NASDAQ$LZ

Legalzoomcom Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

LegalZoom's Q1 2022 results were announced, demonstrating revenue growth and strategic progress.

LegalZoom reported a 15% year-over-year increase in revenue to $154.2 million for Q1 2022. Subscription revenue grew by 29% year-over-year. The company had $247.5 million in cash and no debt outstanding as of March 31, 2022.

  • Revenue increased by 15% year-over-year, reaching $154.2 million.
  • Subscription revenue grew by 29% year-over-year, totaling $84.4 million.
  • The company launched the first iteration of its segmented line-up formation experience and announced a new partnership with Wix.
  • LegalZoom had $247.5 million in cash with no debt outstanding.
  • Free cash flow was $8.8 million.

Headline financials

Total Revenue

$154M

Previous: $135M+14.5%
EPS (adj)

-$0.05

Previous: -$0.08+37.5%
Adjusted EBITDA margin

1.0%

Previous: 3.0%-66.7%
Business formations

129.0K

Previous: 132.0K-2.3%
Average order value (AOV)

$240.00

Previous: $223.00+7.6%
Subscription units at period end

1.4M

Previous: 1.1M+18.8%
Average revenue per subscription unit (ARPU)

$244.00

Previous: $226.00+8.0%
Capital Expenditures

-$4.91M

Previous: $2.91M-268.7%
Free Cash Flow

-$35.5M

Previous: $28.5M-224.6%
Net Income

-$30.6M

Previous: -$9.82M-211.6%
Operating Income

-$26.1M

Previous: -$4.35M-498.5%
Gross Profit

$98.3M

Previous: $90.7M+8.4%
Cash & Equivalents

$248M

Previous: $141M+75.3%
Total Assets

$451M

No prior period
Stock-Based Comp

$21.9M

Previous: $3.79M+477.5%

Revenue & EPS history

LegalZoom · Revenue · Quarterly

$154M

Q1 2022+14.5%vs Q1 2021
Beat estimate in 5 of 7 quarters(71%)
ActualEstimate

Revenue by segment

LegalZoom · $149M total across 2 segments · Q1 2022

  • Subscription revenue
    $84.4M+28.9%
  • Transaction revenue
    $64.1M+4.4%

Forward guidance

LegalZoom provided guidance for Q2 2022 and maintained its full-year 2022 guidance.

Tailwinds

  • Revenue for Q2 2022 is expected to be in the range of $162 million to $164 million.
  • Adjusted EBITDA for Q2 2022 is expected to be $10 million to $12 million.
  • Full-year 2022 revenue is expected to be in the range of $650 million to $660 million.
  • Subscription revenue is expected to grow approximately 25% year-over-year for full year 2022.
  • Adjusted EBITDA for full year 2022 is expected to be $48 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+3.6%

Avg return

Earnings day

+3.0%

Avg return

5 days after

+1.7%

Avg return

30 days after

45%

10 / 22 earnings

Positive

+30.1%

Q1 2023

Best reaction

-23.0%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.7%-1.9%-8.8%
Q4 2025-6.7%-7.1%-12.2%
Q3 2025+7.5%-0.5%-7.8%
Q1 2025+23.2%+31.2%+26.5%
Q4 2024+13.2%+14.2%-0.5%
Q3 2024+22.0%+11.0%+8.5%
Q2 2024-0.5%-5.1%+9.4%
Q1 2024-23.0%-17.2%-29.7%
Q4 2023+15.2%+19.1%+34.7%
Q3 2023+8.1%+5.2%+5.7%
Q2 2023-21.2%-18.7%-36.0%
Q1 2023+30.1%+29.4%+53.8%
Q4 2022-0.8%-1.6%+7.8%
Q3 2022+27.3%+20.9%+8.9%
Q2 2022+14.9%+9.3%+1.7%
Q1 2022+9.5%+4.8%+19.0%
Q4 2019-2.4%-0.9%-1.4%
Q4 2021-3.1%+5.0%+4.9%
Q3 2021-19.8%-14.3%-36.1%
Q2 2021-4.1%-5.5%-3.6%
Q1 2021-4.1%-5.5%-3.6%
Q4 2020-4.1%-5.5%-3.6%
Q3 2020
Q2 2020
Q1 2020
Q2 2012
Q1 2012
Q2 2011
Q1 2011

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