Dan Wernikoff: Yes. Yes, thanks for the questions, Jay. Maybe I’ll hit the second one first because it’s kind of a quick one. They look pretty similar to our prior customers, so we haven’t really seen any retention dynamic that’s different with those customers. And I’d say that the goal would be that over time they become a customer base that is maybe more easily monetizable post formation because they go into operation. So, that would be our hypothesis and that’s actually currently looking relatively good. Business Licenses I’m extremely excited about. So one of the biggest problems that small businesses have today is when they go into operations, they start to bump against a lot of regulations and permitting requirements. And in the upfront comments I talked about, an example of, a food service company.
If you think about like a complex business like a restaurant or catering that also has a food truck, or maybe they also serve liquor, I mean, if you, if you’re doing that in a city, I mean, you could have up to 25 licenses required, and it’s a very dynamic environment meaning that the regulations can be changing on a monthly or quarterly basis, and new requirements can be added. And not only that, all those licenses can have an expiration. And there is oftentimes that you need to share those licenses with another party or you are inspected. I mean, a great example is if you ever visit someone who’s in, in like a truck driver, moving materials across state line, like they carry a big folder of all their licenses in case they get inspected. So, it’s an evergreen problem.
It’s complex and it hits all different types of agencies that a small business doesn’t want to have to communicate with. So our goal is to make that seamless, make it simple, and at the same time, it allows us to also understand more about the business and how they operate. And that data becomes incredibly important. If you think about some of the questions we need to ask to understand the licenses that are required, they are almost identical questions to everything you need to understand to make a recommendation about business insurance as an example. And so we continue to build out this unique profile of all the data of a small business, which makes the next service, they need that much easier for us to anticipate and also that much easier for them to fill in the application.
So it’s a big opportunity. We know it’s important to our customers. We’ve been in that business through a partnership before and so it’s a bit of a known quantity and I’m really, really excited to integrate it into our experience.
Unidentified Analyst: Thanks a lot.
Dan Wernikoff: Yes, thanks Jay.
Operator: Thank you again. [Operator Instructions] The next question will come from Fiona Hynes of Morgan Stanley. Your line is open.
Fiona Hynes: Hi, good afternoon. This is Fiona on for Elizabeth Porter. Thank you for taking the question. I wanted to ask on MyLZ. A big focal point of this call has been progress on the entire subscription ecosystem with MyLZ. And so curious, do you see an opportunity to improve conversion rates and cross sell through this offering over time? And where should we expect to see that layer into the model? And any thoughts on like, timing for that as well? Thank you.
Dan Wernikoff: Yes. So thanks for the question, Fiona. MyLZ is highly strategic for us. And again, just to go back when I joined LegalZoom, there really wasn’t an experience after you formed your business. Since then, we’ve launched all these new subscriptions that drive more engagement, we brought them into a single, unified experience over the last quarter, and we are seeing leading indicators like, session time go up and we’re starting to see some of the post formation monetization begin in some of the newer subscriptions that we’re offering. So, all of that is leading to a good signal, but also very early. Like this is immaterial amount today of revenue that exists and happens post the formation event. I think as you look forward, you should start to see this in ARPU.
