Business
LegalZoom Reports First Quarter 2022 Results
Revenue of $154.2 million, an increase of 15% year-over-year Subscription revenue of $84.4 million, an increase of 29% year-over-year $247.5 million of cash
About this update from Legalzoom.com, Inc.
[{"type":"text","content":"Revenue of $154.2 million, an increase of 15% year-over-year Subscription revenue of $84.4 million, an increase of 29% year-over-year $247.5 million of cash and no debt outstanding as of March 31, 2022 GLENDALE, Calif., May 12, 2022 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (NASDAQ: LZ) today announced results for its first quarter ended March 31, 2022, including the following highlights: Revenue was $154.2 million for the quarter, up 15% year-over-year. Transaction revenue was $64.1 million, compared to $61.4 million in 2021, driven by an 8% improvement in average order value, partially offset by a 3% decrease in the number of transactions.Subscription revenue was $84.4 million, compared to $65.5 million in 2021. We had 1,362,000 subscription units as of March 31, 2022 with 33,000 net units added in the quarter, and our average revenue per subscription unit increased 8% from 2022.Partner revenue was $5.7 million, compared to $7.8 million, in 2021. Gross margin was 64% for the quarter, down from 67% in 2021.Net loss was $30.6 million for the quarter, or (20%) of revenue, compared to $9.8 million or (7%) of revenue in 2021, primarily due to the decrease in gross margin and higher operating expenses, including a $17.9 million increase in stock-based compensation, mainly in connection with our IPO.Non-GAAP net loss was $9.5 million for the quarter compared to Non-GAAP net loss of $6.4 million in 2021.Adjusted EBITDA was $1.3 million for the quarter, or 1% of revenue, compared to $3.6 million, or 3% of revenue, for the same period in 2021.Cash and cash equivalents were $247.5 million as of March 31, 2022.Cash flows provided by operating activities was $13.7 million for the first quarter of 2022 compared to $31.4 million for the first quarter of 2021.Free cash flow was $8.8 million for the first quarter of 2022 compared to $28.5 million for the first quarter of 2021.Basic and diluted net loss per share were $0.15 and basic and diluted Non-GAAP net loss per share attributable to common stockholders were $0.05 for the first quarter of 2022. “Q1 was a strong start to the year for LegalZoom, continuing the momentum we experienced in 2021,” said Dan Wernikoff, LegalZoom’s Chief Executive Officer. “We successfully navigated our first tax season, launched the first iteration of our segmented line-up formation experience and announced a new, b...