NASDAQ$LZ

Legalzoomcom Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

LegalZoom's financial performance remained relatively stable, with slight decreases in key profitability metrics and strategic restructuring announced.

LegalZoom reported a 5% increase in revenue, reaching $177.4 million, driven by growth in both transaction and subscription revenues. Net income remained nearly flat at $1.3 million. The company announced restructuring efforts to drive annualized savings of approximately $25 million.

  • Total revenue increased by 5% year-over-year to $177.4 million.
  • Subscription revenue grew 6% year-over-year, reaching $108.8 million.
  • Net income was $1.3 million, consistent with the same period last year.
  • Restructuring efforts announced, expected to yield $25 million in annualized savings.

Headline financials

Total Revenue

$177M

Previous: $169M+5.0%
EPS

$0.01

Previous: $0.10-90.0%
Adjusted EBITDA margin

16.0%

Previous: 18.0%-11.1%
Adjusted EBITDA

$28.9M

No prior period
Transaction units

292.0K

Previous: 283.0K+3.2%
Business formations

134.0K

Previous: 161.0K-16.8%
Average order value (AOV)

$234.00

Previous: $214.00+9.3%
Subscription units at period end

1.6M

No prior period
Average revenue per subscription unit (ARPU)

$271.00

No prior period
Capital Expenditures

-$19.4M

Previous: -$15.2M-27.1%
Free Cash Flow

-$18M

Previous: -$13.8M-30.4%
Net Income

$1.31M

Previous: $1.4M-5.8%
Operating Income

$1.15M

Previous: $4.75M-75.8%
Gross Profit

$114M

Previous: $105M+8.2%
R&D Expense

$24M

No prior period

Revenue & EPS history

LegalZoom · Revenue · Quarterly

$177M

Q2 2024+5%vs Q2 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

LegalZoom · $162M total across 2 segments · Q3 2023

  • Subscription revenue
    $105M+14.3%
  • Transaction revenue
    $57.4M-0.3%

Forward guidance

LegalZoom expects revenue between $165 million and $169 million and Adjusted EBITDA between $39 million and $41 million for the third quarter ending September 30, 2024. For the full year 2024, LegalZoom reiterates revenue guidance in the range of $675 million to $685 million, Adjusted EBITDA in the range of $135 million to $145 million, and Free cash flow in the range of $75 million to $85 million.

Tailwinds

  • Revenue is expected to be in the range of $675 million to $685 million.
  • Adjusted EBITDA is expected to be in the range of $135 million to $145 million.
  • Free cash flow in the range of $75 million to $85 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 2024

Historical avgQ2 2024

+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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