Education
About Us
Working with TipRanks
Follow Us
LegalZoom (LZ)
NASDAQ:LZ
Earnings Data
Report Date
Feb 26, 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
---
Earnings Call Summary
Earnings Call Date:Feb 26, 2025
|% Change Since: 13.22%
|Next Earnings Date:May 13, 2025
Earnings Call Sentiment|Positive
The earnings call reflected a generally positive outlook with strong revenue and subscription growth, effective cost management, and strategic acquisitions. However, there are challenges in business formations and specific transaction revenues due to external factors.Company Guidance
In LegalZoom's Fourth Quarter 2024 Earnings Conference Call, the company provided guidance for 2025, emphasizing a strategic focus on subscription revenue growth and quality customer acquisition. LegalZoom reported fourth-quarter revenue of $162 million, with subscription revenue growing 2% year-over-year. The company aims for 5% year-over-year revenue growth in 2025, projecting double-digit subscription revenue growth by year-end. Adjusted EBITDA for Q4 was $44 million, with a margin of 27%, and the full-year adjusted EBITDA was $148 million, reflecting a 25% increase. LegalZoom also highlighted a shift in go-to-market strategy, leveraging partnerships and AI-driven solutions to enhance service offerings. The acquisition of Formation Nation is expected to contribute positively to adjusted EBITDA, with a focus on integration and cross-selling opportunities. The company maintains a stable marketing budget while doubling brand spend to enhance customer awareness and engagement. LegalZoom anticipates continued operational efficiencies and a focus on core legal and compliance services to drive sustainable growth.Revenue and Subscription Growth
Fourth quarter revenue reached $162 million, at the high end of guidance. Subscription revenue grew 2% year-over-year, with approximately 1.8 million active subscriptions, up 14%.
Strong Adjusted EBITDA Performance
Fourth quarter adjusted EBITDA was $44 million, representing a 27% margin, a 32% year-over-year increase. Full-year adjusted EBITDA of $148 million grew 25%, with margins improving by 380 basis points.
Formation Nation Acquisition
The acquisition of Formation Nation is expected to positively contribute to adjusted EBITDA in the first year and significantly strengthen LegalZoom's customer service profile and offerings.
AI and Technology Integration
LegalZoom is leveraging AI and its proprietary data to enhance customer service and efficiency, including launching AI-powered tools like an estate plan AI assistant.
Focus on Quality Share
Shifted over 10% more customers to pro and premium packages year-over-year, focusing on high-value customers for sustainable growth.
---
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
---
LZ Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 26, 2025 | $8.85 | $10.02 | +13.22% |
| 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% |
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.
---
FAQ
When does LegalZoom (LZ) report earnings?
LegalZoom (LZ) is schdueled to report earning on Feb 26, 2025, TBA Not Confirmed.
What is LegalZoom (LZ) earnings time?
LegalZoom (LZ) earnings time is at Feb 26, 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.
---
