LegalZoom.com Inc. (NASDAQ:LZ) shares climbed 25.31% in after-hours trading on Tuesday to $12.75, following the company's third-quarter earnings report.
Check out the current price LZ of stock here.
Record Quarterly Revenue
The California-based company reported a record third-quarter revenue of $190.2 million, up 13% from a year earlier. Subscription revenue rose 13% to $125.4 million, while transaction revenue increased 12% to $64.8 million.
Raised Revenue Guidance
With an estimated 10% year-over-year growth at the halfway point, LegalZoom increased its full-year revenue guidance to a range of $748 million to $752 million.
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Noel Watson, chief operating officer and chief financial officer, said the company "delivered record third-quarter revenue as we execute on our strategic priorities and position our business for long-term growth."
Cash Flow Metrics
Free cash flow totaled $46.99 million for the quarter compared to $21.97 million in the same period last year. Operating cash flow reached $54.2 million, up 72% year-over-year.
Strategic Focus
According to chairman and CEO Jeff Stibel, the company is using AI and technology in conjunction with human expertise to target about 36 million small businesses that are currently operating in the United States, going beyond business formation.
During the quarter, the company also paid $17.6 million to buy back 1.8 million shares, with an average price of $9.91 per share.
Stock Performance
The stock of the online technology company is up 34.59% year to date.
With a market capitalization of $1.83 billion, LegalZoom's shares have traded in a 52-week range of $6.47 to $11.93.
Price Action: LZ closed on Wednesday at $10.18, down 2.57%, according to Benzinga Pro data.
With Momentum in the 81st percentile, Benzinga’s Edge Stock Rankings indicate that LZ is experiencing short-term consolidation along with medium and long-term upward movement. Track the performance of other players in this segment.
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