LegalZoom.com, Inc. stock research
FY2024 Q2
LegalZoom.com (LZ) Gross Margin — Quarter Ended Jun 30, 2024
Revenue increased and cost of revenue decreased compared to the prior quarter, driving a higher gross profit and an improved gross margin. Relative to the same quarter last year, revenue grew while cost of revenue was nearly unchanged, resulting in a higher gross profit and a stronger gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue increased and cost of revenue decreased compared to the prior quarter, driving a higher gross profit and an improved gross margin. Relative to the same quarter last year, revenue grew while cost of revenue was nearly unchanged, resulting in a higher gross profit and a stronger gross margin.
- The most observable driver of the gross margin improvement was the reduction in cost of revenue from the preceding quarter, which outweighed the rise in revenue and widened the margin.
- Compared to the prior quarter, gross margin improved as cost of revenue decreased while revenue rose. Versus the same quarter a year ago, gross margin also strengthened, supported by higher revenue and a stable cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.1%
Gross profit
$113.8M
Revenue
$177.4M
Cost of revenue
$63.6M
Quarter-over-quarter change
+3.4 pts
Year-over-year change
+1.9 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $167.3M | $108.1M | $59.2M | 64.6% |
| Dec 31, 2023 | $158.7M | $102.8M | $55.9M | 64.8% |
| Mar 31, 2024 | $174.2M | $105.8M | $68.4M | 60.7% |
| Jun 30, 2024 | $177.4M | $113.8M | $63.6M | 64.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+3.4 pts
Year-over-year change
Jun 30, 2023
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin improvement was the reduction in cost of revenue from the preceding quarter, which outweighed the rise in revenue and widened the margin.
Compared to the prior quarter, gross margin improved as cost of revenue decreased while revenue rose. Versus the same quarter a year ago, gross margin also strengthened, supported by higher revenue and a stable cost of revenue.
Monitor whether cost of revenue can remain at or below the current level, as it has been the key variable in recent margin changes.