Compared to Estimates, LegalZoom (LZ) Q1 Earnings: A Look at Key Metrics

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For the quarter ended March 2025, LegalZoom (LZ) reported revenue of $183.11 million, up 5.1% over the same period last year. EPS came in at $0.13, compared to $0.09 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $176.51 million, representing a surprise of +3.74%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.13.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how LegalZoom performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Average revenue per subscription unit (ARPU) at period end: $0.25 million compared to the $0.26 million average estimate based on four analysts.

  • Subscription units at period end: 1,924 compared to the 1,788 average estimate based on four analysts.

  • Average order value (AOV): $196 versus the four-analyst average estimate of $205.58.

  • Transaction units: 341 compared to the 317 average estimate based on four analysts.

  • Business formations: 131 versus the three-analyst average estimate of 131.

  • Revenue- Subscription: $116.26 million compared to the $112.16 million average estimate based on four analysts. The reported number represents a change of +7.8% year over year.

  • Revenue- Transaction: $66.85 million versus the four-analyst average estimate of $64.13 million. The reported number represents a year-over-year change of +0.8%.

View all Key Company Metrics for LegalZoom here>>>

Shares of LegalZoom have returned -0.6% over the past month versus the Zacks S&P 500 composite's +10.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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