LegalZoom stock is down. What's up with that? On the plus side, LegalZoom says it should still generate between $75 million and $85 million in positive free cash flow this year. At the stock's current price, this implies a price-to-free cash flow ratio of just 13.2. It won't take a lot of growth to justify a valuation that cheap. LegalZoom.com (LZ -24.90%) stock collapsed in early trading Wednesday, on reports of what some deemed a boardroom coup that sparked a series of downgrades from Wall Street analysts ...

Core Points - LegalZoom's shares dropped 30% to an all-time low following the announcement of CEO Dan Wernikoff's departure and a reduction in full-year guidance [1][5][6] - The company is transitioning to a subscription-based revenue model to drive long-term profitable growth [6] - Jeffrey Stibel, a current board member and entrepreneur, has been appointed as the new CEO [3][5][7] Financial Outlook - LegalZoom revised its 2024 revenue outlook to a range of $675 million to $685 million, down from $700 million to $720 million [6] - The company's free cash flow estimate was also reduced to $75 million to $85 million, compared to the previous estimate of $85 million to $95 million [6]

SAN DIEGO, July 10, 2024 (GLOBE NEWSWIRE) -- Shareholder rights law firm Johnson Fistel, LLP is investigating whether LegalZoom.com, Inc. (Nasdaq: LZ) ("LegalZoom" or the "Company") or any of its executive officers or others violated securities laws by misrepresenting or failing to timely disclose material, adverse information to investors. The investigation focuses on investors' losses and whether they may be recovered under federal securities laws. Click Here to Join the Investigation There is no cost or ...

Group 1 - The current CEO of LegalZoom.com, Dan Wernikoff, has resigned from the company and its board of directors [1] - Jeffrey Stibel has been appointed as the new CEO, with the decision made by the board of directors [5] - John Murphy has been named the lead independent director of the board [2] Group 2 - LegalZoom.com stock (NASDAQ:LZ) has decreased by 28% as of Wednesday morning [3] - The company has lowered its revenue guidance for 2024 to between $675 million and $685 million, compared to Wall Street's estimate of $710.35 million [6]

MOUNTAIN VIEW, Calif., July 09, 2024 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ) today announced that the Company's current Chairman of the Board of Directors, Jeffrey Stibel, has been named LegalZoom's next CEO, effective immediately. LegalZoom has also appointed John Murphy as the Lead Independent Director of the Board. As part of this transition, current Chief Executive Officer Dan Wernikoff will be departing the Company, including resigning from the Board. Mr. Stibel joined the Board of LegalZo ...

John Murphy named Lead Independent Director "The Board identified Jeff as the ideal CEO to lead LegalZoom's next chapter," said Mr. Murphy. "He is a seasoned executive who has been a deeply involved member of the Board for nearly a decade, including serving in a leadership position as Chairman since 2018. Jeff possesses extensive knowledge of the Company's product offerings, technology infrastructure, and attorney network, as well as the competitive landscape and customer segment. He also brings ideal exper ...

Core Insights - LegalZoom has partnered with BusinessLoans.com to enhance access to capital for small business owners, addressing a critical need for funding in the early stages of business development [12][1] - The partnership aims to provide a streamlined process for small businesses to secure loans and credit options directly through the LegalZoom platform, leveraging BusinessLoans.com's marketplace capabilities [7][8] Company Overview - LegalZoom is the leading online platform for business formation in the United States, offering a range of legal, tax, and compliance products to support small business owners [3] - The company is committed to making legal and financial expertise accessible and affordable, empowering entrepreneurs to realize their business aspirations [3][6] Market Context - According to Forbes, 38% of small businesses fail due to cash reserve exhaustion or inability to secure additional capital, highlighting the importance of access to funding [6] - Only 35% of small business owners manage to obtain a business loan or credit card within their first year, indicating a significant gap in financial support for new entrepreneurs [1][6] Partnership Details - BusinessLoans.com offers a variety of financial products, including secured loans and credit-building options, tailored to the specific needs of small businesses [7][13] - The partnership allows customers to apply for funding without leaving the LegalZoom site, simplifying the borrowing process through a guided questionnaire [8][12]

Quarterly earnings raised concerns Even in good times, online legal services are a relatively slow-growth and fragmented industry. LegalZoom has a handful of established competitors, but thousands of online legal service businesses collectively hold nearly three-quarters of the market share. It's difficult for any of these platforms to differentiate themselves. Shares of LegalZoom (LZ -0.35%) tumbled 26.5% in May, according to data from S&P Global Market Intelligence. The stock moved sharply lower following ...

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 approxima ...

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 approxima ...