Business
LegalZoom Reports Fourth Quarter and Full Year 2024 Financial Results; Announces 2025 Guidance of 5% Revenue Growth and Expanding Margins
Continued strong execution with Q4 and full year 2024 financial results at high end of outlook rangeOngoing progress towards initiatives to grow subscription
About this update from Legalzoom.com, Inc.
[{"type":"text","content":"Continued strong execution with Q4 and full year 2024 financial results at high end of outlook rangeOngoing progress towards initiatives to grow subscription business; full-year subscription revenue of $436.2 million up 6% year-over-yearFull-year net income of $30.0 million, up 115% year-over-year, and net income margin of 4%Full year Adjusted EBITDA of $148.1 million, up 25% year-over-year, and Adjusted EBITDA margin of 22%, reflecting approximately 380 basis point expansion in Adjusted EBITDA margin $142.1 million of cash and cash equivalents and no debt outstanding as of December 31, 2024Subsequent to year end, announced the acquisition of Formation Nation to support growth strategy MOUNTAIN VIEW, Calif., Feb. 26, 2025 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ), a leading online platform for legal services, today announced results for its fourth quarter and year ended December 31, 2024. “We are making solid progress against our goal to position LegalZoom for long-term, sustainable growth,” said Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom. “Our execution in 2025 includes a narrowed focus on our core legal and compliance competencies, quality customer acquisition, and a continued emphasis on prioritizing recurring subscription revenue. Our efforts will be supported by driving greater brand awareness, providing best-in-class service, weaving expertise through our products, and pricing for the value we provide.” Noel Watson, LegalZoom’s Chief Operating Officer and Chief Financial Officer said, “LegalZoom demonstrated strong execution in the fourth quarter with results at or above the high-end of our outlook. In 2025, we remain committed to accelerating subscription revenue growth and expect to exit the year with a double-digit increase in subscription revenue while driving continued operating efficiencies and delivering a strong margin profile.” Fourth Quarter 2024 Highlights Revenue was $161.7 million for the quarter, up 2% year-over-year. Transaction revenue was $53.0 million for the quarter, compared to $51.9 million in the same period in 2023, up 2% year-over-year.Subscription revenue was $108.7 million for the quarter, compared to $106.7 million in the same period in 2023, up 2% year-over-year. The increase was driven by the addition of 0.2 million net new subscription units during the trailing t...