Online legal services provider LegalZoom reported its third quarter results on Nov. 10, revealing that it beat expectations for revenue and earnings per share by a little more than 2%.
The Glendale firm posted revenue of $154.4 million for the quarter, up 4% year over year. Revenue streams included partner revenue, transaction revenue and subscription revenue, the latter of which accounted for $91.4 million, an increase of 25% from the same period last year.
“We delivered solid results in Q3, with year-over-year subscription revenue growth of 25%,” Noel Watson, LegalZoom’s chief financial officer, said in a statement. “Despite the prospect of a weaker operating environment, the proactive measures we’ve taken to strengthen our profitability in recent quarters have enabled us to increase our full-year revenue and Adjusted EBITDA guidance.”
LegalZoom experienced a net loss of $10.1 million for the quarter, which accounted for 7% of revenue.
“I’m pleased with our strong Q3 performance, with both revenue and Adjusted EBITDA at or above the top end of our guidance ranges” LegalZoom Chief Executive Dan Wernikoff said in a statement. “I’m also excited by the progress we’ve made across our product priorities, including the opportunity to accelerate development of critical business forms and e-signature capabilities enabled by the acquisition of Revvsales, Inc.”
Financial details of the Revvsales detail, which was announced Oct. 17, were not disclosed. LegalZoom’s guidance for the fourth quarter includes a revenue expectation between $145 million and $147 million, as well as an adjusted EBITDA expectation of $23 million.
Shares of LegalZoom closed down $1.00, more than 9%, to $9.44 on Monday, a day when the market closed down a little more than 1%.