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LegalZoom (LZ) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

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LegalZoom (LZ - Free Report) reported $165.94 million in revenue for the quarter ended March 2023, representing a year-over-year increase of 7.6%. EPS of $0.07 for the same period compares to -$0.05 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $154.98 million, representing a surprise of +7.07%. The company delivered an EPS surprise of +16.67%, with the consensus EPS estimate being $0.06.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how LegalZoom performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Average revenue per subscription unit (ARPU): $0.26 million versus $0.26 million estimated by three analysts on average.
  • Number of business formations: 170 compared to the 128.16 average estimate based on three analysts.
  • Average Order Value: $202 versus the three-analyst average estimate of $224.68.
  • Number of Transactions units: 308 compared to the 261.47 average estimate based on three analysts.
  • Number of subscription units: 1501 compared to the 1450.13 average estimate based on three analysts.
  • Transaction revenue: $62.24 million versus the five-analyst average estimate of $58.08 million.
  • Subscription revenue: $97.31 million compared to the $91.94 million average estimate based on five analysts.
  • Partner revenue: $6.39 million versus the five-analyst average estimate of $5.01 million.
View all Key Company Metrics for LegalZoom here>>>

Shares of LegalZoom have returned -14.2% over the past month versus the Zacks S&P 500 composite's +0.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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