Online legal service provider LegalZoom (NASDAQ:LZ) will be reporting results this Wednesday after the bell. Here’s what to expect.
LegalZoom met analysts’ revenue expectations last quarter, reporting revenues of $205.3 million, up 6.6% year on year. It was a softer quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a decline in its users. It reported 1.89 million users, down 3.2% 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 2.1% year on year, slowing from the 12.8% 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 rarely misses Wall Street’s revenue estimates.
Looking at LegalZoom’s peers in the online marketplace segment, some have already reported their Q3 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 7.6%, and Etsy reported revenues up 10.9%, topping estimates by 3.8%. Etsy traded up 4.5% following the results.
Read our full analysis of EverQuote’s results here and Etsy’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 4.7% on average over the last month. LegalZoom is up 18.1% during the same time and is heading into earnings with an average analyst price target of $7.60 (compared to the current share price of $6.94).
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