LegalZoomcom Inc Reports Q2 2024 Financial Results
LegalZoom.com, Inc. Reports Q2 2024 Financial Results
LegalZoom.com, Inc. reported its financial results for the second quarter ending June 30, 2024.
Key Financial Metrics
Financial Metric | Q2 2024 | Q2 2023 | YoY Change | Wall Street Consensus (Q2 2024) | Actual vs Consensus |
---|---|---|---|---|---|
Total Revenue (in millions) | $173.2 | $164.7* | +5.1% | $173.19 | In line |
Earnings Per Share (EPS) | $0.09 | $0.08** | +12.5% | $0.09 | In line |
*Note: Prior period (Q2 2023) data have been adjusted to conform to current period presentation standards.
Interpretation : LegalZoom's financial performance for Q2 2024 demonstrates a steady growth in revenue and earnings per share, in line with Wall Street estimates. Revenue increased by 5% year-over-year, driven by continued strength in subscription services. EPS saw a more substantial increase of 12.5% compared to the same period last year.
Segment Performance
Segment | Q2 2024 Revenue (in millions) | Q2 2023 Revenue (in millions) | YoY Change |
---|---|---|---|
Transaction | $67.5 | $64.2 | +5.1% |
Subscription | $105.6 | $101.0 | +4.5% |
Interpretation : LegalZoom's subscription revenue saw a healthy 4.5% year-over-year increase, accounting for 61% of total revenue, consistent with the prior year. The transaction segment also showed a 5.1% rise, driven by the introduction of new products like the beneficial ownership information report and other small business-related transactions.
Key Operational Data
Operational Metrics | Q2 2024 | Q2 2023 | YoY Change |
---|---|---|---|
Number of Business Formations | 243,200 | 292,000 | -17% |
Number of Transactions | 1,189,000 | 1,054,000 | +12.8% |
Subscription Units (in ‘000s) | 1,624 | 1,561 | +4% |
ARPU (Annual Revenue Per Unit) | $297 | $286 | +3.8% |
Summary of Key Metrics : Although business formations decreased by 17%, the total number of transactions increased by 12.8%, driven by a higher mix of other small business-related transactions. Subscription units grew by 4%, supported by higher ARPU, which also increased by 3.8% year-over-year.
Dividends and Share Repurchase Program
In October 2023, LegalZoom's board of directors authorized a stock repurchase program, which was expanded in May 2024 to allow for the repurchase of up to $175 million in common stock. During Q2 2024, the company repurchased 13.9 million shares for approximately $125.2 million.
Stock Price Movement
Following the earnings release, LegalZoom's stock experienced a modest increase of 1.02%.
Disclaimer : The figures and ratios discussed above are derived from the earnings release and management's discussion contained in the 10-Q report. This summary is based solely on the data provided and available reported figures.
This article is intended as a concise summary of LegalZoom's financial performance for Q2 2024 and does not contain the full scope of all possible financial, operational, or strategic details included in the fuller context of the company's SEC filings. For complete information, investors should refer to LegalZoom’s official earnings release and SEC filings.
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