LegalZoom (LZ) Reports Q3: Everything You Need To Know Ahead Of Earnings

Petr Huřťák /
2023/11/06 2:01 am EST

Online legal service provider LegalZoom (NASDAQ:LZ) will be announcing earnings results tomorrow after market close. Here's what you need to know.

Last quarter LegalZoom reported revenues of $168.9 million, up 3.8% year on year, beating analyst revenue expectations by 1.1%. It was a mixed quarter for the company, with solid growth in its user base but slow revenue growth. The company reported 1.6 million users, up 11.4% year on year.

Is LegalZoom buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting LegalZoom's revenue to grow 3.6% year on year to $160 million, slowing down from the 4.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.

LegalZoom Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.1%.

Looking at LegalZoom's peers in the online marketplace segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Teladoc delivered top-line growth of 8% year on year, missing analyst estimates by 0.4% and Airbnb reported revenues up 17.8% year on year, exceeding estimates by 0.8%. Teladoc traded down 4.3% on the results, Airbnb was down 3.2%.

Read our full analysis of Teladoc's results here and Airbnb's results here.

There has been positive sentiment among investors in the online marketplace segment, with the stocks up on average 2.4% over the last month. LegalZoom is up 0.7% during the same time, and is heading into the earnings with analyst price target of $14.6, compared to share price of $10.56.

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The author has no position in any of the stocks mentioned.