Again!
Total
revenue
shot
up
12.5
percent,
nearly
double
last
year’s
6
percent
growth.
While
the
country
talked
about
the
price
of
eggs
and
embraced
the
“Is
this
a
pigeon?”
meme
except
for
“a
recession,”
the
actual
economy
continued
to
thrive
and
law
firms
were
no
exception.
The
biggest
players
cashed
in
the
most,
with
the
Am
Law
50
growing
revenue
by
13.9
percent.
Meanwhile,
the
Second
Fifty
and
Second
Hundred
firms
grew
9.6
percent
and
9.9
percent,
respectively.
How
did
firms
do
so
well?
Yes,
increased
billing
rates
were
the
not-so-secret
driver
behind
this
revenue
surge
success.
Standard
rates
jumped
9.1
percent,
up
from
8.3
percent
in
2023.
The
Am
Law
1-50,
naturally,
went
even
harder,
raising
rates
10
percent
over
last
year.
The
Second
Fifty
and
Second
Hundred
firms
still
raised
their
rates,
but
at
a
more
“reasonable”
7
percent
and
6
percent,
respectively.
And
while
clients
will
complain
about
these
hikes,
the
legal
industry
was
already
undercharging
for
the
value
of
its
services
before
the
country
absorbed
a
round
of
inflation.
At
least
they
have
a
better
case
for
upping
fees
than
Netflix.
Billable
hours
also
ticked
up,
with
demand
growing
3.5
percent,
a
huge
jump
from
last
year’s
measly
0.7
percent.
Despite
all
the
new
work,
lawyer
headcount
only
went
up
1.7
percent,
meaning
firms
squeezed
out
1.9
percent
more
productivity
per
lawyer.
Meanwhile,
the
hidden
law
firm
fee
burglers
—
collection
and
lockup
—
improved.
Collection
cycles
improved
by
two
days
in
2024.
Firms
are
finally
getting
paid
faster,
thanks
to
a
mix
of
better
electronic
billing,
tighter
payment
terms,
and
a
shift
towards
transactional
work
(which
pays
out
quicker
than
drawn-out
litigation).
But
a
good
deal
of
this
new
revenue
got
sucked
up
by
total
expenses
jumping
9
percent
because
even
in
Biglaw
you’ve
got
to
spend
money
to
make
money.
Though
partners
—
again,
equity
partners
—
still
have
reason
to
smile.
Net
income
jumped
17.2
percent,
with
profits
per
equity
partner
soaring
16.9
percent.
Top
firms
cleaned
up,
posting
18.9
percent
growth
in
profits
per
partner,
while
the
smaller
firms
still
did
just
fine,
with
growth
hovering
around
12.3-12.4
percent.
Thanks
in
no
small
part
to
ever
tightening
control
over
equity
partnership
ranks
(up
a
mere
0.3
percent),
keeping
the
spoils
of
war
confined
to
an
elite
group
on
the
happy
side
of
the
velvet
rope.
So,
what’s
next
for
2025?
Will
clients
finally
push
back
on
the
ever-growing
hourly
rates?
Will
overworked
associates
actually
see
a
break?
Will
partners
ever
stop
making
ridiculous
amounts
of
money?
Not
likely.
Joe
Patrice is
a
senior
editor
at
Above
the
Law
and
co-host
of
Thinking
Like
A
Lawyer.
Feel
free
to email
any
tips,
questions,
or
comments.
Follow
him
on Twitter or
Bluesky
if
you’re
interested
in
law,
politics,
and
a
healthy
dose
of
college
sports
news.
Joe
also
serves
as
a
Managing
Director
at
RPN
Executive
Search.