LegalZoom (LZ) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

In This Article:

LegalZoom (LZ) reported $168.6 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 0.8%. EPS of $0.17 for the same period compares to $0.12 a year ago.

The reported revenue represents a surprise of +0.83% over the Zacks Consensus Estimate of $167.21 million. With the consensus EPS estimate being $0.16, the EPS surprise was +6.25%.

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

  • Number of subscription units: 1,717 compared to the 1,617 average estimate based on four analysts.

  • Average Order Value: $227 compared to the $242.87 average estimate based on four analysts.

  • Number of Transactions units: 255 compared to the 243 average estimate based on four analysts.

  • Number of business formations: 113 compared to the 132 average estimate based on three analysts.

  • Revenue- Subscription: $110.72 million versus $108.10 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6% change.

  • Revenue- Transaction: $57.88 million compared to the $59.15 million average estimate based on four analysts. The reported number represents a change of +0.9% year over year.

View all Key Company Metrics for LegalZoom here>>>

Shares of LegalZoom have returned +16% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

To read this article on Zacks.com click here.

Zacks Investment Research