LegalZoom Reports Fourth Quarter and Full Year 2024 Financial Results; Announces 2025 Guidance of 5% Revenue Growth and Expanding Margins

Core Insights - LegalZoom.com, Inc. reported strong financial results for Q4 and the full year 2024, with a focus on sustainable growth and subscription revenue [2][4][5] Financial Performance - Q4 2024 revenue reached $161.7 million, a 2% increase year-over-year, while full-year revenue was $681.9 million, up 3% from 2023 [5][6] - Subscription revenue for the full year was $436.2 million, reflecting a 6% year-over-year growth, with Q4 subscription revenue at $108.7 million, also up 2% [4][5][6] - Net income for Q4 was $12.9 million, a 74% increase from $7.4 million in Q4 2023, resulting in a net income margin of 8% [5][6] - Full-year net income was $30.0 million, up 115% year-over-year, with an adjusted EBITDA of $148.1 million, a 25% increase [4][5][6] Key Business Metrics - Gross margin improved to 67% in Q4 2024 from 65% in Q4 2023 [5][6] - Cash and cash equivalents stood at $142.1 million as of December 31, 2024, with no debt outstanding [4][5] - Free cash flow for Q4 was $35.9 million, a significant increase from $14.1 million in the same period last year [5][6] Strategic Initiatives - The company announced the acquisition of Formation Nation, Inc. to enhance its growth strategy, expected to positively impact adjusted EBITDA and non-GAAP net income per share in the first year [5][6] - LegalZoom aims to accelerate subscription revenue growth in 2025, targeting a double-digit increase by year-end [2][4] Financial Guidance - For Q1 2025, revenue is projected to be between $175 million and $179 million, with an adjusted EBITDA expected in the range of $33 million to $36 million [8]