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LegalZoom (LZ)
NASDAQ:LZ
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Earnings Data
Report Date
Feb 20, 2025TBA Not Confirmed
Period Ending
2024 (Q4)Consensus EPS Forecast
$0.16Last Year’s EPS
$0.13Same Quarter Last Year
Based on 9 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Nov 06, 2024
|% Change Since: -4.79%
|Next Earnings Date:Feb 20, 2025
Earnings Call Sentiment|Neutral
The earnings call reflected a strategic shift towards subscription-based revenue, with positive results in subscription growth and adjusted EBITDA margin. However, there were challenges with declining transaction revenue and business formations. Overall, the sentiment is cautiously optimistic with a focus on long-term durability and quality share over immediate market share gains.Company Guidance
During LegalZoom's third quarter 2024 earnings call, the company reported revenue at the high end of guidance, reaching $169 million, with a 1% year-over-year increase. Subscription revenue grew by 5%, driven by compliance-related subscriptions, while transaction revenue declined by 7% due to a drop in business formations. LegalZoom's third quarter adjusted EBITDA was $47 million, reflecting a 28% margin, the highest for the company as a public entity. The company emphasized its focus on transitioning towards subscription models, enhancing customer education, and optimizing pricing strategies. LegalZoom also discussed its AI initiatives and highlighted successful tests converting transactional products into subscription services, aiming to increase customer lifetime value. Looking ahead, LegalZoom anticipates fourth-quarter revenue between $158 million and $162 million, with an adjusted EBITDA range of $40 million to $44 million. The company remains committed to driving long-term sustainable growth through strategic product and pricing adjustments.Subscription Revenue Growth
Subscription revenue increased by 5% year-over-year, driven by compliance-related subscriptions and legal advisory subscriptions. The company ended the quarter with over 1.7 million subscription units, up 10% year-over-year.
Record Adjusted EBITDA Margin
Third quarter adjusted EBITDA was $47 million, reflecting a record 28% margin for LegalZoom as a public company. This was a 40% increase from the same period last year.
Successful Strategic Tests
The company ran successful tests to reorient transactional offerings towards subscriptions, specifically with the Beneficial Ownership Information Report and business licenses, improving expected lifetime value.
AI Initiatives
LegalZoom is leveraging its extensive data from over 4.3 million estate planning documents and more than 4.5 million business formations to enhance customer service and internal efficiencies using AI.
Share Repurchase Program
LegalZoom repurchased 3.8 million shares of its common stock for $25 million, reducing its share count by approximately 2%. The Board approved a $40 million increase in the share repurchase program authorization.
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LZ Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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LZ Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Nov 06, 2024 | $8.15 | $9.22 | +13.13% |
| Aug 07, 2024 | $5.93 | $5.84 | -1.52% |
| May 07, 2024 | $12.19 | $9.28 | -23.87% |
| Feb 22, 2024 | $9.83 | $11.24 | +14.34% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does LegalZoom (LZ) report earnings?
LegalZoom (LZ) is schdueled to report earning on Feb 20, 2025, TBA Not Confirmed.
What is LegalZoom (LZ) earnings time?
LegalZoom (LZ) earnings time is at Feb 20, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is LZ EPS forecast?
LZ EPS forecast for the fiscal quarter 2024 (Q4) is $0.16.
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