LegalZoom.com, Inc. (LZ) shares surged 20.67% in pre-market trading on Friday following the release of its better-than-expected quarterly results. The online legal services provider demonstrated strong performance, particularly in revenue growth, which appears to have impressed investors.
For the quarter ended June 30, LegalZoom.com reported adjusted earnings of $0.15 per share, meeting analysts' expectations and showing improvement from $0.10 per share in the same quarter last year. More notably, the company's revenue climbed 8.5% to $192.51 million, significantly surpassing the Wall Street forecast of $182.70 million.
The substantial pre-market rally suggests that investors are reacting positively to LegalZoom.com's ability to exceed revenue expectations and maintain earnings growth in a challenging economic environment. While the company reported a small quarterly loss of $266,000, the strong top-line growth appears to have overshadowed this detail. As the market opens, it will be interesting to see if this pre-market enthusiasm translates into sustained gains for LegalZoom.com's stock.