We've completed a reduction in force and expect to eliminate hiring outside our most critical roles, primarily in product and tech in the near term. Similar to reverting to a more conservative marketing approach, we've been taking quick actions to manage expenses. This intra-quarter shift drove inefficiencies in our spend.Īdjusted EBITDA was $18 million in the second quarter. During the quarter, we adjusted our marketing strategy, reverting to a more conservative lower funnel-focused approach given the external environment. Our business formations declined 16% in the second quarter, while the U.S. Transaction revenue was down 9% in the period, while subscription revenue offset this weakness growing 32%. Q2 revenue came in at $164 million, up 9% year over year. But first, I'll give a brief overview of Q2 results. Today, I'll spend a bit more time talking about how we are adjusting to the current environment in the short term while also reiterating our opportunity in the long term. Instead, I see our inability to gain material share in a very large untapped market the issue and the accountability for that is squarely on me. I want to be clear in today's earnings call that while the conflicts caused by lapping COVID are difficult, I don't place claim on the macro for our performance. In today's call, I'll outline how we are sharpening our focus along with clear actions to adjust to a different environment. We leaned in hard with strong tailwind created by COVID, and we clearly benefited from it.Īs we look ahead to a different macro environment, it's a clear reminder that products win markets, and our product is needed more now than ever before. During the pandemic, that journey took a detour.

I came to LegalZoom almost three years ago to lead our product transformation. Thanks, Danny, and good afternoon, everyone.

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