Overview
LegalZoom Q3 revenue grows 13% yr/yr, beating analyst expectations
Adjusted EBITDA for Q3 beats analyst expectations
Company repurchased 1.8 mln shares for $17.6 mln
Outlook
LegalZoom raises full-year 2025 revenue guidance, expects 10% growth at midpoint
Company expects Q4 revenue between $182 mln and $186 mln, 14% growth at midpoint
LegalZoom maintains full-year adjusted EBITDA margin outlook at 23%
Result Drivers
SUBSCRIPTION GROWTH - Subscription revenue increased 13% yr/yr, driven by compliance offerings
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $190.20 mln | $183.25 mln (9 Analysts) |
Q3 Adjusted Net Income | Miss | $31 mln | $34.70 mln (8 Analysts) |
Q3 Adjusted EBITDA | Beat | $46.30 mln | $45.34 mln (9 Analysts) |
Q3 Free Cash Flow | $47 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy."
Wall Street's median 12-month price target for LegalZoom.com Inc is $12.00, about 17.3% above its November 4 closing price of $9.92
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nGNX73HFps
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)