LegalZoom.com, Inc. stock research
FY2023 Q1
LegalZoom.com (LZ) Gross Margin — Quarter Ended Mar 31, 2023
In the current quarter, revenue and gross profit increased compared to both the prior quarter and the same quarter a year earlier, while cost of revenue also increased. Gross margin declined from the prior quarter but remained relatively stable compared to the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
In the current quarter, revenue and gross profit increased compared to both the prior quarter and the same quarter a year earlier, while cost of revenue also increased. Gross margin declined from the prior quarter but remained relatively stable compared to the year-ago quarter.
- The relationship between cost of revenue and revenue drove the sequential margin decline, as cost of revenue rose at a faster pace than revenue from the previous quarter. Year-over-year, the margin was largely unchanged.
- Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.6%
Gross profit
$105.5M
Revenue
$165.9M
Cost of revenue
$60.4M
Quarter-over-quarter change
n/a
Year-over-year change
-0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $165.9M | $105.5M | $60.4M | 63.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between cost of revenue and revenue drove the sequential margin decline, as cost of revenue rose at a faster pace than revenue from the previous quarter. Year-over-year, the margin was largely unchanged.
Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin was stable.
Monitor the trajectory of cost of revenue relative to revenue in coming quarters.