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Sep 30, 2021
LegalZoom Q3 2021 Earnings Report
LegalZoom's third quarter results for 2021 were reported, showing revenue growth and a shift towards subscription revenue.
Key Takeaways
LegalZoom reported a 12% increase in revenue year-over-year, driven by a strong performance in subscription revenue. The company is focused on strategic investments to capitalize on market opportunities and maintain a long-term, growth-oriented mindset.
Revenue increased by 12% year-over-year to $147.9 million.
Subscription revenue grew by 24% year-over-year, reaching $73.3 million.
The company had 1,264,000 subscription units as of September 30, 2021, with 49,000 net units added in the quarter.
Net loss was $39.7 million, compared to a net income of $9.4 million in the third quarter of 2020.
Revenue by Segment
Forward Guidance
LegalZoom provided guidance for the fourth quarter and full year 2021.
Positive Outlook
- Revenue is expected to be in the range of $142 million to $146 million for the fourth quarter.
- Full year revenue is expected to be in the range of $575 million to $579 million.
- Adjusted EBITDA is expected to be in the range of $45 million to $47 million for the full year.
Challenges Ahead
- Quarterly revenue growth rates in 2021 are impacted by the effect COVID-19 had on business formations in 2020.
- Adjusted EBITDA guidance reflects near-term opportunities to invest in our business, including our brand, channel testing and product, in order to drive long-term growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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