Online legal service provider LegalZoom (NASDAQ: LZ) will be reporting results this Wednesday after market hours. Here’s what you need to know.
LegalZoom beat analysts’ revenue expectations last quarter, reporting revenues of $206.8 million, up 12.9% year on year. It was a slower quarter for the company, with full-year EBITDA guidance meeting analysts’ expectations and disappointing growth in its users. It reported 1.92 million users, flat 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 6.8% year on year, slowing from the 8.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. LegalZoom has a history of exceeding Wall Street’s expectations.
Looking at LegalZoom’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 24.6%, beating analysts’ expectations by 2.6%, and Teladoc reported a revenue decline of 4%, falling short of estimates by 1.3%. Teladoc traded down 28.1% following the results.
Read our full analysis of EverQuote’s results here and Teladoc’s results here.
Investors in the consumer internet segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. LegalZoom is up 17.2% during the same time and is heading into earnings with an average analyst price target of $8.30 (compared to the current share price of $8.25).
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