LegalZoom.com Inc at Citi TMT Conference Transcript

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

Question: Ronald Josey - Citi - Analyst : So Jeff, we'll start off with you, right? So you're about a year and two months, year and a quarter in at this role. Of course, you've always been part of the company and aware of the company. But a lot has changed in the past year. And so I would love if talk to us a little bit about the changes that you've put through at the organization and sort of where we are in that journey of the evolution of LegalZoom.

Question: Ronald Josey - Citi - Analyst : So one of the things I think we -- when we went through the call and we spoke afterwards, there's sort of three key focus areas for the business. And you mentioned subscription, of course, but then also leveraging AI as well. And of course, there was the acquisition of Formation Nation. Let's -- maybe we can unpack of those three, so organized subscriptions, go-to-market strategy, leveraging AI. Let's unpack each one of those one by one and try to understand, sort of help us understand where we're going. So subscription business, back to double-digit growth. Ahead of plan, I think, was the comment. Compliance packages were highlighted as a strong

Question: Ronald Josey - Citi - Analyst : And so let's unpack the -- a few of this. Decoupled from macro, hard to do. Talk to us -- I understand leveraging AI to scale up and to do -- to be able to service so many more, but how do you decouple from macro?

Question: Ronald Josey - Citi - Analyst : And so how are we merchandising our products? So as we move from a macro to subscription, so completely understood. And we have a good amount of subscribers already, a good amount of everyone -- the brand is very well known. And so you need the products to sort of decouple from a macro. So talk to us about the merchandising. So the -- I love the concierge comment earlier. But how do we -- how does LegalZoom better enable users to say, oh yes, I would like this product or the merchandising of it all? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2025 / 8:10PM, LZ.OQ - LegalZoom.com Inc at Citi TMT Conference

Question: Ronald Josey - Citi - Analyst : And how are you pushing it their way?

Question: Ronald Josey - Citi - Analyst : That's a great way to say it. And I think having that interactivity with an agentic approach, you can get to the bottom line of what people are looking for as opposed to links that may not go anywhere.

Question: Ronald Josey - Citi - Analyst : And you don't know where that goes. So let's talk about your Perplexity. And I think we announced partnerships with Perplexity, with OpenAI. I think we have Doc Assist as a new tool. So where are we today on these tools? I think we're awfully early. And then say a year from now, we're sitting here, what are we talking about? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2025 / 8:10PM, LZ.OQ - LegalZoom.com Inc at Citi TMT Conference

Question: Ronald Josey - Citi - Analyst : So that was the next question. So why would -- why do Perplexity and OpenAI want to partner with LegalZoom, why does LegalZoom want to partner with --?

Question: Ronald Josey - Citi - Analyst : They don't have that deeper knowledge.

Question: Ronald Josey - Citi - Analyst : That's great. So a year from now, one [100,000] of a way there, right? We have a long way to go, but a huge opportunity, understood the macro and the subscription. Let's talk about a pretty interesting change that we had earlier in the year with the Formation Nation acquisition. So we're about six months into this. Still early days, but we're starting to see the benefits. And so walk us through just the vision here and more tactically sort of the integration and the change to the business. And then Noel, from an M&A standpoint, want to get -- to have you get involved here and sort of like how you view the M&A sort of deal strategy. But maybe, Jeff, let's start with you, talk to us about the vision and more tactically with --

Question: Ronald Josey - Citi - Analyst : And we're now six months in, it's hit your three pillars--

Question: Ronald Josey - Citi - Analyst : Sure. And Noel, on the build versus buy or as you evaluate M&A, what are the criteria that the team looks at? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2025 / 8:10PM, LZ.OQ - LegalZoom.com Inc at Citi TMT Conference

Question: Ronald Josey - Citi - Analyst : That's great. Do you think we -- are you constantly looking for acquisitions? Are we digesting Formation Nation? Like how do we think about --?

Question: Ronald Josey - Citi - Analyst : Got it. Perfect. That's really helpful. Let's dig in a little bit more on the do-it-for-me approach. Compliance Concierge, that was certainly highlighted.

Question: Ronald Josey - Citi - Analyst : And the four -- as we see newer products come on, there will be sort of the concierge like help me do X, help me do this.

Question: Ronald Josey - Citi - Analyst : All right, that's exciting.

Question: Ronald Josey - Citi - Analyst : So tech, when you want it, human support when you need it. Sounds familia? The new brand campaign, new tagline or whatever. I think that rings true to everything we were just talking about here. Talk to us about the goals here. And specifically, like what -- it's sort of like a reintroduction of what LegalZoom is doing as we go up of the stack or up the funnel a little bit here. So tell us a little bit more about the new brand campaign, about this -- about the new LegalZoom, what else is coming out of it? Would love to hear how we hear more about this in trade and everywhere else.

Question: Ronald Josey - Citi - Analyst : That's great. And so this is launching now or coming out in the fall, the new campaign brands out there now. And so I think we're seeing early proof points on traffic. But maybe talk to us how we might be better tracking or seeing the results of this campaign.

Question: Ronald Josey - Citi - Analyst : That's great. We have about five, six minutes left. Any questions in the audience before I move on? Unidentified Participant You [have a promotion] so like require -- that's the first I have that I look at my credit card recently offered when they go and I was like, oh, I know that. So what do you think about promotions just generally but also (inaudible)?

Question: Ronald Josey - Citi - Analyst : Maybe as a follow-up to that, let's talk margins here. Well, so guidance, we raised '25 revenue guidance, I think, because of the mix shift to subscriptions and greater visibility. But margins sort of stayed the same, around 23%, I feel. So would love to hear the focus on growth, the focus on investments. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2025 / 8:10PM, LZ.OQ - LegalZoom.com Inc at Citi TMT Conference And then as we think about -- maybe we don't have -- as we think about margin expansion, maybe in the shorter term, we're investing in growth here. But talk to us about how you think about margins longer term.

Question: Ronald Josey - Citi - Analyst : And now that we have that margin, I mean, solidly in the 20% range, I think LegalZoom does have a buyback in place already. Wanted to understand just the capital allocation strategy as you try to -- as you balance the cash balance, to investing in the business, potential M&A and of course, the return of capital.

Question: Ronald Josey - Citi - Analyst : That's great. Last question. Any other last call for questions in the audience? All right. Well, Jeff, Noel, anything else we should talk about? I mean, we covered a lot. It's eye opening on a lot of things.

Question: Ronald Josey - Citi - Analyst : Most definitely. Great. Well, Jeff, Noel, thank you so much for joining us.