LegalZoom.com, Inc. stock research
FY2024 Q4
LegalZoom.com (LZ) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin weakened slightly from the prior quarter but improved relative to the year-ago period, as cost of revenue declined on both sequential and year-over-year bases.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin weakened slightly from the prior quarter but improved relative to the year-ago period, as cost of revenue declined on both sequential and year-over-year bases.
- The strongest observable margin driver is the decline in cost of revenue, which fell both sequentially and year-over-year, supporting gross margin improvement relative to the prior year.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.0%
Gross profit
$108.3M
Revenue
$161.7M
Cost of revenue
$53.4M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+2.2 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, 2024 | $174.2M | $105.8M | $68.4M | 60.7% |
| Jun 30, 2024 | $177.4M | $113.8M | $63.6M | 64.1% |
| Sep 30, 2024 | $168.6M | $113.9M | $54.7M | 67.5% |
| Dec 31, 2024 | $161.7M | $108.3M | $53.4M | 67.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.6 pts
Year-over-year change
Dec 31, 2023
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the decline in cost of revenue, which fell both sequentially and year-over-year, supporting gross margin improvement relative to the prior year.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Monitor the trajectory of cost of revenue, as its decline was a key factor in margin performance this quarter.