Legalzoom.com Intrinsic Stock Value – LEGALZOOM.COM Reports Third Quarter Financial Results for 2023 Fiscal Year
November 20, 2023
🌥️Earnings Overview
LEGALZOOM.COM ($NASDAQ:LZ) revealed their financial results for the third quarter of 2023 on September 30th, with total revenue amounting to USD 167.3 million, a rise of 8.3% from the same quarter in the prior year. Net income grew 174.5% year-over-year, reaching USD 7.5 million.
Market Price
The company’s stock opened at $10.4 and closed at $10.6, which is a 2.3% increase from its prior closing price of $10.3. This improvement is reflective of the company’s success in this quarter, which saw a significant increase in revenue, profits, and market share. This impressive growth was driven by a strong increase in customer demand for their services and products, as well as their efficient management of their costs and expenses.
Additionally, LEGALZOOM.COM has also been able to capture a larger portion of the market with their innovative legal services and products. This has enabled the company to become a leader in the legal industry, and they have quickly become a household name for many businesses and individuals seeking legal advice. With this positive performance, LEGALZOOM.COM is well-positioned to continue their success and growth going into the next quarter. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Legalzoom.com. More…
| Total Revenues | Net Income | Net Margin |
| 648.69 | 8.31 | 1.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Legalzoom.com. More…
| Operations | Investing | Financing |
| 123.64 | -35.14 | -88.21 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Legalzoom.com. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 426.51 | 279.17 | 0.78 |
Key Ratios Snapshot
Some of the financial key ratios for Legalzoom.com are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.9% | – | 3.0% |
| FCF Margin | ROE | ROA |
| 14.6% | 7.6% | 2.8% |
Analysis – Legalzoom.com Intrinsic Stock Value
GoodWhale has conducted an analysis of the fundamentals of LEGALZOOM.COM. After our proprietary Valuation Line was applied, we calculated the fair value of LEGALZOOM.COM’s shares to be around $16.7. However, the stock is currently being traded at $10.6, representing a 36.5% discount to our calculated fair value. This suggests that the company is currently undervalued by the market, offering potential investors an opportunity to buy discounted shares. More…
Peers
In the world of online legal services, LegalZoom.com Inc is one of the biggest names. However, they face stiff competition from the likes of Automatic Data Processing Inc, Upwork Inc, and Homeserve PLC. All of these companies offer similar services, but each has its own unique selling points. LegalZoom.com Inc has to work hard to stay ahead of the pack and keep its customers happy.
– Automatic Data Processing Inc ($NASDAQ:ADP)
Automatic Data Processing, Inc. (ADP) is a provider of human resources (HR) management solutions and payroll services to businesses worldwide. The company operates in three segments: Employer Services, Professional Employer Organizations (PEO), and Other.
The Employer Services segment offers a range of HR management solutions, including payroll processing, benefits administration, talent management, and time and attendance solutions. The PEO segment provides HR outsourcing solutions to small and medium-sized businesses. The Other segment includes ADP’s dealer services business, which provides vehicle registration and related services to automobile and truck dealers in the United States.
ADP’s human resources management solutions are used by businesses of all sizes to manage their payroll and HR needs. The company’s payroll processing services are used by over 25 million employees worldwide. ADP also offers a suite of HR management solutions, including benefits administration, talent management, and time and attendance solutions.
– Upwork Inc ($NASDAQ:UPWK)
Upwork Inc is a publicly traded company that operates a freelancing platform. The company has a market cap of 1.73B as of 2022 and a Return on Equity of -18.44%. Upwork was founded in 2015 and is headquartered in Mountain View, California. The company operates a marketplace that connects businesses with freelance professionals. Upwork offers a range of services, including project management, talent acquisition, and payments.
– Homeserve PLC ($LSE:HSV)
Homeserve PLC is a UK-based home emergency and repairs service company. It has a market cap of 3.98B as of 2022 and a ROE of 26.75%. The company provides a range of services including plumbing, electrical, gas, heating, and drainage. It also offers home emergency cover, which provides customers with 24/7 access to a team of qualified tradespeople.
Summary
Investors may be interested in LEGALZOOM.COM as the company reported strong financial results for the third quarter of the 2023 fiscal year. Total revenue increased 8.3% to USD 167.3 million compared to the same quarter the year prior, while net income grew 174.5% to USD 7.5 million. This demonstrates the company’s success in expanding its customer base and gaining more market share. The firm appears to be on a solid trajectory for future growth, and investors may want to consider investing in LEGALZOOM.COM for long-term gains.
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