Legalzoom.Com (LZ) FY2023 results: revenue $661 million, up 6.6% on the year

Legalzoom.Com, Inc. (LZ) reported revenue of $661 million for fiscal 2023, the year ended 31 December 2023, up 6.6% on the year before. Net income was $14 million, and diluted earnings per share $0.07. The figures are the company's own, from the 10-K it filed with the SEC on 29 February 2024.

Revenue

$661 million

+6.6% on the year

FY2019FY2023

Operating margin

3.2%

-6.7% a year earlier

FY2019FY2023

Net income

$14 million

FY2019FY2023

Diluted EPS

$0.07

FY2019FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	661	620	575	+6.6%
Cost of revenue	239	211	189	+13.3%
Gross profit	421	409	386	+3.1%
Gross margin	63.8%	66.0%	67.1%
Operating income	21.1	-41.7	-85.1
Operating margin	3.2%	-6.7%	-14.8%
Interest expense	0.5	0.3	28.0	+89.6%
Pre-tax income	31.5	-47.7	-120
Income tax	17.5	1.1	-11.0	+1,554.8%
Effective tax rate	55.7%	n/a	n/a
Net income	14.0	-48.7	-109
Net margin	2.1%	-7.9%	-18.9%
Diluted EPS	$0.07	-$0.25	-$0.67

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	124	73.8	54.2	+68.4%
Capital expenditure	31.6	22.1	11.7	+43.0%
Free cash flow	92.7	51.7	42.4	+79.2%
Free cash flow margin	14.0%	8.3%	7.4%
Cash from investing	-31.6	-30.6	-77.7
Cash from financing	-56.1	-93.3	123
Depreciation and amortisation	20.2	18.2	15.7	+11.0%
Share-based compensation	66.0	80.5	113	-18.0%
Buybacks	54.9	95.1	0.0	-42.3%
Diluted shares, weighted	194m	196m	161m	-0.7%
Shares outstanding at period end	189m	191m	198m	-1.2%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	169	142	198	+18.6%
Debt	0.0	0.0	0.0
Operating lease liabilities	7.0	9.0	0.0	-22.2%
Finance lease liabilities	0.0	0.0	n/a	-92.9%
Other liabilities	272	254	233	+7.1%
Total liabilities and equity	448	405	431	+10.5%
Fixed assets	n/a	30.8	47.0
Goodwill	63.3	63.2	59.9	+0.1%
Intangible assets	13.7	18.9	16.0	-27.3%
Investments	1.2	1.0	1.1	+16.5%
Cash and equivalents	226	189	239	+19.4%
Receivables	11.7	13.2	10.6	-10.9%
Other assets	132	89.2	57.0	+48.2%
Total assets	448	405	431	+10.5%

10-K for the year ended 31 December 2023, filed 29 February 2024: the filing.