Legalzoom.com Stock Intrinsic Value – LegalZoom Reports 3% Increase in Revenue for Q2 2023
August 12, 2023
☀️Earnings Overview
On August 8, 2023, LEGALZOOM.COM ($NASDAQ:LZ) reported that for the fiscal year’s second quarter ending on June 30, their total revenue had increased by 3.0% to USD 168.8 million compared to the same period the year before. Net income witnessed a more significant increase of 110.6%, coming to USD 1.4 million.
Analysis – Legalzoom.com Stock Intrinsic Value
GoodWhale recently conducted an analysis of LEGALZOOM.COM‘s fundamentals. According to our proprietary Valuation Line, the fair value of LEGALZOOM.COM share is estimated to be around $16.8. Currently, LEGALZOOM.COM stock is traded at $15.4, which implies that the company’s shares are currently undervalued by 8.4%. This presents an excellent opportunity for investors who are looking for a potential buy-in on LEGALZOOM.COM stock. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Legalzoom.com. More…
| Total Revenues | Net Income | Net Margin |
| 636.69 | -11.2 | -1.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Legalzoom.com. More…
| Operations | Investing | Financing |
| 123.45 | -35.78 | -64.37 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Legalzoom.com. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 448.64 | 280.29 | 0.88 |
Key Ratios Snapshot
Some of the financial key ratios for Legalzoom.com are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.9% | – | -0.2% |
| FCF Margin | ROE | ROA |
| 15.2% | -0.4% | -0.2% |
Peers
In the world of online legal services, LegalZoom.com Inc is one of the biggest names. However, they face stiff competition from the likes of Automatic Data Processing Inc, Upwork Inc, and Homeserve PLC. All of these companies offer similar services, but each has its own unique selling points. LegalZoom.com Inc has to work hard to stay ahead of the pack and keep its customers happy.
– Automatic Data Processing Inc ($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
LegalZoom, a legal services provider, reported an increase in revenue of 3.0% for the second quarter of the 2023 fiscal year ending June 30. Net income saw an even more impressive jump of 110.6%, to USD 1.4 million, giving investors a positive outlook for the company’s future. With these figures in mind, LegalZoom looks to be a great investment opportunity with strong potential for continued growth and success. Analyzing the company’s financials and trends can help potential investors make better-informed decisions when considering investing in this business.
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