LegalZoom.com (LZ) Citi’s 2025 Global Technology, Media and Telecommunications Conference summary

Strategic shifts and business evolution

• Renewed focus on subscription business, achieving accelerated 10% growth and aiming for continued double-digit expansion.

• Leveraging augmented intelligence to scale expertise and move upmarket with Do It For Me (DIFM) products.

• Diversifying go-to-market channels to reduce reliance on small business formations and expand total addressable market (TAM).

• AI partnerships with OpenAI and Perplexity to enhance customer education and expand TAM.

• New brand campaign launched, emphasizing tech-enabled human support and driving improved traffic and return on ad spend.

Subscription and product strategy

• Subscription business is ahead of plan, with compliance packages and bookkeeping driving demand.

• AI is used to make legal expertise more scalable, reducing churn and increasing ARPU in compliance products.

• DIFM and Concierge services are in high demand, with more requests than can currently be fulfilled.

• New products target both new and existing businesses, including Compliance Concierge, Dissolution Concierge, and reinstatement services.

• Rapid deployment and testing of new premium services to address a broader range of compliance and legal needs.

M&A and capital allocation

• Acquisition of Formation Nation provided a second brand, preserved premium positioning, and added 120 experts.

• Integration focused on leveraging expert centers and gradually shifting transactional customers to subscriptions.

• Active M&A pipeline, with a focus on adjacencies and accretive deals that enhance customer acquisition and business synergies.

• Strong balance sheet with over $200 million in cash, debt-free, and generating strong free cash flow.

• Ongoing share buybacks and opportunistic approach to capital allocation, balancing investment, M&A, and returns to shareholders.