Online legal service provider LegalZoom (NASDAQ:LZ) will be announcing earnings results this Thursday after the bell. Here’s what you need to know.
LegalZoom beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $183.1 million, up 5.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ number of subscription units estimates. It reported 1.92 million users, up 19.9% 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 3% year on year to $182.6 million, slowing from the 5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.
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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.6% on average.
Looking at LegalZoom’s peers in the online marketplace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Shutterstock delivered year-on-year revenue growth of 21.3%, beating analysts’ expectations by 7.5%, and EverQuote reported revenues up 33.7%, in line with consensus estimates. Shutterstock’s stock price was unchanged after the resultswhile EverQuote was down 7.8%.
Read our full analysis of Shutterstock’s results here and EverQuote’s results here.
Investors in the online marketplace segment have had steady hands going into earnings, with share prices flat over the last month. LegalZoom is down 7% during the same time and is heading into earnings with an average analyst price target of $9.79 (compared to the current share price of $8.37).
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