NASDAQ$LZ
Legalzoomcom Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Reported an increase in revenue and a shift to net income from a net loss in the same quarter of the previous year.
LegalZoom reported an 8% increase in revenue to $167.3 million, driven by a 14% increase in subscription revenue. The company achieved net income of $7.5 million, a significant improvement from the net loss of $12.0 million in the same period last year. LegalZoom also launched several new products, including LZ Books, Doc Assist, and Business Licenses.
- Revenue increased by 8% year-over-year, reaching $167.3 million.
- Subscription revenue grew by 14% year-over-year, totaling $104.5 million.
- Net income was $7.5 million, a significant improvement from the prior year's net loss of $12.0 million.
- The company launched Business Licenses, LZ Books, Doc Assist, and a revamped Legal Forms library.
Headline financials
Revenue & EPS history
LegalZoom · Revenue · Quarterly
$167M
Revenue by segment
LegalZoom · $162M total across 2 segments · Q3 2023
- Subscription revenue$105M+14.3%64.5%
- Transaction revenue$57.4M-0.3%35.5%
Forward guidance
LegalZoom provided guidance for the fourth quarter and updated full-year expectations. They expect Q4 revenue to be between $155 million and $157 million, with adjusted EBITDA between $28 million and $30 million. The full-year revenue is now projected to be in the range of $657 million to $659 million, with adjusted EBITDA between $114 million and $116 million.
Tailwinds
- Revenue is expected to be in the range of $155 million to $157 million for Q4 2023.
- Adjusted EBITDA is expected to be in the range of $28 million to $30 million for Q4 2023.
- Full-year revenue is now expected to be in the range of $657 million to $659 million.
- Full-year Adjusted EBITDA is now expected to be in the range of $114 million to $116 million.
- Guidance reflects continued confidence in business performance and profitability.
Headwinds
- Uncertainty in forecasting reconciling items for non-GAAP outlook.
- Difficulty in predicting the timing or amount of various items impacting GAAP financial measures.
- Inherent limitations in forecasting items outside of LegalZoom's control.
- Potential for forward-looking non-GAAP measures to vary materially from corresponding GAAP measures.
- Reliance on current expectations and projections about future events and financial trends, which are subject to risks and uncertainties.
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 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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