NASDAQ$LZ
Legalzoomcom Inc · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
LegalZoom's Q3 2022 performance reflected a mix of subscription growth and transaction revenue decline, with overall revenue increasing modestly and profitability improving.
LegalZoom reported Q3 2022 results with revenue of $154.4 million, a 4% increase year-over-year. Subscription revenue grew by 25%, while transaction revenue declined by 14%. The company reported a net loss of $10.1 million, an improvement from the $39.7 million loss in the same period last year. Adjusted EBITDA was $17.5 million, up from $15.1 million in Q3 2021.
- Revenue increased by 4% year-over-year to $154.4 million.
- Subscription revenue grew by 25% year-over-year to $91.4 million.
- Net loss decreased from $39.7 million to $10.1 million year-over-year.
- Adjusted EBITDA increased to $17.5 million, representing 11% of revenue.
Headline financials
Revenue & EPS history
LegalZoom · Revenue · Quarterly
$154M
Revenue by segment
LegalZoom · $149M total across 2 segments · Q3 2022
- Subscription revenue$91.4M+24.7%61.3%
- Transaction revenue$57.6M-13.9%38.7%
Forward guidance
LegalZoom provided guidance for Q4 2022 and revised full-year 2022 guidance. Revenue for Q4 is expected to be in the range of $145 million to $147 million, with Adjusted EBITDA of $23 million. Full-year revenue is now expected to be in the range of $617 million to $619 million, and Adjusted EBITDA is expected to be $60 million.
Tailwinds
- Full-year revenue is expected to be between $617 million and $619 million.
- Adjusted EBITDA is expected to be $60 million for the full year.
- Q4 revenue is expected to be between $145 million and $147 million.
- Q4 Adjusted EBITDA is expected to be $23 million.
- Proactive measures have been taken to strengthen profitability.
Headwinds
- The company anticipates a weaker operating environment.
- Transaction revenue decreased by 14% year-over-year.
- The guidance does not include the impact of potential macroeconomic challenges.
- Future growth may not be indicative of recent growth.
- The company faces risks related to sustaining revenue growth and remaining profitable.
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 Q3 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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