Business
LegalZoom Reports Third Quarter 2023 Financial Results
Revenue of $167.3 million for the quarter, an increase of 8% year-over-yearSubscription revenue of $104.5 million for the quarter, an increase of 14%
About this update from Legalzoom.com, Inc.
[{"type":"text","content":"Revenue of $167.3 million for the quarter, an increase of 8% year-over-yearSubscription revenue of $104.5 million for the quarter, an increase of 14% year-over-year$212.1 million of cash and cash equivalents and no debt outstanding as of September 30, 2023Strong product velocity: launched a Business Licenses compliance product, accounting solution LZ Books, AI powered document summarization tool Doc Assist and a revamped Legal Forms library during and subsequent to the end of the third quarter MOUNTAIN VIEW, Calif., Nov. 07, 2023 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ), the No. 1 choice in online small business formations, today announced results for its third quarter ended September 30, 2023, including the following highlights: Revenue was $167.3 million for the quarter, up 8% year-over-year: Transaction revenue was $57.4 million, down 2% year-over-year. The decline was primarily driven by a 6% year-over-year reduction in average order value driven by our nationwide roll-out of free LLC formations beginning in the first quarter of 2023, partially offset by a 5% increase in transaction unit volume.Subscription revenue was $104.5 million, up 14% year-over-year. The increase was driven by a 2% year-over-year increase in average revenue per subscription unit and the addition of 153 thousand net new subscription units added during the trailing twelve months.Partner revenue was $5.5 million, flat year-over-year. Gross margin was 65% for the quarter, compared to 68% in the same period in 2022, primarily driven by higher filing fees as a percentage of revenue due to an increase in business formation volumes associated with our nationwide roll-out of free LLC formations beginning in the first quarter of 2023.Net income was $7.5 million for the quarter, or 5% of revenue, compared to net loss of $12.0 million or 8% of revenue, for the same period in 2022.Adjusted EBITDA was $33.7 million for the quarter, or 20% of revenue, compared to $16.9 million, or 11% of revenue, for the same period in 2022.Non-GAAP net income was $23.3 million for the quarter, compared to $8.1 million for the same period in 2022.Cash and cash equivalents were $212.1 million as of September 30, 2023, compared to $189.1 million as of December 31, 2022.Cash flow provided by operating activities was $27.4 million for the quarter compared to $27.3 million fo...