NASDAQ$LZ

Legalzoomcom Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

LegalZoom's Q4 2021 results were reported, showing revenue growth but a shift to net loss due to increased stock-based compensation.

LegalZoom reported a 16% increase in revenue for Q4 2021, reaching $142.1 million. However, the company experienced a net loss of $20.8 million, a significant change from the $9.4 million net income in the same quarter of the previous year. This was primarily due to a $22.9 million increase in stock-based compensation related to the IPO.

  • Revenue increased by 16% year-over-year to $142.1 million.
  • Transaction revenue grew by 8% year-over-year, driven by a 10% increase in business formations.
  • Subscription revenue increased by 29% year-over-year, with 1,329,000 subscription units.
  • Net loss was $20.8 million, compared to a net income of $9.4 million in the previous year, impacted by increased stock-based compensation.

Headline financials

Total Revenue

$142M

Previous: $122M+16.3%
EPS (adj)

$0.02

Previous: $0.06-66.7%
Business formations

96.0K

Previous: 87.0K+10.3%
Subscription units at period end

1.3M

Previous: 1.1M+22.5%
Average revenue per subscription unit (ARPU)

$236.00

Previous: $223.00+5.8%
Capital Expenditures

$3.24M

Previous: $2.77M+17.1%
Free Cash Flow

-$9.24M

Previous: $8.21M-212.6%
Net Income

-$20.8M

Previous: $9.42M-320.5%
Operating Income

-$25.7M

Previous: $15.4M-267.2%
Gross Profit

$93.9M

Previous: $82.4M+13.9%
Cash & Equivalents

$239M

Previous: $114M+109.1%
Total Assets

$431M

Previous: $252M+71.0%
Stock-Based Comp

$25.9M

Previous: $3M+761.2%

Revenue & EPS history

LegalZoom · Revenue · Quarterly

$142M

Q4 2021+16.3%vs Q4 2020
Beat estimate in 4 of 6 quarters(67%)
ActualEstimate

Revenue by segment

LegalZoom · $137M total across 2 segments · Q4 2021

  • Subscription revenue
    $80.7M+28.9%
  • Transaction revenue
    $56.5M+8.0%

Forward guidance

LegalZoom provided guidance for Q1 2022 and full year 2022, including revenue and Adjusted EBITDA expectations.

Tailwinds

  • Revenue for Q1 2022 is expected to be in the range of $150 million to $152 million.
  • Revenue for full year 2022 is expected to be in the range of $650 million to $660 million.
  • Subscription revenue is expected to grow approximately 25% year-over-year for full year 2022.

Headwinds

  • Adjusted EBITDA for Q1 2022 is expected to be break even.
  • Adjusted EBITDA for full year 2022 is expected to be $48 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 Q4 2021

Historical avgQ4 2021

+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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