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Z LEGALZOOM LegalZoom Reports Second Quarter 2021 Results August 12 , 2021 Revenue of $ 150 Million , an increase of 36 % year - over - year GLENDALE , Calif . , Aug. 12 , 2021 ( GLOBE NEWSWIRE ) -- LegalZoom.com , Inc. ( NASDAQ : LZ ) , today announced results for its second quarter ended June 30 , 2021 , including the following highlights : • Revenue was $ 150.4 million , up 36 % year - over - year . o Transaction revenue was $ 73.4 million , up 45 % year - over - year driven by strong business formations of 123,000 , up 34 % year - over - year . o Subscription revenue was $ 69.4 million , up 29 % year - over - year . There were 1.2 million subscription units outstanding as of June 30 , 2021 , with 69,000 net units added in the quarter . o Partner revenue was $ 7.7 million , up 14 % year - over - year . • Gross margin was 67 % in the period , down from 68 % in the second quarter of 2020 as the revenue mix shifted toward transaction revenue . • Net loss was $ 38.4 million down from a net loss of $ 4.1 million in the second quarter of 2020 . • Non - GAAP net income was $ 4.6 million down from a Non - GAAP net income of $ 5.8 million in the second quarter of 2020 . • Adjusted EBITDA was $ 22.0 million , or 15 % of revenue , compared to $ 20.3 million , or 18 % of revenue , in the second quarter of 2020 . • Cash and cash equivalents were $ 167 million as of June 30 , 2021. On July 2 , 2021 we raised $ 666.9 million net of underwriting discounts and commissions from our IPO and private placement , and repaid in full $ 521.6 million of our 2018 Term Loan . • Cash flows provided by operating activities decreased from $ 27.4 million in the three months ended June 30 , 2020 to $ 9.3 million in the three months ended June 30 , 2021. Cash flows provided by operating activities decreased from $ 49.3 million in the six months ended June 30 , 2020 to $ 40.7 million in the six months ended June 30 , 2021 . • Free cash flow was $ 6.2 million for the three months ended June 30 , 2021 compared to $ 24.9 million for the three months ended June 30 , 2020. Free cash flow was $ 34.7 million for the six months ended June 30 , 2021 compared to $ 44.8 million for the six months ended June 30 , 2020 . • Basic and diluted net loss per share was $ 0.31 and diluted Non - GAAP net income per share attributable to common stockholders was $ 0.03 for the second quarter of 2021 . " I'm very proud of the team for delivering such a strong second quarter while also meeting the many demands of an IPO process , " said Dan Wernikoff , LegalZoom's Chief Executive Officer . " We are excited by the opportunity to build LegalZoom into the next great digital leader . The executive team is focused on making the right investments today to drive durable topline growth for years to come . " Noel Watson , the Company's Chief Financial Officer added , " We're pleased by our financial results in the quarter , which reflect strength across the business . We continue to focus on executing against our primary growth vectors , which we believe will maximize long - term shareholder value . " Key Business Metrics and Non - GAAP Financial Measures ( unaudited , in thousands except AOV , ARPU and percentages ) Revenue Business formations Transaction units Average order value ( AOV ) Subscription units Average revenue per subscription unit ( ARPU ) Net loss Adjusted EBITDA Net loss margin Adjusted EBITDA margin Net cash provided by operating activities Free cash flow Initial Public Offering $ LA LA LA $ $ EA EA Three Months Ended June 30 , 2021 150,432 $ 123 260 282 $ 1,215 230 $ ( 38,395 ) $ 21,967 $ 26 % 15 % 9,281 $ 6,188 $ 2020 111,007 92 232 217 974 224 ( 4,059 ) 20,279 4 % 18 % 27,431 24,928 % Growth ( Decline ) YOY 36 % $ 34 % 12 % 30 % $ 25 % 3 % $ 846 % $ 8 % $ 550 % ( 17 ) % ( 66 ) % $ ( 75 ) % $ Six Months Ended June 30 , 2021 285,064 $ 245 536 252 $ 1,215 230 $ ( 48,218 ) $ 25,566 $ 17 % 9 % 40,696 $ 34,692 $ 2020 216,802 173 442 213 974 224 ( 8,937 ) 33,633 4 % 16 % 49,320 44,829 % Growth ( Decline ) YOY 31 % 42 % 21 % 18 % 25 % 3 % 440 % ( 24 ) % 325 % ( 44 ) % ( 18 ) % ( 23 ) %