NASDAQ$LZ

Legalzoomcom Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

LegalZoom's Q3 2024 financial results were reported, showing a mix of growth and strategic shifts.

LegalZoom reported a 1% increase in revenue year-over-year, driven by subscription revenue growth of 5%. The company achieved a record net income of $11.1 million and an adjusted EBITDA of $47.1 million. They are focusing on subscription offerings and pricing updates to attract high-value customers.

  • Total revenue increased by 1% year-over-year, reaching $168.6 million.
  • Subscription revenue grew by 5% year-over-year, totaling $110.7 million.
  • Net income reached a record $11.1 million, representing 7% of revenue.
  • Adjusted EBITDA was $47.1 million, achieving a margin of 28%.

Headline financials

Total Revenue

$169M

Previous: $167M+0.8%
EPS

$0.06

Previous: $0.12-50.0%
Adjusted EBITDA margin

28.0%

Previous: 20.0%+40.0%
Adjusted EBITDA

$47.1M

Previous: $33.7M+39.6%
Transaction units

255.0K

Previous: 237.0K+7.6%
Business formations

113.0K

Previous: 137.0K-17.5%
Average order value (AOV)

$227.00

Previous: $242.00-6.2%
Subscription units at period end

1.7M

No prior period
Average revenue per subscription unit (ARPU)

$264.00

Previous: $265.00-0.4%
Capital Expenditures

-$29M

Previous: -$23.2M-24.8%
Free Cash Flow

-$17.9M

Previous: -$15.7M-14.4%
Net Income

$11.1M

Previous: $7.53M+46.7%
Operating Income

$16.3M

Previous: $10.3M+58.6%
Gross Profit

$114M

Previous: $108M+5.4%
R&D Expense

$21M

Previous: $20.3M+3.5%
Stock-Based Comp

$15.7M

Previous: $15.6M+0.9%

Revenue & EPS history

LegalZoom · Revenue · Quarterly

$169M

Q3 2024+0.8%vs Q3 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 $158 million and $162 million and Adjusted EBITDA between $40 million and $44 million for the fourth quarter ending December 31, 2024. For the full year, LegalZoom anticipates revenue between $678 million and $682 million, Adjusted EBITDA between $144 million and $148 million, and Free cash flow between $80 million and $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 Q3 2024

Historical avgQ3 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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