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    Patrick Mcllwee • William Blair

    Patrick Mcllwee's questions to LegalZoom.com Inc (LZ) leadership

    Patrick Mcllwee's questions to LegalZoom.com Inc (LZ) leadership • Q1 2025

    Question

    Patrick Mcllwee of William Blair inquired if the new brand campaign and increased marketing for Formation Nation would elevate overall marketing spend, and asked about the forward-looking revenue run rate for Formation Nation.

    Answer

    CEO Jeff Stibel clarified that the changes represent a shift in marketing spend, not an increase, aiming to reinforce LegalZoom's premium brand authority. COO & CFO Noel Watson confirmed they expect a similar level of CAM spend for the year. Both executives cautioned against extrapolating Formation Nation's revenue contribution due to high seasonality and the integrated strategy of shifting customers between brands.

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    Patrick Mcllwee's questions to LegalZoom.com Inc (LZ) leadership • Q4 2024

    Question

    Patrick Mcllwee questioned the recent step-down in implied market share, the outlook for formation volumes including the impact of Formation Nation, and the long-term vision for leveraging AI on the platform.

    Answer

    CEO Jeffrey Stibel emphasized a strategic shift from raw market share to 'quality share,' focusing on higher-value customers, and noted this will stabilize over time. He explained that the Formation Nation acquisition allows them to serve the value-end of the market without diluting the LegalZoom brand. Regarding AI, Stibel's vision is to use it to augment human expertise (attorneys, service experts) to enhance service and scale, a key differentiator. COO & CFO Noel Watson added that AI will also drive operational efficiencies.

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