Although the revenue and EPS for LegalZoom (LZ) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
LegalZoom (LZ) came out with quarterly earnings of $0.13 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.09 per share a year ago.
LegalZoom's stock has surged ~20% this year, outperforming the market, and is up ~50% since summer 2024, driven by growth in subscription services. LegalZoom's pivot to recurring revenue streams like bookkeeping and administration reduces cyclical risks and enhances revenue stability, which are the core reasons I rate LegalZoom a buy. Management is expecting subscription revenue to accelerate to a double-digit growth pace by the end of 2025, driven by price increases and a mix shift into higher-priced subscription tiers.
LegalZoom.com, Inc. (NASDAQ:LZ ) Q4 2024 Earnings Conference Call February 26, 2025 4:30 PM ET Company Participants Madeleine Crain - Head of Investor Relations Jeff Stibel - Chairman and Chief Executive Officer Noel Watson - Chief Operating Officer and Chief Financial Officer Conference Call Participants Ella Smith - JPMC Trevor Young - Barclays Andrew Boone - Citizens Patrick McIlwee - William Blair Elizabeth Porter - Morgan Stanley Josh Beck - Raymond James Vanessa Yiu - UBS Operator Good day, and thank you for standing by. Welcome to LegalZoom's Fourth Quarter 2024 Earnings Conference Call.
LegalZoom's stock rose 5% post-earnings due to growth in its subscription business, despite a 70% drop from its 2021 IPO highs. The company offers affordable legal services and ongoing support through subscriptions, aiming for stable, predictable revenue growth above 5% CAGR. Valued at 13x forward free cash flow, LegalZoom is debt-free with improving margins and a clear path to $120 million in free cash flow by late 2025.
While the top- and bottom-line numbers for LegalZoom (LZ) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
LegalZoom (LZ) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.13 per share a year ago.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for LegalZoom (LZ), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended December 2024.
Here is how LegalZoom (LZ) and Sandvik AB (SDVKY) have performed compared to their sector so far this year.
LegalZoom (LZ) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock suggests that there could be more strength down the road.
LegalZoom (LZ) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
LegalZoom.com Inc LZ could benefit from the positive inflection in business formations in November and December 2024, according to JPMorgan.