LegalZoom.com Inc

LZ

Equity

ISIN US52466B1035 / Valor 19113587

NASDAQ (2025-04-07)

USD 7.49-4.46%

LegalZoom.com Inc
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About company

LegalZoom.com Inc is a prominent online platform specializing in business formation services in the United States. The company aims to support small business owners by providing a range of legal, tax, and compliance products through user-friendly technology. LegalZoom offers services such as business formations, management solutions, and professional advisory services to millions of entrepreneurs and their families. The company's mission is to make legal and financial expertise accessible and affordable to all, empowering individuals to pursue their entrepreneurial dreams.

Summarized from source with an LLMView SourceSector: Technology

Revenue Growth

LegalZoom.com Inc. reported revenue of $168.6 million for the third quarter of 2024, marking a 1% increase compared to the same period in 2023. This growth was driven by an 8% increase in transaction units, although transaction revenue decreased by 7% year-over-year to $57.9 million. Subscription revenue, however, saw a 5% increase, reaching $110.7 million.

Net Income and Margins

The company achieved a record net income of $11.1 million for the third quarter of 2024, representing a net income margin of 7%. This is a significant improvement from the $7.5 million net income, or 5% margin, reported in the third quarter of 2023. Non-GAAP net income also rose to $29.7 million, compared to $23.3 million in the previous year.

Adjusted EBITDA

LegalZoom.com Inc. reported a record third quarter Adjusted EBITDA of $47.1 million, with an Adjusted EBITDA margin of 28%. This is a notable increase from the $33.7 million, or 20% margin, recorded in the third quarter of 2023. The improvement was attributed to a higher mix of subscription revenue and lower expenses related to testing initiatives and restructuring efforts.

Cash Flow and Share Repurchases

For the third quarter of 2024, LegalZoom.com Inc. generated $31.6 million in cash flow from operating activities, up from $27.4 million in the same period of 2023. Free cash flow also increased to $22.0 million. The company repurchased 3.8 million shares of common stock for $24.7 million, reducing outstanding shares by 2% and increasing the share repurchase authorization by $40.0 million to a total of $215.0 million.

Financial Outlook

Looking ahead, LegalZoom.com Inc. expects fourth-quarter 2024 revenue to range between $158 million and $162 million, with Adjusted EBITDA projected between $40 million and $44 million. For the full year ending December 31, 2024, the company 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.

Summarized from source with an LLMView Source

Key figures

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Performance

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59.9%3Y

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