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LegalZoom (LZ) Reports Q4 Earnings: What Key Metrics Have to Say

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LegalZoom (LZ - Free Report) reported $161.71 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 1.9%. EPS of $0.19 for the same period compares to $0.13 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $161.7 million, representing no surprise. The company delivered an EPS surprise of +18.75%, with the consensus EPS estimate being $0.16.

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 compared to the $0.27 million average estimate based on three analysts.
  • Number of subscription units: 1,766 compared to the 1,723 average estimate based on three analysts.
  • Average Order Value: $220 compared to the $211.02 average estimate based on three analysts.
  • Number of Transactions units: 241 versus the three-analyst average estimate of 235.
  • Number of business formations: 96 versus the two-analyst average estimate of 107.
  • Revenue- Subscription: $108.75 million compared to the $110.78 million average estimate based on five analysts. The reported number represents a change of +1.9% year over year.
  • Revenue- Transaction: $52.96 million compared to the $49.48 million average estimate based on five analysts. The reported number represents a change of +2% year over year.
View all Key Company Metrics for LegalZoom here>>>

Shares of LegalZoom have returned -2.7% over the past month versus the Zacks S&P 500 composite's -2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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