LegalZoom.com Inc at Barclays Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Trevor Young - Barclays Services Corp - Analyst : Jeff, let's start with you. The business is in a much different place than when you took over as CEO roughly 18 months ago, give or take, even as much of the longer-term vision is becoming a much more of a subscription-focused business remains the same versus that time. What are the two or three big wins this year as part of the strategy reset and efforts to reaccelerate growth?

Question: Trevor Young - Barclays Services Corp - Analyst : You mentioned some uncertainty. And frankly, I think that's persisted even this year, right? We've had tariff uncertainty, government shutdown, probably maybe played a role in some business formation, that backdrop. What -- how would you assess like how those have impacted the business this year, tariffs, government shutdown? Have they been impediments? Or has the momentum in the business remained solid and business formations remain on track? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 9:20PM, LZ.OQ - LegalZoom.com Inc at Barclays Global Technology Conference

Question: Trevor Young - Barclays Services Corp - Analyst : Okay. So some decoupling, but you mentioned that we have seen business formations firm up a little bit. So that's probably helped a little bit with results of late. Do you think that as we look into 2026, we are in a kind of a better business formation environment, or is it still somewhat uncertain?

Question: Trevor Young - Barclays Services Corp - Analyst : That makes a lot of sense. Jeff, to borrow one of your terms, decoupling performance from the macro, how resilient is the current growth algorithm if we were to see renewed pressure on business formation trends. And then relatedly, what tools do you have at your disposal to execute through maybe a tougher macroenvironment, even if that's not what your base case assumption is?

Question: Trevor Young - Barclays Services Corp - Analyst : Okay. So go-to-market has certainly changed. It sounds like a focus on those higher -- potentially higher value customers, they will be the ones that stick around better throughout a cycle. They're not going to be the weekends at full, that type of thing. That makes a lot of sense. Related to that then, how has the customer funnel really evolved over the last year, and where do you want to take it from here? How effective have you been graduating users from maybe entry-level bundles to some of the higher-value compliance and advisory subscription products?

Question: Trevor Young - Barclays Services Corp - Analyst : Okay. So clearly, go-to-markets changed, customer funnel, massive evolution there, for sure. Clearly, a push up market. How should we think about the implications for ARPU evolving over time? Can you get back to like 4Q '23 peak? Does that even matter in your view? Is the business so different now that that's not the aspirational goal?

Question: Trevor Young - Barclays Services Corp - Analyst : Okay. But there is some calculus there contemplating what potentially --

Question: Trevor Young - Barclays Services Corp - Analyst : Okay. Got it. Jeff, you mentioned Formation Nation earlier in the conversation, that's -- for the audience, that was an acquisition we completed earlier this year. That has been a contributor to growth as well as enhancing some of the customer segmentation and providing a higher touch sales force. How has that integration been going? What are some of the milestones that you're still working on in terms of the integration?

Question: Trevor Young - Barclays Services Corp - Analyst : Okay. And is it on the plan for maybe next year, next couple of years to see that cross-sell?

Question: Trevor Young - Barclays Services Corp - Analyst : Got it. Sticking with that, what role does the white glove kind of do-it-for-me services offered by Formation Nation play in acquiring those higher touch and higher-value customers? Are some of the capabilities here contributing to the compliance concierge offerings?

Question: Trevor Young - Barclays Services Corp - Analyst : Okay. And on the compliance concierge offerings, how much runway for adoption do you have there? Like among the existing subs, as well as historically transaction-based customers, is there a long prospect list where you can check for compliance on behalf of those folks and then go to them and say, like, hey, wait a second, like, we went out on your behalf. We see there's some compliance issues. We can take care of this for you. What does that like runway look like? And how much runway is there?

Question: Trevor Young - Barclays Services Corp - Analyst : So a huge opportunity in-house as well as outside of --

Question: Trevor Young - Barclays Services Corp - Analyst : So let's hit on partnerships since you mentioned it. Historically, it's been a focus. It then went through a period of deemphasis and now once again, an area of focus. What's different this time from a partnership perspective? And can you give us some examples of real wins in terms of customer acquisition or revenue from some of these deals?

Question: Trevor Young - Barclays Services Corp - Analyst : Okay. So drive that customer acquisition and really it's subscription customers?

Question: Trevor Young - Barclays Services Corp - Analyst : Got it. So let's shift gears a little bit to the cost side of things in some of the investments you're making in the business. How confident do you feel about the direction of your technical development, especially with some of the new leadership changes there? What sort of road map do you have planned, and what are some of the obstacles in achieving this vision? And have you had any key unlocks this year?

Question: Trevor Young - Barclays Services Corp - Analyst : Okay. And how should we think about striking the right balance between R&D spend to drive product improvement versus kind of traditional sales and marketing muscle and dialing up advertising? Typically, consumer and SMB Internet companies sometimes struggle to find the right balance of R&D spend versus sales and marketing. How do you feel about the balance that you have right now and on a go-forward basis? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 9:20PM, LZ.OQ - LegalZoom.com Inc at Barclays Global Technology Conference

Question: Trevor Young - Barclays Services Corp - Analyst : Yeah. And on that point, I know you don't have formal guidance out there yet for '26, but how should we think about the margin path from here? Is there any reason you wouldn't be able to achieve double-digit top-line growth and expand margins such that EBITDA growth trends better than revs over some medium-term timeframe?

Question: Trevor Young - Barclays Services Corp - Analyst : Yeah. Makes sense. On free cash flow and capital allocation, there's clearly really strong EBITDA to free cash flow conversion on pace to have $250 million or more on cash on hand by year-end. With Formation Nation, it sounds like that integration has gone pretty well, maybe LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 9:20PM, LZ.OQ - LegalZoom.com Inc at Barclays Global Technology Conference some more work to do, but largely done. How should we think about appetite for further M&A from here and balancing that with ongoing share repurchases?

Question: Trevor Young - Barclays Services Corp - Analyst : Okay. Great. So as we come up on time here just to wrap. If we have you back here a year from now, what would be the one or two KPIs that we should be looking for to assess whether LZ has been successful at the end of the year of '25 here as well as in '26?

Question: Trevor Young - Barclays Services Corp - Analyst : Okay. Great. Well, congrats on the success so far.