New report shows that law firms’ financial performance was very strong at the 9-month mark.
Law Firms
Law firms had ‘very strong performance’ financially at 9-month point, new report says
November 20, 2024, 12:22 pm CST
Law firm revenue in the first nine months of 2024 increased 12.8% from the same period last year, thanks mostly to increases in standard billing rates. (Image from Shutterstock)
Law firm revenue in the first nine months of 2024 increased 12.8% from the same period last year, thanks mostly to increases in standard billing rates, according to a new report by Wells Fargo’s Legal Specialty Group.
At this same point last year, revenue had increased 4.6%, according to the report. The year-over-year revenue growth of 12.8% in the first three quarters was eclipsed only by growth rates of 14.4% in 2021.
“For the first nine months of 2024,” the report says, “the law firm industry experienced very strong performance, improving upon the momentum seen at the six-month mark.”
Revenue growth was highest for Am Law 50 firms, which are ranked based on gross revenue. The Am Law 50 firms, which are ranked based on gross revenue, had the highest revenue growth at nine months. Standard billing rates have increased by 9% since the same time last year. Net income increased by 22.2% in the first nine months of the year, compared to the same period last year. Profits per equity partner also increased by 21.5%. Net income increased 22.2% in the first nine months of the year, compared to the same period last year, while profits per equity partner increased 21.5%.
Law.com spoke with Owen Burman, a senior consultant for the Wells Fargo’s Legal Specialty Group, about the findings.
Financial growth is going so well that firms are “pinching themselves,” Burman said.
The report is based on information from more than 130 firms, including 70 Am Law 100 firms and 35 Am Law Second Hundred firms.
