LegalZoom lowered its full-year revenue guidance to $800 million at the midpoint from $820 million, citing a material and structural decline in Google-driven customer acquisition. Second-quarter revenue rose 6.6% year over year to $205.3 million, roughly in line with analyst estimates, while adjusted EPS of $0.16 beat expectations by 7%. Adjusted EBITDA came in at $45.9 million, above the $40.92 million consensus, and the company guided full-year EBITDA to $192.5 million at the midpoint, below analyst estimates of $195 million. Subscription units fell by 63,000 year over year to 1.89 million, and billings increased 4% to $203.2 million. CEO Jeffrey Stibel said AI partnerships now account for about 3% of LLC formations and could eventually offset the Google traffic decline, while management plans to shift marketing spend toward brand and partnership channels.
LegalZoom.com IncCuts full-year revenue guidance due to structural decline in Google-driven customer acquisition, reducing demand.
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