NASDAQ$LZ
Legalzoomcom Inc · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
LegalZoom's Q1 2023 financial results were reported, showing revenue increase and improved profitability.
LegalZoom reported a 7% increase in revenue to $165.9 million for Q1 2023. The company's net loss significantly decreased to $2.4 million, and adjusted EBITDA reached $21.9 million.
- Revenue increased by 7% year-over-year to $165.9 million.
- Subscription revenue grew by 15% year-over-year to $97.3 million.
- Net loss improved to $2.4 million compared to $25.8 million in the same period last year.
- Free cash flow increased to $21.8 million from $8.8 million year-over-year.
Headline financials
Revenue & EPS history
LegalZoom · Revenue · Quarterly
$166M
Revenue by segment
LegalZoom · $160M total across 2 segments · Q1 2023
- Subscription revenue$97.3M+15.3%61.0%
- Transaction revenue$62.2M-3.0%39.0%
Forward guidance
LegalZoom expects Q2 2023 revenue to be in the range of $166 million to $168 million and Adjusted EBITDA to be $27 million to $29 million. Full year 2023 revenue is expected to be in the range of $630 million to $650 million and Adjusted EBITDA to be $105 million.
Tailwinds
- Revenue is expected to be in the range of $166 million to $168 million for Q2 2023.
- Adjusted EBITDA is expected to be $27 million to $29 million for Q2 2023.
- Full year 2023 revenue is now expected to be in the range of $630 million to $650 million.
- Full year 2023 Adjusted EBITDA is now expected to be $105 million.
- The company's new line-up and refreshed marketing messaging helped drive strong market share gains.
Headwinds
- There is inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking GAAP financial measure.
- The forward-looking non-GAAP financial measures provided may vary materially from the corresponding GAAP financial measures.
- Macroeconomic challenges, including inflation, global conflict, supply chain issues and recessionary fears, may impact the business.
- The company's recent growth may not be indicative of future growth.
- The company's dependence on business formations and fluctuations or declines in the number of business formations may affect the business.
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 2023
+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
| Quarter | Report date | Reaction (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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