LegalZoom.com(US:LZ) Globenewswireยท2025-05-07 20:01Core Insights - LegalZoom reported strong first quarter results with a revenue of $183.1 million, reflecting a 5% year-over-year growth, driven by an 8% increase in subscription revenue to $116.3 million [5][6][29] - The company achieved an Adjusted EBITDA of $37.0 million, marking a 33% increase year-over-year, with an Adjusted EBITDA margin of 20% [5][6][34] - LegalZoom reiterated its full-year revenue outlook of 5% year-over-year growth, despite macroeconomic uncertainties [2][5] Financial Performance - First quarter net income was $5.1 million, an 8% increase from the previous year, maintaining a net income margin of 3% [5][6][29] - Non-GAAP net income for the quarter was $23.8 million, up 30% year-over-year, with a Non-GAAP net income margin of 13% [6][34] - Cash and cash equivalents at the end of the quarter totaled $210.0 million, up from $142.1 million at the end of 2024 [5][6][26] Operational Highlights - The company experienced a 20% increase in subscription units year-over-year, indicating successful subscription growth initiatives [5][6][7] - LegalZoom's acquisition of Formation Nation contributed $8.6 million in revenue since the acquisition date [8] - The company announced a $100 million increase in its share repurchase authorization, bringing the total to approximately $150 million [5][8] Key Business Metrics - Transaction revenue was $66.9 million, a 1% increase year-over-year, with transaction units also up by 1% [6][7] - Average revenue per subscription unit (ARPU) decreased by 7% to $252 [7] - Free cash flow for the quarter was $41.3 million, a significant increase of 67% year-over-year [6][37]