Macroeconomic ImpactThe degree of growth in macro-level business formations will inevitably impact LegalZoom’s ability to grow subscriptions, potentially limiting expansion opportunities.
Retention RatesRetention rates dropped to 59% this quarter, down from 60% last quarter and 63% in the year-ago period, indicating potential challenges in maintaining customer loyalty.
Subscription ChallengesManagement expects lower renewal rates from the initial bundled cohort, which may impact future subscription revenue.