LegalZoom.com, Inc. (LZ) saw its stock soar by an impressive 11.90% on November 7, 2024, driven by the company's better-than-expected third-quarter financial results and its strategic initiatives to drive long-term growth.
The online legal services provider reported revenue of $169 million for the quarter, up 1% year-over-year, fueled by a 5% increase in higher-margin subscription revenue. This strong performance was underpinned by LegalZoom's focus on transitioning towards a subscription-based model, aimed at attracting high-value customers and fostering recurring revenue streams.
Notably, LegalZoom achieved a record adjusted EBITDA margin of 28%, reflecting robust bottom-line performance. Adjusted EBITDA surged 40% year-over-year to $47.1 million, exceeding analysts' expectations and highlighting the company's profitability improvements.
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