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Sep 30, 2022
LegalZoom Q3 2022 Earnings Report
LegalZoom's Q3 2022 performance reflected a mix of subscription growth and transaction revenue decline, with overall revenue increasing modestly and profitability improving.
Key Takeaways
LegalZoom reported Q3 2022 results with revenue of $154.4 million, a 4% increase year-over-year. Subscription revenue grew by 25%, while transaction revenue declined by 14%. The company reported a net loss of $10.1 million, an improvement from the $39.7 million loss in the same period last year. Adjusted EBITDA was $17.5 million, up from $15.1 million in Q3 2021.
Revenue increased by 4% year-over-year to $154.4 million.
Subscription revenue grew by 25% year-over-year to $91.4 million.
Net loss decreased from $39.7 million to $10.1 million year-over-year.
Adjusted EBITDA increased to $17.5 million, representing 11% of revenue.
Revenue by Segment
Forward Guidance
LegalZoom provided guidance for Q4 2022 and revised full-year 2022 guidance. Revenue for Q4 is expected to be in the range of $145 million to $147 million, with Adjusted EBITDA of $23 million. Full-year revenue is now expected to be in the range of $617 million to $619 million, and Adjusted EBITDA is expected to be $60 million.
Positive Outlook
- Full-year revenue is expected to be between $617 million and $619 million.
- Adjusted EBITDA is expected to be $60 million for the full year.
- Q4 revenue is expected to be between $145 million and $147 million.
- Q4 Adjusted EBITDA is expected to be $23 million.
- Proactive measures have been taken to strengthen profitability.
Challenges Ahead
- The company anticipates a weaker operating environment.
- Transaction revenue decreased by 14% year-over-year.
- The guidance does not include the impact of potential macroeconomic challenges.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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