LegalZoom.com, Inc. reports developments for an online legal services platform serving individuals, entrepreneurs and small businesses. Company news commonly covers business formation and state compliance services, intellectual property and trademark offerings, estate planning, ongoing legal support, and technology-enabled access to attorneys through its independent attorney network and law firm.
Updates also discuss subscription revenue trends, financial results, share repurchases, partnerships that embed LegalZoom services in small-business platforms, and AI-related product enhancements such as Virtual Mail, Grant Finder and human-in-the-loop legal workflows.
LegalZoom (NASDAQ: LZ) has announced upcoming investor conference presentations featuring CEO Dan Wernikoff and CFO Noel Watson. Wernikoff will present at the Credit Suisse Annual Technology Conference on November 30, 2021, and the Barclays Global Technology, Media, and Telecommunications Conference on December 7, 2021. Watson will present at the Raymond James Annual Technology Conference on December 8, 2021. Live webcasts will be available on LegalZoom's investor relations website, with archived replays accessible for a limited time.
LegalZoom reported a third-quarter revenue of $147.9 million, marking a 12% year-over-year increase. Transaction revenue grew by 5% to $66.9 million, while subscription revenue surged 24% to $73.3 million, driven by 1,264,000 subscription units. However, the company faced a net loss of $39.7 million, a significant decline from a net income of $9.4 million in Q3 2020. Adjusted EBITDA dropped to $15.1 million, down 45% year-over-year. Looking ahead, revenue guidance for Q4 is projected between $142 million and $146 million.
LegalZoom, a leader in online small business formations, announced the acquisition of Earth Class Mail, enhancing its subscription services. This strategic move aims to streamline operations for small businesses, which increasingly rely on automation. Earth Class Mail offers a virtual mailbox solution that is accessible 24/7, allowing users to manage their postal mail efficiently. LegalZoom will integrate this service to improve the user experience for business formation and compliance, positioning itself to meet the growing demand for professional management tools in a remote work environment.
LegalZoom (NASDAQ: LZ) has partnered with Amazon Business to offer exclusive savings on business formation services for small business owners who are Business Prime members. This collaboration aims to streamline the process of registering as an LLC or corporation, addressing a top need among small business customers. The offer will be available at the end of November, enhancing accessibility to vital legal and compliance services. LegalZoom emphasizes its commitment to helping entrepreneurs achieve financial independence through a robust ecosystem of curated services.
LegalZoom (NASDAQ: LZ) has partnered with Brex, Intuit QuickBooks, and Square to enhance services for small business owners. Research indicates that 91% of startups lack payroll, and 85% require payment processing and banking solutions. This ecosystem enables small businesses to access essential services, including expedited business accounts with Brex, accounting tools from QuickBooks, and POS systems from Square. LegalZoom aims to simplify the service acquisition process while providing preferential pricing and seamless integration with legal, compliance, and tax solutions.
LegalZoom has partnered with Square to enhance payment processing tools for small businesses. This collaboration provides LegalZoom customers with access to best-in-class POS payment software and versatile operations management tools, enabling effective business management and growth. Upon forming their business, customers can benefit from preferential pricing on Square's offerings. This initiative aims to empower small business owners by simplifying complex aspects of ownership like payment processing and compliance.
LegalZoom (LZ) will announce its third quarter financial results for the period ending September 30, 2021, on November 10, 2021, after market close. The CEO Dan Wernikoff and CFO Noel Watson will host a conference call at 4:30 p.m. EST to discuss the results. Investors can access a live audio webcast via the Investor Relations website, with a replay available for three months post-event. LegalZoom aims to simplify legal processes for small businesses and families, having formed 10% of all new LLCs in the U.S. in 2020.
LegalZoom (NASDAQ: LZ) partners with the NBA to launch the "Fast Break for Small Business" initiative, providing $6 million in grants and services aimed at supporting small businesses, particularly those owned by minorities, women, immigrants, and LGBTQ+ individuals. The program intends to address disparities in access to resources faced by underrepresented communities and opens applications until November 23, 2021. Grants will be awarded biannually for three years, with the first recipients announced in early 2022.
LegalZoom's subsidiary, LZ Legal Services, has received an Alternative Business Structure (ABS) license from the Arizona Supreme Court. This milestone aims to expand access to affordable legal services and enhance technological innovation in the sector. The move positions LegalZoom to directly offer limited legal services to individuals and small businesses, thereby increasing opportunities for independent attorneys. With significant disparities between legal and financial service adoption of technology, this reform is expected to democratize the legal landscape, making law more accessible for all.
LegalZoom (NASDAQ: LZ) has partnered with Defy Ventures to support formerly incarcerated individuals in becoming entrepreneurs. The initiative aims to address systemic inequities and reduce recidivism rates, which are disproportionately high among minority communities. LegalZoom will provide funding for educational programs, resources for starting businesses, and access to legal tools at no cost. This partnership is part of LegalZoom's broader mission to democratize law and increase access to business ownership for underrepresented groups.