MOUNTAIN VIEW, Calif., Nov. 21, 2024 (GLOBE NEWSWIRE) -- LegalZoom (Nasdaq: LZ) is proud to announce the expansion of its partnership with Defy Ventures, a nonprofit organization dedicated to providing career readiness, personal development, and entrepreneurship training to currently and formerly incarcerated individuals. The expanded partnership will include funding for mental health and wellbeing programs, reinforcing LegalZoom’s commitment to creating pathways to economic opportunity for underrepresented ...

The company released its latest set of quarterly results to a very receptive and accepting market.LegalZoom (LZ 13.13%) stock, which has rarely been much of an outperformer on the market, did very well over the past few trading days. On news of solid quarterly performance, investors piled into the stock. This left it with an outsize gain in price of over 27% week to date as of Friday before market open, according to data compiled by S&P Global Market Intelligence.A (slight) set of double beatsThose quarterl ...

Core Insights - LegalZoom reported $168.6 million in revenue for Q3 2024, a year-over-year increase of 0.8% and a surprise of +0.83% over the Zacks Consensus Estimate of $167.21 million [1] - The EPS for the same period was $0.17, compared to $0.12 a year ago, with a surprise of +6.25% over the consensus estimate of $0.16 [1] Financial Performance Metrics - Average revenue per subscription unit (ARPU) was $0.26 million, slightly below the average estimate of $0.27 million [3] - The number of subscription units reached 1,717, exceeding the average estimate of 1,617 [3] - Average Order Value was $227, lower than the average estimate of $242.87 [3] - Number of transaction units was 255, above the average estimate of 243 [3] - Business formations numbered 113, below the average estimate of 132 [3] - Subscription revenue was $110.72 million, surpassing the estimated $108.10 million, reflecting a +6% change year-over-year [3] - Transaction revenue was $57.88 million, slightly below the average estimate of $59.15 million, with a +0.9% year-over-year change [3] Stock Performance - LegalZoom shares have returned +16% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [4] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [4]

LegalZoom (LZ) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.25%. A quarter ago, it was expected that this online platform for legal services would post earnings of $0.09 per share when it actually produced earnings of $0.10, delivering a surprise of 11.11%.Over the last four quar ...

Table of Contents ___________________________________ Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.001 per share LZ The Nasdaq Global Select Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the three months ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ...

Financial Performance - Third quarter revenue was $168.6 million, a 1% increase year-over-year, with subscription revenue at $110.7 million, growing 5% year-over-year[3] - Net income for the quarter reached $11.1 million, representing 7% of revenue, compared to $7.5 million, or 5% of revenue, in the same period last year[3] - Adjusted EBITDA was $47.1 million, or 28% of revenue, up from $33.7 million, or 20% of revenue, year-over-year[3] - Gross profit for the same period was $113.9 million, up from $108.1 million in 2023, indicating a gross profit margin improvement[14] - Net income for the three months ended September 30, 2024, was $11.1 million, compared to $7.5 million in 2023, reflecting a year-over-year increase of 47%[14] - Adjusted EBITDA for the three months ended September 30, 2024, was $47.1 million, an increase from $33.7 million in 2023, resulting in an adjusted EBITDA margin of 28%[16] - Non-GAAP net income for Q3 2024 was $29,699,000, up 27.8% from $23,308,000 in Q3 2023[17] - Non-GAAP net income margin increased to 18% in Q3 2024, compared to 14% in Q3 2023[17] - Total net income for the nine months ended September 30, 2024, was $17,109,000, compared to $6,571,000 for the same period in 2023[17] Cash Flow and Assets - Cash flow from operating activities was $31.6 million, an increase of 15% compared to $27.4 million in the same period last year[4] - Free cash flow for the quarter was $22.0 million, compared to $19.4 million in the same period last year, reflecting a 13% increase[4] - Free cash flow for Q3 2024 was $21,975,000, a 12.8% increase from $19,448,000 in Q3 2023[19] - Net cash provided by operating activities for Q3 2024 was $31,613,000, compared to $27,441,000 in Q3 2023[19] - Free cash flow for the nine months ended September 30, 2024, was $93.1 million, down from $101.8 million in the same period of 2023[15] - The company’s cash and cash equivalents decreased to $112.5 million as of September 30, 2024, from $225.7 million at the end of 2023, indicating a significant cash outflow[15] Shareholder Actions - The company repurchased 3.8 million shares for $24.7 million, reducing outstanding shares by 2%[3] Future Guidance - For Q4 2024, revenue is expected to be between $158 million and $162 million, with adjusted EBITDA projected between $40 million and $44 million[5] - Full-year revenue guidance is updated to a range of $678 million to $682 million, with adjusted EBITDA expected between $144 million and $148 million[5] Subscription Metrics - Subscription units increased by 10% year-over-year, reaching 1,717 at the end of the period[4] - The company achieved a 300 basis point increase in subscription revenue mix year-over-year, indicating progress in its subscription business initiatives[1] Operating Expenses - LegalZoom's operating expenses remained stable at $97.6 million for the three months ended September 30, 2024, compared to $97.8 million in 2023, reflecting effective cost management[14] - Restructuring costs for Q3 2024 amounted to $5,917,000, significantly higher than $68,000 in Q3 2023[17] - Purchase of property and equipment for Q3 2024 was $9,638,000, compared to $7,993,000 in Q3 2023[19] Liabilities and Assets - Total current assets decreased to $167.2 million as of September 30, 2024, from $275.3 million at the end of 2023, primarily due to a reduction in cash and cash equivalents[13] - Total liabilities increased to $288.7 million as of September 30, 2024, compared to $279.0 million at the end of 2023, driven by higher deferred revenue[13]

Third quarter subscription revenue of $110.7 million, an increase of 5% year-over-yearMeaningful preliminary progress towards initiatives to grow subscription business; 300 basis point increase in subscription revenue mix year-over-yearRecord third quarter Net Income of $11.1 million and Net Income margin of 7%Record third quarter Adjusted EBITDA of $47.1 million and Adjusted EBITDA margin of 28%Share repurchases of $24.7 million reduced outstanding shares by 2%; increased existing share repurchase authoriz ...

Core Insights - LegalZoom's Fast Break for Small Business grant program has successfully awarded $6 million in grants and services to over 18,000 small business owners since its inception in October 2021, addressing critical barriers to growth for underrepresented entrepreneurs [1][2][5] Group 1: Grant Program Impact - The program received over 76,000 applications for funds, with more than 40,000 applications in 2024 alone, highlighting the pressing need for accessible capital among small businesses [2][3] - Nearly 40% of small businesses fail due to depleted cash reserves or inability to secure additional funding, emphasizing the importance of the grant program in providing financial support [2] - The initiative has also generated an additional $1.3 million in loans to small business owners through partnerships, particularly benefiting communities of color, women, immigrants, and LGBTQ+ members [2][3] Group 2: Services Provided - In addition to grants, first-time entrepreneurs received free and discounted services such as LLC formations, compliance offerings, attorney counsel, and estate plans, which are crucial for long-term success [4] - The program aims to provide not just financial assistance but also the necessary tools and expertise to help entrepreneurs navigate challenges in their business journey [3][4] Group 3: Future Initiatives - LegalZoom plans to continue supporting small businesses through future grant programs, partnerships with non-profit organizations, and affordable service models to address ongoing challenges like inflation and market volatility [5]

It's no secret that this year, small and midsized businesses have been hurting. Yelp ( YELP ) has reported that businesses, especially in the restaurant sector, are preparing for a chillier macroeconomic environment and are slashing their marketing budgets. Software companies, especially those With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the them ...

LZ Legal Services Expands Offerings as Customer Demand Increases Men Lead in Initiating Prenups Among LegalZoom Legal Services Customers MOUNTAIN VIEW, Calif., Sept. 26, 2024 (GLOBE NEWSWIRE) -- As couples look toward the Fall and Spring wedding seasons, LegalZoom, one of the nation's leading online legal technology companies, is encouraging couples to consider prenuptial agreements as part of their wedding preparations. Recent data shows a significant increase in prenup adoption among younger generations, ...