2 This presentation contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forwardlooking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. In some cases, you can identify f ...

Table of Contents ___________________________________ Emerging growth company o 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 June 30, 2024 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 a ...

Exhibit 99.1 LEGALZOOM LegalZoom Reports Second Quarter 2024 Financial Results • Second quarter subscription revenue of $108.8 million for the quarter, an increase of 6% year-over-year • Announces three execution priorities designed to reaccelerate growth and enhance margins • Announces restructuring and approximately $25 million of annualized savings MOUNTAIN VIEW, California – August 7, 2024 – LegalZoom.com, Inc. (Nasdaq: LZ), the No. 1 choice in online small business formations, today announced results f ...

Second quarter subscription revenue of $108.8 million for the quarter, an increase of 6% year-over-year Announces three execution priorities designed to reaccelerate growth and enhance margins Announces restructuring and approximately $25 million of annualized savings MOUNTAIN VIEW, Calif., Aug. 07, 2024 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ), the No. 1 choice in online small business formations, today announced results for its second quarter ended June 30, 2024. "I am excited to be taking an ...

RADNOR, Pa., Aug. 7, 2024 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) is currently investigating potential violations of the federal securities laws on behalf of investors of LegalZoom.com, Inc. (NASDAQ: LZ) ("LegalZoom"). On July 9, 2024, LegalZoom disclosed that its CEO would be departing, "effective immediately," after the company had "decided that now is the right time for this transition." Additionally, LegalZoom disclosed in a press release that the company signif ...

NEW YORK, Aug. 04, 2024 (GLOBE NEWSWIRE) -- Why: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of LegalZoom.com, Inc. (NASDAQ: LZ) resulting from allegations that LegalZoom may have issued materially misleading business information to the investing public. So what: If you purchased LegalZoom securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrang ...

NEW YORK , Aug. 3, 2024 /PRNewswire/ -- Why: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of LegalZoom.com, Inc. (NASDAQ: LZ) resulting from allegations that LegalZoom may have issued materially misleading business information to the investing public. So what: If you purchased LegalZoom securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangemen ...