Business
LegalZoom Reports Third Quarter 2021 Results
Revenue of $147.9 Million, an increase of 12% year-over-year GLENDALE, Calif., Nov. 10, 2021 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (NASDAQ: LZ), today
About this update from Legalzoom.com, Inc.
[{"type":"text","content":"Revenue of $147.9 Million, an increase of 12% year-over-year\nGLENDALE, Calif., Nov. 10, 2021 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (NASDAQ: LZ), today announced results for its third quarter ended September 30, 2021, including the following highlights: Revenue was $147.9 million, up 12% year-over-year. Transaction revenue was $66.9 million, up 5% year-over-year driven by business formations of 106,000, down 9% year-over-year and a 16% improvement in average order value.Subscription revenue was $73.3 million, up 24% year-over-year. We had 1,264,000 subscription units as of September 30, 2021, with 49,000 net units added in the quarter.Partner revenue was $7.7 million, down 8% year-over-year. Gross margin was 68% for the quarter, up from 67% in the third quarter of 2020 as the revenue mix shifted toward subscription revenue.Net loss was $39.7 million compared to a net income of $9.4 million in the third quarter of 2020.Non-GAAP net income was $2.6 million compared to a Non-GAAP net income of $12.4 million in the third quarter of 2020.Adjusted EBITDA was $15.1 million, or 10% of revenue, compared to $27.4 million, or 21% of revenue, in the third quarter of 2020.Cash and cash equivalents were $310.7 million as of September 30, 2021. On July 2, 2021 we raised $666.9 million net of underwriting discounts and commissions from our IPO and private placement and repaid in full $521.6 million of our 2018 Term Loan.Cash flows provided by operating activities decreased from $32.7 million in the three months ended September 30, 2020 to $19.5 million in the three months ended September 30, 2021. Cash flows provided by operating activities decreased from $82.1 million in the nine months ended September 30, 2020 to $60.2 million in the nine months ended September 30, 2021.Free cash flow was $17.0 million for the three months ended September 30, 2021 compared to $29.4 million for the three months ended September 30, 2020. Free cash flow was $51.7 million for the nine months ended September 30, 2021 compared to $74.3 million for the nine months ended September 30, 2020.Basic and diluted net loss per share was $(0.20) and diluted Non-GAAP net income per share attributable to common stockholders was $0.01 for the third quarter of 2021. “We’re pleased by the results in the quarter with revenue coming in above the top end of our guidance range.” sa...