NASDAQ$LZ

Legalzoomcom Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a revenue increase of 4% year-over-year, driven by subscription growth and improved profitability.

LegalZoom announced its Q2 2023 results, with revenue reaching $168.9 million, a 4% increase year-over-year. The company reported net income of $1.4 million, a significant improvement from the net loss of $12.7 million in the same period last year. Adjusted EBITDA was $29.6 million, representing 18% of revenue.

  • Revenue increased by 4% year-over-year, reaching $168.9 million.
  • Subscription revenue grew by 12% year-over-year, totaling $102.2 million.
  • Net income improved to $1.4 million, compared to a net loss of $12.7 million in the same period last year.
  • Adjusted EBITDA increased to $29.6 million, representing 18% of revenue.

Headline financials

Total Revenue

$169M

Previous: $164M+3.0%
EPS (adj)

$0.10

Previous: $0.05+100.0%
Adjusted EBITDA margin

18.0%

Previous: 11.0%+63.6%
Transaction units

283.0K

Previous: 225.0K+25.8%
Business formations

161.0K

Previous: 113.0K+42.5%
Average order value (AOV)

$214.00

No prior period
Capital Expenditures

-$15.2M

Previous: -$10.4M-46.7%
Free Cash Flow

-$13.8M

Previous: -$23.6M+41.3%
Net Income

$1.4M

Previous: -$13.2M+110.6%
Operating Income

$4.75M

Previous: -$11.6M+140.8%
Gross Profit

$105M

Previous: $106M-1.3%
Cash & Equivalents

$239M

Previous: $216M+10.9%

Revenue & EPS history

LegalZoom · Revenue · Quarterly

$169M

Q2 2023+3%vs Q2 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

LegalZoom · $163M total across 2 segments · Q2 2023

  • Subscription revenue
    $102M+11.9%
  • Transaction revenue
    $60.5M-9.0%

Forward guidance

LegalZoom provided guidance for Q3 2023 and updated its full-year 2023 outlook. The company expects Q3 revenue to be in the range of $159 million to $161 million and Adjusted EBITDA to be $26 million to $28 million. For the full year, LegalZoom now expects revenue to be in the range of $642 million to $652 million and Adjusted EBITDA to be $105 million to $110 million.

Tailwinds

  • Q3 revenue is expected to be in the range of $159 million to $161 million.
  • Q3 Adjusted EBITDA is expected to be $26 million to $28 million.
  • Full-year revenue is now expected to be in the range of $642 million to $652 million.
  • Full-year Adjusted EBITDA is now expected to be $105 million to $110 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 Q2 2023

Historical avgQ2 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

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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro