LegalZoom (LZ) Reports Q4: Everything You Need To Know Ahead Of Earnings

StockStory
02-25
LegalZoom (LZ) Reports Q4: Everything You Need To Know Ahead Of Earnings

Online legal service provider LegalZoom (NASDAQ:LZ) will be announcing earnings results tomorrow after market hours. Here’s what investors should know.

LegalZoom beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $168.6 million, flat year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations. It reported 1.72 million users, up 9.5% year on year.

Is LegalZoom a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting LegalZoom’s revenue to grow 1.3% year on year to $160.7 million, slowing from the 8.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. LegalZoom has missed Wall Street’s revenue estimates three times over the last two years.

Looking at LegalZoom’s peers in the online marketplace segment, some have already reported their Q4 results, giving us a hint as to what we can expect. MercadoLibre delivered year-on-year revenue growth of 37.4%, beating analysts’ expectations by 2.8%, and Shutterstock reported revenues up 15.2%, falling short of estimates by 1.5%. MercadoLibre traded up 6.7% following the results.

Read our full analysis of MercadoLibre’s results here and Shutterstock’s results here.

Investors in the online marketplace segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. LegalZoom is down 1.4% during the same time and is heading into earnings with an average analyst price target of $8.74 (compared to the current share price of $8.87).

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