LegalZoom stock soars on earnings beat, raised forecast

LegalZoom.com Inc. (LZ) shares zoomed more than 15% higher in after-hours trading Tuesday, after the legal-services company produced stronger adjusted earnings than expected and executives raised their annual guidance. LegalZoom reported a first-quarter loss of $2.4 million, or a penny a share, on sales of $165.9 million, up from $155.4 million a year ago. After adjusting for stock compensation and other effects, the company reported earnings of 7 cents a share, improving from an adjusted loss of 3 cents a share last year. Analysts on average expected adjusted earnings of 6 cents a share on sales of $155.2 million, according to FactSet. Executives' second-quarter forecast also beat analysts' expectations, and they increased their full-year revenue guidance to a range of $630 million to $650 million, $10 million higher than previous on both ends. "During Q1, we rolled out our new lineup and refreshed our marketing messaging, which helped drive to strong market share gains in the quarter," Chief Executive Dan Wernikoff said in a prepared statement. LegalZoom stock closed Tuesday with a 4.1% gain at $8.33, and jumped higher than $9.60 in the extended session after results were released. Shares have declined 38.3% in the past year, as the S&P 500 index has gained 3.7%.

-Jeremy C. Owens

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05-09-23 1648ET

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