LegalZoom (LZ) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - LegalZoom reported $168.6 million in revenue for Q3 2024, a year-over-year increase of 0.8% and a surprise of +0.83% over the Zacks Consensus Estimate of $167.21 million [1] - The EPS for the same period was $0.17, compared to $0.12 a year ago, with a surprise of +6.25% over the consensus estimate of $0.16 [1] Financial Performance Metrics - Average revenue per subscription unit (ARPU) was $0.26 million, slightly below the average estimate of $0.27 million [3] - The number of subscription units reached 1,717, exceeding the average estimate of 1,617 [3] - Average Order Value was $227, lower than the average estimate of $242.87 [3] - Number of transaction units was 255, above the average estimate of 243 [3] - Business formations numbered 113, below the average estimate of 132 [3] - Subscription revenue was $110.72 million, surpassing the estimated $108.10 million, reflecting a +6% change year-over-year [3] - Transaction revenue was $57.88 million, slightly below the average estimate of $59.15 million, with a +0.9% year-over-year change [3] Stock Performance - LegalZoom shares have returned +16% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [4] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [4]