LegalZoom (LZ) reported $167.27 million in revenue for the quarter ended September 2023, representing a year-over-year increase of 8.3%. EPS of $0.12 for the same period compares to $0.05 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $160.09 million, representing a surprise of +4.49%. The company delivered an EPS surprise of +33.33%, with the consensus EPS estimate being $0.09.

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.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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): $0.27 million compared to the $0.26 million average estimate based on three analysts.

• Number of business formations: 137 compared to the 140 average estimate based on three analysts.

• Average Order Value: $242 versus the three-analyst average estimate of $216.76.

• Number of Transactions units: 237 compared to the 249 average estimate based on three analysts.

• Number of subscription units: 1,568 versus 1,520 estimated by three analysts on average.

• Transaction revenue: $57.35 million versus the four-analyst average estimate of $53.58 million.

• Subscription revenue: $104.46 million compared to the $100.74 million average estimate based on four analysts.

• Partner revenue: $5.47 million versus $5.79 million estimated by four analysts on average.

View all Key Company Metrics for LegalZoom here>>>

Shares of LegalZoom have returned -1.6% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report

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