Legalzoom.com, Inc. · NASDAQ:LZ
Legalzoom.com — Q2 2025 Earnings Presentation
33 slides from Legalzoom.com's earnings presentation, August 2025
Slide 1: Investor Presentation
August 2025 Investor Presentation
Slide 2: Forward-looking statements disclaimer
Forward-looking statements disclaimer This presentation contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward- looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Slide 3: About non-GAAP financial measures
About non-GAAP financial measures This presentation includes certain non-GAAP financial measures including Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP net income (loss), non-GAAP net income (loss) margin, adjusted gross profit, adjusted gross profit margin, certain non-GAAP expenses (including
Slide 4: About LegalZoom
About LegalZoom LEGALZ900M
Slide 5: Our vision and mission
Our vision To be the guardian of people’s aspirations, lives, and legacies Our mission Transforming how people navigate the legal system 5
Slide 6: LegalZoom investment highlights
LegalZoom investment highlights ● Category Leader in a Large, Fragmented Market Leading online legal services provider. ● Efficient Growth Engine with Significant White Space Scalable, data-driven customer acquisition model with meaningful greenfield opportunity. ● Sticky, High-Value Subscription Mo
Slide 7: Second quarter at a glance
Second quarter at a glance (Comparisons YoY) GAAP Revenue Subscription Revenue Transaction Revenue $193M $120M $73M +9% +10% +6% Non-GAAP Net Income/(Loss) Net Income/(Loss)(1) Adjusted EBITDA(1) $(0.3M) $28M $39M 20% margin vs. $1.3M +51% +400 bps 7 (1) This is a non-GAAP financial measure. Refer t
Slide 8: Large SAM, significant opportunity
Large SAM(1), significant opportunity Life & Business Planning Business Management Expert Assistance $13B $15B $23B The largest digital formations During and post-business formation, We offer access to experts to help player, with ~9% market share(2), we offer a set of important services handle the
Slide 9: Online legal and compliance is a big opportunity
Online legal and compliance is a big opportunity Our market Our leadership The Largest Digital Player Little product innovation $51B -61 4.8M 4.4M 2.0M 1,000+ SAM(1) Offline Attorney NPS(2) Businesses Estate planning Active legal Independent formed since solutions delivered & compliance attorney net
Slide 10: We solve important problems for our customers…
We solve important problems for our customers… Small business owners have a fear Entity creation and compliance is Consumers need legal help to of navigating complex regulatory complicated, time-consuming and protect their families, but the cost matters, but the cost of experts expensive to navigate
Slide 11: …through our innovative legal technology platform
…through our innovative legal technology platform Small business services Consumer services Business Business Legal Estate Family formation compliance advice planning planning Tax prep, banking, Trademark & IP Business Legal Real insurance & management(1) advice estate websites(2) 11 (1) Services in
Slide 12: Three key focus areas
Three key focus areas 1 2 3 Optimize our Leverage AI to Reorient go-to- subscription deliver market strategy business expertise 12
Slide 13: Optimize our subscription business
Optimize our subscription business Create scalable solutions that deliver impactful outcomes ● Execute premium solutions-based subscription model ● Expanding suite of Do-It-For-Me (“DIFM”) customizable offerings that cater to high quality customers ● Deepen customer engagement and drive higher life-
Slide 14: Reorient go-to-market strategy
Reorient go-to-market strategy Position LegalZoom as the trusted legal brand for small businesses to drive awareness and consideration Marketing Efforts Have Driven: ● Sequential improvement in site traffic and engagement trends in June and July ● Healthy return on ad spend (ROAS), despite longer br
Slide 15: Reorient go-to-market strategy: marketing campaign/partnerships
Reorient go-to-market strategy: marketing campaign/partnerships Driving visibility through strategic partnerships Collaboration with Open AI demonstrates how AI-powered agents can provide personalized access to legal guidance Launched a tailored legal support program for Perplexity Pro users 15
Slide 16: Leverage AI to deliver expertise
Leverage AI to deliver expertise: AI Objectives Internal Enablement ● Equip teams with AI tools that advance productivity and accelerate decision making Intelligent fulfillment ● Automate fulfillment to increase speed, satisfaction and scalability ● Power DIFM solutions Innovation ● Revolutionize th
Slide 17: Experienced management team
Experienced management team Jeff Stibel Noel Watson Nicole Miller Pratik Savai Chief Executive Officer Chief Financial & Chief Legal Officer Chief Technology Officer Operating Officer Sheily Chhabria Panchal Kathy Tsitovich Aaron Stibel Daniel Lysaught Chief People Officer Chief Corporate Developmen
Slide 18: Financial update
Financial update LEGALZ900M
Slide 19: Q2 2025 snapshot
Q2 2025 snapshot GAAP Revenue Adjusted Gross Profit(1) Adjusted EBITDA(1) +9% YoY $193M +10% YoY $177M $132M $120M +35% YoY $39M $29M Q2'24 Q2'25 Q2'24 Q2'25 Q2'24 Q2'25 % of Revenue(1) % of Revenue(1) 68% 69% 16% 20% (1) This is a non-GAAP financial measure. Refer to the Appendix for a reconciliati
Slide 20: Subscription revenue
Subscription revenue(1) Subscription revenue is primarily comprised of registered agent and compliance packages, attorney +6% YoY advice, virtual mail, bookkeeping, legal forms, and e- $436M signature services. $413M $359M +10% YoY $109M $111M $109M $116M $120M Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 2022 202
Slide 21: Transaction revenue
Transaction revenue(1) Transaction revenue is primarily generated from business formations services as well as other small business and consumer transactions including beneficial ownership information reports, annual reports, trademark filings, and estate planning solutions. (1%) YoY $261M $248M $24
Slide 22: Sales & marketing
Sales & marketing(1) $246M Customer Acquisition Media “CAM” Other Sales & Marketing (2%) YoY 72M $199M $196M 54M 38M 9% YoY 175M $63M 158M $57M 145M $51M 10M 16M 15M 36M 47M 47M Q2'23 Q2'24 Q2'25 2022 2023 2024 % of Revenue % of Revenue Total Sales & Marketing 30% 32% 33% 40% 30% 29% CAM 21% 27% 24%
Slide 23: Non-GAAP expenses
Non-GAAP expenses(1) Cost of Revenue (2%) YoY Sales & Marketing $556M $542M Technology & Development $534M 59M 60M General & Administrative 60M 51M 60M 62M 3% YoY 246M 199M 196M $139M $148M $154M 15M 16M 15M 14M 17M 15M 222M 215M 51M 57M 63M 200M 60M 57M 61M Q2'23 Q2'24 Q2'25 2022 2023 2024 % of Rev
Slide 24: Q3 and FY25 guidance
Q3 and FY25 guidance(1) Q3 2025 FY 2025 FY 2025 Guidance Commentary ● Revenue growth of approximately 8% YoY Total Revenue Total Revenue o Expect double-digit subscription revenue growth $182M - $184M ~8% YoY Growth in second half ● Commitment to Adjusted EBITDA expansion o Expect to achieve Adjuste
Slide 25: Appendix
Appendix LEGALZ900M
Slide 26: Reconciliation of GAAP expenses to non-GAAP expenses
Reconciliation of GAAP expenses to non-GAAP expenses FYE Dec 31, $K 2022 2023 2024 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Cost of revenue $211,095 $239,263 $240,093 $63,749 $59,123 $55,907 $68,384 $63,609 $54,715 $53,385 $66,560 $67,398 Stock-based compensation(1) 2,931 4,318 5,833 1,
Slide 27: Reconciliation of GAAP expenses to non-GAAP expenses on a % of revenue basis
Reconciliation of GAAP expenses to non-GAAP expenses on a % of revenue basis FYE Dec 31, $K 2022 2023 2024 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Cost of revenue 34% 36% 35% 38% 35% 35% 39% 36% 32% 33% 36% 35% Stock-based compensation(1) 0% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% Depreciatio
Slide 28: Reconciliation of GAAP expenses to non-GAAP expenses on a year-over-year % basis
Reconciliation of GAAP expenses to non-GAAP expenses on a year-over-year % basis FYE Dec 31, $K 2022 2023 2024 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Cost of revenue 11% 13% 0% 12% 18% 18% 13% (0%) (8%) (5%) (3%) 6% Stock-based compensation(1) 76% 47% 35% (17%) 87% 69% 82% 58% 4% 8% (
Slide 29: Reconciliation of GAAP gross profit to non-GAAP gross profit
Reconciliation of GAAP gross profit to non-GAAP gross profit FYE Dec 31, $K 2022 2023 2024 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Gross profit $408,884 $421,464 $441,788 $105,106 $108,061 $102,756 $105,830 $113,753 $113,884 $108,321 $116,550 $125,111 Cost of revenue stock-based compen
Slide 30: Reconciliation of GAAP net (loss) income to Adjusted EBITDA
Reconciliation of GAAP net (loss) income to Adjusted EBITDA FYE Dec 31, $K 2022 2023 2024 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Net (loss) income ($48,733) $13,953 $29,963 $1,395 $7,534 $7,382 $4,744 $1,314 $11,051 $12,854 $5,127 ($266) Interest (income) expense, net (1,543) (8,814)
Slide 31: Reconciliation of GAAP net (loss) income to non-GAAP net (loss) income
Reconciliation of GAAP net (loss) income to non-GAAP net (loss) income FYE Dec 31, $K 2022 2023 2024 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Net (loss) income ($48,733) $13,953 $29,963 $1,395 $7,534 $7,382 $4,744 $1,314 $11,051 $12,854 $5,127 ($266) Amortization of acquired intangible
Slide 32: Reconciliation of net cash provided by operating activities to free cash flow
Reconciliation of net cash provided by operating activities to free cash flow FYE Dec 31, $K 2022 2023 2024 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Net cash provided by operating activities $73,837 $124,308 $135,639 $45,165 $27,441 $22,495 $34,194 $27,245 $31,613 $42,586 $50,703 $39,13
Slide 33: LEGALZ90m
LEGALZ90m