NASDAQ$LZ
Legalzoomcom Inc · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Reported a 9% increase in revenue year-over-year, driven by subscription revenue growth, and managed expenses to improve profitability.
LegalZoom reported a solid Q2 2022 with revenue of $163.9 million, a 9% increase year-over-year. Subscription revenue grew by 32% year-over-year. The company is actively managing expenses and realizing efficiencies from infrastructure investments.
- Revenue was $163.9 million, up 9% year-over-year.
- Subscription revenue increased by 32% year-over-year, reaching $91.3 million.
- Net loss decreased to $13.2 million, compared to $38.4 million in 2021.
- Cash and cash equivalents totaled $215.5 million with no debt outstanding.
Headline financials
Revenue & EPS history
LegalZoom · Revenue · Quarterly
$164M
Revenue by segment
LegalZoom · $158M total across 2 segments · Q2 2022
- Subscription revenue$91.3M+31.6%57.9%
- Transaction revenue$66.5M-9.4%42.1%
Forward guidance
LegalZoom expects revenue to be in the range of $149 million to $151 million for Q3 2022. Adjusted EBITDA is expected to be $16 million to $18 million. For the full year 2022, revenue is expected to be in the range of $612 million to $616 million. Subscription revenue is expected to grow more than 20% year-over-year. Adjusted EBITDA is expected to be $55 million.
Tailwinds
- Revenue is expected to be in the range of $149 million to $151 million for Q3 2022.
- Adjusted EBITDA is expected to be $16 million to $18 million for Q3 2022.
- Revenue is expected to be in the range of $612 million to $616 million for the full year 2022.
- Subscription revenue is expected to grow more than 20% year-over-year for the full year 2022.
- Adjusted EBITDA is expected to be $55 million for the full year 2022.
Headwinds
- Anticipating a tougher operating environment in the back half of the year.
- Lowering revenue expectations accordingly.
- Actively managing expenses.
- Realizing efficiencies from infrastructure investments.
- Expect to deliver an Adjusted EBITDA margin of 15% in 2023.
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 Q2 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
| 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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