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Dec 31, 2021
LegalZoom Q4 2021 Earnings Report
LegalZoom's Q4 2021 results were reported, showing revenue growth but a shift to net loss due to increased stock-based compensation.
Key Takeaways
LegalZoom reported a 16% increase in revenue for Q4 2021, reaching $142.1 million. However, the company experienced a net loss of $20.8 million, a significant change from the $9.4 million net income in the same quarter of the previous year. This was primarily due to a $22.9 million increase in stock-based compensation related to the IPO.
Revenue increased by 16% year-over-year to $142.1 million.
Transaction revenue grew by 8% year-over-year, driven by a 10% increase in business formations.
Subscription revenue increased by 29% year-over-year, with 1,329,000 subscription units.
Net loss was $20.8 million, compared to a net income of $9.4 million in the previous year, impacted by increased stock-based compensation.
Revenue by Segment
Forward Guidance
LegalZoom provided guidance for Q1 2022 and full year 2022, including revenue and Adjusted EBITDA expectations.
Positive Outlook
- Revenue for Q1 2022 is expected to be in the range of $150 million to $152 million.
- Revenue for full year 2022 is expected to be in the range of $650 million to $660 million.
- Subscription revenue is expected to grow approximately 25% year-over-year for full year 2022.
Challenges Ahead
- Adjusted EBITDA for Q1 2022 is expected to be break even.
- Adjusted EBITDA for full year 2022 is expected to be $48 million.
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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