LegalZoom.com(LZ)

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LegalZoom (LZ) Q2 Earnings Meet Estimates
ZACKS· 2025-08-07 23:06
LegalZoom (LZ) came out with quarterly earnings of $0.15 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this online platform for legal services would post earnings of $0.13 per share when it actually produced earnings of $0.13, delivering no surprise.Over the last four quarters, the company has surpassed consensus EPS estimates two times.LegalZoom, which bel ...
LegalZoom.com(LZ) - 2025 Q2 - Earnings Call Transcript
2025-08-07 21:30
LegalZoom.com (LZ) Q2 2025 Earnings Call August 07, 2025 04:30 PM ET Speaker0Good day and thank you for standing by. Welcome to the LegalZoom's Second Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone.You will then hear an automated message advising your hand is raised. To withdraw your question, ple ...
LegalZoom.com(LZ) - 2025 Q2 - Quarterly Report
2025-08-07 21:15
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the three months ended June 30, 2025 OR (State or other jurisdiction of incorporation or organization) 954 Villa Street, Mountain View, California 94041 (Address of Principal Executive Offices, including Zip code) (323) 962-8600 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF ...
LegalZoom.com(LZ) - 2025 Q2 - Earnings Call Presentation
2025-08-07 20:30
August 2025 Investor Presentation Forward-looking statements disclaimer This presentation contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward- looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. In some cases, you can identify f ...
LegalZoom.com(LZ) - 2025 Q2 - Quarterly Results
2025-08-07 20:04
Exhibit 99.1 LegalZoom Reports Strong Second Quarter 2025 Financial Results, Raises 2025 Revenue Growth Expectations MOUNTAIN VIEW, California – August 7, 2025 – LegalZoom.com, Inc. (Nasdaq: LZ) today announced results for its second quarter ended June 30, 2025. "Our second quarter results clearly demonstrate the advances we have made against our strategic priorities," said Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom. "We accelerated revenue growth for the third consecutive quarter and de ...
LegalZoom to Announce Second Quarter 2025 Financial Results on Thursday, August 7, 2025
Globenewswire· 2025-07-17 21:00
MOUNTAIN VIEW, Calif., July 17, 2025 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ), a leading online platform for legal services, today announced it will report its financial results for the second quarter ended June 30, 2025, on Thursday, August 7, 2025, after the close of market. Jeff Stibel, Chairman and Chief Executive Officer, and Noel Watson, Chief Operating Officer and Chief Financial Officer, will host a conference call and webcast at 4:30 p.m. ET the same day to discuss the financial results ...
LegalZoom.com (LZ) FY Conference Transcript
2025-06-04 19:00
LegalZoom.com (LZ) FY Conference June 04, 2025 02:00 PM ET Speaker0Good afternoon and thank you for joining the LegalZoom presentation today at the Gross Stock Conference. My name is Patrick McElwee. I am the primary coverage for LegalZoom here at William Blair. For compliance purposes, I'm required to inform you that a complete list of research disclosures and potential conflicts of interest is available at our website, williamblair.com. We're very happy to have the LegalZoom team at our conference again t ...
LegalZoom.com (LZ) 2025 Conference Transcript
2025-05-28 21:30
LegalZoom Conference Call Summary Company Overview - **Company**: LegalZoom.com (LZ) - **Industry**: Online Legal Services - **Key Executives**: Jeff Stibel (CEO), Noel Watson (CFO and COO) [1][2] Core Products and Customer Segments - **Focus Areas**: - Small and Medium-sized Businesses (SMBs): Business formation, compliance services, and various legal products including subscription-based legal plans [3][4] - Consumer Side: Estate planning services such as wills and trusts, with a focus on transactional and subscription-oriented products [4][5] Revenue Mix and Business Strategy - **Revenue Composition**: Primarily from SMB subscriptions, with ancillary services to drive customer engagement [5] - **Strategic Refocus**: Shifted focus back to core legal services, divesting non-core products like tax and bookkeeping services to strengthen brand identity [9][10] - **Market Share Strategy**: Transitioning from quantity-based market share to quality share, targeting higher-value customers traditionally served by local law firms [11] Subscription Growth and Future Potential - **Subscription Revenue Growth**: Increased from just below 50% in fiscal 2020 to 64% in the latest fiscal year, with aspirations to reach 100% in the next five years [12][14] - **Projected Growth**: Anticipated double-digit growth in subscription revenues by year-end, outpacing overall revenue growth [15] Product Development and Customer Engagement - **Concierge Services**: Introduction of concierge-like services aimed at providing compliance assistance, which is expected to enhance average revenue per user (ARPU) and reduce churn [17][20] - **Compliance Products**: New offerings such as compliance concierge and compliance dissolution services to address customer needs and reduce churn rates [23][26] Financial Performance and Margin Expansion - **EBITDA Margin Improvement**: Increased from 8% in 2021 to a projected 23% for the current year, driven by a shift towards higher-margin subscription products [30][32] - **Operational Efficiency**: Investments in infrastructure and AI to enhance service delivery and operational efficiency [33] Headcount and Resource Management - **Headcount Reduction**: Decreased from 1,422 to just under 1,000 over the past few years, with a focus on a blended mix of in-house and outsourced resources for flexibility [36][37] - **Formation Nation Acquisition**: Added over 40 sales experts to enhance service capabilities and leverage technology for scaling operations [46][49] Deferred Revenue and Pricing Strategy - **Deferred Revenue Growth**: Accelerated to 12% year-over-year, attributed to seasonal factors, the Formation Nation acquisition, and successful price testing [39][41] - **Pricing and Bundling Opportunities**: Early positive results from price adjustments and bundling strategies, indicating a strong potential for ongoing revenue growth [42][44] Conclusion - LegalZoom is strategically refocusing on its core legal services, enhancing subscription offerings, and leveraging new acquisitions to drive growth and improve margins. The company is optimistic about future revenue streams and operational efficiencies, positioning itself for sustained success in the online legal services market.
大摩:网络流量显示软件板块表现分化 看好这两只美股
智通财经网· 2025-05-15 08:51
Group 1 - Morgan Stanley's report highlights the mixed performance of GoDaddy, the improvement in Wix.com, and the continued deterioration of LegalZoom's data in April's internet traffic trends [1][2] - GoDaddy acknowledges pressure on its customer base related to economic outlook but emphasizes stable channel trends and historical resilience during macroeconomic headwinds [2] - LegalZoom faces increased pressure on new business formation, with management now expecting a decline in new business formation for fiscal year 2025, despite noting that dissolution rates have not increased [2] Group 2 - April traffic trends indicate that GoDaddy's homepage traffic accelerated while login page traffic declined, reflecting a mixed trend [3] - Wix.com shows an upward trend despite high baseline comparisons, building confidence in the demand for its portfolio ahead of its Q1 earnings report [3] - LegalZoom's month-over-month comparative trend has further deteriorated, although the baseline comparison remains relatively lenient [3] Group 3 - Morgan Stanley maintains a cautious outlook on the potential for downward adjustments in booking guidance for fiscal year 2025, which could negate acceleration expectations for the second half of the year [2] - The strong performance of the tech portfolio and the acceleration of future innovations create a compelling narrative for investors, despite the ongoing search for sustained improvement in network traffic [2] - Recruitment trends across the three companies remain weak, with hiring levels hovering near historical lows, below pre-pandemic trends [2]
LegalZoom.com(LZ) - 2025 Q1 - Quarterly Report
2025-05-08 20:42
FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents LegalZoom.com, Inc.'s unaudited condensed consolidated financial statements as of March 31, 2025, and for the three months then ended, compared to prior periods [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, shows a significant increase in total assets to $532.7 million from $373.9 million at the end of 2024, primarily driven by a substantial rise in goodwill to $141.1 million from $63.3 million, resulting from the Formation Nation acquisition, while total liabilities also increased to $345.5 million from $280.6 million, mainly due to higher deferred revenue and accrued expenses Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $209,973 | $142,064 | | Goodwill | $141,131 | $63,318 | | **Total assets** | **$532,666** | **$373,883** | | **Liabilities & Equity** | | | | Deferred revenue (Current) | $211,094 | $174,643 | | **Total liabilities** | **$345,454** | **$280,626** | | **Total stockholders' equity** | **$187,212** | **$93,257** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, revenue increased 5% to $183.1 million, gross profit grew 10% to $116.5 million, and net income rose to $5.1 million, with diluted EPS increasing to $0.03, significantly impacted by a $14.3 million gain on asset sale Condensed Consolidated Statement of Operations (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $183,110 | $174,214 | | Gross Profit | $116,550 | $105,830 | | Income from operations | $8,966 | $5,055 | | Gain on sale of assets held for sale | ($14,337) | — | | Net income | $5,127 | $4,744 | | Net income per share — diluted | $0.03 | $0.02 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash from operating activities increased to $50.7 million, investing activities used $20.5 million primarily for the Formation Nation acquisition offset by an asset sale, and financing activities provided $37.6 million, leading to a $67.9 million increase in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $50,703 | $34,194 | | Net cash used in investing activities | ($20,450) | ($9,477) | | Net cash provided by (used in) financing activities | $37,604 | ($22,271) | | **Net increase in cash and cash equivalents** | **$67,909** | **$2,410** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the $83.2 million Formation Nation acquisition, the $37.1 million Austin property sale with a $14.3 million gain, revenue breakdown into transaction and subscription streams, and the status of the stock repurchase program - On February 10, 2025, the company acquired Formation Nation, Inc. for a total consideration of **$83.2 million**, consisting of cash and equity. The acquisition added **$77.8 million** to goodwill[64](index=64&type=chunk)[68](index=68&type=chunk)[72](index=72&type=chunk) - The company sold its Austin, Texas property on March 31, 2025, for net cash proceeds of approximately **$37.1 million**, resulting in a recognized gain of **$14.3 million**[62](index=62&type=chunk)[63](index=63&type=chunk) Revenue by Source (in thousands) | Revenue Type | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Transaction | $66,853 | $66,317 | | Subscription | $116,257 | $107,897 | | **Total revenue** | **$183,110** | **$174,214** | - No common stock was repurchased during Q1 2025. As of March 31, 2025, approximately **$50.0 million** remained available under the stock repurchase program. The program was subsequently increased by **$100.0 million** in May 2025[86](index=86&type=chunk)[104](index=104&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, financial condition, and key business metrics, highlighting a 5% revenue growth to $183.1 million, a 20% increase in subscription units, and the impact of the Formation Nation acquisition and a $14.3 million asset sale gain [Key Business Metrics](index=24&type=section&id=Key%20Business%20Metrics) In Q1 2025, business formations decreased 6% to 131,000, subscription units grew 20% to 1.92 million, and Average Revenue Per Subscription Unit (ARPU) declined 7% to $252, influenced by macroeconomic factors and product bundling Key Business Metrics Comparison | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Number of business formations (thousands) | 131 | 139 | (6%) | | Number of transactions (thousands) | 341 | 336 | 1% | | Average order value | $196 | $198 | (1%) | | Number of subscription units (thousands) | 1,924 | 1,605 | 20% | | Average revenue per subscription unit (ARPU) | $252 | $272 | (7%) | - The annual small business retention rate was approximately **60%** as of March 31, 2025, impacted by the anniversarying of non-renewing bundled subscriptions[126](index=126&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Total revenue increased 5% to $183.1 million in Q1 2025, driven by 8% subscription revenue growth, while gross profit rose 10%, and operating expenses increased significantly due to higher stock-based compensation and acquisition costs, partially offset by a $14.3 million asset sale gain Revenue Comparison (in thousands) | Revenue Type | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Transaction | $66,853 | $66,317 | $536 | 1% | | Subscription | $116,257 | $107,897 | $8,360 | 8% | | **Total revenue** | **$183,110** | **$174,214** | **$8,896** | **5%** | - General and administrative expenses increased by **$16.2 million** (70% YoY), mainly due to a **$14.7 million** increase in stock-based compensation and **$1.5 million** in acquisition-related costs for Formation Nation[159](index=159&type=chunk) - Technology and development expenses decreased by **11%** YoY due to reduced headcount in that department[158](index=158&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, cash and cash equivalents increased by $67.9 million to $210.0 million, driven by operating cash flow, stock option exercises, and an asset sale, partially offset by the Formation Nation acquisition, with a $150.0 million undrawn revolving credit facility and an increased stock repurchase program - Principal sources of liquidity at March 31, 2025, were cash and cash equivalents of **$210.0 million**[167](index=167&type=chunk) - The company has a **$150.0 million** revolving credit facility, with no borrowings outstanding as of March 31, 2025[171](index=171&type=chunk) - The stock repurchase program authorization was increased to **$315.0 million** in May 2025, with approximately **$150.0 million** available for future repurchases as of the filing date[170](index=170&type=chunk)[104](index=104&type=chunk) [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Adjusted EBITDA and Free Cash Flow to evaluate core performance, with Adjusted EBITDA increasing to $37.0 million (20% margin) and Free Cash Flow rising to $41.3 million in Q1 2025 Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income | $5,127 | $4,744 | | Adjustments (Interest, Taxes, D&A, etc.) | $31,885 | $23,158 | | **Adjusted EBITDA** | **$37,012** | **$27,902** | | Adjusted EBITDA margin | 20% | 16% | Reconciliation of Net Cash to Free Cash Flow (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $50,703 | $34,194 | | Purchase of property and equipment | ($9,378) | ($9,477) | | **Free cash flow** | **$41,325** | **$24,717** | [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies primary market risks as interest rate fluctuations, foreign currency exchange risk (principally GBP), and inflation risk, noting minimal interest rate exposure due to no outstanding debt, immaterial foreign currency impact, and no material inflation effect to date - Interest Rate Risk: The company had no outstanding debt as of March 31, 2025, minimizing exposure to interest rate fluctuations, though risk would arise if they draw down on their **$150.0 million** revolving credit facility[200](index=200&type=chunk) - Foreign Currency Risk: Exposure is primarily to the British Pound (GBP), with a **10%** adverse change in foreign exchange rates having an immaterial impact for the quarter[201](index=201&type=chunk)[202](index=202&type=chunk) - Inflation Risk: Inflation has not had a material effect to date, but sustained pressure could harm the small business sector, which could in turn harm LegalZoom's business[203](index=203&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting identified during the quarter - Management concluded that disclosure controls and procedures were effective as of March 31, 2025[204](index=204&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter ended March 31, 2025[205](index=205&type=chunk) OTHER INFORMATION [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings and is unaware of any pending or threatened litigation that would materially adversely affect its financial condition or results of operations - The company is not currently a party to any material legal proceedings that would have a material adverse effect on its operations or financial condition[82](index=82&type=chunk)[207](index=207&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) This section details significant risks including dependence on business formations, challenges in converting transactional customers to subscribers, managing growth and acquisitions like Formation Nation, competition, generative AI risks, reliance on marketing and third-party providers, potential litigation, data security breaches, and stock price fluctuations - The business is highly dependent on new business formations, which are subject to unpredictable declines due to economic conditions, competition, and regulatory changes[209](index=209&type=chunk) - Future success relies on converting transactional customers to subscribers and retaining them, noting a deceleration in subscription revenue growth rate[210](index=210&type=chunk) - The recent acquisition of Formation Nation presents integration challenges and risks, including diverting management attention and potential difficulties in realizing synergies[212](index=212&type=chunk)[244](index=244&type=chunk) - The incorporation of generative AI into offerings presents compliance, reputational, and legal liability risks, including potential for inaccuracies or being deemed the unauthorized practice of law[228](index=228&type=chunk) - The company is vulnerable to security breaches and cyberattacks, which could lead to significant liabilities, reputational harm, and loss of customers[292](index=292&type=chunk)[293](index=293&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company did not repurchase common stock in Q1 2025, with $50.0 million remaining under authorization, which was subsequently increased by $100.0 million in May 2025, bringing the total authorization to $315.0 million - No shares of common stock were repurchased in the three months ended March 31, 2025[322](index=322&type=chunk) - As of March 31, 2025, approximately **$50.0 million** remained available for future repurchases under the existing program[322](index=322&type=chunk) - In May 2025, the board increased the stock repurchase program authorization by an additional **$100.0 million**, bringing the total authorized amount to **$315.0 million**[323](index=323&type=chunk) [Other Information Items](index=60&type=section&id=Other%20Items) This section covers standard SEC filing requirements, reporting no defaults upon senior securities, no mine safety disclosures, and no other information requiring disclosure under Item 5, with Item 6 listing the exhibits filed - Item 3, Defaults Upon Senior Securities: None[324](index=324&type=chunk) - Item 4, Mine Safety Disclosures: Not applicable[324](index=324&type=chunk) - Item 5, Other Information: None[324](index=324&type=chunk)