LegalZoom.com, Inc. stock research
FY2023 Q3
LegalZoom.com (LZ) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was slightly lower than the prior quarter, yet gross profit improved because cost of revenue decreased more sharply. Compared with the same quarter one year earlier, revenue was higher but both cost of revenue and gross profit increased, resulting in a lower gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was slightly lower than the prior quarter, yet gross profit improved because cost of revenue decreased more sharply. Compared with the same quarter one year earlier, revenue was higher but both cost of revenue and gross profit increased, resulting in a lower gross margin.
- The strongest observable margin driver is the reduction in cost of revenue from the prior quarter, which outpaced the modest revenue decline and lifted gross margin.
- Gross margin improved sequentially from the previous quarter, but weakened compared with the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.6%
Gross profit
$108.1M
Revenue
$167.3M
Cost of revenue
$59.2M
Quarter-over-quarter change
+2.4 pts
Year-over-year change
-3.0 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% |
| Jun 30, 2023 | $168.9M | $105.1M | $63.7M | 62.2% |
| Sep 30, 2023 | $167.3M | $108.1M | $59.2M | 64.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+2.4 pts
Year-over-year change
Sep 30, 2022
-3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue from the prior quarter, which outpaced the modest revenue decline and lifted gross margin.
Gross margin improved sequentially from the previous quarter, but weakened compared with the same quarter one year earlier.
Monitor the trend in cost of revenue, as it has varied more than revenue across the three periods shown.