LegalZoom (LZ) To Report Earnings Tomorrow: Here Is What To Expect

Kayode Omotosho /
2023/08/07 5:40 am EDT

Online legal service provider LegalZoom (NASDAQ:LZ) will be reporting earnings tomorrow after the bell. Here's what you need to know.

Last quarter LegalZoom reported revenues of $165.9 million, up 6.76% year on year, beating analyst revenue expectations by 6.94%. It was a "beat and raise" quarter for the company, with a solid beat of analyst estimates. Revenue and adjusted EBITDA guidance for the next quarter surpassed expectations, and the full-year revenue guidance was lifted.

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 1.92% year on year to $167 million, slowing down from the 8.93% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 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 2.95%.

Looking at LegalZoom's peers in the consumer internet segment, only PlayStudios has so far reported results, delivering top-line growth of 13.8% year on year, and beating analyst estimates by 0.68%. The stock was down 2.81% on the results. Read our full analysis of PlayStudios's earnings results here.

There has been positive sentiment among investors in the consumer internet segment, with the stocks up on average 4.95% over the last month. LegalZoom is up 24.8% during the same time, and is heading into the earnings with analyst price target of $12.2, compared to share price of $15.48.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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