LZ Earnings Prediction
The chart below shows how LZ performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LZ sees a +7.19% change in stock price 10 days leading up to the earnings, and a +5.23% change 10 days following the report. On the earnings day itself, the stock moves by +1.93%. This data can give you a slight idea of what to expect for the next quarter's release.
LZ Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
168.60M
0.79%
-4.94%
Gross Margin
67.55%
4.57%
5.32%
Operating Margin
13.16%
113.29%
1378.65%
Net Margin
6.55%
45.56%
785.14%
EPS
0.06
50.00%
500.00%
No Data Available
LZ Earnings Analysis
LegalZoom.com, Inc. Common Stock Corporation (LZ.O) Earnings Conference Call
Positive
Quarterly Revenue Increase: Total revenue was $169 million for the quarter or up 1%.
Subscription Revenue Increase: Subscription revenue was $111 million up 5% year-over-year from stronger compliance related subscriptions.
Subscription Growth Increase: We ended the quarter with over 1.7 million subscription units, up 10% year-over-year as we saw an increase in forms and e-signature and bookkeeping subscriptions due to the bundling of these products into certain business formation offerings.
Record Adjusted EBITDA Margin: Adjusted EBITDA came in well above forecast at $47 million, which reflected a record 28% margin for us as a public company.
Share Repurchase Program: We repurchased 3.8 million shares of our common stock for a total of $25 million.
Negative
Transaction Revenue Decline: Our transaction revenue declined 7% year-over-year, largely due to softer business formation.
EIN Applications Decline: Sensu's EIN applications declined 9% year-over-year in Q3.
Market Share Decline: We saw a decline in our market share of business formations, which was expected as we conducted important testing with a goal of narrowing our focus to high-value customers.
Quarterly Revenue Performance: Total revenue was $169 million for the quarter or up 1%, but our year-over-year revenue growth was still only 1% this quarter.
Average Order Value Decline: Our average order value was $227 for the quarter, down 13% year-over-year due to a higher mix of lower price transactions.
LZ FAQs
How does LZ typically perform around its earnings report dates?
Is LegalZoom.com, Inc. (LZ) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
LZ Earning Call Sentiment
LegalZoom.com, Inc. (LZ) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
LZ.O
3.38%Positive
The earnings call highlights LegalZoom's strong subscription revenue growth, improved gross margin, and substantial share repurchase program, which are positive indicators. The Q&A section suggests a focus on value rather than cost competition, and management's cautious approach to pricing strategy may mitigate risks. Despite some declines in transaction revenue and business formations, the overall financial health, including debt-free status and increased adjusted EBITDA, supports a positive outlook. Given the market cap, these factors collectively suggest a stock price increase of 2% to 8% over the next two weeks.