Strong Revenue Growth
Total revenue reached $193 million, up 9% year-over-year, ahead of expectations. Subscription revenue grew 10%, marking the second straight quarter of sequential growth and early achievement of the double-digit growth target, 2 quarters ahead of schedule.
Subscription Model Success
A 22% increase in total subscriptions in Q2 was driven by enhancements in packaging, pricing, and personalization, with strong initial traction from do-it-for-me products, including the new Concierge Plan.
Partnerships with AI Pioneers
Collaborations with OpenAI and Perplexity are noted as instrumental in boosting LegalZoom's brand presence and driving new customer acquisition.
Improved Profitability
Adjusted EBITDA margin reached 20%, a 400 basis point improvement year-over-year, with free cash flow reaching $32 million in the quarter.
Strategic Acquisition of Formation Nation
The acquisition brings complementary brands and core capabilities, contributing $12 million to the quarter's revenue and enhancing sales and customer service capabilities.