NASDAQ$LZ
Legalzoomcom Inc · Q4 2024 earnings
Q4 2024 earnings · · After market close · Investor relations
Briefing
LegalZoom reported strong fourth quarter and full year 2024 financial results, meeting the high end of its outlook range, driven by continued execution and growth in subscription revenue.
LegalZoom delivered a strong performance in Q4 2024, with revenue increasing by 2% year-over-year to $161.7 million and net income rising by 74% to $12.9 million. Adjusted EBITDA also saw significant growth, up 32% to $44.2 million, reflecting improved operating efficiencies. The company's subscription revenue continued its upward trend, contributing to overall growth.
- Total revenue for Q4 2024 increased by 2% year-over-year to $161.7 million.
- Net income for Q4 2024 grew by 74% year-over-year to $12.9 million, with a net income margin of 8%.
- Adjusted EBITDA for Q4 2024 was $44.2 million, a 32% increase year-over-year, with an Adjusted EBITDA margin of 27%.
- Subscription revenue for Q4 2024 was $108.7 million, up 2% year-over-year, driven by the addition of 0.2 million net new subscription units over the trailing twelve months.
Headline financials
Revenue & EPS history
LegalZoom · Revenue · Quarterly
$162M
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
For the first quarter ending March 31, 2025, LegalZoom expects revenue to be in the range of $175 million to $179 million and Adjusted EBITDA to be in the range of $33 million to $36 million. For the full year ending December 31, 2025, the company anticipates approximately 5% year-over-year revenue growth and an Adjusted EBITDA margin of approximately 23%.
Tailwinds
- Expected revenue growth for Q1 2025, with a range of $175 million to $179 million.
- Anticipated positive Adjusted EBITDA for Q1 2025, ranging from $33 million to $36 million.
- Full-year 2025 revenue growth projected at approximately 5% year-over-year.
- Full-year 2025 Adjusted EBITDA margin expected to be approximately 23%.
- Commitment to accelerating subscription revenue growth and driving continued operating efficiencies.
Headwinds
- No specific negative forward guidance points were explicitly stated in the provided text.
- The guidance ranges imply potential variability in financial outcomes.
- Macroeconomic challenges or uncertainty could impact future performance.
- Competition in the legal solutions market may affect growth.
- Ability to effectively integrate acquisitions and manage complex regulations could pose challenges.
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 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
| 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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