# EDGAR Filing Document

**Accession Number:** 0001286139
**File Stem:** 0000000000-23-002871
**Filing Date:** 2023-3
**Character Count:** 10271
**Document Hash:** 6ef780440f638066c88d4133baeda49d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-23-002871.hdr.sgml**: 20230522

**ACCESSION NUMBER**: 0000000000-23-002871

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230322

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LEGALZOOM.COM, INC.
- **CENTRAL INDEX KEY:** 0001286139
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374]
- **IRS NUMBER:** 954752856
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** UPLOAD

**BUSINESS ADDRESS:**
- **STREET 1:** 101 N. BRAND BLVD., SUITE 1100
- **CITY:** GLENDALE
- **STATE:** CA
- **ZIP:** 91203
- **BUSINESS PHONE:** 323-962-8600

**MAIL ADDRESS:**
- **STREET 1:** 101 N. BRAND BLVD., SUITE 1100
- **CITY:** GLENDALE
- **STATE:** CA
- **ZIP:** 91203

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LEGALZOOM COM INC
- **DATE OF NAME CHANGE:** 20040405
**PUBLIC REFERENCE ACCESSION NUMBER**: 0001286139-23-000036

## Text-Extract

```

United States securities and exchange commission logo

                             March 22, 2023

       Noel Watson
       Chief Financial Officer
       Legalzoom.com, Inc.
       101 N. Brand Boulevard
       11th Floor
       Glendale, CA 91203

                                                        Re: Legalzoom.com, Inc.
                                                            Form 10-K for the
year ended December 31, 2022
                                                            File No. 001-35618

       Dear Noel Watson:

              We have limited our review of your filing to the financial
statements and related
       disclosures and have the following comments. In some of our comments, we
may ask you to
       provide us with information so we may better understand your disclosure.

              Please respond to these comments within ten business days by
providing the requested
       information or advise us as soon as possible when you will respond. If
you do not believe our
       comments apply to your facts and circumstances, please tell us why in
your response.

                                                        After reviewing your
response to these comments, we may have additional comments.

       Form 10-K for the year ended December 31, 2022

       Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
       Key Business Metrics, page 33

   1.                                                   We note that you aim to
continue to grow subscription units, in part, by improving
                                                        retention rates. We
also note your risk factor disclosure on page 8, which highlights the
                                                        importance of
converting customers to subscriptions, retaining existing customers and
                                                        renewing subscriptions
to maintaining and improving your operating results. In your
                                                        response to prior
comment 9 from your May 18, 2021 letter, you indicated that
                                                        management believed
annual retention rate is the most relevant metric for investors to
                                                        assess the company's
effectiveness in retaining its subscription base. However, we note
                                                        that you have removed
the discussion of annual retention rate from your filing. Please
                                                        explain why you removed
this measure. Tell us what retention, expansion or conversion
                                                        measure(s) you
currently use to evaluate your subscription business and revise to include a
                                                        quantified discussion
of such measure(s). Refer to SEC Release No. 33-10751.
 Noel Watson
Legalzoom.com, Inc.
March 22, 2023
Page 2
Results of Operations, page 38

2.       We note that you provide the impact of volume (i.e. average number of
subscription units
         and number of transactions) and price (i.e. ARPU and average order
value) on your
         subscription and transaction revenue. You also qualitatively discuss
various factors that
         impacted the volume and price metrics for each revenue stream, a
portion of which relates
         to the Earth Class Mail acquisition in fiscal 2021. Please revise to
also include a
         quantified discussion of the various factors, including any offsetting
factors, that
         impacted your revenue and/or the supporting metrics disclosed. Refer
to Item 303(b) of
         Regulation S-K.
Notes to Consolidated Financial Statements
Note 14. Commitments and Contingencies, page 82

3.       Please revise to disclose that an accrual has not been recorded
related to the April 2020
         legal proceeding because the likelihood of loss is not both probable
and reasonably
         estimable. Additionally, given there is at least a reasonable
possibility of loss, revise to
         disclose either an estimate of the reasonably possible loss or range
of loss, or include a
         statement that such an estimate cannot be made. We refer you to your
responses to prior
         comments 16 and 10 from your letters dated May 17, 2021 and June 4,
2021, respectively,
         as well as the guidance ASC 450-20-25-2 and 450-20-50-3 and 50-4.
       In closing, we remind you that the company and its management are
responsible for the
accuracy and adequacy of their disclosures, notwithstanding any review,
comments, action or
absence of action by the staff.

       You may contact Brittany Ebbertt, Senior Staff Accountant, at
202-551-3572 or Kathleen
Collins, Accounting Branch Chief, at 202-551-3499 with any questions.

FirstName LastNameNoel Watson                                  Sincerely,
Comapany NameLegalzoom.com, Inc.
                                                               Division of
Corporation Finance
March 22, 2023 Page 2                                          Office of
Technology
FirstName LastName

```

### Attached PDF Documents

**Attachment 1:** `filename1`

![img-0.jpeg](img-0.jpeg)

CORPORATION FINANCE

# UNITED STATES  
SECURITIES AND EXCHANGE COMMISSION  
WASHINGTON, D.C. 20549

March 22, 2023

Noel Watson  
Chief Financial Officer  
Legalzoom.com, Inc.  
101 N. Brand Boulevard  
11th Floor  
Glendale, CA 91203

**Re: Legalzoom.com, Inc.**  
**Form 10-K for the year ended December 31, 2022**  
**File No. 001-35618**

Dear Noel Watson:

We have limited our review of your filing to the financial statements and related disclosures and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure.

Please respond to these comments within ten business days by providing the requested information or advise us as soon as possible when you will respond. If you do not believe our comments apply to your facts and circumstances, please tell us why in your response.

After reviewing your response to these comments, we may have additional comments.

Form 10-K for the year ended December 31, 2022

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Key Business Metrics, page 33

1. We note that you aim to continue to grow subscription units, in part, by improving retention rates. We also note your risk factor disclosure on page 8, which highlights the importance of converting customers to subscriptions, retaining existing customers and renewing subscriptions to maintaining and improving your operating results. In your response to prior comment 9 from your May 18, 2021 letter, you indicated that management believed annual retention rate is the most relevant metric for investors to assess the company's effectiveness in retaining its subscription base. However, we note that you have removed the discussion of annual retention rate from your filing. Please explain why you removed this measure. Tell us what retention, expansion or conversion measure(s) you currently use to evaluate your subscription business and revise to include a quantified discussion of such measure(s). Refer to SEC Release No. 33-10751.

Noel Watson  
Legalzoom.com, Inc.  
March 22, 2023  
Page 2

# Results of Operations, page 38

2. We note that you provide the impact of volume (i.e. average number of subscription units and number of transactions) and price (i.e. ARPU and average order value) on your subscription and transaction revenue. You also qualitatively discuss various factors that impacted the volume and price metrics for each revenue stream, a portion of which relates to the Earth Class Mail acquisition in fiscal 2021. Please revise to also include a quantified discussion of the various factors, including any offsetting factors, that impacted your revenue and/or the supporting metrics disclosed. Refer to Item 303(b) of Regulation S-K.

# Notes to Consolidated Financial Statements

# Note 14. Commitments and Contingencies, page 82

3. Please revise to disclose that an accrual has not been recorded related to the April 2020 legal proceeding because the likelihood of loss is not both probable and reasonably estimable. Additionally, given there is at least a reasonable possibility of loss, revise to disclose either an estimate of the reasonably possible loss or range of loss, or include a statement that such an estimate cannot be made. We refer you to your responses to prior comments 16 and 10 from your letters dated May 17, 2021 and June 4, 2021, respectively, as well as the guidance ASC 450-20-25-2 and 450-20-50-3 and 50-4.

In closing, we remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff.

You may contact Brittany Ebbert, Senior Staff Accountant, at 202-551-3572 or Kathleen Collins, Accounting Branch Chief, at 202-551-3499 with any questions.

Sincerely,

Division of Corporation Finance Office of Technology