LegalZoom Reports Strong Earnings in Third Quarter Results

Online legal services provider legal zoom reported its third quarter results on Nov. 10, revealing that it beat expectations for revenue and earnings per share by a little more than 2%.

The Glendale firm posted revenue of $154.4 million for the quarter, up 4% year over year. Revenue streams included partner revenue, transaction revenue and subscription revenue, the latter of which accounted for $91.4 million, an increase of 25% from the same period last year.

“We delivered solid results in Q3, with year-over-year subscription revenue growth of 25%,” Noel Watson, LegalZoom’s chief financial officer, said in a statement. “Despite the prospect of a weaker operating environment, the proactive measures we’ve taken to strengthen our profitability in recent quarters have enabled us to increase our full-year revenue and Adjusted EBITDA guidance.”

LegalZoom experienced a net loss of $10.1 million for the quarter, which accounted for 7% of revenue.

“I’m pleased with our strong Q3 performance, with both revenue and Adjusted EBITDA at or above the top end of our guidance ranges” LegalZoom Chief Executive Dan Wernikoff said in a statement. “I’m also excited by the progress we’ve made across our product priorities, including the opportunity to accelerate development of critical business forms and e-signature capabilities enabled by the acquisition of Revvsales, Inc.”

Financial details of the Revvsales detail, which was announced Oct. 17, were not disclosed. LegalZoom’s guidance for the fourth quarter includes a revenue expectation between $145 million and $147 million, as well as an adjusted EBITDA expectation of $23 million.

Shares of LegalZoom closed down $1.00, more than 9%, to $9.44 on Monday, a day when the market closed down a little more than 1%.

Comments are closed.