Online legal technology company LegalZoom.com Inc. reported a year-over-year revenue increase and a fourth-quarter loss in its latest earnings report on March 10.
“We capped off a historic 2021 with a strong fourth quarter,” Dan Wernikoff, LegalZoom’s chief executive, said in a statement. “For the full year of 2021 we grew revenue 22% and helped form 447,000 businesses, almost one every minute.”
The business formations were an 18% year-over-year increase for the company, which drove transaction revenue to an 8% year-over-year increase, clocking in at $56.5 million.
The Glendale company posted $142 million in revenue for the quarter. A net loss of $20.8 million (-11 cents a share) was reported for the quarter compared to a net income of $9.4 million (6 cents a share) in 2020. The loss was linked to an increase in stock-based compensation of $22.9 million, primarily in connection with the LegalZoom’s IPO last year.
The company’s cash and cash equivalents were $239 million as of Dec. 31.
“After years of deferred investment into the business, we’re finally deploying capital in the right ways, which is attracting new talent and significantly improving the velocity of innovation,” Noel Watson, LegalZoom’s chief financial officer, said in a statement. “We’re excited by the prospects ahead in 2022 and remain focused on building a business for the long-term, with durable growth vectors and strong EBITDA margins.”
The company went public in June, closing on the first day at $37.81. Shares now trade for less than half that value, closing on March 17 at $14.64 on the Nasdaq.