Online legal service provider LegalZoom (NASDAQ: LZ) will be reporting earnings this Wednesday after the bell. Here’s what investors should know.
LegalZoom beat analysts’ revenue expectations last quarter, reporting revenues of $190.3 million, up 17.7% year on year. It was a strong quarter for the company, with full-year EBITDA guidance exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates. It reported 1.94 million users, up 9.8% year on year.
Is LegalZoom a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting LegalZoom’s revenue to grow 10.2% year on year, improving from the 5.1% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. LegalZoom has a history of exceeding Wall Street’s expectations.
Looking at LegalZoom’s peers in the online marketplace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 14.5%, beating analysts’ expectations by 5.7%, and Etsy reported revenues up 3.1%, topping estimates by 2.4%. Etsy traded up 2.1% following the results.
Read our full analysis of EverQuote’s results here and Etsy’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 11.1% on average over the last month. LegalZoom is up 11.7% during the same time and is heading into earnings with an average analyst price target of $8.71 (compared to the current share price of $6.80).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
