NASDAQ$LZ

Legalzoomcom Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

LegalZoom's financial performance improved with increased revenue and net income.

LegalZoom reported an 8% increase in revenue to $158.7 million for the fourth quarter of 2023, with subscription revenue up 17%. Net income increased significantly to $7.4 million, and adjusted EBITDA reached $33.4 million.

  • Revenue increased by 8% year-over-year to $158.7 million.
  • Subscription revenue grew by 17% year-over-year to $106.7 million.
  • Net income rose to $7.4 million, compared to $1.7 million in the same period of the previous year.
  • Adjusted EBITDA increased to $33.4 million, representing 21% of revenue.

Headline financials

Total Revenue

$159M

Previous: $147M+8.2%
EPS (adj)

$0.13

Previous: $0.10+30.0%
Adjusted EBITDA margin

21.0%

Previous: 18.0%+16.7%
Adjusted EBITDA

$33.4M

Previous: $26.5M+26.3%
Transaction units

215.0K

Previous: 211.0K+1.9%
Business formations

113.0K

Previous: 115.0K-1.7%
Average order value (AOV)

$242.00

Previous: $241.00+0.4%
Subscription units at period end

1.5M

No prior period
Average revenue per subscription unit (ARPU)

$277.00

Previous: $258.00+7.4%
Capital Expenditures

-$8.37M

Previous: $5.66M-248.0%
Net Income

$7.4M

Previous: $1.7M+335.3%
Operating Income

$10.7M

Previous: $4.93M+117.4%
Gross Profit

$103M

Previous: $99.2M+3.6%
R&D Expense

$22.1M

No prior period
Stock-Based Comp

$15M

Previous: $16M-6.1%

Revenue & EPS history

LegalZoom · Revenue · Quarterly

$159M

Q4 2023+8.2%vs Q4 2022
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 provided financial guidance for Q1 2024 and full year 2024.

Tailwinds

  • Revenue for Q1 2024 is expected to be in the range of $172 million to $176 million.
  • Adjusted EBITDA for Q1 2024 is expected to be in the range of $25 million to $27 million.
  • Revenue for the full year 2024 is expected to be in the range of $700 million to $720 million.
  • Adjusted EBITDA for the full year 2024 is expected to be in the range of $135 million to $145 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 2023

Historical avgQ4 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

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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro