LegalZoom (LZ) Reports Q4 Earnings: What Key Metrics Have to Say

Core Insights - LegalZoom reported revenue of $161.71 million for the quarter ended December 2024, reflecting a year-over-year increase of 1.9% and an EPS of $0.19 compared to $0.13 a year ago, with no surprise against the Zacks Consensus Estimate of $161.7 million [1] - The company achieved an EPS surprise of +18.75%, with the consensus EPS estimate being $0.16 [1] Performance Metrics - Average revenue per subscription unit (ARPU) was $0.26 million, slightly below the average estimate of $0.27 million [4] - The number of subscription units reached 1,766, exceeding the average estimate of 1,723 [4] - Average Order Value was $220, surpassing the average estimate of $211.02 [4] - The number of transaction units was 241, compared to the average estimate of 235 [4] - The number of business formations was 96, below the average estimate of 107 [4] - Subscription revenue totaled $108.75 million, slightly below the average estimate of $110.78 million, representing a year-over-year change of +1.9% [4] - Transaction revenue was $52.96 million, exceeding the average estimate of $49.48 million, with a year-over-year change of +2% [4] Stock Performance - LegalZoom shares returned -2.7% over the past month, compared to the Zacks S&P 500 composite's -2.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]