LegalZoomNASDAQ: LZ

LegalZoom's quarterly earnings report was in line with expectations. A difficult environment for small businesses is likely to create headaches for the online legal services provider.

MOUNTAIN VIEW, Calif., May 22, 2024 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ), the No. 1 choice in online small business formations, today announced that its Board of Directors has authorized an increase of $75 million to the Company's existing stock repurchase program, bringing the aggregate amount authorized to $175 million. As of May 21, 2024, the Company has repurchased approximately 5.9 million shares of its common stock under the program at an average price of $10.10 per share for approximately $59 million, leaving approximately $116 million available under the repurchase authorization.

There is increasing optimism about LegalZoom's earnings potential, leading to its upgrade to a Zacks Rank #2 (Buy) which could push the stock higher.

LegalZoom (LZ) has a strong track record of exceeding earnings expectations and is well positioned to outperform in its upcoming quarterly report.

LegalZoom.com, Inc. (LZ) Q4 2023 Earnings Call Transcript

The headline numbers for LegalZoom (LZ) give insight into how the company performed in the quarter ended December 2023, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Beyond analysts' top -and-bottom-line estimates for LegalZoom (LZ), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended December 2023.

I recommend a buy rating for LZ. The company operates in a large market with millions of businesses being formed each year, targeting small business owners who need legal and compliance solutions. As the largest player in the industry, LegalZoom has a competitive advantage over offline lawyers and can leverage its digital presence and partnerships to capture more market share.

LegalZoom (LZ) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.