Business
LegalZoom Reports Strong First Quarter 2025 Financial Results, Reiterates 2025 Guidance of 5% Revenue Growth and Commitment to Profitability Targets
Solid execution with first quarter results exceeding high end of outlook rangeFirst quarter revenue of $183.1 million, up 5% year-over-yearSubscription
About this update from Legalzoom.com, Inc.
[{"type":"text","content":"Solid execution with first quarter results exceeding high end of outlook rangeFirst quarter revenue of $183.1 million, up 5% year-over-yearSubscription revenue of $116.3 million, an increase of 8% year-over-year, reflecting ongoing progress in initiatives to grow subscription businessFirst quarter net income of $5.1 million, up 8% year-over-year, and net income margin of 3%, which was flat year-over-yearFirst quarter Adjusted EBITDA of $37.0 million, up 33% year-over-year, and Adjusted EBITDA margin of 20%, an increase of 400 basis points year-over-yearEnded the quarter with cash and cash equivalents of $210.0 million, delivered $50.7 million in cash from operating activities and $41.3 million in free cash flowAnnounces $100 million increase in share repurchase authorization MOUNTAIN VIEW, Calif., May 07, 2025 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ) today announced results for its first quarter ended March 31, 2025. “Our first quarter results reflect accelerating subscription growth and solid progress towards our goal of double-digit subscription revenue growth in the fourth quarter,” said Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom. “While no company is immune to today’s volatile environment, our first quarter results exceeded our expectations based on the success of our subscription initiatives, the early rollout of higher value products and solid progress from our Formation Nation integration. We are confident in our ability to execute, and are reiterating our full year revenue outlook of 5% year-over-year growth.” Noel Watson, LegalZoom’s Chief Operating Officer and Chief Financial Officer said, “Our strong execution, continued focus on cost discipline and better than expected revenue performance resulted in a 33% year-over-year increase in Adjusted EBITDA to $37.0 million. We will remain nimble in response to macroeconomic uncertainty and have strong conviction in our ability to deliver on our Adjusted EBITDA guidance of $165 million based on our highly variable cost structure.” First Quarter 2025 Highlights Revenue was $183.1 million for the quarter, up 5% year-over-year: Transaction units increased 1% year-over-year; transaction revenue of $66.9 million increased 1% year-over-year.Subscription units at period end increased 20% year-over-year; subscription revenue of $116.3 million grew 8% y...