I just wrote about Intapp’s filing of papers with the Securities & Exchange Commission for a proposed IPO, noting how rare IPOs are in legal tech, only to find out that LegalZoom also filed on Friday for an IPO.
LegalZoom had previously filed for an IPO in 2012 but then postponed the offering and withdrew it two years later.
In the filing with the SEC, LegalZoom says that it had revenue in 2020 of $471 million, and that its revenue in the first quarter of 2021 had grown 27% over the prior year.
“Our mission is to democratize law,” the filing says. “We believe every business deserves the full protection of the legal system and a simple way to stay compliant with it. Our platform helps new businesses form.
“Once a small business is formed, we offer subscription services to protect the business, its ideas, and the families that create them. LegalZoom empowers small business owners to apply their energy and passion to their businesses instead of the legal and regulatory complexity required to operate them.”
The filing says that in 2020, LegalZoom helped form 10% of al new LLCs and helped incorporate 5% of all new corporations in the United States.
“As a result of our traction with our customers, we have achieved economies of scale that we expect to continue to leverage as we accelerate the growth of our business,” the filing says.
“We generated revenue of $408.4 million in 2019 and $470.6 million in 2020, representing a year-over-year increase of 15.2%, and $105.8 million and $134.6 million for the three months ended March 31, 2020 and 2021, respectively, representing a period-over-period increase of 27.3%.”
LegalZoom says in the filing that it views its opportunity in terms of a $48.7 billion serviceable addressable market today, and a much larger market over the longer term.